Welspun Enterp Q2 FY27 Results (NSE: WELENT)
Signal: Growth reaccelerated
The read
The headline inflection is a sharp Q2FY27 profit and margin rebound, but it is transaction-led: reported EBITDA margin expanded to 39.5% from 23.9% and PAT to ₹295.55 crore from ₹98.08 crore because of the ₹194.27 crore MCP divestment gain; underlying EBITDA margin of 26.2% is above the prior-year reported level but below the headline figure, making execution and future asset monetisation the key trajectory variables.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,034.58 Cr | +32.0% | +33.7% |
| Net profit | ₹295.55 Cr | +201.4% | |
| EPS | ₹21.45 | +224.7% | |
| EBIT margin | 39.5% |
P&L walk
Revenue increased to ₹1,034.58 crore, +32% YoY, but the ₹194 crore MCP divestment gain lifted reported EBITDA to ₹425 crore, +122% YoY, and PAT to ₹295.55 crore, +201% YoY; excluding the gain, EBITDA was ₹231 crore and margin 26.2%.
Key positives
- Underlying EBITDA excluding the MCP transaction was ₹231 crore with a 26.2% margin, indicating operating profitability remained above the 23.9% Q2FY26 reported margin even after stripping out the one-off gain.
- H1FY27 revenue reached ₹1,808.30 crore, +11% YoY, while H1 EBITDA rose 53% YoY to ₹610 crore and H1 EBITDA margin was 32.4%.
- The order book stood at ₹18,708 crore and WMEL secured ₹428 crore of pipeline rehabilitation orders, supporting medium-term execution visibility.
- Cash and cash equivalents of ₹1,432 crore against gross debt of ₹1,882 crore, alongside net worth of ₹3,581 crore, strengthen capacity for capital recycling.
Key concerns
- Reported Q2 EBITDA included a ₹194.27 crore MCP divestment gain, lifting EBITDA margin to 39.5%; the underlying margin was 26.2%, so headline profitability is not recurring operating earnings.
- Revenue growth of 32% was substantially transaction-driven, while finance costs rose 19.1% YoY to ₹62.57 crore and discontinued operations recorded a ₹3.43 crore loss.
- PPE declined to ₹140.72 crore from ₹148.50 crore while CWIP rose only to ₹9.70 crore, indicating limited evidence of a broad new asset deployment cycle.
Research and educational content only. Not investment advice.