Walchandnagar Industries Ltd Q1 FY26 (FY25): ₹49 Cr Sales, ₹-10 Cr PAT, OPM -27% – Heavy Engineering ya Heavy Bleeding?
1. At a Glance
Imagine a 117-year-old grandparent still trying to run a marathon with titanium knees and a pacemaker. That’s Walchandnagar. Sales halved, profits turned into bonfire ash, and promoters pledged half their stake like it’s a chit fund. Market cap is still ₹1,416 Cr because retail loves nostalgia — “Arre yeh toh ISRO ka vendor hai!” Great. But ISRO contracts can’t pay for negative ROE of -25%.
2. Introduction
Founded in 1908, WIL is older than Indian Railways’ pantry menu. It has survived two world wars, five recessions, multiple license rajs, and still can’t make profits in FY25.
The company claims “diversified business”: heavy engineering, foundry & machine shop, aerospace, and now investing in some AI startup (AiCitta) because why not — if you can’t make profits drilling gears, just buy a chatbot company.
In FY25, sales fell 27% to ₹229 Cr. PAT = -₹99 Cr. That’s not a company, that’s a blood donation camp. And promoters pledged 49.2% of holding — half their shares are essentially in pawn shop.
But investors still fantasize: “One day, DRDO order milega, ISRO rocket ka gear banega, aur stock upar jayega.” Reality check: DRDO may launch rockets, but your portfolio here may not.
3. Business Model – WTF Do They Even Do?
Heavy Engineering (77% revenue): Think giant kilns, cement plants, defense parts, nuclear reactors. Basically, things you and I can’t buy on Amazon.
Others (9%): Everything from random scrap sales to “misc income” to selling real estate.
Revenue Split FY25:
Domestic 96% (import substitution dream).
Exports 4% (global recognition = zero).
So WIL is the mechanical equivalent of your neighborhood uncle who says, “Main sab kuch banata hoon — pump, motor, car, plane.” But when you ask revenue, he says, “Beta, bas ₹229 Cr. Aur loss ₹99 Cr.”
4. Financials Overview
Quarterly Comparison (₹ Cr)
Metric
Q1 FY26 (Jun 25)
Q1 FY25 (Jun 24)
Q4 FY25 (Mar 25)
YoY %
QoQ %
Revenue
49.4
79.0
53.0
-37.6%
-6.8%
EBITDA
-2.0
-13.0
-47.0
+84.6%
+95.7%
PAT
-10.4
-2.0
-56.0
-420%
+81.4%
EPS (₹)
-1.53
-0.31
-8.32
-394%
+81.6%
Commentary:
YoY sales tanked 38%. QoQ slightly better (loss reduced from -56 Cr to -10 Cr).
EPS = negative, so P/E = “P/E not meaningful.”
Annualised EPS = -₹6.1 → negative equity romance.
Question: Would you pay ₹209/share for a company that loses ₹6 per year per share?
5. Valuation Discussion – Fair Value Range
Method 1: P/E EPS = negative → P/E = not meaningful. Move on.
Method 3: DCF (detective comedy flow) Even if revenue grows 15% CAGR, profitability is nowhere in sight. At 10% WACC, DCF gives value = scrap price of machinery
