At a Glance
Welspun Corp is flexing hard this quarter. Q1 FY26 delivered 13% revenue growth to ₹3,551 Cr and 40.8% PAT jump to ₹349 Cr. The company posted its highest-ever EBITDA at ₹560 Cr while simultaneously upsizing an order worth ₹735 Cr. Add to that a mammoth ₹19,000 Cr order book and an expanding product portfolio – and suddenly, this isn’t just a pipe dream. The stock surged 7% because investors love companies that can actually deliver (unlike most politicians).
1. Introduction
Welspun Corp, part of the Welspun Group, is a global leader in large-diameter pipes. But unlike a boring pipe, its growth story is anything but linear. From steel billets to ductile iron pipes to plastic water tanks (thanks, Sintex acquisition), WCL has diversified like an overachieving MBA student.
FY25 was already a blockbuster, and Q1 FY26 cements its position. With global infrastructure spending up, oil & gas demand recovering, and its own product diversification in full swing, Welspun is not just riding the wave – it’s building the wave.
2. Business Model (WTF Do They Even Do?)
WCL is in the business of making and selling things that move fluids, gas, and money:
- Pipes (SAW/ERW): Core business, serving oil, gas, and water sectors.
- Steel Billets & TMT Rebars: Construction-grade steel.
- Ductile Iron Pipes & Stainless Tubes: High-margin segments.
- Building Materials: Via Sintex – water tanks and plastic products.
- Shipyard Assets: Strategic ABG Shipyard acquisition – future play.
3. Financials Overview
Q1 FY26 highlights:
- Revenue: ₹3,551 Cr (+13% YoY)
- EBITDA: ₹560 Cr (record high, margin 15%)
- PAT: ₹349 Cr (+41% YoY)
- EPS: ₹13.3
For FY25, revenue was ₹13,978 Cr (-19%) but PAT jumped to ₹1,902 Cr, aided by exceptional other income. Margins improved sharply, showing strong operational control.
4. Valuation
Valuation looks reasonable, especially given growth:
- P/E Method: EPS ₹76.6 × sector multiple 18 → ₹1,380
- EV/EBITDA: EBITDA ₹1,819 Cr × 8 → EV ₹14,552 Cr → ₹1,050/share
- DCF: Assuming 12% growth, discount 10% → ₹1,200
Fair Value Range: ₹1,050 – ₹1,300
CMP ₹924 = still undervalued with room to run.
5. What’s Cooking – News, Triggers, Drama
- Order Book: ₹19,000 Cr ensures revenue visibility till FY27.
- Order Upsizing: Additional ₹735 Cr from US client.
- Capacity Expansion: ₹450 Cr capex in FY26.
- Sintex Integration: Expanding building materials play.
- Risks: Global demand volatility, raw material prices.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 15,274 | 11,813 | 15,201 |
| Liabilities | 7,180 | 4,249 | 6,635 |
| Net Worth | 4,582 | 5,467 | 7,313 |
| Borrowings | 3,381 | 1,967 | 1,122 |
Auditor’s Roast: Borrowings down, net worth up – someone’s been hitting the gym.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | -185 | 1,306 | 1,504 |
| Investing | -348 | 373 | 194 |
| Financing | 909 | -1,877 | -1,369 |
Commentary: Huge ops cash flow in FY24-FY25, financing outflows due to debt repayment and dividends.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 6% | 20% | 19% |
| ROCE | 6% | 20% | 21% |
| P/E | 14 | 13 | 15 |
| PAT Margin | 1.4% | 13.6% | 13.9% |
| D/E | 0.6 | 0.4 | 0.15 |
Verdict: Ratios are shining brighter than polished steel.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 9,758 | 17,340 | 13,978 |
| EBITDA | 494 | 1,561 | 1,684 |
| PAT | 199 | 1,136 | 1,902 |
Commentary: EBITDA and PAT surged despite revenue fluctuations – efficiency wins.
10. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| APL Apollo | 20,885 | 801 | 53 |
| Ratnamani Metals | 5,186 | 542 | 34 |
| Jindal Saw | 20,829 | 1,473 | 9 |
| Welspun Corp | 14,392 | 2,004 | 15 |
Commentary: Strong PAT at modest P/E – investor sweet spot.
11. Miscellaneous – Shareholding, Promoters
- Promoters: 49.8% (stable)
- FIIs: 12.1%
- DIIs: 20.7%
- Public: 17.3%
Institutional investors clearly like the pipeline story.
12. EduInvesting Verdict™
Welspun Corp is firing on all cylinders – record EBITDA, healthy margins, and a massive order book that’s basically revenue-on-reserve. Debt reduction and strong cash flows add to the bullish case.
SWOT Snapshot:
- Strengths: Global leadership, order book visibility, strong balance sheet.
- Weaknesses: Cyclical demand, reliance on large projects.
- Opportunities: Expansion into building materials, new geographies.
- Threats: Commodity price swings, global recession risk.
In short, Welspun is rolling out growth like its pipes – seamless and high-pressure ready.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Welspun Corp, Pipe Manufacturing, Q1 FY26 Results, Stock Analysis
