Welspun Enterprises Ltd: ₹13,665 Cr Order Book, 24% EBITDA Margin – The HAM King That Hates Low Returns
At a Glance
Welspun Enterprises, the HAM (Hybrid Annuity Model) specialist, just dropped Q1 FY26 with a ₹101 Cr PAT and 23.9% EBITDA margin, all while flaunting an order book of ₹13,665 Cr. Stock at ₹464 trades at a decent P/E of 18.5, but investors are scratching their heads – growth is solid, yet the working capital days ballooned to 92, choking cash flows like an over-stuffed pipeline.
Introduction
From building roads to water projects, Welspun Enterprises (WEL) plays in India’s infrastructure sandbox with a mix of EPC, BOT, and HAM projects. Backed by the Welspun Group, it’s like the younger cousin who’s actually doing homework. The stock’s 3-year CAGR of 61% shows investors love the story, but FY25 cash flow swings and rising WC days signal it’s not all tarmac and sunshine.
Business Model (WTF Do They Even Do?)
HAM Projects: Government pays part upfront, WEL builds the rest and maintains it.
BOT-Toll & EPC: Smaller share, but still adds spice.
Oil & Gas Ventures: A side hustle with potential, but low visibility.
Roast: WEL is basically a contractor with a fancy payment plan – predictable annuity streams, but high upfront capital needs.
Financials Overview
Source table
₹ Cr
FY23
FY24
FY25
TTM
Revenue
2,758
2,872
3,695
3,554
EBITDA
247
425
631
593
EBITDA %
9%
15%
17%
17%
Net Profit
726
319
354
345
ROE %
48%
21%
23%
22%
Comment: Margins improving, PAT steady, but FY23 one-off made ROE look like Usain Bolt.
