Welspun Corp Q1 net profit rises 200.11% to Rs 1,047.88 cr
Consolidated revenue rose 14.91% year on year to Rs 4,081.12 cr, while operating margin improved to 13.89%.
Filed 24 Jul 2026, 14:11 IST · Welspun Corp Ltd (WELCORP)
Key takeaways
- Consolidated operating profit recovered to Rs 566.76 cr as revenue rose +14.91% YoY while expenses fell -8.52%.
- Net profit rose +200.11% YoY to Rs 1,047.88 cr, far ahead of the +42.30% increase in profit before tax.
- The stock fell -1.35% initially, a smaller move than its 3.96% median absolute reaction after the past eight results.
Price around the results
Operating recovery continues despite a sequential revenue dip
Welspun Corp's consolidated revenue fell -5.37% QoQ but increased +14.91% YoY to Rs 4,081.12 cr. Operating profit rose from a loss of Rs 290.39 cr in Q1FY26 to Rs 566.76 cr, as expenses declined -8.52% YoY. The operating margin improved 22.07 percentage points YoY to 13.89%.
Costs tracked revenue sequentially, keeping margin broadly stable
Sequentially, expenses fell -5.40%, slightly faster than the -5.37% revenue decline, so operating margin edged up 0.03 percentage points. Interest expense fell -7.70% QoQ and the tax rate declined 6.19 percentage points to 27.16%, which supported the sequential increase in profit before tax and net profit. Depreciation, however, rose +33.91% QoQ.
Margin has improved for four consecutive quarters
Operating margin moved from -8.18% in Q1FY26 to 10.09% in Q2FY26, 13.44% in Q3FY26, 13.86% in Q4FY26 and 13.89% in Q1FY27. The latest quarter therefore extends the recovery, although the sequential gain was marginal. The company's 13.89% margin was 6.44 percentage points above the 7.45% median for the 11 Industrials peers that had reported.
Management pairs FY27 targets with Sintex expansion
Management said its FY27 guidance is revenue of Rs 20,000 cr and EBITDA of Rs 2,850 cr, and that it targets net debt to EBITDA below 1x. The company said Sintex added outlets for economy-segment water tanks, introduced the Eterno product with a 50-year warranty and is expanding contractor-plumber engagement. Management also said geopolitical uncertainty and tariffs are affecting export sentiment for stainless steel products.
Initial stock reaction was muted against its results history
The stock fell -1.35% on the initial reaction, with a -0.99% gap and a -0.92% relative move. Across the past eight results, reactions were evenly split between four rises and four falls, while the median absolute move was 3.96%. The current move was therefore smaller than the stock's usual post-results swing.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,081 cr | ₹4,313 cr | -5.37% | +14.91% |
| Other income | ₹64 cr | ₹36 cr | +79.14% | +82.10% |
| Expenses | ₹3,514 cr | ₹3,715 cr | -5.40% | -8.52% |
| Operating profit | ₹567 cr | ₹598 cr | -5.18% | — |
| Operating margin (%) | 13.89% | 13.86% | — | — |
| Interest | ₹45 cr | ₹49 cr | -7.70% | -28.49% |
| Depreciation | ₹125 cr | ₹93 cr | +33.91% | +46.95% |
| Profit before tax | ₹586 cr | ₹397 cr | +47.54% | +42.30% |
| Tax | ₹159 cr | ₹133 cr | +20.14% | +42.33% |
| Net profit | ₹1,048 cr | ₹371 cr | +182.10% | +200.11% |
| EPS (₹) | ₹39.68 | ₹14.04 | +182.62% | +197.90% |
Operating margin of 13.89% compares with a Industrials sector median of 7.45% across 11 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.35% | -0.92% |
Volume on the results session was 0.55× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- FY27 guidance is revenue of INR 20,000 crore and EBITDA of INR 2,850 crore.
- The company targets net debt to EBITDA below 1x.
Expansion
- Sintex added new outlets for its economy-segment water storage tanks during the quarter.
New products
- Sintex has received approvals and accreditation for OPVC pipes across states, with momentum described as strong.
New initiatives
- Sintex introduced Sintex Eterno with an industry-first 50-year warranty for water storage tanks.
- Sintex is using an integrated multimedia campaign to build premium visibility and consumer engagement for water storage tanks.
- Sintex is deepening contractor-plumber engagement and expanding its channel.
Problems & risks
- Geopolitical uncertainties and tariffs are impacting export sentiment for stainless steel products.
What to watch
- Whether operating margin holds above 13.89% after four consecutive quarters of improvement.
- Whether revenue momentum improves after the -5.37% QoQ decline.
- Progress toward the company's stated FY27 guidance of Rs 20,000 cr revenue and Rs 2,850 cr EBITDA.