WELENT - Welspun Enterp

📊 NSE: WELENT 🏢 Construction 📅 Last Updated: 12/14/2025 15:15

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY24 was INR 2,872 Cr, showing flat growth compared to INR 2,677 Cr in FY23 due to execution delays. FY25 revenue is projected to grow ~28% to INR 3,695 Cr. The order book is dominated by the Water segment at 76% (INR 11,552 Cr) and Roads at 24% (INR 3,648 Cr).

Geographic Revenue Split

Highly concentrated geographic footprint with 85% of the total order book value originating from two states: Uttar Pradesh and Maharashtra. The company also operates in three other states, primarily in Northern India.

Profitability Margins

PAT margin was 26.6% in FY23 (INR 713 Cr) but was heavily influenced by exceptional gains of INR 473 Cr from asset sales. 9M FY24 PAT stood at INR 221 Cr. PAT margin for FY22 was 7.1% (INR 93 Cr).

EBITDA Margin

EBITDA margin for FY24 was 15% (INR 616 Cr). FY25 EBITDA is projected at INR 730 Cr with margins expected to stabilize at 12-13% over the medium term, supported by high-margin tunneling projects from subsidiary Welspun Michigan Engineers Ltd (WMEL).

Capital Expenditure

The company follows an asset-light model with no major manufacturing capex. However, it has an annual equity commitment of INR 400-500 Cr for bidding on new Build-Operate-Transfer (BOT) projects worth INR 4,000-5,000 Cr.

Credit Rating & Borrowing

CRISIL AA-/Stable (Long Term) and CRISIL A1+ (Short Term/Commercial Paper). Interest coverage ratio was 3.98x as of March 2024. Gearing is very low at 0.07x due to successful asset monetization.

⚙️ Operational Drivers

Raw Materials

Construction materials including steel, cement, and specialized water pipes represent the primary input costs, though specific % splits are not disclosed. Sub-contracting costs are a major operational driver.

Import Sources

Primarily sourced domestically within India, specifically from states where projects are located such as Maharashtra and Uttar Pradesh to optimize logistics.

Key Suppliers

Not disclosed in available documents; however, Welspun Michigan Engineers Ltd (WMEL) acts as a key internal sub-contractor for specialized tunneling.

Capacity Expansion

Current order book stands at INR 15,200 Cr as of September 30, 2024, providing a revenue visibility of 4.5x. The company plans to expand its order book by bidding for an additional INR 65,000-70,000 Cr in projects over the medium term.

Raw Material Costs

Not disclosed as a specific % of revenue, but the company uses cost-recovery mechanisms from sub-contractors to manage margin volatility.

Manufacturing Efficiency

Operates an asset-light EPC model; efficiency is measured by project execution timelines and the 4.5x order book-to-revenue ratio.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be driven by executing the INR 15,200 Cr order book, specifically the Dharavi Wastewater Treatment Plant (INR 4,630 Cr) and UP Jal Jeevan Mission. The company is targeting new BOT projects worth INR 4,000-5,000 Cr and leveraging WMEL's tunneling expertise for higher-margin urban infra.

Products & Services

Engineering, Procurement, and Construction (EPC) services for Roads, Highways, Wastewater Treatment Plants (WWTP), Water Treatment Plants (WTP), and specialized Tunneling.

Brand Portfolio

Welspun, Welspun Michigan Engineers Ltd (WMEL).

New Products/Services

Multi-storied Wastewater Treatment Plants (India's first in Dharavi) and specialized micro-tunneling services.

Market Expansion

Targeting the INR 18 Lakh Cr infrastructure opportunity in India, with a specific focus on expanding the Water and Transport addressable markets (TAM) of INR 2.5 Lakh Cr.

Market Share & Ranking

Leading player in specialized water treatment; developer of India's largest multi-storied WWTP (Dharavi) and largest WTP (Bhandup).

Strategic Alliances

Joint Venture with Adani Group (Adani Welspun Enterprise Ltd) for Oil & Gas exploration (4 blocks).

🌍 External Factors

Industry Trends

The industry is shifting toward specialized water treatment and urban tunneling. The highway network is expected to expand from 146,000 km in 2025 to 185,000 km by 2030, favoring well-capitalized players.

Competitive Landscape

Intense competition from other large EPC players in tender-based bidding, which restricts operating margins to the 10-12% range.

Competitive Moat

Sustainable moat through an asset-light model (TOL/TNW < 0.7x) and specialized technical qualifications for large-scale water projects that prevent smaller competitors from bidding.

Macro Economic Sensitivity

Highly sensitive to Central and State Government infrastructure spending and budgetary allocations for the Jal Jeevan Mission and NHAI.

Consumer Behavior

Not applicable as the business is B2B/B2G.

Geopolitical Risks

Minimal for core EPC business as it is 100% domestic; however, the Oil & Gas JV blocks are subject to global energy price volatility and regulatory exploratory risks.

⚖️ Regulatory & Governance

Industry Regulations

Subject to NHAI bidding norms, environmental clearances for tree cutting (which delayed the Dharavi project), and state-specific labor and pollution standards.