A small-cap stock has come into focus after the company projected a revenue target of Rs.17,500 crores for FY26, backed by strong growth momentum and a promising CAGR outlook. This ambitious guidance highlights the company’s confidence in its expansion plans and market positioning.
During Friday’s trading session, the shares of Welspun Corp Ltd reached an intraday high of Rs.990.00 apiece, rising 0.3 percent from the previous close of Rs.962.35 apiece. The share has retreated since the peak and closed at Rs.965.30 per share.
Future Outlook
Welspun Corp has outlined its FY26 guidance, projecting revenues of Rs.17,500 crore, a 25 percent increase over FY25 actuals of Rs.13,978 crore. The company also aims for an EBITDA of Rs.2,200 crore, reflecting an 18 percent growth from FY25’s Rs.1,858 crore.
For FY26, Welspun Corp targets a Return on Capital Employed (ROCE) exceeding 20 percent, building on FY25’s 21 percent. This aligns with the company’s consistent guidance of 20 percent ROCE for FY25, showcasing sustained profitability.
The company expects its Net Debt/EBITDA ratio to remain below 1.0 in FY26, an improvement from FY25’s (0.6). This reflects Welspun Corp’s disciplined financial strategy and commitment to maintaining a healthy balance sheet.
Historically, Welspun Corp couldn’t meet its FY25 revenue guidance of Rs.17,000 crore. The FY26 guidance underscores the company’s confidence in achieving steady growth while enhancing operational efficiency.
Welspun Corp has reported a robust order book valued at approximately Rs.19,553 crore as of May 30, 2025. This includes line pipes totaling 1093 KMT, DI pipes at 353 KMT, and SS bars and pipes at 9025 MT, reflecting the company’s strong position across diverse product segments. The substantial order book underscores Welspun Corp’s ability to secure significant contracts and maintain a healthy pipeline, supporting its growth trajectory in the competitive market.
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Business Highlights
The company continues to strengthen its presence across core geographies, India, the USA, and KSA, by enhancing visibility and maintaining a strong focus on key product segments. Strategic projects in these regions are progressing as planned, with additional initiatives launched to reinforce its leadership in high-priority business areas.
Despite a capital expenditure of around Rs.900 crores in FY25, the company successfully reduced gross debt by approximately Rs.1,000 crores. The Board has recommended a 100 percent dividend of Rs.5 per share, while its associate, East Pipes Integrated Company in KSA, posted record revenue and profitability growth during the year.
Financial Performance
In Q4 FY25, Welspun Corp Limited recorded revenue of Rs.3,924.97 crore, marking a 12.02 percent year-on-year decline from Rs.4,461.17 crore in Q4 FY24. Sequentially, revenue grew by 8.62 percent from Rs.3,613.51 crore in Q3 FY25, indicating a moderate growth in operational performance.
The company posted a net profit of Rs.699.19 crore in Q4 FY25, showing a 143.38 percent year-on-year increase from Rs.287.28 crore in the same quarter last year. On a sequential basis, net profit rose by 4.02 percent from Rs.672.19 crore in Q3 FY25, reflecting consistent earnings momentum.
Written by – Siddesh S Raskar
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