WELENT
Micro CapWelspun Enterprises Limited
Infra
Welspun Enterprises Limited (WELENT) is the infrastructure arm of the USD 5 Bn Welspun Group. It focuses on Roads, Water, and Tunnelling projects, employing an asset-light strategy. The company aims for value creation through selective bidding, efficient execution, and asset monetization, with a strong current order book.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +14% YoY · PAT +55% YoY · margin expansion · +52% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,199 Cr | +13.8% | +52.4% |
| EBITDA | ₹239 Cr | +30.6% | +55.2% |
| Operating margin | 20.0% | +300 bps | +0 bps |
| PAT | ₹163 Cr | +55.2% | +425.8% |
| PAT margin | 13.6% | +363 bps | +965 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
WELENT reported mixed FY26 consolidated results: Revenue from Operations declined 2% YoY to ₹3,615 Cr, but EBITDA grew 16% YoY to ₹845 Cr, with margins expanding 350 bps to 22.8%. Q4 FY26 saw strong growth, with Revenue up 14% YoY to ₹1,199 Cr and PAT up 54% YoY to ₹163 Cr.
Despite a full-year revenue dip, WELENT's strong Q4 performance, significant EBITDA margin expansion, and robust order book provide confidence. The focus on asset-light strategy and selective project bidding, particularly in Water and Tunnelling, positions the company for future growth. Execution and working capital management remain key.
Order Book by Segment
Latest issuer-disclosed distribution across 6 reported categories.
Water Infrastructure
PositiveExponential Budgetary surge for creating water infrastructure ~ ₹6 lakh crore between 2020-25, a ~6x increase over 2015-20.
Tunnelling Solutions
PositiveTunnelling is a solution for urbanization, with ~3,000 km in 10 years vs ~2,500 km in 75 years. Enhancing in-house specialized capabilities.
Roads (BOT/HAM)
PositiveClear focus on BOT (Toll) and HAM projects. Rapidly expanding highway network ~1,46,000 kms in 2025 to ~1,85,000 kms in 2030.
Asset Monetization
PositiveStrategy to monetize balance sheet heavy assets and remain 'Asset Light' to create value.
Pune Shirur Road Project (DBFOT)
New ProjectLOA received on April 29, 2026, for construction of a partially elevated highway corridor (53.4 km). Scheduled construction period is 48 months.
Aunta-Simaria (HAM)
CommissionedProject completed and inaugurated by PM. Completion Certificate received in March 2026. Concession period of 15 years after COD.
Sattanathapuram-Nagapattinam (HAM)
Under ExecutionProject is under execution, on the way to completion. EOT up to May 31, 2026, received.
Varanasi Aurangabad NH2 Project (EPC)
Under ExecutionTotal contract value ~₹3,266 Cr. EOT up to April 30, 2026, is under process with client.
Government Focus on Water Infrastructure
PositiveBudgetary surge for water infrastructure, ~₹6 lakh crore between 2020-25, a ~6x increase over 2015-20.
Expanding Highway Network
PositiveRapidly expanding highway network from ~1,46,000 kms in 2025 to ~1,85,000 kms in 2030.
Urbanization Driving Tunnelling Demand
PositiveTunnelling is a solution for urbanization, with ~3,000 km in 10 years as against ~2,500 km in 75 years.
Project Execution Delays
WatchSattanathapuram-Nagapattinam project received EOT up to May 31, 2026. Varanasi Aurangabad NH2 project EOT up to April 30, 2026, is under process.
Oil Block Investment Write-off
ConcernExceptional loss in FY26 on account of WEL’s 35% share in AWEL for the write-off relating to the Kutch oil block.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The investor presentation explicitly provides Q4 FY26 vs Q4 FY25 and FY26 vs FY25 comparisons for all financial metrics, indicating that year-over-year analysis is the intended and most relevant basis for assessing performance.
Consolidated Order Book
PositiveConsolidated order book stands at ~₹19,739 Cr as of March 31, 2026, including the Pune Shirur LOA. WMEL's order book is ~₹2,305 Cr.
Consolidated Revenue from Operations
MixedFY26 consolidated revenue declined 2% YoY to ₹3,615 Cr. Q4 FY26 consolidated revenue grew 14% YoY to ₹1,199 Cr.
Consolidated EBITDA Margin
PositiveFY26 consolidated EBITDA margin expanded 350 bps YoY to 22.8%. Q4 FY26 margin expanded 278 bps YoY to 22.0%.
Consolidated Net Debt
PositiveConsolidated Net Debt reduced to ₹43 Cr as of March 31, 2026, from ₹145 Cr in FY25. Standalone remains net cash positive at (₹1,579) Cr.
Strategic Focus on Asset-Light Model
PositiveStrategy to bid for selective projects, deploy right mix of contractors, manage/complete/stabilize projects, undertake O&M, and monetize balance sheet heavy assets to remain 'Asset Light'.
Strengthening O&M Capabilities
PositiveStrengthening O&M capabilities for a sustainable business model in Transport. Creating capacity for lifecycle O&M for various segments of Water projects.
Enhancing Tunnelling Capabilities
PositiveEnhancing in-house strong & specialized tunnelling capabilities to capitalize on urbanization trends.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated Order Book | ~₹19,739 Cr (as of March 31, 2026) | Sustained growth in order inflows, especially in high-margin Water and Tunnelling segments, and timely execution. |
| EBITDA Margin | 22.8% (FY26 Consolidated) | Maintenance or further expansion of margins, indicating effective cost control and project selection. |
| Net Debt Position | ₹43 Cr (FY26 Consolidated Net Debt) | Continued reduction in net debt, aligning with the asset-light strategy and efficient working capital management. |
| Project Execution Timelines | Sattanathapuram-Nagapattinam (EOT to May 2026), Varanasi Aurangabad NH2 (EOT under process to April 2026). | Timely completion of ongoing projects and avoidance of further delays or cost overruns. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
59NeutralSMA20 +4.7% / mo
Technical chart
WELENTweekly · 5Y+11.5%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 61.
- SMA20 rising (~4.5% over last month) — short-term momentum positive.
- RSI(14) at 61 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 7% off 52W high · 31% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 45.4%.
- Growth contributes 19/25 to the score.
Main drags
- Valuation is weaker at 12/30; verify the latest quarterly trend.
- Balance sheet is weaker at 6/15; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 46th percentile of the scored universe and 51st percentile within Infra. Main check: cash conversion is weak at 52/100.
Healthy Trust Lite: Promoter holding is 56.1%. Key concern: Operating cash flow is negative at ₹-273 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Infra: 51st pctile, median 65 · Micro: 30th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 56.1%.
- ▸Promoter pledge is zero.
- ▸4 years of positive FCF.
Trust risks
- ▸Operating cash flow is negative at ₹-273 Cr.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 18.70
- P/B
- 2.41
- EV/EBITDA
- 11.11
- Market Cap
- 7356.00Cr
Profitability
- ROE
- 14.10%
- ROCE
- 16.80%
- ROA
- 5.36%
- Dividend Y
- 0.56%
Growth (CAGR)
- Revenue 5Y
- 19.00%
- EPS 5Y
- 25.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 13.00%
Balance Sheet
- Debt/Equity
- 0.49
- Interest Coverage
- 3.77×
- Altman Z
- 2.56
- Book Value
- 220.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 4/5
- OCF
- 112.00 Cr
- EPS TTM
- 25.28
Shareholding
- Promoter Hold
- 56.13%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 74%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Infra — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.