Revenue and Profitability Trends
Welspun Corp’s net sales have exhibited notable volatility, peaking at ₹17,340 crores in March 2024 before moderating to approximately ₹13,978 crores in March 2025. Earlier years saw a steady rise from ₹8,953 crores in 2019 to nearly ₹9,957 crores in 2020, followed by a dip and recovery pattern through subsequent years. This fluctuation reflects the cyclical nature of the steel and infrastructure sectors in which the company operates.
Operating profit margins, excluding other income, have varied significantly, reaching a high of 11.93% in the latest fiscal year and dipping to a low of 4.97% in 2023. The gross profit margin similarly fluctuated, with a peak of 17.74% in 2021 and a recent figure of 14.34% in 2025, indicating periods of improved cost control and pricing power.
Profit after tax (PAT) margins have mirrored these trends, with a substantial increase to 13.61% in 2025 from a low of 2.04% in 2023. Consolidated net profit surged to ₹1,908 crores in 2025, nearly doubling from ₹1,110 crores in 2024 and significantly improving from a modest ₹207 crores in 2023. Earnings per share (EPS) followed suit, rising sharply to ₹72.74 in 2025 from ₹42.44 the previous year.
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Cost Structure and Expenditure
The company’s raw material costs have generally tracked revenue movements, with ₹9,576 crores recorded in 2025 compared to ₹10,652 crores in 2024. Other expenses have remained substantial, amounting to ₹2,436 crores in 2025, slightly lower than the previous year’s ₹2,741 crores. Employee costs have risen steadily, reflecting workforce expansion or wage inflation, reaching ₹1,003 crores in 2025.
Interest expenses have increased moderately to ₹320 crores in 2025 from ₹304 crores in 2024, while depreciation charges have remained relatively stable around ₹350 crores annually. Exceptional items impacted profitability notably in 2025, with a charge of ₹466 crores, contrasting with no such items in prior years.
Balance Sheet and Financial Position
Welspun Corp’s shareholder funds have grown robustly, rising from ₹3,215 crores in 2020 to ₹7,463 crores in 2025, supported by increasing reserves. The company’s total liabilities have expanded in line with asset growth, reaching ₹15,201 crores in 2025. Notably, total debt has declined significantly from a peak of over ₹3,300 crores in 2023 to ₹924 crores in 2025, indicating a focus on deleveraging.
Net block assets have nearly tripled since 2020, standing at ₹4,353 crores in 2025, reflecting capital investments and capacity expansion. Capital work in progress surged to ₹785 crores in 2025, suggesting ongoing projects. Current assets have also increased, with cash and bank balances rising to ₹1,255 crores, enhancing liquidity.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has shown a positive trajectory, reaching ₹1,503 crores in 2025, up from ₹1,305 crores in 2024 and recovering from negative cash flow in 2023. Investing activities have turned positive in 2025 with ₹193 crores inflow, reversing prior years’ outflows, while financing activities reflect repayments with a net outflow of ₹1,369 crores in 2025.
The company’s net cash inflow of ₹328 crores in 2025 marks a significant improvement over the previous year’s outflow, bolstering its cash position to ₹1,147 crores at fiscal year-end. This enhanced liquidity supports operational flexibility and potential future investments.
Summary of Historical Performance
Over the past six years, Welspun Corp has experienced a cyclical but generally upward trend in financial performance. Despite fluctuations in revenue and profitability, the company has strengthened its balance sheet, reduced debt, and improved cash flow generation. Margins have expanded notably in recent years, reflecting operational efficiencies and market conditions. The company’s investments in fixed assets and working capital indicate a strategic focus on growth and capacity enhancement.
Investors analysing Welspun Corp should consider its demonstrated ability to rebound from downturns, manage costs effectively, and maintain a solid financial foundation. The recent surge in net profit and EPS underscores a positive momentum that could bode well for future performance, subject to sectoral and macroeconomic factors.
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