Management Commentary

Mr. Sandeep Garg, Managing Director, stated that Q2 FY27 revenue grew by 32% YoY and EBITDA by 122% YoY, reflecting the company's business model of recognizing profits during construction phase and subsequently through equity returns via monetization. H1FY27 revenue grew 11% YoY, in line with stated guidance, with EBITDA margin of 32.4% well above guidance. The strong performance strengthened the Balance Sheet with cash and cash equivalents of ₹1,432 crore and net worth of ₹3,581 crore as of September 30, 2026. CRISIL upgraded the company's long-term credit rating from 'AA-' to 'AA' with a 'Stable' outlook.

Strategic Development

Directorate General of Hydrocarbons (DGH) approved the utilization of ONGC's existing facilities by Adani Welspun Exploration Ltd (AWEL) to evacuate and process gas from its Mumbai block on toll basis. This is expected to substantially reduce AWEL's risk and capital investment and accelerate the milestone towards first gas production.

Financial Performance - Consolidated (₹ crore)

Q2FY27 vs Q2FY26:

  • Revenue from Operations: 1,035 vs 784 (32% growth)
  • Other Income: 41 vs 19 (112% growth)
  • Total Income: 1,076 vs 803 (34% growth)
  • EBITDA: 425 vs 192 (122% growth)
  • EBITDA Margin: 39.5% vs 23.9% (1,564 bps improvement)
  • Profit Before Tax: 351 vs 126 (179% growth)
  • Tax: 52 vs 30 (73% growth)
  • Profit After Tax: 296 vs 98 (201% growth)

H1FY27 vs H1FY26:

  • Revenue from Operations: 1,808 vs 1,629 (11% growth)
  • Other Income: 76 vs 45 (69% growth)
  • Total Income: 1,884 vs 1,674 (13% growth)
  • EBITDA: 610 vs 399 (53% growth)
  • EBITDA Margin: 32.4% vs 23.9% (852 bps improvement)
  • Profit Before Tax: 473 vs 279 (69% growth)
  • Tax: 83 vs 70 (19% growth)
  • Profit After Tax: 352 vs 199 (77% growth)

Financial Performance - Standalone (₹ crore)

Q2FY27 vs Q2FY26:

  • Revenue from Operations: 909 vs 593 (53% growth)
  • Other Income: 44 vs 25 (79% growth)
  • Total Income: 954 vs 618 (54% growth)
  • EBITDA: 395 vs 116 (240% growth)
  • EBITDA Margin: 41.4% vs 18.8% (2,261 bps improvement)
  • Profit Before Tax: 370 vs 95 (288% growth)
  • Tax: 70 vs 22 (215% growth)
  • Profit After Tax: 300 vs 73 (310% growth)

H1FY27 vs H1FY26:

  • Revenue from Operations: 1,453 vs 1,197 (21% growth)
  • Other Income: 82 vs 57 (44% growth)
  • Total Income: 1,535 vs 1,254 (22% growth)
  • EBITDA: 494 vs 240 (106% growth)
  • EBITDA Margin: 32.2% vs 19.2% (1,305 bps improvement)
  • Profit Before Tax: 452 vs 212 (113% growth)
  • Tax: 91 vs 52 (75% growth)
  • Profit After Tax: 361 vs 160 (125% growth)

Balance Sheet Position (as of September 30, 2026)

Consolidated:

  • Net Worth: ₹3,581 crore (vs ₹3,261 crore as of March 31, 2026)
  • Gross Debt: ₹1,882 crore
  • Long Term Debt: ₹1,838 crore
  • Short Term Debt (Working Capital Loan): ₹44 crore
  • Cash & Cash Equivalents: ₹1,432 crore
  • Net Debt/(Cash): ₹450 crore

Standalone:

  • Net Worth: ₹3,481 crore (vs ₹3,152 crore as of March 31, 2026)
  • Cash & Cash Equivalents: ₹1,288 crore
  • Net Debt/(Cash): (₹1,288) crore

Business Updates

Order Book: Diversified order book of ₹18,708 crore across segments provides strong growth visibility.

Water Projects Progress:

  • Dharavi Waste Water Treatment Plant: Expected completion by July 2027
  • Panjrapur Water Treatment Plant: Expected completion by April 2031
  • Bhandup Waste Water Treatment Plant: Expected completion by July 2029
  • Uttar Pradesh Jal Jeevan Mission: ~80% physical progress achieved, 453 schemes (of 1,068) completed

Tunneling, Pipeline Rehabilitation & Pumping Stations:

  • Successful completion of tunnel drive from Don Bosco to New Malad IPS under Priority Sewer Tunnel Phase-I
  • Dharavi Ghatkopar Tunnel: All clearances in place, execution in progress
  • Pipeline Rehabilitation: 6 projects under execution
  • Pumping Stations: 3 projects under execution, 3 projects under O&M

Transportation Projects:

  • Pune - Shirur Road Project: Sub concession agreement executed & debt sanction received
  • Varanasi - Aurangabad Road Project: Project completed, expected completion certification
  • Sattanathapuram - Nagapattinam Road Project: Advanced stage of completion
  • Aunta- Simaria Road Project: Divestment underway

WMEL Business Performance

Welspun Michigan Engineers Ltd (60.09% subsidiary) financials (₹ crore):

Q2FY27 vs Q2FY26:

  • Revenue from Operations: 139 vs 169 (-18%)
  • EBITDA: 25 vs 35 (-30%)
  • EBITDA Margin: 18.0% vs 21.7% (-272 bps)

H1FY27 vs H1FY26:

  • Revenue from Operations: 318 vs 377 (-16%)
  • EBITDA: 63 vs 81 (-22%)
  • EBITDA Margin: 19.8% vs 21.5% (-167 bps)

Order Book: ~₹2,279 crore as on September 30, 2026

Break-up: Tunnel (53%), Pumping (21%), Pipeline Rehabilitation (19%), Others (7%)

ESG Update

  • Sustainalytics ESG Risk Rating improved from '36' in June 2024 to '32.4' in June 2026
  • CRISIL ESG Score improved from '55' in 2025 to '60' in 2026
  • Carbon Reduction: 24,414 tCO₂e avoided & sequestered (includes 6,414 tCO₂e from 17,964 kW solar installation)
  • Water: 8,248 KL construction water saved, 3.95 lakh KL rainwater harvested
  • Circularity: 10 lakh+ MT pond ash used, 18,647 MT fly ash used, 122 MT (64%) construction & demolition, plastic and paper waste recycled/reused

Awards

  • Triple win at IINA 2026 for Aunta–Simaria project
  • The Green Awards 2026 Circular Economy Leadership Award presented by CISD and Haridaya Charitable Trust