Key Financial Figures (INR Millions)

Q2 FY27 Performance (Quarter ended September 30, 2026)

  • Total Income: ₹2,420 Mn (vs. ₹2,427 Mn in Q2 FY26; 0% YoY change | vs. ₹1,975 Mn in Q1 FY27; 23% QoQ growth)
  • Reported EBITDA: ₹44 Mn (vs. ₹181 Mn in Q2 FY26; -75% YoY | vs. ₹143 Mn in Q1 FY27; -69% QoQ)
  • Profit Before Tax (PBT): Loss of ₹(38) Mn (vs. Profit of ₹96 Mn in Q2 FY26)
  • Profit After Tax (PAT): Loss of ₹(45) Mn (vs. Profit of ₹96 Mn in Q2 FY26)
  • Cash PAT: ₹10 Mn (vs. ₹137 Mn in Q2 FY26; -93% YoY | vs. ₹91 Mn in Q1 FY27; -90% QoQ)

H1 FY27 Performance (Half year ended September 30, 2026)

  • Total Income: ₹4,395 Mn (vs. ₹4,537 Mn in H1 FY26; -3% YoY)
  • Reported EBITDA: ₹188 Mn (vs. ₹321 Mn in H1 FY26; -42% YoY)
  • Profit Before Tax (PBT): ₹9 Mn (vs. ₹89 Mn in H1 FY26; -90% YoY)
  • Profit After Tax (PAT): ₹6 Mn (vs. ₹89 Mn in H1 FY26; -93% YoY)
  • Cash PAT: ₹101 Mn (vs. ₹169 Mn in H1 FY26; -40% YoY)

Note: Cash PAT is defined as PBDT (adjusted for cash exceptional items) less Current tax. Financials for previous periods have been regrouped/rearranged for comparability.

Operational Performance

  • Sales Volume: Bars sales volume grew approximately 16% year-over-year in Q2 FY27, primarily due to increasing domestic market penetration.
  • Tube Sales: Were impacted by subdued market sentiments and deferment of contract finalizations and deliveries.
  • Order Book: Closing Tubes Order Book stands at approximately 4 months of coverage.
  • Tube Bid Book: Majority of bids are due for finalization during Q3 and Q4 FY27.

Business Environment Challenges

  • Freight Costs: Surged sharply due to energy prices and sea route disruptions, leading to high raw material/scrap prices.
  • Export Duties: Highest duty incidence in excess of 20% seen for EU imports from India, creating pricing pressure.
  • Geopolitical Uncertainties: Ongoing conflicts, supply chain disruptions, and tariff-related challenges affected international demand and customer buying decisions.
  • Export Volumes: Were adversely impacted during the quarter.
  • Tariff Rate Quota (TRQ): In EU reduced significantly with steep doubling of duty to 50% for certain steel items, including from India.

Business Updates & Developments

  • Product Development: Continued development/enhancement of product range including vacuum degassed forging ingots, heavy wall T91 Tubes.
  • Customer Expansion: 24 new customers added during H1 FY27.
  • Approvals & Certifications:
  • ADNOC approval for Pipes received; approval for Tubes in process
  • SIRIM certification in progress (targeting Malaysia market), with audit scheduled for November
  • Special Product Orders: Booked for Long Length Tubes, ESR quality, Moderator Hx Tubes for Nuclear applications.
  • CGD Market: First validation order for CGD Instrumentation Tubing supplied; pursuing more volume and approvals.
  • Domestic Focus: Government's "Make in India" policy showing impact with preference to domestic manufacturers across energy, defence, aerospace, oil & gas, petrochemicals, engineering and public infrastructure sectors.

Facility & Competitive Position

  • Manufacturing Facility: Spread over 126 acres in Bharuch, Gujarat
  • Product Acceptability: In both domestic and export markets with major approvals and accreditations
  • Product Strategy: Moving towards higher value added grades and products
  • Market Position: Only fully integrated facility in India from Steel making to Pipes
  • Product Portfolio: Includes Ingots, Blooms, Rolled Bars, Round Cornered Squares, Peeled & Polished Bars, Seamless Schedule Pipes, Cold Finished Pipes & Tubes, Heat Exchanger Tubes, Hydraulic & Instrumentation Tubes, Hollow Bars, and U-bend Tubes

ESG Initiatives

  • Renewable Electricity Share:
  • FY24: 28%
  • FY25: 31%
  • FY26: 58%
  • FY27E: 67% (expected to further improve during FY27)
  • Emission Intensity: Continued focus on operational efficiency and green initiatives expected to further improve performance during FY27

Outlook

Export markets are expected to improve gradually as conditions stabilize. The company remains focused on close customer engagement to manage volatility effectively and sustain operational performance.

Contacts for Further Queries

  • Mr. Goutam Chakraborty, Head - Investor Relations
  • Mr. Harsh Rungta, Group Head - Investor Relations (harsh_rungta@welspun.com)