Welspun Enterprises Ltd

- Welspun Enterprises is in the process of raising INR1,000 crores through a preferential issue of warrants by way of private placement. - The fundraising includes participation from the promoter group. - This step is timed prudently to strengthen the balance sheet over the next 18 months as new, value-accretive project opportunities unfold. - The capital raise is aimed at meeting evolving evaluation criteria for PPP and HAM projects, which now consider net worth minus commitments. - The company maintains a strong cash position with nearly INR1,000 crores in cash and cash equivalents and around INR1,000 crores of unutilized cash from potential oil & gas asset monetization. - No specific future plans for additional debt or equity beyond this current INR1,000 crore preferential issue have been disclosed.

- Welspun Enterprises is adding a new Tunnel Boring Machine (TBM) for the upcoming Dharavi-Ghatkopar tunneling project to meet specialized project requirements. - The company plans to raise INR 1,000 crores through preferential warrants by way of private placement (including promoter participation) within the next 18 months to strengthen the balance sheet and capitalize on upcoming large PPP projects requiring strong equity commitment. - They continue investing in digital transformation, including adoption of advanced modeling tools (3D, 4D, 5D), SAP RISE migration, digitization of project management, and supply chain integration to improve operational efficiency. - Exploring tie-ups, acquisitions, or collaborations in new technologies like sludge management and SmartOps for water segment innovations. - Future acquisitions remain open but only if value accretive and aligned with growth strategy. Overall, capex is focused on equipment expansion, technological advancements, and strategic partnerships to support sustainable growth.

- Welspun Enterprises targets FY '26 revenue of INR4,000 crores with a back-ended top line distribution. - H1 FY '26 consolidated income stands at INR1,674 crores, indicating progress toward the full-year target. - The transport segment is expected to contribute more significantly from FY '27, as large projects awarded recently (e.g., Pune-Shirur) commence operations. - Water segment revenues remain stable with a focus on technology-led solutions and operational excellence. - Tunneling and rehabilitation segment has shown robust growth (75% YoY in H1 FY '26), with expectations of margin improvement due to scaling. - Order inflows for FY '26 are largely achieved in H1, and further orders are expected depending on government pace, especially in roads/transport. - The company is optimistic about sustainable margins around 18%, supported by operational efficiencies and digitization. - Geographical diversification is under consideration but will occur cautiously based on opportunity and organizational readiness.

- Margins have improved across segments due to operational excellence and project completions; sustainable margins are expected around 18% overall. (Page 8, 14) - Transport segment margins may initially be lower on new projects like Pune-Shirur but expected to improve over time. (Page 13) - Larger and repeatable orders in transport and tunneling expected to improve margins substantially as costs get better absorbed. (Page 11) - Tunneling margins in 20-23% range with potential for improvement as scale increases. (Page 12) - Water business with long-term O&M contracts (~INR5,400 crores) provides recurring revenue visibility, supporting stable earnings. (Page 7) - Strong order book and ongoing projects indicate robust growth: FY '26 revenue target INR4,000 crores; H1 FY '26 revenue INR1,674 crores. (Page 8) - Digital transformation and technology adoption (e.g., SmartOps) expected to enhance efficiency and profitability. (Page 14) - Capital raising planned to support large PPP projects, positioning the company for sustained growth. (Pages 4, 12) Overall, Welspun Enterprises anticipates steady profit growth supported by operational scaling, margin expansion, recurring O&M revenue, and strategic investments.

- Consolidated order book stands at approximately INR 15,615 crores. - Stand-alone order book is INR 14,000 crores. - Welspun Michigan subsidiary holds an order book of INR 2,650 crores (including INR 1,069 crores sourced from Welspun Enterprises). - Order book includes around INR 5,400 crores worth of operations and maintenance (O&M) contracts. - Excludes MSIDC projects for which the company has emerged L1; these will add over INR 5,000 crores once confirmed. - Top-line target for FY '26 is INR 4,000 crores, on track subject to climate and statutory approvals. - Order inflows for FY '26 guidance almost met in H1; however, further booking guidance for the remaining months is withheld. - Strong opportunities anticipated in BOT toll, HAM projects, water segment (river interlinking, water treatment, desalination), and tunneling projects.