Steel Stock Reports 200% YoY Growth in Q1 FY27 Profit; Board Approves Rs 67.66 Crore Acquisition of Captive Power Company

On Friday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index declining 102.15 points, or 0.43 per cent, to 23,767.45. Amid the weak market sentiment, shares of Welspun Corp Ltd slipped 0.99 per cent to Rs 1,596.90 after the company announced its Q1 FY27 financial results along with strategic investment and acquisition approvals.

Q1 FY27 Financial Performance

Welspun Corp reported strong consolidated earnings for the quarter ended June 30, 2026. Revenue from operations increased 14.92 per cent YoY to Rs 4,081.12 crore, compared with Rs 3,551.49 crore in the corresponding quarter last year. Profit before Tax surged 161.82 per cent YoY to Rs 1,207.13 crore from Rs 461.05 crore, while consolidated net profit attributable to owners jumped 198.71 per cent YoY to Rs 1,046.49 crore, compared with Rs 350.42 crore in Q1 FY26. Basic earnings per share (EPS) rose to Rs 39.68 from Rs 13.32 a year ago.

The sharp rise in profitability was primarily supported by a Rs 547.93 crore gain recognised on the sale of shares in East Pipes Integrated Company for Industry (EPIC) during the quarter. Welspun Mauritius Holdings Ltd sold 14,17,280 shares of EPIC through negotiated trades on the Tadawul Stock Exchange for an aggregate consideration of SAR 283.46 million (approximately Rs 723.55 crore).

Board Approves Captive Power Acquisition

The Board of Directors approved the acquisition of an additional 51 per cent equity stake in Welspun Captive Power Generation Limited (WCPGL) from Welspun Living Limited, a promoter group company, for a consideration of Rs 67.66 crore. The acquisition comprises 1,50,64,213 equity shares of face value Rs 10 each and is expected to be completed on or before August 31, 2026, subject to statutory and regulatory approvals.

Upon completion of the transaction, Welspun Corp's aggregate shareholding, together with its subsidiaries, in WCPGL will increase from 23 per cent to 74 per cent, making the captive power company a subsidiary. The acquisition is aimed at meeting the company's power requirements and has been classified as a related-party transaction executed on an arm's-length basis.

Investment in New Associate

The board also approved an investment of Rs 26,000 to subscribe to 2,600 equity shares of Rs 10 each, representing a 26 per cent stake in a proposed associate company to be incorporated in India. The new entity will manufacture Ground Granulated Blast Furnace Slag (GGBS) through slag granulation and allied processes.

About the Company

Welspun Corp Limited is one of India's leading manufacturers of large-diameter pipes and value-added steel products, serving the oil & gas, water infrastructure and industrial sectors across domestic and international markets. The company also has a growing presence in ductile iron pipes, stainless steel products and infrastructure-related businesses.

Through its diversified manufacturing footprint and global customer base, Welspun Corp continues to expand into adjacent businesses while strengthening its integrated operations
through investments in captive infrastructure and strategic acquisitions.
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Disclaimer: The article is for informational purposes only and not investment advice.