Welspun shares rally 11% to record high as Q4 profit more than doubles, debt drops
Shares of Welspun Corp surged as much as 11% on Thursday to a record high of Rs 903.2 on the BSE, after the pipe manufacturing major's fourth-quarter net profit more than doubled, the company slashed its gross debt, and it guided for strong revenue growth in the year ahead.
ADVERTISEMENT The stock has now rallied over 47% in the past year and gained 328% over three years.
Welspun Corp reported a 143% year-on-year jump in consolidated net profit to Rs 699.19 crore for the March quarter, compared with Rs 287.28 crore in the same period a year earlier. The profit surge came even as total income declined to Rs 3,966.86 crore from Rs 4,543.70 crore, driven by a sharp reduction in expenses, which fell to Rs 3,639.32 crore from Rs 4,292.37 crore.
On a sequential basis, profit rose 4% from Rs 672.19 crore in the December quarter. For the full year FY25, net profit rose to Rs 1,902.28 crore, up from Rs 1,136 crore in FY24.
The board recommended a final dividend of Rs 5 per share for FY25 and approved a fundraising proposal of up to Rs 500 crore via commercial papers or non-convertible debentures on a private placement basis. The company noted that it has traditionally used these instruments for routine working capital needs and will disclose specific terms at the time of issuance.
Welspun said it reduced gross debt by Rs 1,000 crore during FY25, despite incurring a capital expenditure of Rs 900 crore. It closed the year as a net cash company with reserves of Rs 1,049 crore—a key milestone for the manufacturer.
Welspun forecast FY26 revenue at Rs 17,500 crore, a 25% increase over the Rs 13,977.54 crore it posted in FY25. The company said its order book exceeds Rs 19,500 crore, spanning line pipes in India and the U.S., ductile iron pipes, and stainless steel products. Its U.S. mill is fully booked for the next eight quarters.
ADVERTISEMENT To meet growing demand, the company is investing Rs 5,482 crore across India, the U.S., and Saudi Arabia to expand capacity across segments.
The rally in Welspun shares also tracked broader gains in metal stocks on Thursday, with the Nifty Metal index rising 1% after a U.S. trade court blocked most of former President Donald Trump's proposed 'Liberation Day' import tariffs.
The U.S. Court of International Trade ruled that 'President Trump exceeded his authority' with the tariff proposal. While the White House has appealed the decision, the ruling raised hopes that Trump may scale back the highest tariff levels he had threatened, improving global risk sentiment.
ADVERTISEMENT With Thursday's surge, Welspun shares surpassed their previous record of Rs 900, hit on March 24, 2025, and now trade well above their 52-week low of Rs 441, touched on June 4, 2024.The company, a flagship of Welspun World, is one of the top three manufacturers of large-diameter pipes globally, with a diversified presence across six continents.
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