Welspun Enterprises Share Price Falls 6% After Net Profit Drops to ₹77.5 crore in Q3 FY25

Welspun Enterprises Ltd reported a year-on-year (YoY) decline in net profit for the third quarter of FY25, posting ₹77.5 crore, down from ₹89.5 crore in the same period last year. Despite the profit decline, the company’s revenue from operations surged to ₹866.9 crore, compared to ₹706.7 crore in Q3 FY24, reflecting strong business momentum.

EBITDA Growth and Margin Contraction

At the operating level, the company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) increased by YoY to ₹128.2 crore in Q3 FY25. However, EBITDA margins contracted to 14.8% in the reporting quarter, compared to 17.9% in the corresponding period last year, indicating rising operational costs or changes in the revenue mix.

Outlook

Despite the dip in profitability, Welspun Enterprises’ strong revenue growth signals positive business expansion. However, the declining EBITDA margin highlights the need for efficiency improvements to sustain long-term profitability. Investors will closely monitor the company’s strategies to address margin pressures in the coming quarters.

Stock Performance

On February 4, 2025, Welspun Enterprises share price traded 6.07% lower at ₹564.60 as of 12:13 PM (IST). The stock touched a 52-week high of ₹664.10 on January 08, 2024, while hitting a 52-week low of ₹270.05 on March 14, 2024.

According to BSE data, the total traded volume stood at 1.10 lakh shares, with a turnover of ₹6.07 crore. At the current price, Welspun Enterprises shares are trading at a price-to-earnings (P/E) ratio of 27.25x, based on its trailing 12-month earnings per share (EPS) of ₹20.75, and a price-to-book (P/B) ratio of 3.09, as per exchange data.

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