Welspun Corp Ltd Balance Sheet Analysis FY22–FY26

 

📊 Welspun Corp Ltd Balance Sheet Analysis FY22–FY26

📊 Balance Sheet (Rs crore)	Mar '26	Mar '25	Mar '24	Mar '23	Mar '22
🟩 SOURCES OF FUNDS
Owner's fund
Equity share capital	131.90	131.17	130.83	130.77	130.48
Share application money	-	8.73	-	-	-
Preference share capital	-	-	-	-	351.51
Reserves & surplus	5,022.33	4,159.58	3,433.04	3,341.56	2,923.93
Loan funds
Secured loans	417.40	407.49	1,245.87	1,499.19	959.94
Unsecured loans	-	-	-	-	-
🟢 Total Sources of Funds	5,571.63	4,706.97	4,809.74	4,971.52	4,365.85
🟦 USES OF FUNDS
Fixed assets
Gross block	3,401.98	3,146.83	3,387.26	1,901.36	1,880.50
Less : revaluation reserve	-	-	-	-	-
Less : accumulated depreciation	1,122.35	1,024.99	1,116.21	947.75	873.27
Net block	2,279.63	2,121.84	2,271.05	953.61	1,007.23
Capital work-in-progress	30.31	35.75	19.71	3.28	5.15
Investments	2,834.63	1,950.52	1,472.39	2,419.34	2,746.16
Net current assets
Current assets, loans & advances	3,922.72	4,031.83	3,998.68	3,540.07	2,674.70
Less : current liabilities & provisions	3,495.66	3,432.97	2,952.09	1,944.78	2,067.38
Total net current assets	427.06	598.86	1,046.59	1,595.29	607.32
Miscellaneous expenses not written	-	-	-	-	-
🔵 Total Uses of Funds	5,571.63	4,706.97	4,809.74	4,971.52	4,365.85
🟨 NOTES
Book value of unquoted investments	2,248.76	1,473.87	1,188.74	825.34	2,462.39
Market value of quoted investments	1,141.94	476.65	283.65	-	403.09
Contingent liabilities	6,745.73	5,642.08	3,648.01	4,072.07	2,487.78
Number of equity shares outstanding (Lacs)	2637.91	2623.49	2616.67	2615.29	2609.49

🏆 Executive Summary

🎯 Overall Financial Health Score

📌 Parameter	Rating
🟢 Financial Health	88/100
⭐ Overall Rating	★★★★☆ (4.5/5)
💰 Financial Strength	Excellent
🏦 Solvency	Excellent
💵 Liquidity	Moderate
📈 Long-Term Outlook	Positive
🛒 Balance Sheet Verdict	BUY

---

🌟 At a Glance

🟢 Major Positives

✅ Debt reduced by 56%

✅ Reserves increased by 72%

✅ Net Worth increased nearly 69%

✅ Equity dilution almost zero

✅ Strong investment portfolio

✅ Healthy capital expenditure

---

🔴 Major Risks

⚠ Working capital declining

⚠ Current ratio close to minimum comfort level

⚠ Contingent liabilities rising rapidly

⚠ Large unquoted investments

---

📈 Five-Year Snapshot

FY	Total Assets	Net Worth	Debt
FY22	₹4,366 Cr	₹3,054 Cr	₹960 Cr
FY23	₹4,972 Cr	₹3,472 Cr	₹1,499 Cr
FY24	₹4,810 Cr	₹3,564 Cr	₹1,246 Cr
FY25	₹4,707 Cr	₹4,291 Cr	₹407 Cr
FY26	₹5,572 Cr	₹5,154 Cr	₹417 Cr

📌 Key Observation

🟢 Wealth has grown consistently while debt has sharply reduced.

---

📊 Sources of Funds

💰 Capital Structure

Source	FY26
Equity Capital	₹132 Cr
Reserves	₹5,022 Cr
Net Worth	₹5,154 Cr
Debt	₹417 Cr

---

🎨 Capital Mix

🟩 Net Worth      ████████████████████████████████████ 93%

🟥 Debt           ███ 7%

💡 Interpretation

The company is primarily financed through shareholders' funds.

This is exactly what long-term investors prefer.

---

📈 Horizontal Analysis

Item	FY22	FY26	Growth
Equity	130	132	🟢 +1%
Reserves	2,924	5,022	🟢 +72%
Debt	960	417	🟢 -56%
Net Worth	3,054	5,154	🟢 +69%

---

💡 What Does This Mean?

✔ Strong internal profit generation

✔ Low dependence on borrowing

✔ Almost no shareholder dilution

---

🏭 Uses of Funds

Item	FY26	Share
🏭 Fixed Assets	₹2,280 Cr	41%
📈 Investments	₹2,835 Cr	51%
💰 Working Capital	₹427 Cr	8%

---

📌 Asset Allocation

📈 Investments      ██████████████████████████ 51%

🏭 Fixed Assets     ████████████████████ 41%

💰 Working Capital  ███ 8%

---

📉 Common Size Balance Sheet

(All figures as % of Total Assets)

Component	FY26
🏭 Fixed Assets	40.9%
📈 Investments	50.9%
💰 Net Current Assets	7.7%
🚧 CWIP	0.5%

---

💡 Interpretation

The balance sheet is becoming increasingly investment-oriented, reflecting a long-term growth focus.

---

📊 Financial Ratios

Ratio	FY26	Status
Debt/Equity	0.08	🟢 Excellent
Current Ratio	1.12	🟡 Average
Book Value/Share	₹195	🟢 Excellent
Financial Leverage	1.08	🟢 Very Safe
Net Working Capital	₹427 Cr	🟡 Declining

---

📉 Five-Year Trends

Parameter	Trend
Net Worth	🟢⬆⬆⬆⬆
Debt	🟢⬇⬇⬇⬇
Reserves	🟢⬆⬆⬆⬆
Fixed Assets	🟢⬆⬆⬆
Investments	🟢⬆⬆
Working Capital	🔴⬇⬇⬇

---

💧 Working Capital Analysis

Year	Net Current Assets
FY22	607
FY23	1,595
FY24	1,047
FY25	599
FY26	427

📉 Trend

FY22   ███████

FY23   ███████████████████

FY24   ████████████

FY25   ██████

FY26   ████

⚠ Observation

Working capital has declined significantly over the last three years. While this may indicate better operational efficiency, it could also reflect tighter liquidity. The cash flow statement would help determine which explanation is more likely.

---

🏦 Debt Analysis

🟢 Excellent Financial Discipline

Year	Debt
FY22	960
FY23	1,499
FY24	1,246
FY25	407
FY26	417

📉 Debt Trend

FY22 ███████████

FY23 ████████████████

FY24 █████████████

FY25 ███

FY26 ███

💡 Conclusion

Welspun has significantly deleveraged its balance sheet since FY23, reducing financial risk and improving borrowing capacity for future growth.

---

🏗 Asset Quality

🏭 Fixed Assets

FY22 ₹1,007 Cr

⬆

FY26 ₹2,280 Cr

✔ Capacity expansion

✔ Long-term growth investment

---

📈 Investments

Total Investments

₹2,835 Crore

Interesting Facts

🟢 Unquoted Investments

₹2,249 Cr

🟢 Quoted Investments

Market Value

₹1,142 Cr

---

🚨 Contingent Liabilities

Year	Amount
FY22	2,488
FY23	4,072
FY24	3,648
FY25	5,642
FY26	6,746

---

🔴 Risk Indicator

FY22 ███████

FY23 ████████████

FY24 ███████████

FY25 █████████████████

FY26 ████████████████████

⚠ This is the single biggest risk on the balance sheet and should be investigated through the notes to the annual report.

---

⚔ SWOT Analysis

💪 Strengths

✅ Strong reserves

✅ Very low debt

✅ Healthy book value

✅ Excellent solvency

✅ Minimal equity dilution

---

⚠ Weaknesses

❌ Weakening working capital

❌ Large unquoted investments

---

🚀 Opportunities

✔ Future capacity expansion

✔ Strong financial flexibility

✔ Potential earnings from investments

---

⚡ Threats

⚠ Rising contingent liabilities

⚠ Infrastructure demand slowdown

⚠ Liquidity pressure if current asset coverage weakens further

---

🎯 Overall Financial Scorecard

Category	Score
💰 Net Worth	10/10
🏦 Debt	10/10
📈 Capital Structure	10/10
🏭 Asset Quality	9/10
💧 Liquidity	7/10
📊 Working Capital	6/10
📈 Investments	8/10
⚖ Solvency	10/10
🚨 Risk Profile	8/10
👨‍💼 Overall Management of Balance Sheet	10/10

---

🏆 Overall Score

⭐ 88 / 100

---

📌 Final Verdict

🟢 Recommendation

🟢 BUY

---

✅ Why?

✔ Very strong net worth growth

✔ Conservative debt profile

✔ Excellent capital structure

✔ Healthy investment portfolio

✔ Strong asset base

✔ Capacity available for future expansion

---

⚠ Keep an Eye On

🔸 Working capital trend

🔸 Current ratio

🔸 Contingent liabilities

🔸 Unquoted investments

---

🎯 Bottom Line

Based solely on the balance sheet, Welspun Corp Ltd demonstrates a strong financial foundation with low leverage, a steadily growing net worth, and disciplined capital management. While declining working capital and rising contingent liabilities deserve monitoring, the balance sheet remains robust enough to support future growth.

Disclaimer: 

Content shared through our blogs are for information and education purposes only and should not be treated as investment or trading advice. Please do your own analysis or take independent professional financial advice before making any investments based on your own personal circumstances. Investment in securities are subject to market risks, please carry out your due diligence before investing. And last but not the least, past performance is not indicative of future returns.

Open demat account with India's No-1 broker ZERODHA....

https://zerodha.com/?c=JU8434&s=CONSOLE