Welspun Corp Ltd announced on Tuesday, June 9, that its wholly owned subsidiary, Welspun Mauritius Holdings Ltd (WMHL), has divested a 4.5% equity stake in Saudi Arabia-based East Pipes Integrated Company for Industry (EPIC) for an aggregate consideration of SAR 283.46 million (about ₹650 crore). According to the company's regulatory filing, the stake sale was executed through a series of negotiated trades on the Tadawul Stock Exchange in Saudi Arabia on June 9. Following the transaction, Welspun Corp's US-based wholly owned subsidiary, Welspun Pipes Inc., will continue to hold a 22% equity stake in EPIC.
The company stated that the divestment is in line with its earlier disclosure made in March regarding its investment in the Saudi pipe manufacturer. EPIC is a leading manufacturer of steel pipes in Saudi Arabia and caters to oil, gas, water and infrastructure projects across the region. This strategic move represents a portion of Welspun Corp's broader portfolio optimization in the Middle Eastern market.
Despite the stake divestment, Welspun Corp reported mixed financial results for the fourth quarter of FY26. According to company disclosures, the company had reported a 47% year-on-year decline in consolidated net profit at ₹370.4 crore for Q4FY26, compared with ₹698.3 crore in the corresponding period last year, largely due to lower exceptional gains versus the year-ago quarter. However, the company demonstrated healthy operational growth during the quarter with revenue from operations rising 9.9% year-on-year to ₹4,312.6 crore from ₹3,925 crore, while EBITDA increased 9.5% to ₹503.8 crore from ₹460.2 crore a year earlier. The EBITDA margin remained stable at 11.7% during the quarter.
Despite the profit decline, shares of Welspun Corp ended 4.71% higher at ₹1,410 on the NSE on Tuesday, as reported by CNBC TV18. The positive market reaction suggests investor confidence in the company's strategic portfolio management and operational performance despite the quarterly profit decline.
