Welspun Enterprises Ltd Management Discussions

INDIAN ECONOMY

Overview

Indias economy witnessed strong growth momentum in CY2025, with GDP growth accelerating to 7.6%, following a robust expansion of 7.1% in CY2024. This growth was supported by steady domestic demand, continued regulatory reforms and a gradual recovery in both private and public investment. The services and industrial sectors also contributed positively to economic performance. Consumer spending remained resilient throughout the year, while investment activity strengthened, particularly in the second half, contributing to overall economic expansion.

Despite this progress, the economy faced challenges due to global uncertainties. Higher trade tariffs and geopolitical tensions affected export performance, particularly in West Asia, following developments in late February 2026. However, strengthening trade engagement and ongoing negotiations with the European Union and the United States helped offset some of these pressures and reflected improving economic ties. The Government of India continued to introduce reforms, including the rationalisation of the Goods and Services Tax (GST) and the simplification of compliance requirements, thereby supporting business confidence and improving the ease of doing business.

Between January and December 2025, the RBI reduced the repo rate from 6.5% to 5.25% as inflation eased. In April 2026, it kept the rate unchanged at 5.25% and moved to a neutral stance to balance growth and inflation.

Outlook

Looking ahead, Indias economic prospects remain positive, supported by rising disposable incomes and continued urbanisation. The economy is expected to moderate from 7.6% in CY2025 to around 6.5% from CY2026 onwards as the high base effect and post-pandemic recovery normalise. Despite global uncertainties, Indias growth is expected to remain resilient, supported by strong domestic demand, public investment and structural reforms. This growth is expected to be supported by continued infrastructure development and an improving business environment. Ongoing investments in urban infrastructure, transport

corridors, and emerging economic clusters, along with the growth of Tier-II and Tier-III cities, are improving connectivity, enabling economic activity, and creating a stronger foundation for sustained infrastructure demand and broad-based growth. These developments are expected to help businesses expand their reach, deepen customer engagement, and adopt technology-driven operating models to capture emerging opportunities. Despite global uncertainties and input cost pressures, resilient domestic demand and evolving consumption patterns are expected to support long-term economic growth in India and enable expansion into new and emerging markets.

INFRASTRUCTURE INDUSTRY OVERVIEW

Indias infrastructure sector remains a key driver of economic growth by improving connectivity, productivity and regional development. It also strengthens industrial competitiveness, enhances the efficiency of logistics and public service delivery and supports large-scale employment generation across the economy. Over the past decade, the government has made substantial public capital expenditures in transport, energy, water and housing infrastructure, strengthening the economic foundation, enhancing service delivery and improving access to essential services.

The Governments major initiatives, such as the PM GatiShakti National Master Plan, National Infrastructure Pipeline, Bharatmala Pariyojana, Sagarmala Programme, National Logistics Policy, Jal Jeevan Mission, UDAN scheme, Pradhan Mantri Awas Yojana, Pro-Active Governance and Timely Implementation (PRAGATI), have helped build more

integrated infrastructure systems. These programmes have expanded transport networks, improved logistics efficiency and strengthened connectivity in both urban and rural areas, while also increasing access to water, housing and other basic services.

KEY GOVERNMENT INITIATIVES IN THE INFRASTRUCTURE SECTOR

Public capital expenditure remains a key pillar of Indias infrastructure-led growth strategy, driving the creation of productive assets such as roads, railways, urban infrastructure and public utilities.

Indias budgeted capital expenditure has increased from Rs. 2.5 lac crore in FY 2015 to Rs. 12.2 lac crore in FY 2027, representing a ~5x increase over the period, reflecting Governments sustained focus on infrastructure-led growth.

Looking ahead, the infrastructure outlook remains strong, supported by rapid urbanisation, industrial growth, rising demand for modern infrastructure and continued policy focus. A strong pipeline of projects across transport, renewable energy, water management, urban development and digital infrastructure is expected to sustain investment activity in the coming years. This will also create significant opportunities for EPC companies and support Indias long-term vision of becoming a developed nation by 2047.

Source: Press Information Bureau

• PIB Press Release - National Monetisation Pipeline 2.0

• PIB Backgrounder - PRAGATI: A Decade of Cooperative, Outcome-Driven Governance (13 January 2026)

• PIB - Cabinet approves extension of Jal Jeevan Mission up to December 2028 with enhanced outlay

• PIB - Progress Made Under Namami Gange Programme (2 April 2026)

• PIB - Interlinking of Rivers and Major Irrigation Projects (5 February 2026)

WATER SECTOR

India is home to nearly 18% of the worlds population but possesses only about 4% of global freshwater resources, creating a widening imbalance between water availability and demand. Rapid urbanisation, industrialisation and rising living standards are placing increasing pressure on finite water resources, while agriculture continues to account for nearly 80% of freshwater consumption. As per Niti Aayogs Composite Water Management report. Indias annual per capita water availability has declined to around 1,486 cubic metres in 2021 and the same is projected to further fall to 1,367 cubic metres by 2031, below the internationally recognised water stress threshold of 1,700 cubic metres per second. The situation is further exacerbated by groundwater depletion, inadequate wastewater treatment capacity, pollution of rivers and water bodies, and increasing climate variability.

Consequently, water security is no longer solely an environmental concern but a strategic infrastructure imperative, with significant implications for Indias economic growth, urban development and climate resilience. As one of the worlds fastest-growing economies, the countrys long-term development will increasingly depend on its ability to secure, manage and sustainably utilise its water resources. This is driving a structural shift from augmenting water supply to creating an integrated and circular water ecosystem encompassing treatment, transmission, wastewater collection, recycling, reuse and climate-resilient infrastructure, creating a multi-decade investment opportunity across the entire water value chain.

Water Storage,

Treatment & Distribution

This continues to be key focus areas for infrastructure development in India supported by increasing water demand, urbanisation, industrial growth and the need to strengthen long-term water security.

Investments are being directed towards the creation and augmentation of storage infrastructure, including dams, reservoirs and balancing reservoirs, alongside the development of water treatment plants, pumping stations, bulk water transmission systems and distribution networks. Also, utilities are increasingly undertaking rehabilitation and expansion of existing distribution infrastructure to improve operational efficiency, reduce non-revenue water and ensure reliable water supply.

Government support through AMRUT 2.0 continues to drive large-scale investments in urban drinking water infrastructure, with the mission targeting universal piped water supply across approximately 4,800 statutory towns through 2.68 crore new household tap connections while reducing non-revenue water to below 20%. Reflecting the strong pace of implementation, as of February 2026, 3,528 water supply projects have been approved across 2,484 Urban Local Bodies (ULBs), with a cumulative investment of approximately Rs. 1.20 lac crore.

On the rural front, the Government continues to prioritise universal access to safe drinking water through Jal Jeevan Mission 2.0, which has been extended until December 2028 with a total outlay of Rs. 8.69 lac crore. The Rs. 67,670 crore allocation in FY 2026-27 reaffirms the Governments commitment to expanding and strengthening rural drinking water infrastructure, while supporting a sustained pipeline of water supply projects across the country.

Wastewater Management &

Water Circularity

Indias urban wastewater sector presents a significant longterm infrastructure opportunity. Urban centres generate over 72,000 MLD of sewage, yet only about 28% is treated, underscoring the need for substantial investments in sewage treatment plants (STPs), wastewater management infrastructure and the modernisation of existing facilities. As cities expand sewerage networks and strengthen environmental compliance, wastewater treatment is poised to become a critical pillar of sustainable urban infrastructure development.

Recognising this need, AMRUT 2.0 has made universal sewerage and septage management, enhanced wastewater treatment capacity, and the promotion of treated wastewater reuse central to its objective of creating water-secure and sustainable cities. As of Feb 2026, 583 sewerage projects have been approved with investments of Rs. 66,118 crore under AMRUT 2.0.

Water recycling is becoming an integral part of Indias urban water management strategy, with Tertiary Treated Reverse Osmosis (TTRO) playing a pivotal role in enabling circular water use. TTRO technology transforms treated sewage into industrial-grade water through advanced filtration and reverse osmosis, helping conserve freshwater resources while ensuring a reliable supply for industrial and commercial consumers. As water scarcity intensifies and regulatory support for wastewater reuse strengthens, investments in TTRO projects are expected to create significant long-term opportunities for advanced water infrastructure developers.

Mumbai: Pioneering Indias Circular Water Economy

Mumbais ongoing wastewater transformation represents one of the most significant urban water infrastructure initiatives undertaken in India and provides a blueprint for the future of water management in rapidly urbanising cities.

The city currently consumes over 4,200 MLD of water and generates approximately 3,000 MLD of wastewater each day. Historically, limited treatment capacity constrained the effective management and reuse of this resource. Recognising the strategic importance of water security, the Brihanmumbai Municipal Corporation (BMC) in 2022 has embarked on a comprehensive wastewater transformation programme involving the development of seven advanced sewage treatment plants with a combined treatment capacity of 2,464 MLD and an estimated investment of approximately Rs. 27,000 crore (including 15 year O&M).

Once completed by 2028, these facilities will fundamentally reshape Mumbais water ecosystem. Nearly 80% of the citys wastewater will be treated through advanced secondary and tertiary processes, significantly reducing untreated discharges into rivers, creeks and coastal waters.

More importantly, the programme will transform wastewater from an environmental challenge into

a valuable economic resource. The new treatment infrastructure is expected to generate over 1,200 MLD of high-quality tertiary-treated water. This treated water can be supplied for industrial operations, power generation, construction activities, landscaping and municipal applications, reducing dependence on freshwater resources and enabling a more efficient allocation of water across the citys needs.

Mumbais transformation is emblematic of a broader shift taking place across Indias water sector. Water management is increasingly viewed through the lens of circularity, in which treatment, reuse, recycling, resource recovery and lifecycle management form an integrated framework for sustainable urban development. As cities seek to balance economic growth with environmental stewardship, wastewater is emerging as a strategic asset rather than a by-product to be disposed of.

Welspun Enterprises is proud to contribute to this transformation by executing the 418 MLD Dharavi Wastewater Treatment Facility, two Water Treatment Facilities (2000 MLD at Bhandup and 910 MLD at Panjrapur) and a tertiary-treated water conveyance tunnel from the Dharavi Facility to Ghatkopar. As Mumbai advances towards a circular water economy, these assets will play an important role in improving water reuse, strengthening urban resilience and supporting the citys long-term sustainability objectives.

Rural Wastewater Management under Swachh Bharat Mission (Grameen)

The rapid expansion of rural piped water supply under the Jal Jeevan Mission has brought wastewater management into sharp focus as the next critical infrastructure priority. As the volume of household greywater continues to rise, investments in collection, treatment and reuse infrastructure are becoming essential to safeguard water resources, improve sanitation and sustain the benefits of rural water supply programmes.

Recognising the growing need for rural wastewater management, the Swachh Bharat Mission (Grameen) Phase II has expanded its focus beyond sanitation to include comprehensive solid and liquid waste management. The programme envisages an outlay of approximately Rs. 1.40 lac crore, over FY 21-26, and as per the reports, Phase III is under development. The mission is accelerating the development of village-level greywater collection, treatment and reuse infrastructure, fostering sustainable water resource management across rural India.

River rejuvenation & restoration

River restoration and rejuvenation is another key infrastructure priority in India with untreated municipal sewage to be the largest contributor to river pollution. Consequently, strengthening urban wastewater management through the expansion of sewerage networks and sewage treatment capacity has become central to improving water quality and restoring river ecosystems. While AMRUT 2.0 is driving investments in urban wastewater infrastructure and the rejuvenation of urban water bodies, dedicated programmes such as the National River Conservation plan (NRCP) and National Mission for Clean Ganga (NMCG) extend these efforts to river conservation and restoration, creating a comprehensive framework for improving water quality across the urban water cycle. Together, these initiatives support investments in sewerage networks, interception and diversion systems, and sewage treatment plants (STPs) to prevent untreated sewage from entering rivers. As on March 2026, under the NRCP, projects across 58 rivers have led to creation over 3,019 MLD of sewage treatment capacity with a total sanctioned cost of Rs. 8,970 crore. Complementing these efforts, Namami Gange programme, has sanctioned a total of 524 projects, of which 355 had been completed as of

Feb 2026. Cumulative investments under NMCG have exceeded Rs. 21,340 crore, including more than Rs. 16,000 crore dedicated to sewage treatment infrastructure. Collectively, these initiatives reinforce the Governments integrated approach towards wastewater management, river restoration and water sustainability.

Source:

New areas for the growth

The rapid emergence of high-growth industries is creating a new demand pool for advanced water infrastructure, positioning water treatment, recycling and Ultra-Pure Water (UPW) systems as critical enablers of future industrial development.

River Linking &

Desalination

As water availability becomes increasingly uneven across regions, river interlinking and basin development are gaining strategic importance in improving water security, enhancing irrigation coverage and ensuring more efficient utilisation of water resources. Reflecting this priority, the Government is advancing investments in river basin development, irrigation modernisation and inter-basin water transfer projects. Under the National Perspective Plan (NPP) for Inter-Linking of Rivers, 30 river-link projects have been identified to improve water security and optimise the use of water resources across river basins. As of February 2026, feasibility studies had been completed for 26 river-link projects under the National Perspective Plan, while Detailed Project Reports (DPRs) had been prepared for 13 projects. The Ken-Betwa Link Project, with an estimated investment of Rs. 44,605 crore, has entered the implementation stage, while the strategically significant Polavaram Irrigation Project continues to advance as

a landmark multipurpose water infrastructure project designed to enhance irrigation, drinking water supply, flood moderation and inter-basin water transfer.

Similarly, desalination is emerging as a critical solution to augment freshwater availability in water-stressed coastal regions, providing a reliable and climate-resilient source of potable and industrial water. With a coastline spanning over 7,500 kilometres, India has significant potential to harness seawater to meet rising urban and industrial demand. Supported by the Governments broader water security initiatives and increasing investments by coastal states, desalination is expected to play an increasingly important role in the countrys water infrastructure landscape, creating significant opportunities for technology providers and infrastructure developers.

Source: Ministry of Jal Shakti - Interlinking of Rivers and Major Irrigation Projects (PIB, 5 February 2026)

Union Budget - FY 26-27

Outlook

As per the CRISIL estimates, the Indian water and wastewater treatment market is poised for significant growth, with expected revenues projected to surge 1.6 to 1.7 times from Rs. 3.9 lac crore in FY 20-24 to Rs. 6.3-6.5 lac crore in FY 25-29, primarily driven by increasing demand from municipal and industrial applications. The Indian water sector is transitioning from a predominantly project-led market to a more integrated infrastructure and utility opportunity. While substantial investments continue to be required for the creation of treatment and distribution assets, the sectors next phase of growth is expected to be driven by a focus on wastewater reuse and long-term operational sustainability.

Policymakers are also exploring greater private sector participation in water supply and wastewater management through PPP-based structures and long-term O&M contracts to improve operational efficiency and service delivery. As cities and industries progressively shift focus from infrastructure creation to lifecycle management and resource optimisation, companies with integrated capabilities across EPC, technology, automation, and long-term operations are expected to emerge as key beneficiaries of the sectors next growth phase.

WELs Key Highlights

Water Infrastructure

Water Infrastructure has emerged as WELs largest business vertical and a key pillar of its long-term growth strategy. The Governments continued focus on strengthening water security, present a significant long-term opportunity for specialised infrastructure developers. Recognising this opportunity early, WEL has strategically expanded its presence across the entire water infrastructure value chain, developing integrated capabilities in water treatment plants, wastewater treatment facilities, bulk water transmission systems, and long-term operations & maintenance. Supported by strategic collaborations with leading global technology providers, the Company is well positioned to deliver technologically advanced and sustainable water infrastructure solutions.

The Companys growing portfolio of landmark projects reflects its ability to execute complex and large-scale infrastructure of national significance. Projects such as the 2,000 MLD Bhandup Water Treatment Plant, the 910 MLD Panjrapur Water Treatment Plant, the 418 MLD Dharavi Wastewater Treatment Facility and the Uttar Pradesh Jal Jeevan Mission demonstrate WELs expertise across the water value chain. Upon completion of its ongoing projects in Mumbai, the Company is expected to treat over half of the Mumbai Metropolitan Regions potable water demand and around 15% of its wastewater, significantly strengthening its presence in one of Indias most important urban water markets.

As on March 31,2026; the Companys water order book stands at approximately Rs. 10,650 crore, with around Rs. 5,400 crore from O&M, providing good visibility into steady, recurring cash flows. For FY 2025-26, WEL reported revenue of Rs. 1,240 crore from the Water segment, with a PBIT of Rs. 325 crore, registering 22% year-on-year growth.

Water Business - Key Developments

With the Government continuing to prioritise drinking water supply, wastewater treatment, irrigation, river rejuvenation and climate-resilient water infrastructure, WEL remains well positioned to capitalise on emerging opportunities and further strengthen its leadership in this high-growth sector.

TRANSPORT INFRASTRUCTURE

Roads and Highways

India boasts the worlds second-largest road network, reflecting the Governments sustained focus on infrastructure development. Its road network is critical in terms of both passenger and freight movement. As per a NITI Aayog study in 2026, road transport accounts for nearly 78% of total passenger movement and 66% of freight movement.

To cater to this level of usage, the road infrastructure has expanded significantly over the past two decades, reflecting sustained investment and policy focus on connectivity and mobility. Driven by increased public

investment, policy reforms and improved project execution capabilities, the sector has evolved into a more efficient and integrated transportation ecosystem.

The National Highway network has emerged as a key growth driver within the broader road ecosystem, expanding from 91,287 km in 2014 to 1,46,560 km in Dec 2025. This translates to ~61% growth, underscoring Indias accelerated efforts to strengthen high-capacity corridors and improve inter-state connectivity to support economic activity and logistics efficiency.

Indias Total National Highways Network Growth (in Km)

The Ministry of Road Transport and Highways (MoRTH) has witnessed a sustained increase in budgetary support over the past decade, underscoring the Governments long-term commitment to expanding and modernising Indias road infrastructure. Budget allocations have increased nearly 12-fold, from Rs. 24,775 crore in FY 2014 to ~Rs. 3.10 lac crore in the FY 2027 Budget Estimates, providing strong policy support for continued sector growth. A substantial portion of this funding continues to be channelled through the National Highways Authority of India (NHAI), reinforcing its central role in project execution. While the initial phase of investments focussed on expanding the national highway network, the current allocation reflects a strategic shift towards accelerating project execution, completing ongoing corridors, and enhancing asset quality - creating a healthy pipeline of opportunities for experienced infrastructure developers and EPC contractors.

Bharatmala Pariyojna

Bharatmala Pariyojana was the flagship highway development programme of the Government of India. Approved in 2017 with an estimated outlay of Rs. 5.35 lac crore, the programme aims to develop 34,800 km of National Highway corridors, including economic corridors, feeder routes, border roads, coastal roads, port connectivity roads, and expressways. As of March 2026, projects covering 26,425 km had been awarded, while around 22,590 km had already been constructed. The programme has played a significant role in improving freight movement, reducing logistics costs, and strengthening connectivity to remote and strategic regions of the country.

source: pib - Bharatmala Pariyojana: A Vision for Integrated National Connectivity (June 2026)

While roads and highways remain a key infrastructure priority, sustained investments across railways, metro systems, airports, ports and multimodal logistics are reshaping Indias transportation landscape. The Governments focus on creating integrated transport networks is expected to improve connectivity, enhance freight movement and reduce logistics costs, thereby supporting economic growth. As infrastructure development increasingly adopts a multimodal approach, opportunities are expanding for companies with strong engineering expertise, complex project execution capabilities and disciplined capital allocation.

Metro Rail

Metro rail has emerged as one of Indias fastest-growing urban infrastructure segments, driven by rapid urbanisation and increasing demand for sustainable public transportation. Indias operational metro network expanded from 248 km across five cities in 2014 to over 1,095 km across 26 cities by 2025, making it one of the largest metro systems globally. Government support has remained robust, with annual budgetary allocation for metro rail increasing from Rs. 5,798 crore in FY14 to Rs. 29,550 crore in FY26. The continued expansion of metro corridors is expected to improve urban mobility, reduce congestion, lower emissions and support inclusive economic growth. source:

Multimodal logistics

The evolution of Indias logistics sector is increasingly centred on multimodal integration rather than standalone infrastructure development. The Government continues to build an interconnected freight ecosystem by combining highways, railways, ports, airports and inland waterways through the PM Gati Shakti National Master Plan and the National Logistics Policy. Investments in Multimodal Logistics Parks, Dedicated Freight Corridors and industrial connectivity are expected to enable seamless cargo movement, optimise modal mix and reduce logistics costs - currently estimated to be higher than those of several global peers. This integrated approach is expected to improve supply chain efficiency, enhance trade competitiveness and create long-term opportunities across the infrastructure value chain.

Outlook

Going forward, the outlook for Indias roads and highways sector is supported by a strong medium-term pipeline of upcoming projects and a focus on strengthening public-private participation. The Ministry of Road Transport and Highways has identified a PPP pipeline of approximately 13,400 km of highway projects, with an estimated investment potential of around Rs. 8.3 lac crore, expected to be rolled out over a medium-term horizon of about 3 years. This pipeline reflects a significant revival in project opportunities under the PPP framework, with the focus is increasingly shifting from rapid network expansion to the efficient execution of larger, more complex and capital-intensive projects.

This expected focus on PPP is supported by ongoing modifications in the Model Concession Agreements (MCAs) of BOT (Toll) and HAM projects, as well as the recent introduction of the Toll-cum-Annuity model. These changes are aimed at improving risk allocation, enhancing financial viability and addressing past concerns around traffic and revenue uncertainty.

Evolution of the HAM Framework

The Hybrid Annuity Model (HAM) has emerged as one of the preferred project delivery mechanisms for NHAI. Recognising the increasing scale and complexity of projects, NHAI has introduced a series of reforms aimed at strengthening bidder quality, enhancing financial discipline and improving execution standards. These measures are expected to encourage sector consolidation, favour well-capitalised and experienced developers and support the timely delivery of critical infrastructure assets.

Key Changes in NHAI Norms for HAM Projects

• Stricter financial pre-qualification norms: Net

worth requirement has been increased from 15% to 20% of project cost.

• Requirement of Assessed Available Net Worth defined as net worth less 20% of balance commitments set at 20% of project cost.

• Enhanced technical and performance requirements: Technical qualification criteria have been further strengthened.

NHAIs stringent HAM qualification norms are increasingly favouring well-capitalised and established players that are better positioned to meet higher financial and technical thresholds.

Another likely area of future activity in the roads sector is in Expressways. Several Expressways, both at NHAI level and at state level, are under construction and more are in the pipeline.

Upcoming Expressways by 2030

Source:

WELs Key Highlights

Transportation

Transportation continues to be a core pillar of WELs diversified infrastructure portfolio, underpinned by decades of execution experience across highways, bridges and expressways. Indias continued emphasis on improving multimodal connectivity, expanding the national highway network and strengthening logistics efficiency is expected to sustain robust investments in transportation infrastructure over the coming years.

WEL has established strong execution capabilities across EPC, Hybrid Annuity Model (HAM) and Public-Private Partnership (PPP) formats, enabling it to participate across a wide spectrum of transportation projects while maintaining a disciplined approach to capital allocation and

project selection. The Companys strategy focusses on pursuing technically complex projects that offer attractive risk-adjusted returns, rather than prioritising Order Book.

The award of the Pune-Shirur Elevated Corridor under the DBFOT model marks an important milestone in WELs transportation business, expanding its presence in long-duration concession-based assets while enhancing future revenue visibility. Successful execution of nationally significant projects such as the Delhi-Meerut Expressway and the Aunta-Simaria Bridge, reinforces the Companys credentials as a trusted partner in delivering complex transportation infrastructure.

TUNNELLING INFRASTRUCTURE

Tunnelling is becoming increasingly important in India as surface infrastructure is facing growing limits. Rapid urbanisation, heavy traffic, land acquisition challenges and environmental restrictions are making it difficult to expand roads and railways on the surface. At the same time, expanding metros, highways and intercity corridors are adding more pressure on already congested transport networks.

Tunnelling helps solve this by creating capacity without using surface land. It allows traffic to bypass crowded cities, busy junctions and sensitive areas, ensuring smoother movement. In urban areas, it reduces congestion by separating through-traffic from local traffic. In urban areas, tunnelling has also been successfully utilized for creation of utilities such as water conveyance and sewage conveyance. By doing so, it eliminates the need to provide right-of-way for bulky pipelines in urban areas, thereby freeing these tracts of land for alternate use. In hilly regions, it provides faster, safer and all-weather connectivity where building surface roads is difficult. The increasing irrigation requirement is also pushing the demand for tunnels to convey water in lieu of canals, thereby reducing the cost and time consumed in land acquisition.

Globally, tunnelling is already widely used in countries such as Japan, Switzerland, Norway, Singapore and Hong Kong to address terrain- and space-related challenges. India is now adopting the same approach due to rapid infrastructure growth. Today, tunnelling is no longer limited to difficult terrain. Overall, it is becoming a key part of Indias infrastructure strategy, helping improve connectivity, reduce congestion and support long-term sustainable growth. Tunnelling is extensively implemented across metro networks, urban roads, airport connectivity, highways, railways, hydropower projects and border roads, and is currently being implemented for Indias first high-speed rail link between Mumbai and Ahmedabad. The Central as well as various state Governments of India collectively plan to construct around 3,000 Km of tunnels in coming years. The National Highways Authority of India (NHAI), has announced construction of 78 road tunnels with a total length of 285 Km in near future. The NHAI has announced a collective investment of Rs. 3 lac crore in the upcoming decade towards development and construction of road tunnels.

For FY26, Indias tunnelling pipeline across sectors is estimated at over 1,700 km, in the planning stages. Hydropower remains the leading segment, accounting for 42% of the total tunnel length under planning, followed by water and irrigation tunnel projects at about 31%. Road tunnels account for approximately 22%, while metro and rail projects together account for close to 5%.

Outlook

Indias tunnelling sector is poised for sustained growth, driven by increasing investments in metro rail, transportation corridors, urban infrastructure and water conveyance systems. As urbanisation accelerates and infrastructure projects become more complex, underground construction is emerging as a critical solution for enhancing connectivity, optimising land use and overcoming geographical constraints.

Given the sectors high technical complexity and significant entry barriers, companies with proven execution expertise and specialised engineering capabilities are well positioned to benefit from this long-term infrastructure opportunity.

Source:

NHAIs 75 tunnel projects spanning 146 km under construction at Rs. 49,000 crore investment, says Gadkari - Roadways News The Financial Express

India Infrastructure Report, July 2025

WELs Key Highlights

Tunnelling

Tunnelling has emerged as another strategic growth platform for WEL, supported by rapid urbanisation, expanding metro networks and increasing investments in underground transportation and utility infrastructure. With nearly 3,000 km of tunnels planned over the next decade, the sector offers significant long-term growth opportunities driven by the need for sustainable and space-efficient urban infrastructure.

To capitalise on this opportunity, WEL has strengthened its specialised capabilities through the acquisition of Welspun Michigan Engineers Limited (WMEL), enhancing its expertise across micro tunnelling,

segmental tunnelling, and rehabilitation of underground tunnels. Building on these capabilities, the Company is expanding its presence in transportation, metro and water conveyance tunnels, positioning itself to participate in the next phase of Indias underground infrastructure development.

As on March 31, 2026, the Companys tunnel order book stands at approximately Rs. 2,301 crore. For FY 2025-26, WEL reported revenue of Rs. 951 crore from the Tunnel segment (up 37% YoY), with a PBIT of Rs. 196 crore, registering 78% year-on-year growth.

OIL & GAS SECTOR

The oil and gas industry remains a critical pillar of the global economy, supplying essential energy and feedstock for transportation, power generation, heating, manufacturing and a wide range of downstream consumer products.

According to the Petroleum Planning & Analysis Cell (PPAC), Indias total indigenous production of crude oil and condensate during FY 2025-26 stood at 27.95 MMT. This compares with the total indigenous production of 28.71 MMT in FY 2024-25, implying a year-on-year decline of approximately 2.63% in domestic output. Net domestic natural gas production during FY 2025-26 was 34,326 MMSCM, compared to 35,594 MMSCM in FY 2024-25, a decline of approximately 3.56%. Meanwhile, Indias crude oil imports increased to 245.38MMT from 243.22 MMT in FY 2024-25, while long-term LNG imports dropped to 34,216 MMSCM from 35,720 MMSCM over the same period. These underscore Indias continued structural dependence on imported crude oil and LNG to meet its expanding energy requirements.

Global crude oil markets experienced considerable volatility during FY 2025-26 amid heightened geopolitical tensions. Average Brent crude prices increased from approximately USD 68.13 per barrel in April 2025 to around USD 102.01 per barrel by March 2026, representing an increase of nearly 49.7% over the period.

Heavy reliance on imported crude oil and LNG exposed the sector to global disruptions and geopolitical risks. Although India avoided physical supply shortages, elevated geopolitical tensions increased landed energy costs, disrupted shipping reliability, heightened supply security concerns and weakened demand in price-sensitive sectors. The period highlighted that Indias energy vulnerability extends beyond price volatility to include logistics and geopolitical risks, signalling a broader challenge to supply security.

In response, the Government of India has initiated targeted measures across the short-, medium- and long-term. In the

near term, policy focus has centred on diversifying crude oil and LNG import sources, supported by tactical sourcing strategies to mitigate supply risks and cost pressures. Over the medium term, the Government plans to expand Strategic Petroleum Reserve (SPR) capacity, thereby strengthening buffer stocks and enhancing resilience against supply disruptions.

Looking ahead, the long-term strategy - aligned with the Viksit Bharat 2047 vision of energy self-reliance - aims to structurally reduce vulnerability to fossil fuel imports without compromising energy security. A key pillar of this strategy is accelerating domestic exploration and production, supported by the opening of additional acreage under the Open Acreage Licensing Policy (OALP) and Discovered Small Field (DSF) rounds.

To enhance domestic production Govt. of India (Gol) has recently amended the Petroleum and Natural Gas Rules, 2025, after six and half decades which simplify operations and boost investments under the updated Oilfields (Regulation and Development) Amendment Act:

Key Structural Changes includes:

Unified Lease: Merging exploration and production licenses into a single, comprehensive license.

Broader Definitions of hydrocarbons to includes shale, coal bed methane, and gas hydrates.

Longer Tenure lease grants up to 30 years, extendable for a fields lifetime for proper planning and development of oil and gas resources.

Faster approval process enforces a strict 180-day deadline to process all lease applications.

Asset Sharing: Permits companies to share production facilities and merge adjacent fields.

Offshore Oversight: Empowers the Oil Industry Safety Directorate to enforce offshore safety standards.

Flaring Curbs: Mandates concrete action plans to eliminate routine gas flaring conserving national resources.

These initiatives are intended to unlock Indias indigenous hydrocarbon potential and enhance long-term supply security.

Sources:

1. Petroleum Planning & Analysis Cell (PPAC) for Indian oil & gas production & import numbers

2. Energy Information Administration (EIA) for Brent Crude Price Trends

WELs Key Highlights

Adam Welspun Exploration Limited (AWEL)

Adani Welspun Exploration Limited (AWEL), a joint venture between the Adani Group (65%) and Welspun Group (35%), is engaged in oil and gas exploration and development, with a portfolio of three shallow-water assets in the prolific Tapti-Daman sector of Mumbai Offshore.

At the flagship MB-OSN-2005/2 block, AWEL completed all exploration commitments and declared its first gas discovery in 2021. A Declaration of Commerciality was submitted to the Directorate General of Hydrocarbons (DGH) in March 2025, with the block estimated to have a Gas-In-Place potential of approximately 826 BCF. An Early Development Plan (EDP) has also been submitted to facilitate early monetisation.

The adjacent MB/OSDSF/B9/2016 discovered field, with an estimated Gas-In-Place potential of approximately 97 BCF, has an approved Revised Field Development Plan (RFDP). Development is proposed to be integrated with MB-OSN-2005/2 through shared surface facilities and pipeline infrastructure, enabling operational and cost efficiencies.

In MB/OSDSF/C37/2024, the Petroleum Lease was approved in March 2026 and the Company is currently evaluating the fields development strategy in conjunction with the neighbouring assets.

The integrated development approach across these contiguous assets is expected to optimise infrastructure utilisation, accelerate monetisation and strengthen the long-term value potential of AWELs offshore portfolio.

During the year, the Kutch block (GKOSN-2009/1) was written off following its surrender under the Governments DSF-IV process, resulting in an exceptional loss of Rs. 49 crore (WELs share). This block was not part of the Companys long-term development plans and does not impact AWELs strategic focus on its Mumbai Offshore portfolio.

COMPANY OVERVIEW

Welspun Enterprises Limited (hereafter referred to as WEL or The Company), part of Welspun World, is a fast-growing infrastructure platform with a diversified presence across transportation, water and tunnelling, along with a strategic oil and gas exposure through its joint venture, Adani Welspun Exploration Limited (AWEL).

WEL has evolved into a diversified infrastructure company with a strong presence across Water, Transportation and Tunnelling, underpinned by disciplined capital allocation, engineering excellence and a steadfast commitment to sustainable value creation. Over the years, the Company has strategically transformed its business portfolio from a transportation-focussed developer into an integrated infrastructure platform capable of executing complex, technology-intensive projects that address Indias rapidly expanding infrastructure requirements.

This transformation has been guided by a clear strategic vision to focus on sectors underpinned by long term structural investment, characterised by high technical entry barriers and offering opportunities to build enduring client relationships through both project execution and long term O&M services, while creating infrastructure that delivers a lasting positive impact on peoples lives.

Today, WEL offers integrated capabilities across the infrastructure value chain, spanning design, engineering, procurement, construction, commissioning and long-term asset management. The acquisition of Welspun Michigan Engineers Limited (WMEL) has significantly enhanced the Companys specialised engineering capabilities in tunnelling across micro, and medium diameter tunnels as well as rehabilitation of underground infrastructure. Strategic collaborations with global technology leaders have further strengthened its expertise in advanced water and wastewater treatment solutions.

The Companys project portfolio reflects its ability to execute some of Indias most complex infrastructure projects, including large-scale water treatment plants, wastewater treatment facilities, bulk water transmission systems, highways, bridges, and tunnels. These projects not only demonstrate engineering excellence but also reinforce WELs credentials as a trusted execution partner for technically demanding infrastructure programmes of national significance.

The organisation has been recognised as The Great place to Work for the second time, reflecting its strong

culture anchored in LITE values - Learning, Innovation, Trust and Transparency and Endurance.

The Company maintains strict adherence to Health, Safety and Environment (HSE) standards, supported by a strong safety-first culture. The same has been recognised through multiple industry awards.

CONSOLIDATED ORDER BOOK STATUS

The award of the Pune-Shirur road project has strengthened the Companys consolidated order book to approximately Rs. 20,000 crore. Of this, around Rs. 5,400 crore comprises long-term predominantly in the water sector, providing a stable annuity-like revenue stream over a period of up to 15 years following project completion. Excluding the O&M component, the executable order book stands at approximately 4x annual revenue, providing strong earnings visibility and supporting the Companys medium-term growth outlook.

Welspun Michigan Engineers Ltd. (WMEL)

WEL entered the specialised tunnelling segment in 2023 through the acquisition of a majority stake in Michigan Engineers Pvt. Ltd., subsequently renamed Welspun Michigan Engineers Ltd. (WMEL). The acquisition strengthened the Companys capabilities in underground infrastructure, adding expertise across tunnelling, rehabilitation, micro tunnelling, pumping stations and specialised engineering solutions.

Supported by strong relationships with municipal corporations, a presence across major Indian cities and a focus on advanced technologies, WMEL is well positioned to drive growth in specialised, high-value segments across water and wastewater management and transmission.

WMEL provides the following core services.

• Large value tunnelling and micro-tunnelling for pipelines

• Greywater pumping stations

• Pipeline rehabilitation and trenchless sewer upgrades

• SmartOps Technology - Portable water treatment system for Nalla, Lake, Kunds, Rivers, etc.

WMELs Financial Performance

WMEL delivered a strong operational performance during FY26, reporting 31% revenue growth to Rs. 874 crore, while maintaining an EBITDA margin of 21% and a ROCE of 20%. The order book stood at Rs. 2,305 crore as on March 31, 2026, providing healthy medium-term execution visibility. Tunnelling remained the largest revenue contributor, complemented by rehabilitation, marine, bridge and SmartOps projects.

CONSOLIDATED FINANCIAL HIGHLIGHTS & PERFORMANCE

For FY26, WEL posted a consolidated revenue of Rs. 3,615 crore, a decline of 2% on YoY basis. The muted revenue performance was on account of extended monsoons and longer project clearance cycle. The disciplined execution and cost optimisation efforts resulted in 16% YoY growth in the consolidated EBITDA, and thereby 11% YoY growth in net profit.

During the year, our balance sheet strengthened with the completion of the preferential issue of Rs. 1,000 crore, of which 25% allotment money has been received, while the balance is expected within 18 months from the date of allotment. As of March 31, 2026, our net worth stood at ,261 crore. We also maintained a strong cash balance of Rs. 1,728 crore with net debt remaining low at Rs. 43 crore.

During the year, CRISIL revised our rating outlook from stable to positive by reaffirming our long-term rating of CRISIL AA- and short-term rating of CRISIL A1+. Additionally, ICRA assigned an AA rating for the incremental working capital limit of Rs. 400 crore, further validating the strength of our financial profile. Going ahead with a strong order book, healthy liquidity position and continued focus on disciplined execution, we remain confident of delivering sustainable growth and long-term value creation.

Consolidated financial