Welspun Enterprises Ltd Management Discussions

FY 2024-25 has been a powerful year of growth, driven by our relentless focus on execution. I am proud to report a 25% jump in consolidated revenue to 3,584 Crore. Even more heartening is our robust order book of more than 14,300 Crore, including O&M, that provides us not just visibility but deep confidence in the path ahead. I firmly believe that the superior quality of our order book, with high-margin, return-accretive water projects, will drive sustained improvements in profitability. We are rapidly developing a technology-driven water vertical. A major milestone this year was increasing our stake in Welspun Michigan Engineers Limited to over 60%, reinforcing our leadership in the water infrastructure space.

Backed by a strong order pipeline, a robust balance sheet, an asset-light business model, and a mission-driven leadership team, I am confident that Welspun Enterprises is now poised to deliver superior returns.

In doing so, we aim to not only outperform in financial terms but also positively impact the ecosystems we touch. Together, we will forge a future where innovation, sustainability and value creation are inseparable, powering our business as well as the communities and environments we serve. The best is yet to come.

ECONOMIC OVERVIEW Global Economy

The global economy is undergoing a major transformation, marked by rising trade tensions, heightened policy uncertainty and a rethinking of long-standing international trade rules. Despite the challenges, it expanded by 3.3% year-over-year in 2024, reflecting steady growth. Advanced economies grew by 1.8%, while Emerging Market and Developing Economies (EMDEs) demonstrated resilience with a 4.3% rise. The United States remained a pillar of strength, supported by a robust labour market and resilient domestic demand, while the Eurozone grappled with structural hurdles, particularly in energy-intensive industries. In contrast, India and Southeast Asia emerged as bright spots, fuelled by strong domestic consumption, rapid digital transformation and infrastructure development. Chinas recovery, however, was hampered by a slowdown in the property sector and softer external demand. During this period, the interconnectedness of economic performance and infrastructure resilience became more apparent, as stable economic conditions enabled greater investment in critical sectors, while robust infrastructure supported productivity, employment and long-term growth.

Outlook

The global economic outlook for 2025 shows a mix of challenges and opportunities, influenced by changing trade patterns and policy shifts. Advanced economies are expected to reach their inflation targets earlier, while Emerging Market and Developing Economies (EMDEs), especially China and India, are likely to maintain steady growth. However, the introduction of new US tariffs and the resulting retaliatory actions have created new risks for global trade, which could increase inflation and slow down growth. Global GDP is forecast to grow by 2.8% in 2025 and 3.0% in 2026, suggesting a gradual slowdown compared to the stronger growth of the past two years. Growth in advanced economies is projected at 1.4% in 2025 and 1.5% in 2026, reflecting moderate expansion, while EMDEs are expected to grow more strongly at 3.7% and 3.9% respectively. Despite these uncertainties, technological progress and supportive government policies are expected to help maintain economic resilience.

Indian Economy

India is currently the fourth-largest economy in the world based on Gross Domestic Product (GDP), underscoring its growing importance in the global

Inflation Trend Based on All India General CPI (in %) economy. However, uncertainty related to the early FY 2024-25 elections, along with weather-related challenges that disrupted construction and manufacturing, led to lower-than-expected growth in gross fixed capital formation. Despite these setbacks, the Indian economy remained resilient, supported by strong macroeconomic fundamentals and a continued focus on sustainability and innovation throughout FY 2024-25. According to the second advance estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), Indias real GDP is projected to grow by 6.5% year-on-year in FY 2024-25, following a 9.2% expansion in FY 2023-24.

Although private consumption and government spending increased noticeably, overall economic momentum remained moderate. As a result, the Reserve Bank of India (RBI) maintained a neutral monetary policy stance. Consumer Price Index (CPI) inflation has eased to 4.9% in FY 2024-25, compared to 5.4% in the previous year and is projected to ease further to 3.7% in FY 2025-26. Going forward, factors such as global financial market volatility, energy price volatility and adverse weather conditions may pose risks to the countrys economic outlook.

Source: *MOSPI NSO Report dated May 30, 2025 #RBI Monetary Policy Committee (MPC) report June 6, 2025

Going forward, the household consumption is expected to remain steady, supported by the tax relief measures announced in the Union Budget for FY 2025-26. Fixed investment is also expected to grow, backed by improved capacity utilisation, healthier balance sheets of banks and corporates and continued government focus on capital spending. The revised tariffs could result in elevated import expenses, rising consumer prices and added strain on supply chains and enterprises. Market volatility has been impacted by shifts in U.S. trade policy, notably due to the announcement of a 26% import tariff on Indian exports to the United States. Inflation remained a concern in FY 2024-25 due to global supply chain disruptions and volatile commodity prices. In a significant policy move, the RBIs Monetary Policy Committee unanimously decided to reduce the repo rate by 25 basis points twice since February 2025, bringing it down to 6% in April and further reduced by 50 basis points to 5.5% in June 2025 while maintaining its neutral stance on the economy. This step is intended to improve liquidity and stimulate economic growth. With its focus on self-reliance, adaptability and alignment with global trends, India is poised for stable economic progress. The RBI projects the Indian economy to grow by 6.5% in FY 2025-26, supported by initiatives such as ‘Make in India, large-scale infrastructure development and continued policy reforms aimed at enhancing growth and competitiveness

Source: MOSPI_1, ^MOSPI_2

INDUSTRY OVERVIEW Infrastructure

Indias infrastructure sector is poised for substantial growth, driven by various government initiatives and rising public sector investment. With 11.2 lakh crore earmarked for capital expenditure in FY 2025-26, infrastructure development remains central for economic expansion and generating employment.

Significant progress has been made in infrastructure development, with notable efforts in highway expansion, faster project execution and increased private sector participation. Key initiatives, such as the Bharatmala Pariyojana, have been optimising freight movement, while the civil aviation sector is growing with the addition of new airports and enhanced regional connectivity. Urban infrastructure is being strengthened through initiatives like Urban Challenge Fund, the extended Jal Jeevan Mission and the UDAN scheme. The Jal Jeevan Mission has provided tap water connections to 15 Crore urban households, aiming for universal access to safe drinking water. These efforts are integral to improving connectivity and infrastructure across India. Reforms in the power sector and financing strategies by National Bank for Financing Infrastructure and Development (NaBFID) aim to enhance financial agility and encourage private investment. These combined measures are expected to accelerate renewable energy adoption, strengthen transport systems and contribute to broader economic development.

National Infrastructure Pipeline (NIP): The NIP is a major initiative launched by the Government of India to accelerate infrastructure development between 2020 and 2025. It focuses on vital sectors such as energy, transportation (roads and railways) and urban infrastructure, with investments drawn from central and state governments, as well as private entities. NIP was launched with 6,835 projects and has expanded to over 9,288 projects between 2020-25. The initial investment target of 111 trillion was later revised to 168.93 trillion. It contributes significantly to economic growth, job creation and strengthening the countrys global economic standing. As of March 2025, investments worth 31.1 trillion have been completed achieving 28% of the original target. If ongoing projects totalling 83.54 trillion are included, the overall achievement stands at 103% of the original target.

Urban Affairs and Housing: The Smart Cities Mission (SCM) has seen significant progress, with 8,076 projects valued at 1,64,706 Crore, of which 7,401 projects worth 1,54,351 Crore have been completed, according to data from the 100 Smart Cities as of February 1, 2025. In addition, the Swachh Bharat Mission Urban 2.0 has led to a 97% increase in urban waste collection from 2014-15 to 2024-25, while the waste processing rate has risen from 18% in 2014-15 to 78% in FY 2024-25. Housing development has also experienced substantial growth. Between 2004 and 2014, 13.46 lakh houses were approved under schemes like Jawaharlal Nehru National Urban Renewal Mission (JnNURM) and Rajiv Rinn Yojana (RRY). This figure increased ninefold between 2015 and 2024, with 118.64 lakh houses approved under Pradhan Mantri Awas Yojana Urban (PMAY-U). Similarly, the number of houses built rose dramatically from 8.04 lakh in 2004-14 to 88.32 lakh in 2015-24.

Smart Cities Mission: 7,401 out of 8,076 projects completed ( 1.54 lakh crore of 1.64 lakh crore), as of February 1, 2025.

Bharatmala Pariyojana: Introduced in 2017, Bharatmala Pariyojana aims to develop 26,000 km of Economic Corridors to handle a major share of the nations freight movement. The program covers strategic routes including the Golden Quadrilateral, North-South and East-West Corridors, along with urban ring roads, bypasses and elevated routes to ease congestion and enhance logistics performance. A major portion of these roadways is targeted for completion by 2025. Additionally, the plan includes the development of 35 Multimodal Logistics Parks with an investment of 46,000 Crore, collectively designed to manage up to 700 million metric tonnes of cargo.

Sagarmala Programme: Launched in 2015, the Sagarmala Programme aims to modernize ports, boost trade and enhance maritime infrastructure. As of March 2025, 272 out of 839 identified projects have been completed, with 1.41 lakh crore invested from a projected outlay of 5.79 lakh crore.

Sagarmala 2.0 builds on earlier initiatives with a specific allocation of 40,000 Crore for projects related to shipbuilding, ship repair, ship recycling and enhancing operational efficiency. This targeted investment is a part of the broader Sagarmala programme, which aims to attract total investments worth 12 lakh crore to develop world-class maritime infrastructure and accelerate economic growth. The 2025-launched S2I2 initiative promotes innovation in green shipping and smart port tech.

PM Gati Shakti National Master Plan: Launched in 2021, the PM Gati Shakti initiative is a comprehensive framework to improve infrastructure planning and connectivity across India by synchronizing the efforts of 16 ministries, including railways, roads, aviation and ports. As of October 2024, the initiative includes participation from 44 Central Ministries and 36 States/UTs, with over 1,600 data layers integrated into the Gati Shakti digital platform.

Heading into FY 2025-26, the focus is on streamlining project implementation, offering incentives to states and expanding the platform to include social infrastructure mapping for better investment planning. As of February 2025, a major milestone of the initiative has been the evaluation and ongoing monitoring of 208 priority infrastructure projects. These projects collectively represent an investment value of 15.39 lakh crore, reflecting the scale and ambition of efforts to upgrade Indias maritime and logistics infrastructure. By improving multimodal connectivity, enhancing last-mile linkages and reducing transit time, PM Gati Shakti plays a central role in Indias infrastructure transformation and economic efficiency.

Challenges faced

India is prioritizing the growth of its infrastructure sector while aiming to attract more foreign investment. Creating a favourable investment environment, with transparent regulations and a streamlined approval process, is essential to maintain investor interest. However, challenges like procedural delays and regulatory barriers may pose difficulties. Overcoming these risks requires the establishment of clear governance frameworks and efficient processes throughout all stages of infrastructure development to ensure smooth execution and long-term progress.

Source: Press Information Bureau, Business Standard

BUDGET FY 2025-26 HIGHLIGHTS FOR INFRASTRUCTURE SECTOR

The Union Budget 2025-26 underscores a strong commitment to infrastructure expansion and economic growth, with significant allocations and reforms across key sectors.

Rural Infrastructure & Water Supply

The Jal Jeevan Mission has been extended until 2028, with a budget allocation of 67,000 Crore for FY 2025-26. Since its launch in 2019, the Mission has provided portable tap water to 15 Crore rural households, covering nearly 80% of the rural population. It aims to achieve 100% coverage over the next three years, improving the quality of life in rural areas. Under the Second Plan for 2025-30, an investment of 10 lakh crore is proposed for new infrastructure projects, including support for major programmes such as the Jal Jeevan Mission.

Tap water coverage rose from 17% in 2019 to 79.74%

(15.44 Crore households) by Feb 2025 under JJM.

Urban Development & Housing

To support city development and urban transformation, 1 lakh crore has been earmarked under the Urban Challenge Fund, which will fund up to 25% of key urban projects. Additionally, a 15,000 Crore under Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund 2 has been introduced to expedite the completion of one lakh additional dwelling units, with contributions from the Government, banks and private investors.

State Capital Investment & Public-Private Partnerships

About 1.5 lakh crore has been allocated for state-level capital expenditure and reforms. An additional 10 lakh crore is expected to be mobilised through asset monetisation to finance infrastructure projects, with an emphasis on Public-Private Partnerships (PPP) to drive implementation and efficiency.

Energy, Maritime and Shipbuilding Sectors

The budget introduces a Nuclear Energy Mission to support research and innovation in atomic energy. A 25,000 Crore package will enhance port capacity and support shipbuilding, complemented by a revamped Shipbuilding Financial Assistance Policy and the formation of shipbuilding clusters. A Maritime Development Fund has also been established to strengthen the maritime ecosystem, alongside the extension of the Tonnage Tax Scheme to attract investment.

Core Reforms and Sustainability Initiatives

The Government continues to prioritise sustainable growth with a focus on power sector reforms aimed at improving efficiency and encouraging renewable energy adoption. State-specific incentives are promoting infrastructure development in rural connectivity, urban expansion and transportation networks, ensuring long-term sustainability.

Aviation & Regional Connectivity

The UDAN scheme continues to expand, with 601 routes and 71 airports already operational, benefitting over 1.44 Crore passengers as of April 2025. Plans are underway to add 120 new destinations, including greenfield airports in Bihar, aiming to connect an additional 4 Crore people in the coming decade. Investments are also being made to strengthen air cargo infrastructure.

Source: EY, India Budget, Press Information Bureau_1, Press Information Bureau_2

GLOBAL WATER LANDSCAPE

Over 70% of Earths surface is water, but 97% is saline and undrinkable. Of the 3% freshwater, two-thirds are trapped in glaciers and ice caps, and nearly a third is in depleting groundwater. Only 1% of freshwater, from rainfall, rivers, and lakes, is easily accessible, causing a tight global supply despite abundant water.

Since the beginning of the 20th century, global freshwater use has risen about sixfold due to population growth and a shift to resource-heavy consumption. This includes withdrawals for agriculture, industry, and municipal purposes. This escalating demand has led to increased stress on freshwater resources and further depletion of reservoirs. Global per capita renewable resources are declining in many countries, mainly as a result of population increases.

The per capita water availability in India is also reducing due to increasing population. According to the Central Water Commission, the average annual per capita water availability for year 2021 and 2031 has been assessed as 1,486 cubic meter and 1,367 cubic meter respectively. Annual per-capita water availability of less than 1,700 cubic meter is considered as water-stressed condition whereas annual per-capita water availability below 1,000 cubic metres is considered as a water scarcity condition.

Water infrastructure plays a pivotal role in managing water resources, including supply, treatment, distribution and wastewater disposal systems. These interconnected networks are fundamental to ensuring access to safe drinking water, supporting economic activities and promoting effective wastewater management. Source: World Economic Forum, Our World in Data, Ministry of Jal Shakti

GLOBAL WATER INFRASTRUCTURE

The global water infrastructure industry has been witnessing significant transformation in 2024, driven by rising demand, climate change impacts and the need to upgrade aging systems. The United Nations World Water Development Report 2025 highlighted the critical role of mountain regions, particularly glaciers, as the worlds “water towers”, which are increasingly under threat. Glacial melt and changing snowmelt patterns are disrupting water availability for billions. Agriculture remains the largest consumer of freshwater globally, while water stress affects a quarter of the global population. Challenges such as climate change, pollution and ecosystem degradation are worsening water scarcity and progress towards Sustainable Development Goal 6, which aims to provide universal access to safe water and sanitation, remains significantly off-track.

The water infrastructure segments market size is projected to grow at a CAGR of approximately 9% in terms of market size between 2024 and 2029, making it the fastest-growing component within the utilities sector. This strong expansion is being fuelled by rising concerns over water scarcity, rapid urbanisation and the increasing need for sustainable water management solutions. Governments across the world are prioritising investments in modernising water infrastructure, focusing on advanced treatment facilities, smart metering systems and efficient distribution networks. The segment is also witnessing notable technological progress in desalination, water recycling and smart water management systems. Stricter environmental regulations and the growing need for resilient water infrastructure in response to climate change are further driving investment in this sector.

The sharp surge in global freshwater demand, presents a critical opportunity to invest in resilient and sustainable water infrastructure. With global water demand expected to rise by 20-30% by 2050 and 27% of the worlds population lacking access to safely managed drinking water as of 2024, the urgency for advanced water solutions has never been greater. By 2025, an estimated 1.8 billion people will face absolute water scarcity, highlighting the need for scalable infrastructure capable of meeting growing needs. As a result, there is an urgent and compelling need to build innovative, efficient and climate-resilient water infrastructure globally to ensure sustainable development and equitable water access for future generations.

Source: Morder Intelligence, Greenmatch UK

INDIAN WATER INFRASTRUCTURE INDUSTRY

Water infrastructure is a broad sector covering multiple verticals, including water treatment, distribution, transmission, wastewater management and desalination. Each of these segments plays a critical role in ensuring the availability, quality and sustainable use of water resources across domestic, agricultural and industrial applications. Indias water industry is undergoing a dynamic transformation, driven by rapid urbanization, rising demand for clean and reliable water and strong government support. With growing pressure on resources and increasing awareness around sustainability, the sector is witnessing significant investments and innovation across its key segments including water infrastructure, EPC services, treatment equipment, pumps and valves and smart monitoring systems. At the forefront of this transformation is water infrastructure, which has seen major investments aimed at expanding access to safe drinking water and improving sanitation.

In India, the strategic focus within the water infrastructure sector is increasingly shifting towards securing and sustaining groundwater resources. The guiding principle of “Reduce, Reuse, Recharge and Recycle” has become central to water management efforts, with greater emphasis placed on conservation, recharge and quality monitoring. Groundwater continues to be critical for drinking water supply, agriculture and industrial needs, making its sustainable management a top priority.

In 2024, India recorded significant progress in groundwater management. Total annual groundwater recharge increased by 15 billion Cubic Meters (BCM), while extraction decreased by 3 BCM compared to the 2017 assessment. This positive trend is largely attributed to improved recharge efforts through water bodies, tanks, ponds and conservation structures. Consequently, the percentage of groundwater assessment units classified as “Safe” rose from 62.6% in 2017 to 73.4% in 2024, while “Over Exploited” units declined from 17.24% to 11.13%. According to the ‘National Compilation on Dynamic Ground Water Resources of India, 2024 by the Central Ground Water Board (CGWB), Indias total annual groundwater recharge stands at 446.90 BCM, with an extractable resource of 406.19 BCM and annual extraction at 245.64 BCM. These figures provide a strong foundation for strategic planning and reinforce the need for continued investment in groundwater conservation.

Groundwater quality remains an equally important focus area. The Annual Groundwater Quality Report 2024 highlights ongoing challenges associated with pollutants such as arsenic, fluoride, uranium and nitrate, which pose risks to health and the environment. Out of more than 15,200 monitoring locations and 4,982 trend stations across the country, 81% of groundwater samples were found suitable for irrigation. Notably, groundwater in the North-Eastern states was rated “excellent” for irrigation purposes, reflecting the regions robust natural water quality.

In 2024, Annual Groundwater Recharge increased by 15 BCM, while extraction reduced by 3 BCM compared to 2017 levels.

Alongside groundwater initiatives, the development and strengthening of surface water infrastructure has also gained momentum. Investments in the construction, restoration and modernisation of dams, canals, reservoirs and urban water supply systems are critical to enhancing water availability and reliability. Projects aimed at rejuvenating rivers, desilting lakes and improving stormwater drainage networks are increasingly being prioritised to better manage seasonal water variability and reduce flood risks. The integrated management of surface and groundwater resources is now viewed as essential to building a resilient and sustainable water infrastructure system that can meet the growing demands of urbanisation, agriculture and industry.

Together, these developments represent a major step forward in strengthening Indias water infrastructure, with a balanced focus on ensuring both the quantity and quality of groundwater and enhancing the capacity and resilience of surface water systems for sustainable use in the future.

Source: Press Information Bureau

INDIAN WASTEWATER TREATMENT INDUSTRY

Within water treatment, key subcategories include the treatment of drinking water, desalination to convert saline water into potable water and wastewater treatment for reuse and environmental protection. Transmission and distribution infrastructure ensures the efficient delivery of treated water to households, industries and agricultural fields. Wastewater management focuses on the collection, treatment and safe disposal or reuse of used water, further promoting water sustainability. The Indian wastewater treatment market size reached USD 9.64 Billion in 2024.

Looking ahead, the market is expected to grow to USD 18.63 Billion by 2033, exhibiting a CAGR of 7.60% during 2025-2033. The India wastewater treatment market is driven by accelerating urbanization, rapid industrialization and escalating water scarcity. Rising environmental awareness, stricter regulatory frameworks and the increasing need for sustainable water management solutions are further propelling market demand. Additionally, supportive government policies, population growth and ongoing industrial expansion are imparting innovation and growth within the sector.

One of the key trends driving the India wastewater treatment market outlook is the growing adoption of advanced wastewater treatment technologies.

While traditional methods such as chemical and biological treatments remain prevalent, they are increasingly being complemented by advanced solutions like membrane filtration, reverse osmosis (RO) and advanced oxidation processes (AOP). These technologies offer higher efficiency in contaminant removal, enabling wastewater reuse across industries such as textiles, pharmaceuticals and agriculture. Moreover, the integration of intelligent technologies and Internet of Things (IoT) applications is improving real-time water quality monitoring and system optimisation. These advancements help industries comply with stringent environmental regulations, reduce operational costs and enhance sustainable water management practices. With supportive government policies and a growing emphasis on regulatory compliance, the adoption of cutting-edge technologies is expected to accelerate in Indias wastewater treatment sector.

Government initiatives like the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) are encouraging water recycling and the establishment of wastewater treatment infrastructure. Under AMRUT 2.0, cities with populations exceeding 1,00,000 are mandated to recycle at least 20% of their wastewater. Industries in water-intensive sectors, including textiles and food processing, are adopting closed-loop systems to reduce reliance on freshwater resources. This trend not only conserves vital water resources but also supports businesses in lowering costs and mitigating environmental impacts.

Source: IMARC Group

DESALINATION

Desalination is the process of removing salt and other impurities from seawater or brackish water to produce fresh water that is safe for drinking, irrigation, or industrial use. The Indian Desalination Plant Market was valued at USD 957.33 million in 2024 and is projected to reach USD 1,728.10 million by 2030, growing at a CAGR of 10.18% during the forecast period. The market is experiencing significant growth due to the rising demand for potable water, particularly in regions facing water scarcity and declining groundwater quality. With a vast coastline and a rapidly growing population, India is turning to desalination as a reliable solution to address its increasing urban and agricultural water needs, especially as traditional freshwater sources become depleted or contaminated.

Coastal cities such as Chennai, Mumbai and Kochi are leading the adoption of desalination plants to secure water supplies amid seasonal rainfall dependency and rising drought threats. Additionally, industrial sectors like power generation, pharmaceuticals, textiles and food processing are driving further demand for desalinated water. Strong government support through initiatives like the National Water Mission, along with increasing participation from private players, is also boosting market expansion.

Technological innovations, particularly in reverse osmosis (RO) processes, have enhanced operational efficiency and reduced the cost of desalinated water, making it a more attractive option. However, the market faces challenges, including high energy consumption and environmental concerns related to brine disposal. However, advancements in energy-efficient technologies and eco-friendly brine management practices are helping to address these issues. Overall, the market outlook remains positive, supported by growing clean water demand, continuous technological improvements and the urgent need for sustainable water solutions in Indias coastal regions. Despite these growth prospects, challenges such as the high cost of desalination plants and environmental concerns related to their operation may slow the markets progress. However, the potential for integrating desalination with renewable energy sources presents new opportunities for growth, making the process more sustainable and cost-effective in the long term.

Several municipalities are countering this challenge by introducing desalination plants. For instance, the Brihanmumbai Municipal Corporation (BMC) in Mumbai has announced plans to build a desalination plant with a capacity of 200 million liters per day (MLD). Similarly, Chennai is progressing with two major desalination projects: one with a capacity of 150 MLD set to complete by 2023 and another with a capacity of 400 MLD expected by 2025. These projects aim to supply freshwater to millions of residents, addressing the water scarcity challenge in urban areas. In line with the Sustainable Development Goals (SDGs) for Clean Water and Sanitation, India is committed to providing safe drinking water to all citizens by 2030. The ongoing projects and increasing investments in desalination technology are key components of this broader strategy, driving the growth of the desalination systems market in India.

One of the key trends driving the desalination systems market in India is the rising demand from municipalities. With groundwater and surface water resources increasingly depleted, municipal authorities are turning to desalination as a solution to provide potable water. The demand for clean drinking water has intensified, as highlighted by a report from the Planning Commission of India in 2021, which noted that the average water availability per person had dropped to 1,486 cubic meters annually and is projected to fall further to 1,367 cubic meters by 2031.

Source: Techsci Research, Mordor Intelligence

GOVERNMENT INITIATIVES

The Department of Water Resources, River Development and Ganga Rejuvenation, under the Ministry of Jal Shakti, has been working towards the vision of a ‘Water Secure Country. Since its formation in 2019, the Ministry has brought together various water-related departments to adopt a unified and strategic approach to water resource management. Emphasis has been placed on water conservation, particularly through the implementation of rainwater harvesting systems in government buildings, schools and healthcare facilities.

Under the Atal Mission for Rejuvenation and Urban Transformation 2.0 (AMRUT 2.0), the Central Government has allocated 66,750 Crore in assistance for various urban infrastructure projects. As of March 2025, 890 sewerage and septage management projects worth 34,505 Crore have been awarded. These projects have resulted in the creation of 4,447 million litres per day (MLD) of sewage treatment capacity, of which 1,437 MLD has been developed specifically for recycling and reuse.

Swachh Bharat Mission

The Swachh Bharat Mission (Grameen), which was launched on October 2, 2014, aimed to make rural India Open Defecation Free (ODF) by ensuring access to toilets for every household by October 2, 2019. Under Phase-I, sanitation coverage rose from 39% to 100%, with the construction of over 10 Crore individual household latrines and all villages declaring themselves ODF. Building on this progress, Phase-II was launched on April 1, 2020 with a focus on sustaining ODF status and introducing Solid and Liquid Waste Management (SLWM) to achieve ODF Plus status by 2025-26. In total, 11.83 Crore individual household latrines and 2.53 lakh Community Sanitary Complexes have been constructed. The funding structure involves cost-sharing between the Centre and States, with full central support extended to Union Territories.

Swachh Bharat Urban 2.0: 97% increase in waste collection and processing rate improved to 78% in FY25.

Jal Jeevan Mission (JJM) Har Ghar Jal

The Jal Jeevan Mission was launched on August 15, 2019, with the ambitious goal of providing tap water supply to every rural household. At the time of its inception, only 3.23 Crore (17%) of rural households had tap water connections. As of February 1, 2025, the Jal Jeevan Mission (JJM) has successfully provided tap water connections to 12.20 Crore additional rural households, bringing the total coverage to over 15.44 Crore households, which accounts for 79.74% of all rural households in India. In the Union Budget 2025-26, the total budget outlay for Jal Jeevan Mission has been enhanced to Rs 67,000 Crore, and the Mission has been extended until 2028.

National Mission for Clean Ganga (NMCG)

The Namami Gange Programme (NGP), launched by the Government of India in 2014 15 to rejuvenate the Ganga and its tributaries, was originally allocated 20,000 Crore for five years up to March 2021. This initiative was later extended until March 2026, with the budget enhanced to 22,500 Crore. As part of this continued commitment, the National Ganga Plan (Central Sector) has been assigned 3,400 Crore for the FY 2025-26. This allocation is aimed at further strengthening sewage treatment infrastructure, regulating industrial waste discharge and improving overall water quality, with the goal of achieving designated bathing standards by 2025.

As of January 31, 2025, a total of 492 projects worth 40,121.48 Crore have been launched under the NMCG mission. Out of these, 307 projects have been completed and have been operational. Within this total, 206 projects specifically targeting sewage infrastructure have been initiated, supported by a sanctioned budget of 33,003.63 Crore. Of these, 127 projects – accounting for 3,446 MLD of treatment capacity – have been successfully completed and are functioning, playing a key role in reducing pollution levels. Out of the 492 projects about 203 projects are dedicated to improving sewerage infrastructure valuing 32,613 Crore have been undertaken, aiming to treat 6,255 MLD of wastewater across polluted river stretches. Three Common Effluent Treatment Plants (CETPs) have been sanctioned Jajmau (20 MLD), Banther (4.5 MLD) and Mathura (6.25 MLD).

As of January 31, 2025, 492 projects worth 40,121.48 Crore have been launched under the NMCG mission.

PM-Krishi Sinchayi Yojana (PMKSY)

The PMKSY has continued to advance irrigation development and natural resource management through multiple components. In FY 2024-25, 12 new projects were initiated, marking a 9.09% increase from the previous year, with 9 projects completed.

The Watershed Development Component (WDC-PMKSY), implemented by the Department of Land Resources, focuses on restoring degraded and rainfed regions through integrated interventions like soil conservation, rainwater harvesting and livelihood generation. WDC-PMKSY 1.0 led to marked improvements in water availability, crop productivity and farmer income. The approval for the 56 new watershed development projects covering 2.8 lakh hectares with 700 Crore funding was announced by the Ministry of Rural Development on January 13, 2025. Additionally, the Micro-Irrigation Fund (MIF), as of January 31, 2025, loans amounting to 4,709 Crore have been approved, with 3,640 Crore disbursed. The MIF supports innovative irrigation projects by providing a 2% interest subvention on state loans.

Complementing these efforts, the “Per Drop More Crop” (PDMC) initiative has been promoting water-use efficiency since FY 2015-16. By the end of December 2024, 21,968.75 Crore was released, benefiting 95.58 lakh hectares more than double the coverage before the scheme. Similarly, the Rainfed Area Development (RAD) program, launched in FY 2014-15 and integrated into the Rashtriya Krishi Vikas Yojana (RKVY) from FY 2021-22, focuses on aligning natural resource conservation with farming practices. As of April 2025, RAD has received 1,858.41 Crore in funding, supporting interventions across 8 lakh hectares of land. During the review period, progress on key national water projects varied across states.

Interlinking of Rivers (ILR)

The ILR project in India aims to address the countrys growing water scarcity by connecting major rivers, improving water distribution and enhancing irrigation systems across regions. The National Water Development Agency (NWDA) has identified 30 ILR projects as of September 2024, including both peninsular and Himalayan river links. Among these, four priority projects Ken Betwa, Kosi-Mechi, Parbati Kalisindh Chambal and Godavari-Cauvery – have been selected for early implementation. The government has committed 60% of the funding for these projects, with the remaining 40% coming from state governments. Over the next decade by 2034, the ILR initiative is expected to generate business opportunities worth 2 trillion, with 80,000 Crore estimated to be awarded in the next four years to EPC players involved in construction. However, a major challenge for the timely execution of these projects is building consensus among the affected states. The ILR initiative is seen as a vital step towards meeting the increasing water demands, supporting agricultural productivity and improving flood control in India.

Source: Ministry of Jal Shakti Report, Press Information Bureau, Press Information Bureau_2, Press Information Bureau_3, Ministry of Jal Shakti Report, Press Information Bureau_4, Press Information Bureau_5, Press Information Bureau_6, IRCA Analytics

TUNNELLING

India is rapidly advancing its tunnelling infrastructure as part of a broader push to enhance connectivity, especially across challenging terrains like the Himalayas and the Western Ghats. These tunnel projects, led by the Ministry of Road Transport and Highways, aim to improve road safety, reduce travel time and provide all-weather access in regions prone to landslides, snowfall and other extreme conditions. By connecting remote and strategic areas, these tunnels are not only boosting tourism and local economies but also strengthening national security through improved access to border regions.

As of April 20, 2025, nearly 75 tunnel projects totalling 146 kilometres in length and valued at 49,000 Crore are in progress under the NHAI. An additional 78 projects, covering 285 kilometres and estimated at 1.10 trillion, are also in the pipeline. On the same date, 35 tunnels totalling 49 kilometres have been completed at a cost of 20,000 Crore. Tunnels are becoming essential not just for roads, but also for hydro, metro and railway projects. The proposed underwater tunnel beneath the Brahmaputra River in Assam is opening up significant opportunities for developers and consultants in the tunnelling sector. Such initiatives form a vital component of Indias infrastructure development strategy, supporting the broader vision of positioning the country as a leading global economy.

Source: Construction World, Business Standard

TRANSPORT INFRASTRUCTURE

The transport sector plays a key role in driving social and economic development by enabling the smooth movement of passengers and goods across the country. It contributes significantly to economic growth, job creation and positively impacts various other sectors through infrastructure development and operations.

Roads & Highways

Indias National Highways network has grown substantially over the past decade, expanding by 60% from 91,287 km in 2014 to approximately 1,46,204 km by early 2025. This extensive network forms the backbone of the countrys road transport system, facilitating efficient connectivity across regions. To drive this growth, the Government of India has launched several key initiatives, including the Bharatmala Pariyojana, which also subsumes the earlier National Highway Development Project (NHDP). In FY 2023-24, the Ministry of Road Transport and Highways (MoRTH) constructed 12,349 km of national highways – the second-highest achievement in its history, following the record 13,327 km built in FY 2020-21.

The Bharatmala Pariyojana, launched in 2017, aims to develop around 26,000 km of Economic Corridors. Along with the Golden Quadrilateral (GQ) and the North-South and East-West (NS-EW) Corridors, these are expected to carry the bulk of freight traffic on roads. The project also includes the development of ring roads, bypasses and elevated corridors to ease city traffic and improve logistics efficiency. By November 2024, a total of 18,926 km of roads had been completed under the project. Additionally, the development of 35 Multimodal Logistics Parks is planned, with an estimated investment of 46,000 Crore to further strengthen the freight and logistics network.

Moreover, the Pradhan Mantri Gram Sadak Yojana (PMGSY), launched in 2000 is expected to provide all-weather road connectivity to unconnected rural habitations as part of a broader poverty reduction strategy. Under the PMGSY, rural road construction increased significantly from

1,07,370 km in 2006-07 to 7,71,950 km by 2024-25. During this period, total spending rose from 10,769 Crore to 3,31,584 Crore, reflecting major progress in rural infrastructure and connectivity.

In FY 2024-25, the National Highways Authority of India (NHAI) constructed 5,614 km of National Highways, surpassing the annual target of 5,150 km, reflecting its continued focus on strengthening highway infrastructure. NHAIs capital expenditure during the year reached a record high of over 2,50,000 Crore (provisional), exceeding the target of 2,40,000 Crore. This included both government budgetary support and NHAIs own resources. The capital expenditure rose by about 21% compared to 2,07,000 Crore in FY 2023-24 and by around 45% compared to 1,73,000 Crore in FY 2022-23. NHAI adopted three monetisation models Toll Operate Transfer (TOT), Infrastructure Investment Trust (InvIT) and Toll Securitisation – raising a total of 28,724 Crore. This includes its highest-ever single-round InvIT receipt of 17,738 Crore. NHAI remains committed to developing world-class highway infrastructure that supports the growth of the road sector and contributes to the broader economic development of the country. In FY 2023-24 alone, MoRTH raised 40,314 Crore, its highest-ever amount and it targets 39,000 Crore for FY 2024-25, with a Concession Agreement for TOT Bundle-16 already signed for 6,661 Crore.

The Bharatmala Pariyojana has led to the award of highway development projects covering 26,425 km through various implementation models as of December 2024. The Engineering, Procurement and Construction (EPC) mode accounts for the largest share, covering 14,748 km or 55.81% of the total, with a capital investment of 4,06,024 Crore. The Hybrid Annuity Model (HAM) has been used for 11,269 km, representing 42.64% of the total length and involving a capital cost of 4,36,522 Crore. Meanwhile, the Build-Operate-Transfer (BOT) Toll model has been applied to 408 km, contributing 1.55% to the total length with a capital cost of 11,111 Crore. Altogether, these projects represent a capital investment of 8,53,656 Crore, aimed at enhancing the national highway infrastructure across the country.

The Parvatmala Pariyojana, launched by the Government of India in 2022, aims to improve last-mile connectivity in hilly and remote regions like Uttarakhand, Himachal Pradesh, Jammu & Kashmir and the North-East. This initiative has been approved under the Public-Private Partnership (PPP) model and is being implemented by the National Highway Logistics Management Limited (NHLML). The programme aims to develop over 250 ropeway projects covering a total distance of 1,200 kilometres within five years from 2022 till 2027. Ropeways offer a safe, efficient and eco-friendly alternative to traditional transport systems, particularly in areas with difficult terrain. Notable projects under this scheme include the Sonprayag Kedarnath and Govindghat Hemkund Sahib Ji ropeways, which are expected to significantly reduce travel time, promote tourism, create employment and support local economic development. The programme also aligns with the ‘Make in India initiative by mandating the use of at least 50% indigenous components in construction. In addition to remote regions, the Parvatmala scheme is being expanded to urban areas such as Varanasi to ease congestion and improve urban mobility, positioning ropeways as a key component of Indias future transport infrastructure.

Source: MoRTH AR 2024-25, Press Information Bureau_1, Press Information Bureau_2, Press Information Bureau_3

Metro Rail

The metro rail network, in particular, has become a key pillar of urban transit, offering a fast, reliable and eco-friendly alternative to traditional commuting. Since 2014, metro systems in India have grown significantly, with the operational network expanding from 248 km to 1,011 km by March 2025. The commissioning rate has also improved substantially, rising from 0.68 km per month to 6 km per month during the same period.

This growth has led to a dramatic rise in daily ridership, from 28 lakh passengers to over 1 Crore and extended metro services from just 5 cities in 2014 to 23 cities by 2024. Budgetary support has also increased significantly, with annual allocations rising from 5,798 Crore in 2013-14 to 34,807 Crore in 2025-26. In parallel, India has also advanced regional connectivity through the introduction of the Regional Rapid Transit System (RRTS), with Namo Bharat trains operating on the Delhi Meerut corridor showcasing the shift toward faster, more efficient intercity travel. Together, these developments underline Indias steady progress in building a future-ready transit ecosystem that addresses urban challenges, supports economic growth and improves quality of life through modern, integrated and sustainable transport solutions.

Source: Press Information Bureau_1, Press Information Bureau

OIL AND GAS

The oil and gas industry is a key driver of the global economy, supplying essential energy and raw materials used in transportation, electricity, heating, manufacturing and a wide range of everyday products. According to the Petroleum Planning & Analysis Cell (PPAC), during FY 2024-25, Indias total indigenous production of crude oil and condensate stood at 26.25 million metric tonnes (MMT), comprising 24.21 MMT of crude oil and 2.04 MMT of condensate. In comparison, during the FY 2023-24, Indias total indigenous crude oil production amounted to 29.36 MMT, with 27.17 MMT of crude oil and 2.19 MMT of condensate. This represents a decrease of 3.11 MMT in total production, due to a decline of 2.96 MMT in crude oil production and a slight reduction of 0.15 MMT in condensate production.

In March 2025, global oil prices saw a decline, with Brent crude averaging USD 72.73 per barrel, down from USD 85.41 in March 2024. This decline was primarily due to growing trade tensions between the U.S. and China, which led to concerns about global economic growth and reduced oil demand expectations.

During FY 2024-25, Indias total natural gas consumption, including internal consumption, stood at 66,976 Million Standard Cubic Metres (MMSCM), registering a marginal increase from 66,634 MMSCM in FY 2023-24. Net domestic production was 32,647 MMSCM, compared to 35,717 MMSCM in the previous year, reflecting a decline of approximately 9%. In contrast, LNG imports increased significantly to 34,329 MMSCM from 30,917 MMSCM in FY 2023-24, marking a rise of about 11%. This shift indicates a growing reliance on imported LNG to meet domestic demand, even as overall consumption remained largely stable year-on-year.

During FY 2024-25 (April to March), Indias total domestic consumption of petroleum products stood at 239.17 million metric tonnes (MMT), marking a 2.1% increase over the 234.26 MMT consumed during the previous year (April to December 2024). This growth was primarily driven by higher demand for diesel, petrol and liquefied petroleum gas (LPG) across transportation and residential sectors.

In 2025, investments in global clean energy technologies and infrastructure is expected to increase significantly. The average spending is projected to rise by 34%, growing from USD 185 million in FY 2024-25 to USD 249 million in FY 2025-26. In FY 2025-26, Indias renewable energy sector is expected to maintain strong growth, led by solar and wind power, along with greater integration with electric mobility. Capacity additions are likely to surpass 35 GW, supported by government initiatives, competitive module prices and expanding domestic manufacturing. The country continues to progress towards its target of 500 GW of non-fossil fuel-based energy by 2030, backed by substantial investments in renewable infrastructure and technologies.

Source: Reuters, Country Economy, WTWCO, Petroleum Planning & Analysis Cell

COMPANY OVERVIEW

Welspun Enterprises Limited (hereafter referred to as ‘WEL or ‘the Company), a part of Welspun World, is one of Indias rapidly expanding infrastructure companies. WEL plays a crucial role in the Indian transportation and water infrastructure sectors and also has an investment in the oil and gas sector through a JV with Adani Enterprises Adani Welspun Exploration Limited. The Company has 60% stake in Welspun Michigan Engineers Limited (WMEL), formerly known as Michigan Engineers Private Limited, with an aim to diversify in water and allied business. The Company has a strong footing in the marketplace given its healthy balance sheet position, asset-light business model and selective bidding strategy. The Company constantly strives to maximize the return generated for its shareholders. WEL is at the forefront to adopt modern technology to increase efficiency in terms of reduced business complexity and improved return on investment. Meticulous planning coupled with on-point execution aids in staying ahead of the competition.

WEL concentrates on projects with high value-added project management, thus ensuring the quality, safety and timely completion of its projects. WEL also actively looks for opportunities in adjacencies to its current areas of business.

The company is strategically focussing into becoming a water technology leader, catering to segments such as bulk water distribution, transmission, and treatment.

WELs proven execution strength and deep infrastructure experience position it to capture large-scale water projects and deploy advanced treatment technologies that generate stable, long-term cash flows with strong ESG impact.

With a healthy order book exceeding 14,300 Crore, complemented by strategic alliances with global water technology firms such as Veolia and Xylem, Welspun Enterprises is executing a disciplined capital allocation approach aimed at delivering sustainable, profitable growth and enhancing shareholder value.

The Company had invested (including loans) 389 Crore in the HAM Road portfolio, 104 Crore in the Road BOT project, 89 Crore in the Water BOT project, 469 Crore in the Oil & Gas sector, 237 Crore in Welspun Michigan Engineers and 51 Crore in Other Assets as of March 31, 2025. As a result, the total investment in these projects amounted to 1,339 Crore as of March 31, 2025.

The Company adopts strict adherence to Health, Safety & Environment (HSE) guidelines, as demonstrated by the fact that the Company successfully bagged multiple awards for Excellence in HSE in prestigious forums such as CIDC Vishwakarma Awards, World Safety Organization Awards and OSH India Awards. The Company is also focusing on ESG initiatives across its businesses and functions.

Further advancing our transformative growth agenda, your Company has made a strategic foray into specialized tunnelling, a critical segment as urban expansion drives the need for sustainable water and sewage infrastructure. During the year, we secured a landmark 1,989 Crore contract from the Brihanmumbai Municipal Corporation (BMC) to design and construct an 8.5 km tertiary treated water conveyance tunnel, connecting the Dharavi and Ghatkopar Wastewater Treatment Facilities in Mumbai. The project promotes large-scale reuse of treated wastewater, reinforcing our leadership in sustainable infrastructure and contributing meaningfully to the circular economy.

During the year, we increased our stake into WMEL, and now hold over 60% stake into it. WMEL launched Welspun SmartOps – a 50:50 joint venture with UK-based SmartOps. This partnership brings to India a modular, scalable, and cost-efficient solution for converting grey water into reusable resources at the point of generation, enhancing operational efficiency.

Welspun SmartOps aims to transform water management across municipal, domestic, and industrial sectors using SABRE technology. It has already delivered three projects nationwide, underscoring its commitment to sustainable, innovative water solutions.

With proven technology, strategic partnerships, and growing regulatory support, SmartOps is well-positioned to deliver strong financial returns and significant environmental and social impact and emerging as a national leader and global benchmark in decentralized wastewater treatment.

Key Business Strategies and Developments

Strong Order Book: WEL has continued to build a strong standalone Order Book aggregating to ~ 12,549 Crore as of March 31, 2025, including an O&M order book of ~ 4,413 crore, that provides good revenue visibility. As a part of the Companys diversification strategy, during the year, WEL increased the stake in WMEL to over 60%, by acquiring additional 9.99% stake. WMEL is a specialist in tunnelling and urban water infrastructure segment. The order book of WMEL stands at 2,906 Crore as of March 31, 2025, including order from WEL of 1,131 Crore for DGT Project.

Operational Excellence: The Companys rigorous project monitoring and supervision throughout the construction phase contributes to completing projects on time and maintaining the profitability. The Company has strong tie-ups with vendors and a strong supply chain network that enables the Company to execute projects in any part of the country. The Company is continuously focused on implementation of digital technologies to enhance project management capabilities, thereby improving productivity.

Achieving Optimum Capital Structure: Benefiting from strong Group parentage, WEL has a strong balance sheet, with a healthy net cash balance of 1,061 Crore at the standalone level as on March 31, 2025. With a long-term credit rating of ‘AA- and a short-term credit rating of ‘A1+ from Crisil Ratings, together with the Welspun Groups strong banking relationships, the Company is well equipped to raise funds at a significantly lower cost.

Asset-Light Business Model: To maximize returns, WEL has adopted an asset-light strategy encompassing shift of non-core assets and capabilities to third parties in the larger ecosystem. This enables the Company to focus on core competencies and leverage business opportunities. In addition, as part of the asset-light strategy, WEL undertakes asset divestment after completion of construction and stabilization of the project. In the past, WEL has sold its operational road projects to Private Equity players and the Company will continue its strategy of asset monetization. The Company is committed to operational excellence led by minimal investment in plant and machinery, low working capital, continuous asset value unlocking and low leverage.

Using a Differentiated Strategy: WEL is on the constant lookout for high-value margin-accretive differentiated projects. With early financial closing and on-time execution of such projects, the Company is able to maximize its returns and lower its financial costs. To lower execution risk, WEL selectively awards its projects to the best-suited sub-contractor. The Company believes in both organic as well as inorganic growth. As part of its growth strategy, WEL acquired majority stake in WMEL. The acquisition was undertaken with a strategic intent of entering into niche and cutting-edge areas of tunnelling and urban water infrastructure segment.

Projects update

1. Aunta Simaria (Ganga Bridge with Approach Roads), NH-31, Bihar

Project Type: Road (HAM)

Scope: Six-laning from Km 197.9 to Km 206.05, including one of the widest extradosed bridges across the Ganga River

Bid Project Cost (incl. forecasted escalation): 1,602 Crore

Status:

• Appointed Date: August 11, 2018

• Provisional Completion Certificate (PCOD) received on June 3, 2025, effective from May 15, 2025

2. Sattanathapuram Nagapattinam (SN) Section, NH-332, Tamil Nadu

Project Type: Road (HAM)

Scope: Four-laning from Ch. Km 123.8 to Km 179.555 (NH-45A/New NH-332)

Bid Project Cost (incl. forecasted escalation): 2,522 Crore

Status:

• Appointed Date: October 5, 2020

• Over 65% progress achieved

3. Varanasi Aurangabad NH-2 Project

Project Type: Road (EPC)

Scope: Six-laning from Km 786 to Km 978 (192.4 km) across Uttar Pradesh and Bihar

Status:

Contract Value: 3,842 Crore (incl. GST)

Status

• Appointed Date: September 30, 2021 for 136 Km & June 01, 2022 for additional 38 Km scope

• Over 70% of progress achieved

4. Mukarba Chowk Panipat (MCP) Project, New Delhi & Haryana

Project Type: Road (BOT Toll)

Scope: Six-laning project taken over through harmonious substitution (June 2020)

Transaction Highlights:

• 49% stake divested to Actis

• Remaining 51% to be divested post NHAI approval

Status:

• PCOD-III (100% toll length) achieved w.e.f. February 1, 2024

• Completion Certificate received on June 23, 2025 w.e.f. March 02, 2024

5. UP State Water and Sanitation Mission Jal Jeevan

Mission

Project Type: Rural Water Supply (DBO)

Scope: Construction, commissioning, operation and maintenance of water supply infrastructure across 2,500+ villages in Uttar Pradesh Contract Value: 2,800 Crore (excluding O&M and GST)

Status:

• Project is under execution

• Over 4.1 lakh homes connected with piped water

6. Dharavi Wastewater Treatment Facility, Mumbai

Project Type: Urban Infrastructure - Wastewater Treatment (DBO) Scope: Construction of a 418 MLD wastewater treatment plant for BMC

Contract Value: 4,139 Crore Welspuns highest-value project (incl. O&M and Asset Replacement of 1,797 Crore)

Status:

• Construction in full swing

• SBR civil work completed up to third basin level; RCC underway for fourth

• Administrative building operational for 4+ months

• Excavation works for IPS Wet Well is underway

• Key equipment of SBR Building delivered

7. Bhandup Water Treatment Plant, Mumbai

Project Type: Urban Infrastructure - Water Treatment (DBO) Scope: 2,000 MLD capacity WTP for BMC among the worlds largest Contract Value: 4,124 Crore (incl. O&M and Asset Replacement of 1,880 Crore)

Status:

• Pre-construction activities progressing well

• Critical approvals secured, including forest and eco-sensitive zone clearances for WTP Plant Area

• Excavation works commenced at site

8. Tertiary Treated Water Conveyance Tunnel Project,

Mumbai

Project Type: Urban Infrastructure - Water Conveyance Tunnel (Design-Build) Scope: 8.48 km tunnel from Dharavi WwTF to Ghatkopar WwTF

Contract Value: 1,989.40 Crore Status:

• Preliminary activities and environmental approvals are in process

9. Dewas Industrial Water Supply Project, Madhya

Pradesh

Project Type: Industrial Water Supply (BOT) Scope: Supply of 23 MLD treated water to industrial clients in Dewas

Project Cost: 146 Crore Status:

• Commercial operations commenced on April 30, 2019

OIL & GAS

Adani Welspun Exploration Limited (AWEL), a joint venture firm between the Adani Group (AEL 65%) and Welspun Group (WEL 35%), is involved in Oil and Gas Exploration and Development. In its current portfolio, the Company has three shallow water acreages along the Western Offshore of India in the prolific Mumbai Offshore Basin: Block Name - MB-OSN-2005/2 (NELP-VII bid round)

Location - Mumbai Offshore

Status - AWEL holds 100% participating interest in the Block. Currently the Exploration Phase has been completed and activities for developing and monetizing the gas discovery made by AWEL is underway. On March 2021, the Company had declared its first ever gas discovery in the NELP-VII block MB-OSN2005/2. Detailed geo-scientific studies were carried out to process the data and core samples acquired in the discovery well. The analysis has shown a Gas Initially in Place Potential of 826 BCF (billion cubic feet). Further, data evaluation studies have been completed and Declaration of Commerciality to DGH. Activities towards early monetization in a phased manner are being carried out to fast track the project by optimizing lead times for long lead items. An Early Development Plan has been formulated in association with an internationally acclaimed agency and has been submitted to the regulator for review and approval. Block Name - B9 Cluster (DSF-1 bid round)

Location - Mumbai Offshore

Status - AWEL holds 100% ownership interest in the cluster, which is a discovered filed, near its prospective exploratory block (MB/OSN/2005/2) and ONGCs B-12 area. The earlier Operator of this area has drilled three wells in this Block of which two have produced hydrocarbons in Commercial quantities. Based on the results of the successful well drilled by AWEL in the field, a Revised Field Development Plan (RFDP) has been drawn up in association with an internationally acclaimed agency (with an estimated GIIP of 97 BCF). This RFDP has been reviewed and approved by the regulator. The RFDP leverages the planned Early Monetization of Discovery Area of MB Block through shared use of installed surface facilities & pipeline for these two adjacent acreages. The existing blocks hold substantial hydrocarbon potential, which will be measurable after the FDP is completed and during the development stage of each of these blocks. WEL expects to unlock value from these blocks, as and when favourable opportunities emerge. Block Name - C-37 (SDSF-1)

Location - Mumbai Offshore

Status - AWEL holds 100% ownership interest in this cluster, which is a discovered field, contiguous with its prospective exploratory block (MB/OSN/2005/2). The earlier operator of this area has drilled two wells in the Block which has produced hydrocarbons in commercial quantities. AWEL is currently evaluating the development strategy of this asset in conjunction with its above two blocks in the vicinity to optimise costs.

FINANCIAL OVERVIEW

Financial and Operational Performance

Note: This section discusses the standalone financial performance on a comparable basis. The numbers might differ from the reported numbers.

Particulars	FY 2024-25	FY 2023-24	YoY (%)
Revenue from Operations	2,827	2,450	15.4%
Other Income	106	102	4.0%
Total Income	2,934	2,553	14.9%
EBITDA	455	439	3.6%
EBITDA Marign	15.5%	17.2%	(170 bps)
PBT	413	396	4.4%
PAT	308	285	7.9%
PAT Margin	10.5%	11.2%	(68 bps)
Cash PAT	313	298	5.3%

All figures in Crore, unless stated otherwise

Note: Cash PAT = PBT before Exceptional Item + Depreciation + Non-cash ESOP expenses Current tax Prior figures have been restated wherever necessary.

( in Crore)

Balance Sheet Snapshot	March 31, 2025	March 31, 2024
Net Worth	2,689.75	2,422.26
Gross Debt	0.00	0.00
- Long-term Debt	-	-
- Short-term Debt	0.00	0.00
Cash & Cash Equivalents#	1,060.86	923.17
Net Debt / (Cash)	(1,060.86)	(923.17)
Other Long-term Liabilities	8.09	8.01
Total Net Fixed Assets (incl. CWIP)	17.84	15.91
Net Current Assets (Excl. Cash & Cash Equivalents) (adj.)	254.65	296.94
Other Long-term Investments & Assets (adj.)	1,364.49	1,194.25

# includes current investments and fixed deposits classified in non-current financial assets

Revenue from Operations:

The Revenue from Operations grew by 15.4% YoY from

2,450 Crore to 2,827 Crore.

EBITDA:

The EBITDA increased by

3.6% YoY to 455 Crore from 439 Crore

Net Worth:

Net Worth was at 2,690 Crore in FY25 as against 2,422 Crore in FY24

Profitability:

The Profit before tax increased by 4.4% YoY from 396 Crore in FY24 to 413 Crore in FY25.

The Profit after tax has increased by 7.9% YoY to 308 Crore in

FY25 from 285 Crore in FY24

Significant Financial Ratios

Ratios	Measure (in times/ in percentage)	March 31, 2025	March 31, 2024	% Change	Reasons for change
Current Ratio	In times	1.86	2.30	(19.3%)	-
Debt-Equity Ratio	In times	0.07	0.07	(5.1%)	-
Debt Service Coverage Ratio (DSCR)	In times	Not applicable	1.04	Not applicable	The Company has no term loans as at year end and hence this ratio is not applicable
Return on Equity (ROE)	In percentage	12.0%	11.7%	3.2%	-
Inventory Turnover Ratio	In times	4.37	3.93	11.1%	-
Trade Receivables Turnover Ratio	In times	4.41	4.12	7.1%	-
Trade Payables Turnover Ratio	In times	3.50	2.92	20.2%	-
Net Capital Turnover Ratio	In times	1.89	1.46	29.2%	Improvement in ratio is majorly due to increased turnover
Net Profit Ratio	In percentage	10.9%	11.6%	(6.5%)	-
Return on Capital Employed (ROCE)	In percentage	15.5%	16.5%	(6.1%)	-
Return on Investment (ROI)	In percentage	11.4%	7.6%	50.8%	The lower return last year was due to higher opening investments that were sold at the start of the year

Refer note no. 47 of the Standalone financial statements for the formulas used to calculate the ratios

BUSINESS OUTLOOK

At WEL, we see strong potential in the water infrastructure sector, with our total opportunity pipeline estimated at over 3 lakh crore across bulk distribution, transmission, and treatment. Of this, projects worth 60,000 80,000 Crore are expected to be bid out in the near term, with the remainder likely to unfold over the medium term.

Building on this core opportunity, WELs subsidiary, WMEL, anticipates an additional 50,000+ Crore pipeline in adjacent areas such as tunnelling across segments (Road, Rail, Bridge, Water etc.) and complex civil work segments that align well with the Companys expanding execution capabilities and technical depth.

A growing shift toward Design-Build-Operate (DBO) and Operation & Maintenance (O&M) models is also expected to create a more balanced revenue mix, blending high-growth topline potential with predictable, long-term O&M cash flows. This transition enhances revenue visibility and supports margin stability across long-duration projects.

The opportunity landscape continues to broaden, with increasing activity in river interlinking, desalination, irrigation, and wastewater treatment. These sectors are being catalyzed by both public sector initiatives and rising private demand – particularly from municipal bodies, industrial corridors, and cooperative societies seeking scalable and sustainable water solutions.

We are focussing into becoming a technology-led water solutions provider. In partnership with leading global technology innovators, we are enhancing our innovation capability, operational excellence, and long-term value creation. Further, supported by an asset-light business model and a strong financial foundation, we have strengthened both scalability and capital efficiency. This approach would continue to remain central to our growth strategy, with active asset monetization enabling us to fund future opportunities.

Our outlook remains positive across all core verticals and subsidiaries, with significant opportunities in bulk water transportation, sewage treatment, transmission, irrigation, canals, desalination, sludge conversion, tunnelling, and select Transport and Water BOT projects – each offering attractive margin profiles.

As the infrastructure landscape evolves, our journey represents a compelling long-term value creation opportunity – anchored in operational discipline, innovation, and sustainable growth.

HUMAN RESOURCES POLICY

At Welspun Enterprises Limited (WEL), Human Resources continues to play a pivotal role as a strategic partner in driving organizational success. Building on our foundation of transparency, integrity, and accountability, FY25 marked a significant year of transformation and progress in our people practices, reinforcing WELs commitment to employee well-being, inclusivity, and future-readiness.

With the onboarding of our new CEO, the organization embraced a renewed focus on operational excellence and digital transformation, setting the tone for accelerated growth. In parallel, we strengthened the organizations capabilities through strategic talent acquisition, inducting experienced professionals from the water industry to deepen our talent pool and prepare for future challenges.

WEL was recognised among Indias Top 100 Great Places to Work for the first time in February 2024, marking a major milestone in our cultural and people transformation journey during FY 2024-25. Our human resource strategy continues to be guided by the principles of Diversity, Equity and Inclusion (DEI), and is powered by advanced technologies to ensure seamless employee experiences across talent acquisition, lifecycle management, engagement, and reporting.

This year saw the launch of “CV Sangrah”, a centralized repository of candidate profiles aimed at building a future-ready talent pipeline and improving hiring efficiency. To promote a safe and inclusive environment, we introduced “VOICE”, a dedicated platform for women employees to express concerns and share experiences in a supportive space. Under the Samavesh banner –our cultural transformation initiative – we launched “Elli”, the official mascot of WELs culture. Through the weekly “Elli and Amber” comic strip, we creatively communicate values, policies, and key messages to foster engagement and awareness.

In FY25, we conducted over 20 DEI workshops across locations, reinforcing our inclusive culture and ensuring alignment with our organizational values. Our leadership development programs, Urja and Dhruv, empowered over 30 future leaders with critical capabilities for tomorrows challenges. In FY 2024-25, Welspun Enterprises Limited achieved significant milestones in talent development and diversity.

A total of 44 women employees were trained under the Women Leadership Development Program, strengthening our commitment to building an inclusive leadership pipeline. Additionally, we successfully revived the Graduate and Management Trainee (PGET & MT) program with a renewed focus on campus engagement and attracting young talent. As a result, 28 fresh graduates were hired during FY 2024-25 to formally join the organization in Q1 of FY 2025-26, marking a strategic step toward rejuvenating our workforce with energetic, future-ready professionals.

Our policies – ranging from POSH to the Code of Conduct, Conflict of Interest, Whistleblower Policy, and Disciplinary Committee – remain robust safeguards for ensuring psychological safety, dignity, and human rights at the workplace. Ongoing sensitization and training initiatives continue to embed these principles into the organizations fabric.

WELs focus on capability development remained strong, offering employees opportunities for growth through internal job rotations, structured career pathways, self-paced e-learning platforms, and customized development plans enabled by advanced assessment tools. Anchored in the Welspun LITE values (Learning, Innovation, Trust, Endurance), our Reward & Recognition (R&R) framework continued to celebrate individuals and teams demonstrating excellence and living our values, further nurturing a high-performance, purpose- driven culture.

As of March 31, 2025, WEL employed over 1,200 professionals across sites and offices, and continues to build a progressive and inclusive workplace that delivers both business value and social impact.

INTERNAL CONTROLS

The Company has devised a robust internal control framework in accordance with the nature and size of the firm, and magnitude and complexity of the industry it operates in. Well strategized internal controls ensure strict adherence to rules and regulations, safeguarding of assets, timely preparation of reliable financial statements, accurate and complete account keeping, and prevention and detection of fraud and errors. The Company has put in place strong policies and procedures to ensure that it conducts business with integrity amidst the dynamic corporate environment. WEL thrives to ensure continuous assessment of the efficacy of various policies.

RISK & MITIGATION

	Risk	Mitigation
Project Execution Risk	Throughout the projects execution phase, the Company is exposed to inherent risks. These include land acquisition and Right-of- Way (ROW) issues, availability of resources, environmental clearances, Employee / workmen safety, working in difficult / harsh weather conditions, and other concerns are among the many projects challenges.	As part of our risk management framework, risk reviews of projects are regularly conducted along with identification of appropriate mitigation measures. A team of third-party quality, EHS, and governance professionals regularly visit our project sites and an audit is performed on each project to ensure employee safety, regulatory compliance, and environmental compliance.
Input Price Risk	The price for raw materials such as steel, cement, and bitumen could increase as a result of increased demand or volatility of commodity prices	In the development projects with WEL, any escalation received from the client is passed on to the Company by the SPV. In EPC projects, the Company makes adequate provisions for escalation during bidding and also in its contractual terms. It also steps in for the procurement of key materials to support its sub-contractors as necessary to mitigate the impact of material price movements.
Stakeholder Risk	To execute its projects, the Company works with a variety of stakeholders, and the terms agreed upon with these parties could impact the Companys performance and cash flow.	To mitigate this risk, robust internal processes, continuous arrangements with vendors and subcontractors, project and business level working capital monitoring policies, and pre-bid reviews are conducted. Project teams also keep required and detailed documentation to address issues and disputes with customers, vendors, and subcontractors.
Data Security	The risk of targeted attacks, ransomware threats, and phishing have highlighted the significance of safeguarding the Companys information technology infrastructure and data.	The Company has adopted robust enterprise-wide cybersecurity procedures. A 24?7 Security Operations Centre (SOC) is in place wherein all the critical servers and networking devices are monitored by our partner. The Company has deployed solutions like anti-virus, firewalls, whitelisting, access control, SSL, SSO Network, and data encryption. A Disaster Recovery and Business Continuity Plan is in place for business-critical systems like S/4 HANA. The Company also has a robust insurance for cyber risks.
Climate Risk	The impact of global warming and climate change and related events like heat waves and changes in weather patterns may affect the Companys construction activities. Extremely high daytime temperatures pose a danger to the health and safety of workmen and employees and impact their productivity.	The Company ensures strict adherence to all applicable environmental and safety compliances including Occupational Health risk mitigation measures at all project sites. For dealing with periods of extremely high temperature, measures are taken to reschedule the work-rest cycle, adopt additional measures of shelters, ensure hydration of the workforce, conduct awareness sessions and issue regular advisories to apprise the workforce of risks, reporting issues and measures to be taken.