Walchandnagar Industries Limited (WALCHANNAG) AI Stock Analysis

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Walchandnagar Industries Limited

(NSE:WALCHANNAG)

Select Model

Rating:45Neutral

Price Target:INR 176.00▼(-2.25% Downside)

Action:reiterated

Date:10/08/26

The score is held down primarily by weak and inconsistent financial performance, especially the FY2026 net loss and the sharp deterioration to negative operating and free cash flow. Improved leverage provides some balance-sheet support, but returns remain negative. Technicals are mixed-to-slightly supportive in the near term, while valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Revenue reboundThe FY2026 revenue rebound shows that the company retains the ability to secure and execute a meaningful volume of engineering and manufacturing work after weaker prior years. If supported by repeat orders, this higher activity level could improve operating absorption and provide a platform for recovery.

Negative Factors

Persistent net lossesThe continuing net loss indicates that recent revenue activity has not yet translated into dependable shareholder returns. Negative profitability limits internal capital generation, weakens the ability to absorb execution setbacks, and suggests that cost control or project economics must improve before earnings become sustainable.

Walchandnagar Industries Limited (WALCHANNAG) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 12.23B
Dividend Yield: ―
Average Volume (3M): 48.71K
Price to Earnings (P/E): -383.2
Beta (1Y): 2.02
Revenue Growth: 37.98%
EPS Growth: 96.88%
Country: India
Employees: 1,270
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Walchandnagar Industries Limited Business Overview & Revenue Model

Company Description

Walchandnagar Industries Limited (WIL) operates as a global heavy engineering and project execution firm. Its product range is extensive, encompassing aerospace components like booster motor casings and nozzles, alongside strategic articles, tactical...

How the Company Makes Money

Walchandnagar Industries Limited primarily makes money by executing engineering and manufacturing orders for industrial equipment and systems and by providing related services. Key revenue streams typically include: (1) sale of engineered-to-order ca...

Walchandnagar Industries Limited Financial Statement Overview

Summary

Overall fundamentals are weak. Income statement quality is poor with volatile results and FY2026 still loss-making (net margin -5.3%) despite a revenue rebound (+27.2%). Cash flow is a key concern as FY2026 operating cash flow turned negative (-419.7M) and free cash flow was also negative (-670.8M), indicating pressured cash conversion. Balance sheet leverage has improved (debt-to-equity down to 0.61x), but returns remain negative (ROE -4.1%).

Income Statement

34Negative

Balance Sheet

53Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.17B	2.75B	2.95B	3.02B	3.22B	2.96B
Gross Profit	720.70M	387.80M	1.45B	1.30B	1.14B	1.36B
EBITDA	399.80M	348.00M	-356.20M	225.20M	933.00M	423.60M
Net Income	-31.20M	-146.80M	-860.30M	-418.30M	195.80M	-380.70M
Balance Sheet
Total Assets	0	8.81B	8.72B	8.76B	8.28B	9.34B
Cash, Cash Equivalents and Short-Term Investments	223.60M	751.00M	1.09B	603.30M	56.10M	62.60M
Total Debt	0	2.19B	1.94B	2.41B	2.93B	4.48B
Total Liabilities	-3.59B	5.23B	4.99B	5.14B	5.67B	7.57B
Stockholders Equity	3.59B	3.59B	3.73B	3.61B	2.61B	1.77B
Cash Flow
Free Cash Flow	70.10M	-670.80M	-190.30M	90.30M	745.60M	252.60M
Operating Cash Flow	121.50M	-419.70M	156.20M	107.50M	761.30M	283.50M
Investing Cash Flow	-84.70M	-198.30M	-154.70M	39.30M	80.80M	255.30M
Financing Cash Flow	-144.60M	269.40M	-9.30M	392.70M	-853.70M	-538.60M

Walchandnagar Industries Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price180.05

Price Trends

50DMA207.11Negative

100DMA228.18Negative

200DMA209.03Negative

Market Momentum

MACD-6.53Positive

RSI35.77Neutral

STOCH14.01Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WALCHANNAG, the sentiment is Negative. The current price of 180.05 is below the 20-day moving average (MA) of 201.07, below the 50-day MA of 207.11, and below the 200-day MA of 209.03, indicating a bearish trend. The MACD of -6.53 indicates Positive momentum. The RSI at 35.77 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:WALCHANNAG.

Walchandnagar Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:WALCHANNAG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:POWERMECH	74Outperform	INR 68.39B	17.48	―	0.07%	15.79%	22.69%
IN:LT	68Neutral	INR 5.31T	27.40	―	0.99%	11.15%	17.37%
IN:GVPIL	67Neutral	INR 38.11B	14.02	―	1.24%	18.73%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:PATELENG	54Neutral	INR 21.85B	7.53	―	―	-1.44%	-0.65%
IN:WALCHANNAG	45Neutral	INR 12.23B	-383.21	―	―	37.98%	96.88%
IN:BGRENERGY	40Underperform	INR 20.35B	-1.63	―	―	-38.23%	-10.95%

* General Sector Average

Performance Comparison

IN:WALCHANNAG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:WALCHANNAG	Walchandnagar Industries Limited	180.05	4.45	2.53%
IN:BGRENERGY	BGR Energy Systems Limited	282.00	-148.80	-34.54%
IN:GVPIL	GE Power India Ltd.	566.85	263.89	87.10%
IN:LT	Larsen & Toubro Limited	3858.00	-83.60	-2.12%
IN:PATELENG	Patel Engineering Limited	23.04	-13.91	-37.65%
IN:POWERMECH	Power Mech Projects Ltd.	2163.15	-332.96	-13.34%

Walchandnagar Industries Limited Corporate Events

Walchandngar Industries boosts equity base with ESOP share allotment

Aug 3, 2026

Walchandnagar Industries Limited has allotted 62,472 equity shares of Rs. 2 each to eligible employees following the exercise of stock options under its WIL Employee Stock Options Plan 2020. This employee-focused issuance increases the company’...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 08, 2026

Walchandnagar Industries Limited AI Stock Analysis

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