Welspun Special. — Q1 FY26 earnings call

I think the right way to say would be that we've got about 6 months of order book for pipe and the balance is on bars. Bars normally, as I've been telling before also that the market norm is to have at least 2 months minimum and in a good time, it's 3 months, which in our case is about 1.5, I would say, 1 to 1.5 and which is owing to the scenario at present. ... So, I think the historical volumes, which I said in our last discussion also that we are clearly looking at a 25% to 30% increase over our deliveries of past.

Clarified the current order book structure, the impact of maintenance on pipe volumes, and the company's strategy to increase order intake and overall deliveries by 25-30%.

Asked by Radha from B&K Securities

One is, as I also mentioned clearly in my opening remarks that in steel specifically, there is pressure on price and there is pressure on margins. So obviously, due to that situation, while we could make better EBITDA margins in terms of absolute numbers. ... On the pipe, as I said, it's because of this scheduled maintenance, though we had expected that we'll probably be able to do a bit better volume.

Explained the reasons for the lower EBITDA margin, attributing it to market pressure on steel product margins and the impact of planned pipe plant maintenance on higher-margin pipe volumes.

Asked by Rehan Saiyyed from Trinetra Asset Managers

AS9100 is an enabler, whereby you see most of the business in large aerospace markets like U.K., in U.S., in Europe, happens through the stockholders. ... So, this is like an enabler and will help us in opening and increasing -- opening the new customers who are fixed on having this approval in their internal system to approve the supplier and enhance our volumes with the customers who are buying from us already.

Detailed how the AS9100D accreditation acts as a crucial enabler for accessing the aerospace market, both directly and through stockholders, and its role in expanding the customer base and volumes.

Asked by Rehan Saiyyed from Trinetra Asset Managers

European mills have been big suppliers to the U.S. markets. ... And suddenly, everything has stopped because they also are now subjected to 50% tariff, right? Now with 50% tariff, obviously, those companies are unable to sell into U.S. And so their prices have gone down more than 20% to 30% on an average in last only 3 months and which has led to excessive supply in the domestic European market and which is bringing a lot of effect on the overall stainless steel pricing in Europe and as a result, pressure on the Indian mills.

Provided a clear explanation of how US tariffs on European steel imports have created an oversupply in Europe, leading to price pressure that affects Indian mills, and how Welspun has strategically shifted its export focus to value-added products.

Asked by Parth from Investec

Every sector, which is conscious on quality and conscious on controls. Take example, we are not a new player in this field, right? ... So, if you take example of maybe not just thermal, but also, let's say, nuclear when we started supplying the pipes for nuclear establishment and for ISRO and things, we got these approvals very fast basis we being integrated from end to end.

Highlighted that backward integration provides significant advantages in sectors demanding high quality and control, such as nuclear and aerospace, by facilitating faster approvals and building customer confidence.

Asked by Parth from Investec

So, I think quite a lot of that business is repetitive in nature, which means that if you if the refinery is operating, it will need the pipes to be replaced after some point in time. ... And that's how the companies in India are also getting business. So other than what's getting exported, if you see a lot of piercing mills are selling into oil and gas, especially the standard scheduled pipes wherever they are required.

Provided insights into the domestic oil and gas market, noting its repetitive nature for replacement demand and the increasing business for Indian companies due to quality control orders, despite a currently depressed environment.

Asked by Hena from DAM Capital

So, we have done our initial working, Rahil. In fact, in that series, we also -- I mean, we also had South Africa, wherein we could even start some initial business, some of which is also supplied. But you see all of these markets currently are in a state of uncertainty. And every customer out there is defensive. ... So, till such time, this air around tariffs and supply chains gets cleared, I think would not be the right time to make efforts on the new markets.

Explained the cautious approach to new markets like Mexico and Brazil, indicating that while initial work is done, active pursuit is on hold due to current market uncertainties and defensive customer behavior.

Asked by Rahil S from Crown Capital

Difficult to say, but we'll certainly have better profitability and good numbers more based on our own utilization, efficiency on cost, better absorption of overheads. So that will give us more margins and definitive margins. Market-related volatility, very difficult to estimate at this point in time. ... Maybe we'll have probably a better view, clearer view in next quarter. By then, we expect this tariff and other things to get settled. It can't prolong forever.

Management expressed confidence in improved profitability from internal efficiencies and utilization, but acknowledged the difficulty in forecasting market-related margins due to ongoing volatility, expecting more clarity next quarter.

Asked by Rahil S from Crown Capital