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Welspun Q1 FY27 results (Apr–Jun 2026) and concall

Capital Goods · Concall AI · Call held 27 Jul 2026

Company page: Welspun share price, financials & guidance record

Source transcript

Management summary

Welspun Corp reported its highest ever quarterly EBITDA of INR 756 crores, a 35% YoY growth, driven by robust demand in US and Saudi markets. The company achieved a record order book of INR 25,750 crores and improved its net cash position to INR 2,336 crores, while maintaining ROCE above 20%. Strategic capacity expansions in KSA and US are on track, with the US ERW mill already stabilized and LSAW expected by year-end. The Indian domestic market, however, remains muted, leading to a recalibration of focus towards exports.

Highlights

  • EBITDA of INR 756 crores, a 35% growth on a Y-on-Y basis, marking the highest ever quarterly EBITDA.

  • Net cash position further improved to INR 2,336 crores.

  • Order book stands at approximately INR 25,750 crores ($2.7 billion), the strongest in the company's history, providing robust growth visibility.

  • ROCE has remained well above 20% on an annualized basis.

  • US ERW mill is fully stabilized and executing orders, with LSAW plant on track for commissioning by year-end FY27.

Concerns

  • Domestic demand in India for DI pipes has been muted this quarter due to fund constraints and industry overcapacity, expected to persist longer.

  • Sintex business is impacted by the muted Indian domestic market, affecting fund flow.

Key financials

  1. EBITDA ₹756 Cr +35%YoY
  2. ROCE 20%
  3. Net Cash ₹2,336 Cr

What they filed

Q1 FY27: revenue down 14.3%, net profit down 54.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,033 2,449 2,281 1,828 1,822 −10%2,378 −3%2,270 −0%1,567 −14%
EBITDA191 268 244 236 188 −2%265 −1%334 +37%173 −27%
Net profit108 156 464 255 366 +239%161 +3%232 −50%116 −55%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹25,750 Cr

as of 2026-07-27 quantified

Execution

robust growth visibility and underscores our exceeding footprint in the global pipeline infrastructure market.

Composition

Mix 2 client types
  • Gulf Coast (LNG export) 75%
  • Data Center 25%

Share of order book by client type

The order book is the strongest in the company's history, providing robust growth visibility, with a significant portion from the US and a growing share from the data center segment.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Saudi business expansion
    • US business expansion (Little Rock)
    In terms of our ongoing capex in KSA and Little Rock, I just wanted to update that both the projects with Saudi and in America, where we have invested heavily for our growth. They are going absolutely fine.
  • Debt 1.0× EBITDA
    And the second guardrail, which we are very, very particular about is our debt to EBITDA and which is going to be less than 1. So at no point in time, we are going to exceed that.
  • M&A GGBS manufacturing and dealing Joint venture · Announced

    Create wealth out of waste (slag), environmentally beneficial, additional revenue with no capex.

    Notional stakeholding, no capital investment from Welspun Corp.

    Okay. Sir, just one question on this associate company for what you have proposed of taking a 26% stake for manufacturing and dealing in GGBS, which is the Blast Furnace Slag. Can you tell us what is the rationale behind it and why we are entering into this business, if you can throw some light? ... The capital investment is being done by some third party in our premises. We have only taken a sort of a small equity stake into that, mandatory equity stake into that particular company. It's at a very notional value just so as to have a full proper control on that.
  • Liquidity Cash ₹2,336 Cr Company is in a strong net cash position, with cash expected to increase further in subsequent quarters.
    Our net cash position also has further improved to INR2,336 crores... But we also believe that in the subsequent quarters, there will be a more cash flow which will be coming in. We will be sitting by the end of the year at a substantial amount of cash.

Guidance & targets

Profitability

  • ROCE Profitability · annualized · High confidence >20%
    If you see my investor presentation, we have very clearly said our guardrails would be that in terms of ROCE, we will maintain a ROCE of more than 20%.

    — Mr. Vipul Mathur

  • Full Impact of KSA and Little Rock Projects Profitability · FY 2028 · High confidence Reflected in projections, earnings and profitability
    We would see the full impact of their performance coming up in FY 2028. The markets are looking very buoyant in both the economies, both the geographies. We would be ready by the end of this year. We would be able to capitalize upon the emerging demand in both these markets, and that will get reflected in our FY 2028 projections, earnings and profitability.

    — Mr. Vipul Mathur

  • EBITDA per ton (US) Profitability · sustainable basis · High confidence $300 per ton
    But you need to on a sustainable basis, what you need to consider is that the guidance for U.S. is almost $300 per ton.

    — Mr. Vipul Mathur

Debt

  • Net Debt to EBITDA Debt · High confidence <1
    And the second guardrail, which we are very, very particular about is our debt to EBITDA and which is going to be less than 1. So at no point in time, we are going to exceed that.

    — Mr. Vipul Mathur

Capacity

  • KSA and Little Rock Project Commissioning Capacity · by the end of this year · High confidence On track, up and running
    We are looking we are absolutely on track, and we are for both the locations, let's say, for our project in Saudi as well as in Little Rock, we are more than confident that both the projects will be absolutely on track, up and running by the end of this year.

    — Mr. Vipul Mathur

  • KSA Facilities Commissioning Capacity · by Quarter 3 · High confidence Coming up progressively
    I think so we should still be seeing progress we are talking about two facilities and these two facilities should progressively be coming up in the -- by the quarter 3 in any case.

    — Mr. Vipul Mathur

  • US LSAW Plant Commissioning Capacity · by the end of the year (FY27) · High confidence Up and running
    With respect to our LSAW plant, we said that in any case, it will be coming by the end of the year. In FY27, it will be there. We are more than confident that by the end of the year, that capacity will also be up and running. So pretty much on track. Pretty much on schedule.

    — Mr. Vipul Mathur

Order Book

  • FY29 Demand Visibility Order Book · FY29 · Medium confidence Clarity emerging, robust
    As you know, we have booked well through FY28, and we are already seeing clarity emerging on FY29 as well. As we speak, there are multiple projects which are being pursued and followed and are under discussion. If we are successful, this could take us to FY29 as well.

    — Mr. Vipul Mathur

What to watch in Q2 FY27

KSA Capacity Commissioning

by Quarter 3
Current Progressing
Target Commissioned

Why it matters

Timely commissioning is crucial for capitalizing on strong Saudi demand and contributing to FY28 performance.

I think so we should still be seeing progress we are talking about two facilities and these two facilities should progressively be coming up in the -- by the quarter 3 in any case.

Find out whether WELCORP delivers this. Inve re-checks your case every morning.

Risks & concerns

  • Muted domestic demand in India

    medium

    Domestic demand in India has been muted due to fund constraints and industry overcapacity, expected to persist for a longer period.

    Management acknowledged

  • Overcapacity in the market

    medium

    Overcapacity is detrimental to a growing market, and the company aims to maintain optimal capacity levels.

    Management acknowledged

  • Regulatory challenges for approvals and accreditations

    medium

    Getting approvals and accreditations for new projects, especially with Tier 1 producers, is a significant challenge, though Welspun's track record helps.

    Management acknowledged

  • Geopolitical issues impacting capital equipment

    low

    Minor geopolitical disturbances occurred, but none of the capital equipment was impacted, and projects remain on track.

    Management downplayed

  • Challenges for new entrants in US market

    low

    Setting up new plants in the US is extremely difficult and time-consuming for newcomers, giving Welspun a competitive advantage.

    Management acknowledged

Q&A highlights

7 direct
Competitive landscape in Saudi Arabia Direct
I have reasons to believe that it is going to take some time before these will really start coming on their capacities would start coming on to the ground or impacting. But having said that, I don't think so that there is a cause of any undue concern for a simple reason that the market size and the cake itself is so very big enough that I'm sure that everyone would have a reasonable amount of bookings or reasonable amount of market size to themselves.

Management acknowledges increasing competition but asserts market size is large enough and Welspun's long-standing presence provides an advantage.

Asked by Shaurya Shah

Anti-dumping investigation for DI pipes in Saudi Direct
No, there is a significant progress, which is happening. Of course, we are I mean, it is absolutely happening in the right direction. And it is statute by law that once we have the domestic capacities coming up, the import -- the cheaper imports have to stop. I think so this is what the Saudi law is.

Indicates progress towards a domestic-focused market in Saudi, which would benefit Welspun's local capacity.

Asked by Shaurya Shah

Incremental capex plans for FY29 Direct
To your question, is there any incremental capex over and above what we have announced? The answer is no, number 1. ... At this point in time, there is nothing on the table just to report.

Management confirms no new capex plans beyond the ongoing Saudi and US projects, indicating a focus on leveraging existing investments.

Asked by Nitin Arora

India-Saudi pipeline project and Keystone XL Partial
Parth, I honest -- I'm not aware of anything called India Saudi pipeline project, to be honest. ... That would be -- that we have seen was being a point of discussion. I think so this is -- if that is what the question is, I think so it's in the early stages. ... Number 2, you are talking about the KXL. I hope you're referring to the North American pipeline.

Highlights management's awareness of major pipeline projects and their potential to contribute to future demand, particularly in North America.

Asked by Parth Bhavsar

Acquisition of a Saudi asset by another Indian company Direct
Okay, okay. No, we see, we continuously scout around for asset. See, you have to understand Welspun is a high-quality standard mill, right? For us, our reputation is paramount. ... But in our framework of a quality framework, it probably was not fitting in. So that's the reason we did not wanted to go ahead on that.

Demonstrates Welspun's commitment to quality and strategic fit over opportunistic acquisitions, even if attractively priced.

Asked by Dhananjai

Sustainability of margins and EBITDA per ton in US Direct
So, Sneha good afternoon to you. Let's say, to your first question with respect to margin, I think the way we track, we are not tracking to margins. See, margin is a factor of raw material pricing versus the profitability of what you do and typically the product mix in that particular quarter. We stand by to the absolute EBITDA numbers for which we give the guidance, number 1. ... So the EBITDA per ton definitely are much higher than what we have given a guidance.

Management clarifies focus on absolute EBITDA numbers and confirms US EBITDA per ton is currently significantly higher than the stated guidance of $300/ton.

Asked by Sneha

Data center order book share and margins Direct
I think so the ratios are close to 80% or 75% is still going towards or 75% is still going to the Gulf Coast for export, 25% is the split, which might be going to the data center. I might be slightly vary here and there by a few percentage points, but the shift now in the subsequent bookings, what will happen, we would see that this shift increasing more towards data centers and reducing towards the export side of it. ... That's a fair understanding. I think so the margin profile has been increasing.

Reveals a strategic shift in order book composition towards data centers and confirms that data center projects offer an increasing margin profile.

Asked by Deep Gandhi

Hypothetical rollback of Section 232 and 301 Direct
Two things. Number 1, both 232 is by statute of law. It is not that by statute of precedent. It is by statute of law. So it cannot be rolled back, first and foremost. It has survived 2 terms of 2 different parties. So I see no reason whatsoever that this is going to roll back.

Management strongly asserts the permanence of Section 232, mitigating concerns about its potential rollback and its impact on the US market.

Asked by Ritesh Shah

2 min read 6 chapters

Detailed narrative

Q1 FY27 Financial Performance Highlights

Welspun Corp delivered its highest ever quarterly EBITDA of INR 756 crores, representing a 35% year-on-year growth. The company's ROCE remained robust, well above 20% on an annualized basis. Furthermore, the net cash position significantly improved to INR 2,336 crores, underscoring strong financial health. The order book reached an all-time high of approximately INR 25,750 crores, equivalent to $2.7 billion, providing substantial growth visibility.

Global Demand Outlook and Strategic Focus

The demand in the US market remains highly buoyant, with bookings secured through FY28 and clarity emerging for FY29. The Saudi market also shows strong demand, driven by oil & gas, water infrastructure, and reconstruction opportunities, further reinforced by geopolitical events.

In contrast, the Indian domestic demand has been muted due to fund constraints and industry overcapacity, leading Welspun to recalibrate its strategy towards exports, including pig iron, to maintain profitability and leverage its diversified portfolio and global footprint.

Strategic Investments and Capacity Expansion

Welspun's ongoing capital expenditure projects in Saudi Arabia and Little Rock, USA, are progressing as planned and are expected to be fully operational by the end of the current fiscal year (FY27). The US ERW mill is already stabilized and executing orders, while the LSAW plant is on track for commissioning by year-end.

These investments are anticipated to fully impact the company's performance and profitability by FY28, capitalizing on emerging demand in both geographies.

Capital Allocation Philosophy and Guardrails

The company adheres to strict capital allocation guardrails, including maintaining ROCE above 20% and keeping the Net Debt to EBITDA ratio below 1. Management emphasized that any capital allocation decisions, including potential inorganic opportunities, will be judiciously made within these parameters. The focus is on maximizing mileage from existing capex and ensuring money comes into the bank before considering new investments.

Data Center Market Opportunity

The data center market in the US is emerging as a significant alternate consumption pattern for line pipes, growing quarter-on-quarter. While LNG export currently accounts for 75-80% of the US order book, the data center segment contributes 20-25% and is expected to increase.

This shift is viewed as a healthy and welcoming sign, offering higher margin profiles. Welspun's integrated position in the data center value chain, providing both Spiral and LSAW pipes, positions it well to capture this demand.

ESG Performance and Future Growth

Welspun Corp continues to strengthen its ESG performance, with DJSI ratings consistently improving year-on-year. The company views ESG as a core fundamental for resilient growth and sustained value creation. The company also announced a 26% stake in a GGBS (Blast Furnace Slag) manufacturing and dealing associate, aiming to create 'wealth out of waste' without significant capital investment, contributing to environmental benefits and additional revenue.

Summary of a publicly available earnings call transcript; see how call summaries are prepared. Not investment advice.