Welspun Corp — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Welspun Corp delivered a record-breaking performance in Q3 FY26, characterized by its highest-ever quarterly EBITDA and a massive ₹23,600 crore order book. The company is successfully transitioning into a localized global player, with major expansions in the U.S. and Saudi Arabia insulating it from trade tariffs. Management expressed high confidence in exceeding annual guidance, driven by a resurgence in U.S. gas demand for AI data centers and significant infrastructure tailwinds in India and Saudi Arabia.

Highlights

  • Highest ever quarterly EBITDA of ₹645 crores, showing consistent growth over 8 quarters.

  • Consolidated global order book reached a record high of ₹23,600 crores, providing long-term visibility.

  • PAT for the quarter stood at ₹453 crores; normalized for one-time gains in the prior year, it is significantly higher.

  • 9M FY26 EBITDA reached ₹1,831 crores, putting the company on track to exceed its full-year guidance of ₹2,200 crores.

  • Maintained a net cash position of ₹132 crores despite a significant capex of ₹1,700 crores during the first 9 months.

  • Line pipe sales volumes for India and U.S. stood at 265,000 tons; DI pipe sales at 92,000 tons.

  • Annualized ROCE stands at more than 24%.

  • U.S. order book is fully booked through March 2028 for the spiral mill.

Key financials

2 periods

Headline

  • EBITDA
    ₹645 Cr
  • PAT
    ₹453 Cr
  • Order Book
    ₹23,600 Cr
  • ROCE
    24%
  • Net Cash
    ₹132 Cr

9M

  • EBITDA
    ₹1,831 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.

Segment breakdown

  • Line Pipe (India & US)
    2,65,000 tons Sales Volume
  • Ductile Iron (DI) Pipe
    92,000 tons Sales Volume39% Volume Growth
  • Stainless Steel
    6,000 tons Bars Sales Volume1,600 tons Pipe Sales Volume
  • Sintex
    ₹500 Cr 9M Revenue

Guidance & targets

Profitability

  • Full Year EBITDA Profitability · FY26 · High confidence 2,200
    we had given a guidance of close to INR2,200 crores for the whole financial year... we are already at INR1,831 crores. This very clearly suggests that the company is well on track and should comfortably achieve or exceed the full year guidance.

    — Vipul Mathur, MD & CEO

Capacity

  • Combined India and Saudi DI Capacity Capacity · 1H FY27 · High confidence 9.5 lakh tons
    with combined India and Saudi DI capacity reaching 9.5 lakh tons by 1H FY '27

    — Radha (Analyst) / Vipul Mathur

Volume

  • U.S. Spiral Mill Capacity Utilization Volume · FY26 · High confidence 85-90%
    Almost 85% to 90% capacity utilization will be there for our spiral mill, which is currently operating in the U.S.

    — Vipul Mathur, MD & CEO

Capex

  • New Mill Commissioning (U.S.) Capex · FY26 · High confidence LSAW mill by end of year
    by the end of this year, we would have our new LSAW mill coming up out there. So those volumes will start ramping up in U.S.

    — Vipul Mathur, MD & CEO

Risks & concerns

  • Tepid domestic India market

    medium

    Water and oil sectors in India have been slightly slow in recent quarters due to fund allocation delays.

    Management acknowledged

  • Import substitution in Saudi Arabia

    medium

    2/3 of Saudi DI pipe demand is currently met by imports; Welspun's new plant aims to capture this, but depends on the success of anti-dumping investigations.

    Management acknowledged

  • Coking coal price volatility

    low

    Prices rose 20-25% due to force majeure in mines, but management is covered for 2 quarters.

    Analyst downplayed

Areas of evasion (1)

  • Product-wise EBITDA for DI pipes was deferred to an offline discussion.

Q&A highlights

3 direct
Confidence in Government spending on Jal Jeevan Mission (JJM) Direct
Apparently, it looks like that the audit stands completed. And that's the reason they have now made a subsequent announcement that they would be spending the INR70,000 crores in the next financial year.

Confirms that the temporary slowdown in domestic water projects due to audits is ending, providing a catalyst for the DI pipe business.

Asked by Sneha Talreja, Nuvama

Impact of 50% penal tariffs on exports Direct
So tariff per se is something which is not impacting us, to be honest, because we are also a localized player... The strategy of being a local and yet a global player, I think so is panning out extremely well.

Mitigates investor concerns regarding trade barriers by highlighting the company's local manufacturing presence in key markets like the U.S. and Saudi Arabia.

Asked by Ashutosh Nemani, JM Financial

Impact of rising coking coal costs on DI business Direct
We always have a forward coverage of coal of all the raw material for at least 2 quarters. So I am not expecting any hit whatsoever... currently I'm agnostic to any price increase because of the coking coal.

Demonstrates strong supply chain management and margin protection through inventory hedging.

Asked by Vikash Singh, ICICI Securities

2 min read 5 chapters

Detailed narrative

U.S. Market: The AI and Data Center Catalyst

The U.S. market is in a 'bullish mode' driven by a surge in data centers requiring dedicated power plants and uninterrupted gas supply. Management identified 8 to 9 pipelines currently under discussion, providing strong visibility for the next 3 to 5 years. To capitalize on this, Welspun is expanding its HFIW mill capability from 20 to 24 inches to capture the premium Natural Gas Liquids (NGL) transportation market.

Saudi Arabia: Strategic Import Substitution

Welspun is significantly expanding its footprint in Saudi Arabia with new LSAW and DI pipe plants. Currently, 2/3 of the DI pipe market in Saudi is serviced by imports, which Welspun intends to replace as a local manufacturer. The Saudi government's anti-dumping investigation into cheap imports is expected to further improve margins and realization for the new plant.

India: Recovery in Water and Energy Infrastructure

While the domestic market was tepid recently, management expects a 'complete resurgence' following the ₹70,000 crore allocation to the Jal Jeevan Mission (JJM) in the latest budget. Additionally, GAIL is expected to invest ₹2,000-3,000 crores in pipeline infrastructure in FY26, and the CGD network is projected to see ₹40,000 crores of investment through 2034.

Sintex: Regaining Market Share and Product Expansion

The Sintex business is regaining market share in the water tank segment and has successfully launched OPVC pipes. Management reported that Sintex has cleared major milestones for project approvals in southern, central, and eastern India. The segment is expected to contribute approximately ₹500 crores in revenue for the 9-month period, with momentum building for the OPVC pipe business.

Financial Resilience and Sustainability Leadership

Despite a heavy capex cycle of ₹1,700 crores, Welspun maintained a net cash position of ₹132 crores, underscoring strong cash flow generation. The company also highlighted its sustainability credentials, ranking 5th globally and 2nd in India among steel companies in the S&P Global Corporate Sustainability Assessment (DJSI Index) with a score of 78.

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