Inve India ▾
WEWELCORP

Welspun Q4 FY26 results (Jan–Mar 2026) and concall

Capital Goods · Concall AI · Call held 22 May 2026

Company page: Welspun share price, financials & guidance record

Source transcript

Management summary

Welspun Corp reported a strong Q4 and FY26, meeting or exceeding its revenue and EBITDA guidance with a PAT growth of 42% YoY. The company maintains a robust order book of over INR 25,000 crores and remains a net cash entity. While facing some muted growth in India and overcapacity in DI pipes, strong tailwinds in the US and Middle East, driven by LNG exports, AI data centers, and water infrastructure, are expected to fuel future growth, with new capacities coming online in FY27.

Highlights

  • FY26 Revenue of almost INR 17,000 crores, meeting guidance.

  • FY26 EBITDA of INR 2,370 crores, surpassing guidance of INR 2,200 crores.

  • FY26 PAT of INR 1,613 crores, up 42% on a Y-on-Y basis.

  • Order book currently stands at more than INR 25,000 crores, equivalent to $2.5 billion.

  • EBITDA margins in excess of 14% and ROCE around 22.3%.

  • Continued to be a net cash company despite significant capex.

  • Strong tailwinds in US, Saudi Middle East, and India markets for the next few years.

Concerns

  • India market growth expected to remain muted for certain times due to differing priorities.

  • Supply chain disruptions and increased shipping costs were noted, though existing orders were not impacted.

  • DI pipe business faces overcapacity issues.

  • Stainless steel pipe division saw volume reduction in the European market.

Key financials

  1. Revenue ₹17,000 Cr
  2. EBITDA ₹2,370 Cr
  3. PAT ₹1,613 Cr +42%YoY
  4. EBITDA Margin 14%
  5. ROCE 22.3%
  6. EBITDA Margin CAGR 43%

What they filed

Q4 FY26: revenue down 0.5%, net profit down 50.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26
Revenue2,033 2,449 2,281 1,828 1,822 −10%2,378 −3%2,270 −0%
EBITDA191 268 244 236 188 −2%265 −1%334 +37%
Net profit108 156 464 255 366 +239%161 +3%232 −50%
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

  • DI Pipe Business
    ₹600 Cr Revenue
  • Plastic Pipe Division
    0.1 double-digit Growth
  • Water Tanks
    0.1 double-digit Growth

Order book

high confidence

Total value

₹25,000 Cr

as of 2026-03-31 quantified

Execution

almost booked till FY 2028

Composition

Mix 2 geographies
  • US 66%
  • India 33%

Share of order book by geography

The order book is of very high quality, spread across India and US, primarily for large diameter pipes in the oil and gas space, with plants almost booked till FY2028.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • New large diameter pipe plant (LSAW) in US
    • Replacing capacity of existing small diameter pipeline in US
    • Large diameter pipe plant in Saudi Arabia
    • Ductile iron plant for water distribution in Saudi Arabia
    • Greenfield DIP project (India)
    Likewise, as you are aware that we have invested we are investing into 2 assets in America, one large diameter pipe plant, which is LSAW and also replacing our capacity of existing small diameter pipeline. Both these projects are absolutely up on track. One of them, which is the HFIW plant will come in stream by the end of Q1 of this financial year and which is absolutely as per the plan. And our large diameter pipe plant, which is the LSAW plant will also come in stream in operations by the end of this calendar year. So we will see both -- all these assets started giving us some upside and margin accretion in this financial year. The full impact, the full benefit of these pipes of these investments, we would start seeing in FY 2028.
  • Debt Net ₹0 Cr · 0.0× EBITDA
    Welspun continued to be a net cash company despite all the capex is what we are doing.
  • M&A EPIC (Welspun Pipes USA) Divestment · Closed · Consideration ₹[object Object] (cash)

    Part of restructuring exercises to park entities into high-growth areas for more flexibility and value creation.

    Welspun Mauritius sold its 22% stake in EPIC to Welspun Pipes USA for INR 2,500 crores.

    Sir, my first question is regarding Welspun Mauritius has sold its 22% stake in EPIC to Welspun Pipes USA for a total consideration of INR2,500 crores. So what was the rationale behind this internal restructuring? And how does the management plan to utilize the cash per seat at the Mauritius entity level?

Guidance & targets

Revenue

  • Top line Revenue · FY27 · High confidence INR 20,000 crores
    our very confidently we have given a guidance of top line of INR20,000 crores

    — Mr. Vipul Mathur

Profitability

  • EBITDA Profitability · FY27 · High confidence INR 2,850 crores
    and an EBITDA of INR2,850 crores, which is almost a 20% jump on a year-on-year basis.

    — Mr. Vipul Mathur

  • EBITDA Growth Profitability · FY27 · High confidence 20%
    which is almost a 20% jump on a year-on-year basis.

    — Mr. Vipul Mathur

Growth

  • DI Pipe Business Revenue & Margin Growth Growth · FY27 · Medium confidence in excess of 10%
    And the guidance we end up -- and we are hoping that we should be touching a sort of a revenue and margin growth in excess of 10% in both the cases.

    — Mr. Vipul Mathur

  • Water Sector (India) Acceleration Growth · H2 FY27 · Medium confidence acceleration
    I am sure that in maybe 1 or 2 quarters could be slightly muted, but the H2 part of the year, financial FY27 could see an acceleration once we have come out with this current geopolitical situation.

    — Mr. Vipul Mathur

Disclosure

  • Fintech Guidance Disclosure · next quarter onwards · High confidence start giving guidance
    To your third question about fintech, that's a fair point. I think so from next quarter onwards, we'll start giving guidance about fintech, and we can start bringing a little more clarity about the volumes and everything that's a fair point, and that's a fair ask and I think so, we will do that.

    — Mr. Vipul Mathur

What to watch in Q1 FY27

HFIW plant (US) commissioning

Q1 FY27
Current Under construction
Target Commercial operations by end of Q1 FY27

Why it matters

This plant is expected to contribute to revenue and margin accretion, validating capex execution.

One of them, which is the HFIW plant will come in stream by the end of Q1 of this financial year and which is absolutely as per the plan.

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

Risks & concerns

  • Muted growth in India market

    medium

    India is facing different priorities, leading to muted growth for certain times, though not a complete standstill.

    Management acknowledged

  • Overcapacity in DI Pipe business

    medium

    The DI pipe business faces tough conditions due to overcapacity, though payment issues are improving.

    Management acknowledged

  • Volume reduction in European SS pipe market

    medium

    Due to CBAM and prevailing conditions, SS pipe volumes in Europe reduced, but domestic demand has bounced back strongly.

    Management acknowledged

  • Increased competition in Middle East market

    medium

    Other Indian players are entering the Middle East, increasing competitive intensity, but Welspun has a long-standing presence and will monitor the situation.

    Analyst acknowledged

  • Supply chain disruptions and increased shipping costs

    low

    While disruptions and cost increases occurred, existing orders were not impacted due to long-term contracts, and future projects factor in these costs.

    Management acknowledged

Q&A highlights

7 direct
Quality and composition of the order book Direct
Ritesh, all what we have is mostly large meter in the -- primarily in the oil and gas space, right? And if you see, especially if you won't see in U.S., I think so we are at this point in time, the entire order book, what we have is for the gas space.

Clarifies the high-value nature and segment focus (oil & gas, large diameter) of the current order book, indicating premium customer base.

Asked by Ritesh Shah

Booking capacity for upcoming plants and trial orders Direct
At least in America, at least, I can tell you that we have not only started getting inquiries, but at the same time, we have started getting orders for the new plant, what we are setting up there.

Indicates strong demand and early traction for new capacities in the US and Saudi Arabia even before full commissioning, suggesting good utilization prospects.

Asked by Vikas Singh

Cash usage and impact on ROE given strong cash generation Partial
Right now, our focus happens to be absolutely bringing these projects into operations and number two, booking these assets with profitable orders. So we are taking a very structured focused approach towards in that particular direction.

Management prioritizes commissioning new plants and securing profitable orders over immediate cash deployment strategies, deferring a clear plan for excess cash.

Asked by Vikas Singh

Sustainability of long-term growth and order inflow Direct
These indicators are very clear that this is a fundamental shift which seems to be happening on the ground, and it is there for the long haul. So we are fairly optimistic that this is not a short-term issue.

Management asserts that current demand drivers (LNG exports, AI data centers, oil resurgence) represent a long-term structural shift, not temporary tailwinds, supporting sustained growth.

Asked by Pratik Dharamsi

Middle East plant exports and impact of shipping costs Direct
So as and when we will start our operations, our primarily, our focus would be within Saudi Arabia, but that geopolitical positioning and the location enables us to look at the international market, export market from there.

Confirms strategic intent to export from Middle East plants beyond Saudi Arabia, leveraging geographical advantage, and clarifies that increased shipping costs did not impact existing orders due to long-term contracts.

Asked by Chetan Sharma

Slowdown in DI Pipe business and payment issues Direct
See on the DI side of the business, the conditions have been tough. There are two reasons for that. There has been overcapacity issue, number one, there also has been an issue of payments not coming in. At least one part is getting addressed. The payments have started coming in.

Acknowledges challenges in the DI pipe segment due to overcapacity and payment delays, but notes improvement in payment collection.

Asked by Sneha

Rationale behind internal restructuring of Welspun Mauritius stake Direct
Anandh, this is part of our restructuring exercises, which we are doing across all of our entities. We are moving this earlier, if you see this entity was sitting in Mauritius, now it is sitting in U.S. So this is a part of our plan that we want to park these entities into high-growth areas, where we can achieve more flexibility it needs to come in times to come, if we really want to do something around that.

Explains the internal transfer of Welspun Mauritius's stake in EPIC to Welspun Pipes USA as a strategic move to consolidate entities in high-growth areas for greater flexibility and value creation.

Asked by Anandh Dharshan

Negative current tax of INR 85 crores in Q4 Direct
So Anandh, this negative current tax that you see for the current quarter, it's like mainly coming from the U.S. subsidiary that we have. And in Q4 of this year, that's in FY26, we have done capitalization substantial. And in U.S., there is a 100% bonus tax depreciation, so what happens is that the earlier 9 months, there would have been a current tax provider. But in fourth quarter, it gets reversed and you will have a deferred tax expense coming in. So you see both lines together, you will find that it gets normalized. Current tax plus deferred tax.

Clarifies that the negative current tax is due to substantial capitalization and 100% bonus tax depreciation in the US subsidiary, which reverses earlier tax provisions and leads to deferred tax expense, normalizing the overall tax picture.

Asked by Anandh Dharshan

2 min read 6 chapters

Detailed narrative

Strong FY26 Performance Exceeding Guidance

Welspun Corp delivered a robust FY26, with revenue reaching almost INR 17,000 crores, aligning with guidance. EBITDA surpassed the INR 2,200 crores guidance, coming in at INR 2,370 crores. PAT demonstrated significant growth, increasing by 42% year-on-year to INR 1,613 crores.

The company maintained strong profitability with EBITDA margins exceeding 14% and a healthy ROCE of 22.3%, while remaining a net cash entity despite ongoing capital expenditures.

Robust Order Book and Future Visibility

The company's order book stands at a substantial INR 25,000 crores, equivalent to $2.5 billion, providing strong revenue visibility. Management indicated that plants are almost booked till FY2028. The order book is primarily composed of large diameter pipes for the oil and gas sector, with approximately two-thirds from the US and one-third from India, reflecting a focus on premium customers and high-quality projects.

Key Growth Drivers in US Market

The US market is experiencing significant tailwinds driven by three main factors: exponential growth in LNG exports, the development of multiple AI data centers requiring gas-based power plants, and a resurgence in oil production for exports. These factors are creating massive demand for pipelines, with Welspun holding a dominant market share of over 33-35% in the US, and this demand is expected to persist for the next 5-7 years.

Middle East Market Opportunities

The Middle East, particularly Saudi Arabia, presents substantial growth opportunities beyond oil and gas, with heavy investments in water infrastructure. This includes massive desalination projects requiring large diameter pipelines for transport and extensive distribution networks. Welspun has a local footprint and is investing in a greenfield Ductile Iron Pipe (DIP) project to capitalize on the water distribution segment, complementing its strong presence in oil and gas.

New Capacity Commissioning and FY27 Outlook

Welspun is on track to commission new capacities in both the US and Saudi Arabia. The HFIW plant in the US is expected to come online by the end of Q1 FY27, and the LSAW plant in the US by the end of calendar year 2026.

Projects in Saudi Arabia, including a large diameter pipe plant and a ductile iron plant, are slated for commissioning in FY27. These new capacities are projected to contribute to top-line and bottom-line growth, with the full benefit expected in FY2028.

For FY27, the company has guided for a top line of INR 20,000 crores and EBITDA of INR 2,850 crores, representing an approximate 20% year-on-year jump in EBITDA.

Internal Restructuring for Strategic Flexibility

The company completed an internal restructuring where Welspun Mauritius sold its 22% stake in EPIC (Welspun Pipes USA) for INR 2,500 crores. This move is part of a broader strategy to consolidate entities in high-growth geographies like the US, aiming to achieve greater flexibility and create value as opportunities arise. Management emphasized this as a normal restructuring to optimize the organizational structure.

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