Welspun Corp (532144) Investor update summary

Order win and business outlook

• Secured the largest-ever order worth $1.8 billion from U.S. operations, primarily for transporting gas from the Permian field to the Gulf Coast, with execution spanning FY 2028–2029.

• The order includes both LSAW and Spiral pipes, with flexibility in product mix and a blended approach planned.

• Current U.S. capacity is around 350,000 tons annually, expected to ramp up to 600,000–700,000 tons by FY 2028, with potential to reach 750,000–800,000 tons at 70–75% utilization.

• U.S. order book visibility extends through FY 2029, with most volumes broadly contracted.

• The company remains selective in order acquisition, focusing on prestigious projects and established partners.

Financial and operational details

• The INR 42,000 crore order book is split mainly between the U.S. (60–65%) and India, with execution over the next 3–3.5 years.

• All major contracts are fixed price, with raw material costs covered back-to-back, minimizing inflation risk.

• Profitability for U.S. orders is expected to remain in line with established market trends, with decent margins.

• Capacity expansions, debottlenecking, and a new LSAW plant (operational by Dec 2026) will ensure sufficient capacity for current and future orders.

• Exporting from India to the U.S. is not feasible due to tariff regimes.

Market environment and future prospects

• Strong demand for gas pipelines in the U.S. is driven by increased drilling in the Permian and the need for evacuation infrastructure.

• The market remains buoyant, with additional large projects under discussion, though such opportunities are rare.

• The bid pipeline is robust, allowing for selective order intake and further growth.

• The Saudi Arabia plant is on track to start between Q2 and Q3 of the current year.

• The company emphasizes transparency, customer centricity, and investor trust as key pillars of its strategy.