This article first appeared on GuruFocus .
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Line Pipe Sales Volumes:India and US sales volumes at 265,000 tonnes.
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DI Pipe Sales Volumes:92,000 tonnes.
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Stainless Steel Bars and Pipe Sales Volumes:6,000 tonnes and 1,600 tonnes, respectively.
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Global Order Book:Record high at INR23,600 crores.
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Q3 FY26 EBITDA:INR645 crores, highest ever quarterly EBITDA.
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Annualized ROCE:More than 24%.
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Q3 FY26 PAT:INR453 crores.
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Net Cash Position:INR132 crores.
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CapEx:INR1,700 crores during nine months of FY26.
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EBITDA Guidance:On track to achieve or exceed INR2,200 crores for the full year.
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Warning! GuruFocus has detected 4 Warning Signs with BOM:532144.
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Is BOM:532144 fairly valued? Test your thesis with our free DCF calculator.
Release Date: February 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Welspun Corp Ltd ( BOM:532144 ) achieved its highest ever quarterly EBITDA of INR 645 crores, marking consistent growth over the last eight quarters.
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The company maintains a consolidated global order book at a record high of INR 23,600 crores, providing long-term visibility across its operations.
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Welspun Corp Ltd ( BOM:532144 ) is expanding its footprint in the Saudi market with new LSAW and DI pipe mills, positioning itself for import substitution.
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The US market remains bullish with significant demand for pipelines driven by LNG exports and data center developments, providing strong visibility for the next three to five years.
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The company is ranked fifth globally and second in India among steel companies in the DJSI Index, reflecting its strong sustainability strategy.
Negative Points
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The domestic Indian market has been tepid, particularly in the water sector, affecting volumes.
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There is a dependency on government spending for projects like the Jal Jeevan Mission, which has seen delays in fund allocation.
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Rising coking coal prices could impact margins if they remain elevated, although the company currently has forward coverage.
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The company faces competition in the US market, particularly in the HFIW and LSAW segments.
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There are ongoing antidumping investigations in Saudi Arabia, which could impact market dynamics and import strategies.
Q & A Highlights
Q: What gives you confidence that the government will spend the budgeted amount on the Jal Jeevan Mission (JJM) this year, given last year's slow spending? A: The government completed an audit of the JJM schemes last year, which delayed spending. Now, with the audit complete, they have announced a budget of INR70,000 crores for the next financial year, indicating a commitment to complete the projects.
Q: Can you provide details on the OPVC order book and recent developments? A: We have focused on approvals, accreditations, and empanelment in Chhattisgarh, Madhya Pradesh, and the southern corridor. We have cleared major milestones in these markets, and with approvals in place, we are poised to execute existing orders and build momentum.
Q: How does the 50% penal tariff impact Welspun Corp's business, especially with a focus on export growth? A: The tariff does not impact us significantly as we are a local player in key markets like Saudi Arabia and the US. Our strategy is to focus on non-tariff markets for exports from India, while leveraging our local presence in tariff markets.
Q: What is the outlook for the DI pipe business, given the domestic constraints and export potential? A: Despite domestic fund constraints, we have maintained a strong order book, primarily from the West and North markets. We expect easing constraints and increased momentum in DI pipe sales in subsequent quarters, with export infrastructure now ready.
Q: What is the timeline for executing the INR23,600 crores order book, and how is the US business performing? A: The US order book extends to March 2028, with Indias line pipe business having a nine-month to one-year visibility. The DI pipe segment has a pending order book of approximately 300,000 tonnes, providing clear visibility for three quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
