Welspun Corp Limited Q3 FY26 Earnings Call Summary

Summary

Welspun Corp Limited - Q3 FY 2026 Earnings Call Summary Monday, February 02, 2026 4:00 PM IST

Event Participants

Executives 4 Goutam Chakraborty (Head, Investor Relations), Nilesh Mazumdar (CEO, Sintex), Percy Birdy (CFO), Vipul Mathur (MD & CEO)

Analysts 8 Anirudh Nagpal (JM Financial), Ashutosh Nemani (JM Financial), Karan Bhatelia (MAIQ Capital), Radha (B&K Securities), Sailesh Raja (B&K Securities), Sneha Talreja (Nuvama), Sohan Joshi (ASC Consultancy), Vikash Singh (ICICI Securities), Yash (Art Ventures)

Financials & KPIs

Geographic & Segment Commentary

• USA: Market remains bullish driven by gas pipelines for LNG exports and AI data centers; data centers require independent power plants and gas infrastructure. Order book for spiral mills is fully booked through March 2028 at 85-90% utilization.
• Saudi Arabia: Significant expansion via new LSAW and DI pipe mills to capture Saudi Aramco’s $50B-$55B capex cycle. Strategy focuses on import substitution as 2/3 of DI pipes are currently imported; domestic gas production increase to 16.6 Bcf per day drives pipeline demand.
• India (Line Pipe): Domestic water and oil/gas sectors were recently tepid due to fund crunches but are seeing resurgence. Export markets remain strong with breakthroughs in Latin America (Argentina) and ongoing projects in Qatar and Australia.
• Sintex (Water Tanks & Pipes): Focusing on regaining market share in tanks and launching OPVC pipes. Secured major empanelments in South, Central, and Eastern India; execution of OPVC orders has commenced following technical approvals.

Company-Specific & Strategic Commentary

• Local-to-Global Strategy: Management emphasizes being a “local player” in high-tariff markets like the USA and Saudi Arabia to neutralize trade barriers and anti-dumping duties.
• Product Diversification: Transitioning from a pure line pipe player to a diversified infrastructure company across DI pipes, Stainless Steel, and Sintex retail products.
• Capacity Expansion: Seven to eight major projects, including US LSAW and Saudi DI plants, are on track for commissioning between Q2 and Q4 FY26.
• Sustainability: Ranked 5th globally in the S&P Global DJSI Index for steel companies with a score of 78, reflecting a 7% increase.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

USA Capacity & Strategy

• Question: Why upgrade the US HFIW mill from 20-inch to 24-inch diameter? (Ashutosh Nemani)
• Answer: There is a significant market for 24-inch pipelines to transport Natural Gas Liquids (NGL). Moving to 24-inch allows WCL to capture a premium, sizable business opportunity it previously lost (Vipul Mathur).
• Question: How does the new US LSAW mill change the competitive landscape? (Ashutosh Nemani)
• Answer: Once operational, there will only be two LSAW players in the USA. This will neutralize the need for imports in that segment (Vipul Mathur).

DI Pipe Markets

• Question: Is the coking coal price surge a threat to DI pipe margins? (Vikash Singh)
• Answer: No, the company maintains a 2-quarter forward cover. Furthermore, the current surge is viewed as a temporary spike due to weather-related force majeure in mines (Vipul Mathur).
• Question: What is the status of anti-dumping in Saudi Arabia? (Radha)
• Answer: KSA has started broad investigations into imports. Since 2/3 of the market is currently serviced by imports, this creates a major opportunity for WCL’s upcoming local capacity (Vipul Mathur).

Infrastructure Outlook

• Question: What is the confidence level in Jal Jeevan Mission (JJM) spending? (Sneha Talreja)
• Answer: Confidence is high following the ₹70,000 crore budgetary allocation. Previous delays were due to government audits which are now reportedly complete (Vipul Mathur).

Key Takeaway

Welspun Corp delivered a record performance in Q3 FY26, characterized by its highest ever quarterly EBITDA of ₹645 crores and a robust global order book of ₹23,600 crores. The company is successfully executing a “localized global” strategy, positioning itself as a domestic manufacturer in the USA and Saudi Arabia to bypass trade barriers while capturing massive energy infrastructure demand. Strategic expansions, including the upgrade to 24-inch HFIW pipes in the US and the greenfield DI pipe plant in Saudi Arabia, are timed to coincide with a surge in AI data center demand and Aramco’s increased capex. With 9M EBITDA already reaching ₹1,831 crores, management is poised to exceed its ₹2,200 crore annual guidance. Looking ahead, the commissioning of multiple global projects between Q2 and Q4 FY26 remains the primary catalyst for incremental earnings growth.