Welspun Corp Ltd Q4 FY26 Earnings Call: Guides 20% YoY Revenue Growth, Order Book Booked Through FY28

Welspun Corp Ltd held its Q4 FY26 earnings call on May 21, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Headline Results Beat Guidance Across Metrics

• FY26 revenue of ~Rs.17,000 crore— in line with management guidance, with EBITDA of Rs.2,371 crore surpassing the Rs.2,200 crore guidance and PAT of Rs.1,613 crore rising 42% YoY.
• EBITDA margin exceeded 14%— and ROCE of 22.3% beat the >20% guidance target set for FY 2025-2026.
• Order book at FY26-end stood at >Rs.25,000 crore (~$2.5 billion)— management stated all plants are nearly booked through FY 2027-2028, providing multi-year revenue visibility.
• EBITDA CAGR of 43%— delivered over the four fiscal years ended FY 2025-2026, with management asserting continuous growth and no lumpiness in profitability.
• Negative current tax of Rs.85 crore in Q4 FY26— driven by substantial capitalization in the US subsidiary and a 100% bonus tax depreciation rule, which reversed the current tax provision in Q4 and normalizes when combined with deferred tax expense.

FY27 Guidance of Rs.20,000 Cr Revenue; Booked Through FY28

• FY27 guidance: revenue of Rs.20,000 crore and EBITDA of Rs.2,850 crore— implying ~20% YoY growth in both metrics, with management expressing high conviction based on order book visibility and global customer reach.
• Order book split 2/3 US, 1/3 India— translating to 1.2-1.3 million tons in India alone, predominantly large-diameter pipes for oil and gas in the US used for LNG export and powering data centers.
• Booked until FY28 with strategic capacity held open— management noted some large-diameter capacity is deliberately kept available to accommodate higher-value-added orders from premium midstream customers.
• Management reaffirmed >20% YoY growth for FY 2026-2027— citing the quality of the order book, premium customer base, and strong demand across US and Middle East markets.
• Water sector emerging in Middle East— opportunities growing across Saudi Arabia, Iraq, and Jordan, with management expecting traction from the ductile iron pipe (DIP) facility once it comes on stream during FY 2026-2027.
• Shipping and diesel costs have risen— but existing long-term contracts were not impacted, and future projects have factored in these costs; domestic contract negotiations now account for industrial diesel cost escalation.

Multi-Year US Upcycle Driven by Data Centers, LNG, and Oil

• Management described a fundamental structural shift in the US— citing "industry citing 5,000+ planned" data centers, LNG price spread of ~$3/MMBtu (Henry Hub) versus $15-20/MMBtu internationally, and US oil production cost of ~$40/bbl versus global price >$80/bbl, with visibility through end of FY 2027-2028 based on booked orders.
• Welspun holds 33-35% US market share in large-diameter pipes— serving top midstream companies for LNG export infrastructure, gas-based power plants for AI data centers, and resurgent oil export networks.
• US demand drivers cited as a 5-7 year structural shift— management identified three pillars: (i) LNG export arbitrage, (ii) AI data center gas-based power plants, and (iii) resurgent oil exports, all supporting sustained pipe demand.
• Orders already flowing for new US plant— management confirmed inquiries and orders have started, expecting a "fairly healthy order book" before commissioning of the HFIW facility.

Four New Facilities Ramping Through FY27-FY28

• Saudi Arabia large-diameter pipe and Titalan water pipe plants on track— expected to start contributing in FY 2026-2027, with full impact anticipated in FY 2027-2028; management expects a "significant order book" for the Saudi plant even before commissioning.
• US HFIW plant to start by end of Q1 FY27— and the Elso large-diameter plant by end of CY2026, with full benefit from both expected in FY 2027-2028.
• Middle East plant fully operational by end of FY 2026-2027— initial focus within Saudi Arabia, with the location enabling future exports to international markets.
• Ductile iron pipe (DIP) facility coming online during FY 2026-2027— targeting water distribution demand in the Middle East, where management expects growing traction from urban expansion and desalination networks.
• FY 2027-2028 expected to deliver strong performance with lower CAPEX— management indicated higher cash generation once new capacities are operational and fully booked; a clear excess cash deployment plan will be detailed "few quarters away."
• Input cost increases (freight, fuel) are pass-through— management confirmed these are already factored into the top line and do not impact margin structure.

Plastic Pipes, Water Tanks, DI, and SS Pipe Diverging Trends

• Plastic pipes and water tanks combined revenue of ~Rs.600 crore for FY 2025-2026— management guided for double-digit revenue and margin growth in both segments for FY 2026-2027 and beyond.
• Plastic pipes in channel-building phase across 10 states— while water tanks had a strong year despite a March LPG-related disruption; both targeting aggressive expansion in the economy segment, according to Yashovardhan Agarwal.
• Government payments for DI pipes improving after a prolonged slowdown— management reported this positive development, though overcapacity remains an industry-wide issue; the company plans to offset by growing exports from port-based capacity.
• SS pipe volumes reduced due to European market slowdown— linked to CBAM-related disruptions and supply chain issues, but the domestic market, particularly the power sector, is bouncing back strongly.
• Syntex revenue and volume guidance to begin from Q1 FY 2026-2027— management will start providing formal guidance for the Syntex segment from the next quarter.
• JV East Pipe performing exceptionally well as a leader in the Saudi market— management expects continued strong performance in FY 2026-2027 due to robust underlying water sector demand; no immediate plans to increase stake in associates or JVs.

Restructuring, Working Capital, and Competitive Moat

• Internal restructuring moved 22% stake in Epic from Welspun Mauritius to Welspun Pipes, USA— for a total consideration of Rs.2,500 crore during FY26, with the goal of parking assets in a higher-growth US jurisdiction to create future flexibility.
• Negative working capital days expected to persist in FY 2026-2027— customer advances continue from the buoyant US market, though earlier advances will be utilized as orders ship.
• Management expects to protect or improve margins— citing strong demand, a premium customer base, and niche market positioning; no specific numeric margin targets were provided for FY 2026-2027 or beyond.
• Indian peers (Jindal, Man Industries, Ratnamani) entering the Middle East market— management noted this validates strong regional demand, but Welspun's 20-year presence (14 years direct operations) provides a competitive moat; near-term threat seen as low.
• No single threshold for declining projects— decision factors include project specifics, competitive landscape, and strategic fit as a niche player rather than a commodity producer.
• FY28 internal views exist but no numeric targets provided on this call— management stated guidance has been issued for FY27, with internal views on FY28, but declined to share specific numbers.