Welspun Corp Q2 FY27 Earnings Call: Order Book Hits Record Rs. 50,000 Crore, US And Jordan Expansions Approved (WELCORP)

Welspun Corp Ltd held its Q2 FY27 earnings call on October 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record EBITDA and ROCE, Muted Volumes

• Q2 FY27 EBITDA at all-time high of Rs.782 crore (+25% YoY) — H1 FY27 EBITDA at a record Rs.1,538 crore (+30% YoY), tracking favorably against FY27 EBITDA guidance of Rs.2,850 crore.
• H1 FY27 annualized ROCE at 22.7% — above the FY27 guidance of >20%.
• Net cash improved to Rs.3,887 crore as of Q2 FY27 — after ~Rs.1,500 crore of H1 FY27 capex; management is "reasonably sure" it will remain net cash even after completion of all announced capex (completion timeline unspecified).
• Line pipe and DI pipe volumes declined ~20-22% in Q2 FY 2026-2027 — domestic DI faces headwinds across all players from the slowdown in Jal Jeevan Mission budgetary allocation; CFO guided domestic DI volumes will be "substantially lower" for FY27 (no specific number given).
• Order book at all-time high of ~Rs.50,000 crore (~US$5.2 billion) as of Q2 FY27 — providing strong growth visibility.

Three Board Approvals: US, Jordan, PermaPipe JV

• US debottlenecking of spiral pipe capacity by 225,000 MTPA — capex up to US$115 million, expected ready by March 2028.
• Greenfield spiral pipe plant with coating facility in Jordan — via a 50-50 JV with Burma Pipe, total project capex up to US$125 million shared with the partner; based on a firm MOU with the developers of Jordan's National Water Carrier Project and the government of the Hashemite Kingdom of Jordan.
• Jordan capacity indicated at 350,000-500,000 tons (period unspecified) — management noted capacities are notional and depend on the size/thickness mix the plant runs; expansion goes ahead "against the backdrop of an order," with business to be secured before the plant starts.
• India JV with PermaPipe for internal FBE (IFBE) coating at Anjar — total project cost ~Rs.110 crores funded by both partners, expected up and running in FY 2027-2028; enables pursuit of large pipe export orders where IFBE coating is mandatory.
• Jordan framed as a strategic, preemptive call — premised on massive reconstruction activity expected in Syria, Iraq, Lebanon and Jordan itself, with Jordan at the "epicenter"; management expects the investment to pay "huge dividends" in times to come.

Booked Through FY29; Data Center Demand Emerging

• US booked through FY29 — supported by LNG export growth, rising electricity requirements from AI data centers triggering demand for new gas pipelines for captive gas turbine power plants, and onshore/offshore oil pipeline investment.
• One recent large US order win was specifically for a data center pipeline — with Rs.5,500 crore booked as of the Q2 FY 2026-2027 call; management still sees scope for more gas pipeline orders serving data centers' captive power needs.
• Management expects US demand to sustain for 3-5 years beyond FY 2029 — and remains "very optimistic" on the US business despite a calibrating pace of awards; a couple of projects under discussion are expected to be finalized over Q3-Q4 FY 2026-2027.
• Data center demand could outpace LNG export demand over the next 5 to 7 years — per MD & CEO Vipul Mathur, demand has moved from the books to the drawing board and is now coming into execution; a "little bit of moderation" in the US data center opportunity over the last month or so was flagged as fitting the company's business plans.
• Welspun competes with 2-3 players in North America and holds the largest market share — rivals are doing only debottlenecking and limited augmentation, "nothing comparable" to Welspun's announced expansions; the Little Rock complex spans almost 800 acres with port, rail and logistics infrastructure competitors lack.
• Management did not rule out US orders reaping more than $400/ton into FY28-FY30 — Mathur said "we are not ruling out any scenario at this point in time"; margins on the three mega orders at Little Rock are locked in through FY29.

Commissioning on Track, Ramp-Up Ahead

• Both Saudi LSA and DIP plants in final phases of commissioning — expected complete in Q3 FY 2026-2027; management affirmed no delay to the December 2026 timeline despite geopolitical concerns.
• Saudi utilization targeted at 50-60% "if not more" in FY 2027-2028 — the first year of operations; management noted it will not touch 100% in the first year (FY 2027-2028).
• Anti-dumping duty on DI pipe imports in Saudi has been finalized (per the analyst) — management is very optimistic: two-thirds of Saudi's captive DI requirement is currently serviced through imports, and Welspun will be the largest dominant player in an import-substitution play with "first right of refusal" for local demand.
• Middle East under "massive supply chain disruption" — raw material inflows and finished-goods movement constrained; order materialization may take some time, though the disruption impacts the region at large rather than Welspun specifically; short-term supply chain, logistics and freight costs in the region adversely impacted.
• Saudi demand intact — "no dearth of business opportunity" in oil & gas with Aramco and in the water sector; the Saudi government is "very clear" on its intent and "completely accelerating" processes; supply chain normalization is the key gating factor.
• Desalination story across the Middle East gaining traction — the Jordan expansion is logical in that direction, with the play happening in Jordan, already happening in Saudi, and expected across other Middle East regions.

Domestic Stress, Export Bright Spot, Sintex Losses Double

• India domestic demand "fairly sluggish" and expected to remain under severe stress — potentially for the next few quarters (Q3 FY 2026-2027 onward), especially in water; some uptick seen in oil & gas and city gas distribution over Q3-Q4 FY 2026-2027.
• Water market under stress — some optimism around river interlinking projects and interstate water sharing agreements, but central government budgetary constraints need to be lifted for orders to be awarded.
• Exports from India remain the bright spot — demand from the Middle East, Southeast Asia and LATAM; management sees a strong pipeline across Australia, LATAM and Southeast Asia and has "no doubt whatsoever" on the India exports business.
• Sintex losses roughly doubled in Q2 FY 2026-2027 — Yashovardhan Agarwal said excluding marketing and R&D costs the business is "very close to break-even, if not already"; no timeline offered for full break-even including these investments (period unspecified); premiumization is the focus, with a first-time entry into the economy segment driving volumes.
• WSSL now "absolutely in black" — the only integrated player (own steel and own pipes) in a business with very tough entry barriers; power generation is the key demand driver, a structural, long-haul demand of 8-10 years in the power gen sector, which will "also be compounded with the nuclear in days to come."
• Stainless steel shifting toward domestic traction vs exports — attributed to ongoing disruptions in the European market; volumes slightly muted in Q2 FY 2026-2027, with Q3 and Q4 FY 2026-2027 expected to look much more promising.

FY27 Guidance Held; Hydrogen Deferred

• Management expects to be "well within, if not better than" its FY 2026-2027 guidance — H1 FY 2026-2027 delivered as committed at Rs.11,235 crores, with H2 FY 2026-2027 visibility supporting achievement, if not exceedance, of the Rs.20,000 crores revenue and Rs.2,850 crore EBITDA guidance.
• Management refrained from committing to a guidance upgrade for FY 2026-2027 — sees "strong traction" in H2 FY 2026-2027 but remains "cautiously optimistic" given multiple variables outside its control; noted it has exceeded its commitments in the past preceding couple of years.
• FY 2027-2028 incremental earnings expected from new US and Saudi capacities — all backed by orders (the US capacity is already backed by an order); H1 FY 2027-2028 is expected to be different from H1 FY 2026-2026.
• Saudi is the only flagged timing vulnerability — full profitability impact if supply chains and conditions improve within the next couple of months; if prolonged, there could be a slight lag.
• Hydrogen activity has "taken a backseat" versus 2 years ago (~FY 2024-2025) — still active in Europe but receded in India and other markets; management attributed the slowdown to countries "ring fencing" on energy security, and views hydrogen as a big opportunity that "cannot be discounted" (period unspecified).
• Capital allocation reaffirmed as "very disciplined" per board directive — deployment primarily for two purposes, growth and shareholder returns; the split is premature to specify until cash is realized ("right now it is only on paper").