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Informist, Friday, Aug. 21, 2026

 

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--Welspun Corp: See huge demand for gas evacuation infra
--CONTEXT: Welspun Corp mgmt comments in investor call on INR 172 bln order
--Welspun Corp: US order win was in the works for some time
--Welspun Corp: Working to get some more orders similar to US order
--Welspun Corp: See lot of scope for debottlenecking capacity
--Welspun Corp: Large chunk of current orderbook come from the US

 

By Anand JC and Ashutosh Pati

 

MUMBAI – Welspun Corp. Ltd. is working on a couple of more deals similar to the record deal announced late Thursday but are nowhere near being finalised yet, a top offical told analysts in a conference call Friday. Its shares hit record highs early Friday after it bagged a record deal worth around INR 172 billion to supply pipes from its manufacturing facility in the US.

 

"The underlying fact is very simple, the market is extremely buoyant. The demand is very, very strong," the official said. Welspun Corp. is a major manufacturer of large-diameter line pipes, which are used in complex onshore and offshore oil, gas, and water transmission projects.

 

This order entails transportation of gas from the Permian basin, the highest-producing oil field in the US, to the Gulf Coast. "This is carrying a large volume of gas in excess of almost 3 bcf (billion cubic feet). There is a huge demand at this point for evacuating gas as there is a lot of drilling happening in Permian," the official said. 

 

The company said it likely received roughly 70-80% of the entire contract, at least. "This (deal) has been in discussion for a fairly long time... we were at the right place at the right time," the company said. For this contract, Welspun Corp. will sell longitudinal submerged arc welded pipes, or LSAW pipes, and helical submerged arc welded pipes, or spiral pipes.

 

The company currently manufactures around 300,000-350,000 tonnes of pipes per year on an average. With new capacities coming in place, this may go up to 500,000 tonnes from 2027. The US order is expected to be executed in 2027-28 (Apr-Mar) and FY29. By then, the capacity may rise to 600,000-700,000 tonnes per year.  

 

Given the magnitude of the order, the company sees scope to work on debottlenecking its capacity, following its recent greenfield expansion. The expansion and capacity augmentation will help the company to service this order and accommodate any other orders that it may sign, Welspun Corp. said.

 

Welspun Corp. expects the US order to give it a "very decent" profit, but did not quantify it further. "It is a little too early to crystallise the profitability of this particular order at this point in time, but on a generic basis, these orders are decently valued, decently priced," the official said.

 

Its orders based on fixed price contracts and are signed in dollar terms, negating any swings in raw material prices and currency movements. "The possibility of any inflation or inflammatory thing coming and disturbing the apple pie is negligible," the company said.

 

The company's current global order book stands around a record high of INR 421 billion. Around 60-65% of this orderbook caters to the US market, which the company plans to execute over 3.0-3.5 years. The rest of it comes from India, spread across various operating business units. 

 

For the June quarter, the company had reported a consolidated net profit of INR 10.46 billion on revenues of INR 40.81 billion. At 1230 IST, its shares traded a whopping 17% higher at INR 2,341.40 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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