Welspun Corp Limited – Investor Presentation Summary
Key Operational Highlights
- Q2FY27 sales volume was 359 KMT.
- H1FY27 sales volume was 668 KMT.
Financial Highlights
Q2FY27 Performance:
- Revenue from Operations: ₹4,644 crore (6% YoY growth).
- EBITDA: ₹782 crore (25% YoY growth).
- PAT after Minorities, Associates & JVs: ₹499 crore (13% YoY growth).
- EPS: ₹18.9 (13% YoY growth).
- Finance Cost: ₹38 crore (-22% YoY).
H1FY27 Performance:
- Revenue from Operations: ₹8,725 crore (10% YoY growth).
- EBITDA: ₹1,538 crore (30% YoY growth).
- PAT after Minorities, Associates & JVs: ₹1,545 crore (96% YoY growth), which includes a one-time gain of ₹548 crore on partial stake sale in East Pipes Integrated Company for Industry (EPIC), KSA in Q1FY27.
- PAT without Exceptional Items: ₹997 crore (26% YoY growth).
- EPS: ₹58.6 (95% YoY growth).
- Finance Cost: ₹84 crore (-26% YoY).
Drivers of financial performance: Higher revenue growth and operational efficiencies.
Comparison to Guidance: H1FY27 EBITDA of ₹1,538 crore is against the full-year FY27E guidance of ₹2,850 crore.
Balance Sheet Snapshot
- Net Cash position improved further.
- ROCE stood at ~23%.
Capex & Cash Flow Health
- Expanding Spiral (HSAW) Pipe capacity by adding a 225 KMTPA new facility in the USA at a cost of US$115 million.
- Setting up a greenfield Spiral (HSAW) Pipe Plant along with coating facility in Jordan in a JV with Perma Pipes Inc at a total cost of US$125 million, to be funded in ~50:50 proportion by each partner.
Strategic & R&D Initiatives
- Strengthening manufacturing footprint with new spiral pipe facility in the USA.
- Entry into Jordan through a joint venture with Perma-Pipe to expand reach into new markets.
Industry Trends & Business Environment
Line Pipes:
- USA: Robust business visibility; key drivers include LNG exports, domestic power demand for AI data centers, NGL demand, and resurgence of oil pipelines.
- KSA: Strong demand; key drivers include high-scale investments by Aramco, desalinated water transportation, and export opportunities.
- India: Sustained momentum; key drivers include exports to Middle East, South East Asia, Australia, Latin America, and domestic projects like National Gas Grid and City Gas Distribution.
Ductile Iron Pipes:
- Key drivers include Jal Jeevan Mission, Amrut 2.0 (though funding constraints persist), export potential in Europe, Middle East & Africa, and pig iron exports.
- Vision 2030 in KSA includes 30,000+ km of new water & sewage networks, creating export opportunities.
Stainless Steel Bars + Pipes & Tubes:
- Key drivers include thermal and nuclear energy, defense, aerospace, oil & gas, petrochemicals, and 'Make in India' initiative.
- Prevailing geopolitical uncertainties and tariffs are impacting export sentiment, but long-term potential remains.
Water Storage Tanks & Plastic Pipes:
- Water Storage Tanks: Key drivers include premiumisation with Pure 5-Layer tanks, economy segment growth with RenoX 10-layer tank, channel expansion to ~600 large active contractors, and sustained branding initiatives.
- Plastic Pipes: Extended footprint to 15 states with focus on product portfolio expansion and brand visibility.
Management Commentary & Growth Outlook
Strategic Outlook: Delivered consistent performance in Q2FY27 with sustained progress across key financial parameters. Strong demand visibility in the USA and Middle East. Focus on core products and geographies, prudent capital allocation, maintaining strong supplier-customer relationships, innovation, and building capabilities.
FY Guidance: Reaffirmed full-year EBITDA guidance of ₹2,850 crore.
Risks and Opportunities: Geo-political situation to be watched closely. Funding constraints in domestic water market could persist.
ESG Updates
- Ranked 5th globally and 2nd in India overall in the Steel Sector in 2025.
- In Governance & Economic Dimension, ranked 3rd globally and 2nd in India in the Steel Sector in 2025.