Welspun Corp (532144) investor relations material

Executive summary

• Achieved record-high consolidated order book of INR 23,500 crore, providing over two years of visibility in the US and more than a year in other markets.

• Strong operational and financial performance in Q2 FY26, with significant sales growth and profitability across line pipes, DI pipes, specialty steel, and other key segments.

• Expansion and capacity additions underway in India, US, Saudi Arabia, and UAE, with all major projects on schedule.

• Incorporated two wholly owned subsidiaries in the UAE for investment holding and global marketing/trading activities.

• Acquired an additional 4.11% equity stake in Welspun Specialty Solutions Limited, increasing holding to 55.17%.

Financial highlights

• Q2 FY26 consolidated revenue was INR 4,409 crore, up 31% year-over-year; EBITDA reached INR 626 crore, the highest ever quarterly EBITDA, with margin improvement to 15.0%.

• PAT for Q2 FY26 was INR 440 crore, up 53% year-over-year; EPS up 52% to 16.7.

• Net profit for H1 FY26 was INR 792.67 crore, up from INR 530.90 crore year-over-year.

• Finance costs reduced by 41% year-over-year; net cash position maintained despite INR 950 crore CapEx in H1.

• EBITDA margin for H1 FY26 was 16.13%, up from 14.33% in H1 FY25.

Outlook and guidance

• Confident in achieving or exceeding FY26 EBITDA guidance of INR 2,200 crore, with H1 already at INR 1,186 crore.

• Strong order book and execution capabilities support a positive outlook for the next two to three years, with robust demand in the US, KSA, and India.

• US market expected to remain robust due to LNG exports and rising data center demand for gas pipelines.

• Indian water sector demand expected to rebound as funding issues resolve; oil and gas pipeline demand remains strong.

• Saudi market growth driven by water security projects and Aramco's capital expenditure; local DI plant to capture import substitution.