Massive Rs 20,000 Crore Order Book: New Rs 2,400 Crore USA Pipeline Deal Secured!
Securing Growth: New Rs 2,400 Crore Order Strengthens Global Presence
Welspun Corp Limited has announced the receipt of new orders worth approximately Rs 2,400 crore for the supply of coated pipes for natural gas pipeline projects in the USA. This development strengthens the company’s position in the American oil and gas market. The execution of these orders will mainly take place during the financial years 2026 and 2027.
Order Book Reaches Rs 20,000 Crore
With these new contracts, Welspun Corp’s consolidated order book now stands at approximately Rs 20,000 crore. The company emphasized that these new wins reflect the continued trust of customers and reaffirm its leadership in the USA's oil and gas sector.
Financial Performance in Q3 FY25
Welspun Corp reported improved profitability in Q3 FY25. Consolidated EBITDA stood at Rs 478 crore for the quarter, contributing to a nine-month total of Rs 1,356 crore against a full-year target of Rs 1,700 crore. Adjusted profit after tax (PAT) for the quarter was Rs 297 crore. The company’s EBITDA margins remained stable at around 13 per cent.
Operational Growth Across Segments
Line pipe sales in India and the US increased by 16 per cent quarter-on-quarter to 235,000 tons. The order book for line pipes in these regions is valued at approximately Rs 12,000 crore. The ductile iron (DI) pipe segment also remains strong with an order book of 350,000 tons, ensuring visibility for the next four quarters.
Strategic Plans and Market Outlook
Welspun Corp anticipates strong demand for line pipes in India, driven by large public sector projects. The company also expects increased demand from the expansion of India’s natural gas pipeline network by 10,000 kilometers. In Saudi Arabia, robust demand from the water sector and Saudi Aramco's oil production expansion is expected to drive growth.
New Projects and Innovations
The company is set to launch plastic pipes under Sintex BAPL in Q1 FY26, targeting a 5 per cent market share within the next three to five years. Additionally, Welspun is focusing on high-quality specialized pipes for clean energy, defense, and nuclear applications.
Confident Outlook Despite Challenges
Despite concerns over project delays in the US and a slowdown in government capital expenditure in India, Welspun Corp remains optimistic about future growth. The company continues to focus on maintaining a strong order book, effective debt management, and innovation to sustain long-term growth.
Disclaimer: The article is for informational purposes only and not investment advice.