- Revenue and profitability improve year on year
- Global line pipe demand remains supportive
Welspun Corp reported robust Q1FY’27 earnings, with record quarterly EBITDA driven by strong execution across its overseas pipeline business. Revenue from operations increased 15% y-o-y to INR 4,081 crore, while EBITDA rose 35% y-o-y to INR 756 crore, reflecting higher operating leverage and an improved business mix. The performance underscores the company’s growing dependence on export markets and global infrastructure investments, which continue to cushion weakness in certain domestic segments.
Unlike many steel and pipe manufacturers facing slower domestic infrastructure execution, Welspun’s diversified geographic presence enabled it to capitalise on sustained investments in energy and water infrastructure across North America and the Middle East.
Overseas line pipe business remains the primary growth driver
The line pipe segment continued to anchor the company’s performance during the quarter. Sales volumes increased 6% y-o-y to 193,000 tonnes (t), supported by healthy project execution and a robust international order pipeline.
Management highlighted that the United States remains one of its strongest markets, where rising LNG export capacity, expansion of domestic power infrastructure to support AI-led data centres, and renewed investments in onshore and offshore oil and gas pipeline networks continue to drive demand for large-diameter pipes. The company’s order visibility in the region now extends over the medium term, providing greater earnings stability compared with the cyclical nature of the domestic market.
Saudi Arabia has emerged as a key growth engine, with investments in oil and gas, water transmission, hydrogen and carbon capture projects driving strong demand for line pipes. At the same time, reconstruction activities across parts of the Middle East are expanding pipeline opportunities beyond traditional hydrocarbon investments.
Export strategy
Welspun has increasingly shifted its focus towards exports. DI pipe sales volumes rose 6% y-o-y to 69,000 tonnes, while management indicated that exports to Europe, the Middle East and Africa remain a key growth avenue. The company is also strategically increasing pig iron exports to optimise capacity utilisation as domestic project execution remains uneven.
Demand for stainless steel bars and seamless pipes remains supported by investments in defence, aerospace, thermal and nuclear power, petrochemicals and oil and gas under India’s manufacturing initiatives. Although stainless steel bars and pipes volumes declined 24% y-o-y to 6,300 tonnes during the quarter, management remains constructive on the medium-term outlook, supported by increasing localisation and higher-value industrial applications.
The building materials business also continued to expand. TMT bar sales volumes increased 18% y-o-y to 47,000 tonnes, while the company highlighted continued expansion of the Sintex water storage tanks and plastic pipes business through wider distribution networks and increasing state approvals for OPVC pipes.
Geopolitics reshaping pipeline demand
Welspun’s growing overseas order book reflects rising global infrastructure investments. The US is accelerating LNG and pipeline projects to strengthen energy security, while the Middle East continues to invest in oil and gas, water, hydrogen, and carbon capture projects. Reconstruction activities in parts of the region are further supporting pipeline demand, strengthening Welspun’s medium-term growth visibility despite global uncertainties.
Outlook
With an order book providing medium- to long-term revenue visibility, ongoing capacity expansion in the US and Saudi Arabia, and sustained investment across global energy and water infrastructure, Welspun appears well positioned to benefit from the next phase of international pipeline spending.
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