Welspun Corp Limited, one of the world’s largest manufacturers of large-diameter line pipes, is seeing strong demand from the United States, where rising liquefied natural gas (LNG) exports, growing electricity needs from artificial intelligence data centres, and renewed investment in oil infrastructure are driving a long-term pipeline construction cycle.
The company’s US spiral mill, which manufactures pipes used in energy and water infrastructure projects, is already fully booked through FY28, highlighting the strength of demand in the market.
US Demand Supported by Multiple Drivers
According to the company’s FY26 investor presentation, three major themes are underpinning the strong outlook for the US business.
LNG Export Expansion
The United States is increasing its LNG export capacity as Europe and Asia seek alternative sources of natural gas. Expanding export infrastructure requires new pipeline networks connecting production regions to LNG terminals, creating sustained demand for large-diameter pipes.
AI Data Centres Driving Power Demand
The rapid growth of artificial intelligence data centres is increasing electricity consumption, prompting utilities to invest in additional gas-fired power generation capacity. These projects require expanded natural gas pipeline networks, providing further visibility for pipe manufacturers.
The company said power demand associated with AI data centres is among the factors supporting multi-year growth visibility in the US market.
Revival in Oil Pipeline Investments
Oil producers in the United States have resumed investments in pipeline infrastructure after several years of underinvestment. New and upgraded pipelines are being developed to transport crude oil from shale fields to refineries and export facilities, adding another source of demand.
Record Order Book
Welspun Corp ended FY26 with a record consolidated order book of approximately ₹25,350 crore.
The backlog includes:
- Line pipes for India and the United States.
- Ductile iron pipes.
- Stainless steel bars and pipes.
FY26 Financial Performance
The company reported strong growth during FY26.
- Revenue from operations increased 20% year-on-year to ₹16,770 crore.
- EBITDA stood at ₹2,371 crore, exceeding the company’s guidance of ₹2,200 crore.
- EBITDA margin was 14%.
- Profit after tax, excluding exceptional items, rose 42% to ₹1,613 crore.
- Combined line pipe volumes from India and the US increased 12% to 954 KMT.
- Return on capital employed (ROCE) stood at 22%.
Despite capital expenditure of ₹2,532 crore during the year, Welspun Corp ended FY26 with a net cash position of ₹1,627 crore.
FY27 Guidance
Management expects further growth in FY27.
The company has guided for:
- Revenue of ₹20,000 crore, implying growth of around 19% over FY26.
- EBITDA of ₹2,850 crore, representing growth of about 20%.
Capacity expansion projects in the United States and Saudi Arabia are scheduled to be commissioned during FY27 and are expected to support higher volumes.
About the Company
Welspun Corp Limited, the flagship company of Welspun World, manufactures large-diameter line pipes, ductile iron pipes, stainless steel bars and pipes, TMT rebars, and water storage products under the Sintex brand. The company operates manufacturing facilities in India, the United States and Saudi Arabia and serves customers in more than 50 countries.
TL;DR
Welspun Corp’s US business is fully booked through FY28, supported by growing LNG exports, rising power demand from AI data centres and renewed investment in oil pipelines. The company closed FY26 with a record order book of ₹25,350 crore and expects further growth in FY27.
AI Summary
- Welspun Corp’s US spiral mill is fully booked through FY28.
- LNG exports, AI data centres and oil pipelines are driving demand.
- FY26 order book reached a record ₹25,350 crore.
- Revenue rose 20% to ₹16,770 crore and PAT increased 42%.
- FY27 guidance implies around 20% growth in revenue and EBITDA.
