Thanks, operator, and welcome, everyone, to the call. I will first thank Welspun Corp for giving JM Financial the opportunity to host today's call.

Without much ado, I'll hand over the call to Mr. Goutam Chakraborty, Head Investor Relations Welspun Corp to introduce the management.

Over to you, Goutam.

Thank you, Anirudh, and good afternoon to all of you. Welcome, everyone, to Q3 and nine months FY26 earnings call of Welspun Corp Limited.

On this forum today, we have Mr. Vipul Mathur, Managing Director and CEO, Mr.

Percy Birdy, Chief Financial Officer, and Mr. Nilesh Mazumdar, CEO of Sintex.

You must have gone through the results and investor presentation of the company which are also available on the stock exchanges and as well as on our website. During the discussion, we may be making references to the presentation, I request you to please refer to the safe harbor statement in our presentation.

As usual, we'll start this forum with the opening remarks by Mr. Mathur, and post that, we'll open the floor for Q&A.

With that, let me hand over the floor over to Mr. Mathur.

Over to you, sir.

Thank you, Goutam. Efficient introduction, but friends, a very good afternoon to everyone.

I welcome you all for the Q3 FY26 earnings conference call for Welspun Corp. First and foremost, since we are interacting for the very first time in this new year, I wish all of you a very happy and a prosperous 2026.

As practice, I would first like to discuss our key operational and financial highlights of the concluding quarter. I will then dwell down on the business environment, and rather, I would like to spend a lot more time on the Q&A today, because I am sure that all of you would have seen the investor presentation and there is a very detailed outlook has already been provided.

I think so we should utilize the time, and we can go ahead for more Q&A. I think so that would be more helpful.

However, if you want any more detailed information, and we are more than willing to do that. Some of the key operational highlights for this particular quarter was that the line pipe sales volumes for India and US stood at almost 265,000 tons.

The DI pipe sales stood at almost 92,000 tons. The stainless steel bars and pipe sales volumes stood at almost 6,000 tons and 1,600 tons respectively.

We have been able to maintain a consolidated global order book at a record high of almost ₹23,600 crore, bringing consistency and long-term visibility across our global operations, across USA, across India. On Sintex, as we have always said, we have been focusing on channel expansion, branding, premium product launch continues.

The strong potential for OPVC market which is absolutely now in play and now Sintex securing major approvals for the OPVC and empanelled in the various states. Execution and the dispatches of OPVC material has already started.

Some of the key financial highlights are: our Q3 FY26 EBITDA stood at ₹645 crore is the highest ever quarterly EBITDA with consistent growth over the last eight quarters and improved margins. This is after a one-time cost of approximately ₹25 crore on account of gratuity and leave encashment provisions due to the new labor code.

Our annualized ROCE stands at more than 24%. The PAT for this quarter stands at ₹453 crore.

If you would have seen, the last year Q3 PAT had a one-time gain of ₹378 crore on account of proceeds from sell of EPIC shares. If we reduce that one-time gain in the last quarter of the last financial year, the PAT is significantly higher in this particular quarter.

In spite of the CapEx of almost ₹1,700-odd crore during the nine months in FY2026, we continue to maintain a net cash position with 100 net cash position of almost ₹132 crore. If you see, we had given a guidance of close to ₹2,200 crore for the whole financial year, and in the nine months EBITDA guidance of ₹2,200 crore, and in the nine months, we are already at ₹1,831 crore.

This very clearly suggests that the company is well on track and should comfortably achieve or exceed the full year guidance. We will talk a little more when we deep-dive into the Q&A part of it.

I would quickly go to the business environment section. Just to give you very broad highlights as to how do we see the market happening across all the geographies and across all the products.

First, let's talk about US. I think so the US market continues to be into a bullish mode.

We are seeing a significant demand, continuing demand for the pipelines, and they are all driven by basically for movement for gas pipelines either for LNG export or primarily for data centers. We are seeing a surge of data centers coming up in US.

With each data center, they have to have their own power plant, and all those power plants requires uninterrupted gas for which pipelines are required. We are into the part of the value chain of the AI data center, and we are seeing the huge surge around at this point in time.

If I have to put some numbers, there are almost eight to nine pipelines which are currently being discussed, apart from what have already been awarded. I think so that shows a very strong visibility for next three to five years' time.

We are also seeing a lot of development now happening in carbon capture and hydrogen pipelines. Plus the US offshore is also seeing resurgence.

The domestic movement of oil and domestic movement of gas, the carbon capture, the hydrogen pipeline, and onshore resurgence, all in all, all the four boxes in which pipelines are being used are ticking, and we are seeing an upsurge into that. If we look at Saudi, if you would have noticed, Saudi Aramco has increased its CapEx guidance to in the range of almost $50 to $55 billion.

They are also talking of major capital projects for pipelines which are going to come up. They happen to be the Jafurah gas project.

We are also talking of Master Gas Phase 4. We are also seeing that Saudi Aramco is increasing their gas production, and it is about to go to 11.8 bcf per day from 11.8 bcf to 16.6 bcf per day.

They are contemplating to put almost 4,000 km of new pipelines. With Saudi 2030 Vision for both onshore and offshore seems to be pretty much on track.

All more importantly, Saudi also will also become a sort of a hub not only for the domestic consumption, but also as an export hub to the international market. As Welspun Corp is significantly expanding its footprint in the Saudi market by putting up a new LSAW mill out there, and the outlook, both domestic as well as exports, looks extremely, extremely encouraging.

When we talk of Saudi, you also know that we are expanding in our DI pipes there. We are putting up a greenfield capacity for DI pipes, and the market is very buoyant.

There is a lot of infrastructure development which is happening. The demand dynamics is very favorable.

There are local capacity constraints, and as I have said earlier, we are positioning ourselves for import substitution, because two-third of the quantity which is coming at this point in time is coming through imports. Once our greenfield project starts producing, the first thing which will probably happen is all the import substitution will stop.

We will have a natural platter to play with. We are also pleased to report that the government of the Kingdom of Saudi Arabia has also started some anti-dumping duty investigations for all the cheap imports which is coming.

I think so that will also help in settling down our new DI plant much faster with the better margins and realization. Apart from that, we are also seeing that there will be a huge reconstruction activity which will come up into the neighboring countries around Saudi.

Saudi government has pledged significant amount of money for their reconstruction in Syria and all the other neighboring countries, and we feel that that will also be a great opportunity for our ductile iron pipe business. All in all, Saudi, we feel very confident that the investments what we have made in our longitudinal plant and the DI plant is definitely bound to give us the benefits of the positioning being out there.

As regards India, India domestic market has been slightly tepid. We have seen in the last few quarters the water sector being down and the oil and gas sector also not coming up to the scale.

The export market has been extremely good. We have seen multiple projects in Qatar, Australia, and Latin America, and some part in the North America where we can supply out of India.

We have seen the surge in those types of projects. Which means the global demand, the global appetite for LNGs and the gas transportation is extremely high.

We see that India, we will continue to focus on more on the export side of it. Recently, you would have also seen that we got a breakthrough in the Latin American market in the Argentinean market.

It was a very competitive market, and because of our quality and because of our technical superiority, we were able to position ourselves into that particular market, and that export will also happen out of India. We are also seeing hydrogen and carbon capture pipelines, and we also are dissecting the recent budget which our honorable finance minister presented.

I think so there was a reference for a lot of infrastructure development for carbon capture. All in all, WCL India, the Welspun Corp India offers a sort of a very unique proposition.

We can produce pipe, we can do all type of coatings, we give all type of bends. We have a strong R&D's network, we have an excellent customer base, and we have a very very time-tested, proven supply chain that positions us very nicely into the global market.

In the domestic oil and gas market, as I said, it has been slightly tepid, but looks like that it is going to come up. We expect to see that with the LNG prices now moderating, we see a lot of LNG coming into India.

Corresponding to that, we will see a network getting created. We are also seeing that GAIL is about to invest almost ₹2,000 to ₹3,000 crore in FY2026 for pipeline infrastructure.

Including BPCL is also putting up an infrastructure for refineries and petrochem. The LNG capacity is bound to grow from 52 million tons which is currently handled for at eight terminals to almost 86,000 86 million tons per annum by 13 terminals.

Effectively, five more LNG terminals are going to come up. The CGD network, now when the prices are moderate, I think so the CGD network is also bound to grow, and we are seeing a total investment of close to ₹40,000 crore happening till 2034 in the CGD network.

The domestic part of the oil and gas business also seem extremely promising in days, months, and years to come. As I said, the water has taken a little bit of a hit in the last two-odd quarters.

Water is all driven by the government funding. Now we are seeing a complete resurgence of that.

We are seeing this interlinking of rivers. We are also seeing the budgetary allocations which were announced yesterday for Jal Jeevan Mission.

All these projects now seems to be coming up on track. I'm sure the benefit of that we will start seeing it in the coming financial year.

Both water as well as oil and gas in the domestic market is only going to improve from here in days and weeks and quarters to come. As regards DI pipe, we noticed that the JJM has been extended to 2028, which may translate into consistent consumption of DI pipes.

The same is also coupled with AMRUT 2.0, which is the urban requirement and which will boost the demand. Thirdly, the irrigation projects are likely to come up in a big way with special focus on HAM projects.

The new requirement is also coming up in sewage sector with different type of coatings. We are seeing some very key projects which are going to come up, which is like Marathwada Grid, CIDCO, ERCP, PKC, Ken-Betwa, et cetera.

These projects are expected to bring a significant quantity, will have a significant requirement for the ductile iron pipes. One of our thrust area is also exports, and we have already started exporting to Europe, Middle East, and Africa, and because of the approvals and the accreditations what Welspun enjoy.

Off-late, we have seen some fund crunch under JJM. Yesterday, the honorable finance minister announced almost a ₹70,000 crore allocation to JJM.

Once and I'm sure the moment that starts trickling in, which would be in the very first quarter of the next year, I think so there we will see a complete resurgence of the projects which have gone slightly slow in the last two quarters. Hereon, I see a great momentum coming up in the DI sector, both in the domestic as well as into the international market as well.

On the SS bar and the pipe, Government of India focus has been on the energy, defense, space, oil and gas, petrochemicals, engineering, and public infrastructure. That is what Government of India has been focusing upon.

They have been focusing upon Aatmanirbhar Bharat. There have been a lot of ecosystem which has been created where they have put in anti-dumping duties and protective environment for the stainless steel pipes and bars.

On top of it, the government has been signing FTAs with multiple countries, including Europe, which is a big market for us. All-in-all put together, as the Welspun Specialty Steel being a fully integrated steel company, we will be able to leverage not only the domestic market, but also benefit under the FTA in days to come.

As regards Sintex, if you see, Sintex has two components, one is the tank component, and another is the pipe component. In the tank component, we have been absolutely steadily making our progress into the market.

We are regaining our market share which we have lost over a period of time. We have been regaining it absolutely in a very, very systematic manner.

The product acceptance, the brand recall is extremely, extremely high. On the pipe side of it, where the total addressable market is significant, we have started our journey with the OPVC pipe.

We have now the approvals and the empanelments in the states which matters the most to us. We have already had the breakthrough of the orders.

We have already started executing the orders. Now we will see with this empanelment and accreditations happening for the OPVC pipe, we are going to see a big momentum coming up into the OPVC in the Sintex market as well.

As regards the projects, in our Q2 presentation, we did indicated that all the projects which are going on, I am very happy and pleased to report that all the projects which we have initiated are moving on track, which is about our LSAW project in America, our HFW project in America, our DI project in Saudi, our LSAW project in Saudi, and two or three projects which we are doing in India. A list of seven, eight projects which we have shared with you in Q2, they are absolutely moving on track, and we are seeing that and they will start coming on track, let's say, from the second quarter of this financial year.

In a progressive manner, from June onwards, all these projects will start coming into operations and going up to December of 2026. Let's say in quarter let's say from quarter two between quarter two and quarter four, all the projects which we have embarked upon will all be delivered.

Lastly, on sustainability, I am very happy to share that as per the latest S&P Global Corporate Sustainability Assessment, which is the DJSI Index, Welspun Corp is now ranked fifth globally and second in India among the steel companies in 20 in 2025. We have achieved a overall score of 78, making a 7% increase from our previous score.

The consistent improvement in our scores and global ranking reflects the strength of our sustainability strategy and its execution. It is very, very close to our heart while we are growing the business, while we are moving into core products and core geographies, but sustainability is at the core of our heart, and this improvement in the scores of the DJSI Index and our ranking globally is a clear testimony to that.

I think so with this, I would like to take a pause here, and I would like to spend time with all of you if you have any questions and answers around that. Thank you.

Hi, good afternoon, team, and congratulations on great set of numbers. A couple of questions from my end.

Firstly, you mentioned that on budget, of course, there has been great announcement on JJM front, and you also expect the momentum to start from quarter one of this year. The question was while last year also there were allotments made, but we did not see the spending coming in from government, what's the confidence that we have for this particular year that the amount which is budgeted would actually be spent?

Sneha, good afternoon. I think so there is a difference between the last year and this year.

I think last year they did made an announcement, but they were slow in terms of spending, because they wanted to do a sort of an auditing about the whole schemes around JJM. Apparently, looks like that audit stands completed, and that's the reason they have now made a subsequent announcement that they would be spending this ₹70,000 crore in the next financial year.

All what we are hearing is that the government is absolutely dedicated to complete all the projects which are already announced under JJM rural and AMRUT, which is the urban part of it. We are very confident that this spending is going to come into the play.

Understood. We also knew that there are some payments which are pending for the projects which are already completed.

Have we seen signs of revival for those funds getting released?

We are seeing that now.

Understood. Secondly, on OPVC front, you said there have been developments.

What I wanted to understand was have we received substantial order book? Or could you share some order book number with us on the OPVC front?

I think, yeah, that's

OPVC is all about approvals, accreditations, and empanelment. Our focus has been largely around Chhattisgarh area, and the Madhya Pradesh area, and the south.

That is the corridor we are looking at this point in time. It takes time, when your product comes into the market, the approval, accreditation, and empanelment process takes its own time, because there's a lot of testings and everything which is required.

I am very happy and pleased to report that we have cleared all the major milestones in all the three markets at this point in time, which is our focus market: the southern market, the central market, and the eastern market. Now we are absolutely poised to grow from here.

Understood. You mean you have got the project approvals in place, but order book now will build up?

We have a order book. We have some orders in hand at this point in time, but they are contingent to the approvals, right?

Now you have the approvals in place, now those orders will come into the execution mode. Then it will build up the momentum.

Understood. Lastly, while now it's very obvious that you are going to overachieve the guidance which was given for FY25 as a whole, any guidance that you would want to give for next year?

It's a little premature, Sneha. I think so typically when we do our call for the Q4, that is the time we give the guidance for the next financial year.

At this point in time, we are working on our annual business plans. In the Q4, when we come for the call, we'll give you the guidance.

Sure. Thanks, sir, and all the very best, team.

Thank you, Sneha.

Thanks for

Am I audible?

Ashutosh, good afternoon. You're right.

I think so a significant growth will come from the export market. You also have to understand, Ashutosh, that we are also a local player in most of the markets.

Today, we are going to be a local player in the Saudi market, and we are already a local player in the US market. Tariff per se is something which is not impacting us, to be honest, because we are also a localized player.

The second part of the growth for India is for the export into the markets which are non-tariff markets. India will focus on non-tariff market.

The tariff market like America and Saudi Arabia, which are the largest consumption center, we are now a local player. The strategy of being a local and yet a global player, I think so is panning out extremely well.

Okay. Just to follow up on this, what percentage of revenue from India factory is being sold to US customers as of now?

Nothing, zero. We are not supplying anything.

We don't intend to do anything from India, because we have a local presence on the ground, there is no reason for us to do anything from India. In any case, you cannot do that.

The anti-dumping duties and countervailing duties are so very high that it is commercially unviable. Now, and more importantly, when we are the local player, neither we will do it, nor we'll let it happen as well.

Okay. Understood.

Second question is on DI pipes. Despite domestic constraint of growth, we have shown 39% There's been a healthy volume growth.

Just wanted to understand what has driven this growth, which market specifically?

Yes. It is all about the customer confidence and the trust they have in our serviceability and in our quality.

Despite that there has been a fund crunch into the DI market, but I think so the strength of the order book has been extremely robust. We have seen this primarily coming from the west and the north market.

We have a very, very loyal, strong customer base. Despite all the challenges, we have been able to tie through these tough times.

Now when we feel that in subsequent quarters things are going to ease out, we will see a further momentum coming up in the DI PC.

Okay. Thank you.

Just to follow up on this, for the DI pipe 39% volume growth does not include the exports as of now, it's entirely domestic?

No. There was some component of export, not a very large component of export, because we have been tied up in servicing the domestic market.

At the same time, we have been building our infrastructure for the export that is absolutely now ready. In subsequent quarters, you will start seeing an export percentage also coming into our DI PC.

Okay. Sir, EBITDA per ton if you could just tell for DI pipe what it has been in this quarter and past years for the same?

I think so I will ask Mr. Percy and all those people to get into those financial details maybe offline with you, and they can share.

Because right now, all what I have is a consolidated number in front of me. If you want to see a product-wise EBITDA, I think so Mr.

Percy and team can help you offline, please. Will that be okay, Ashutosh?

No problem. Thanks a lot, sir.

Thank you. Congrats to you and your team, sir.

Sir, with respect to India business, our volume declined by 20% year-on-year, approximately 4 lakh tons in first nine months. How do you see the volume trend shaping up over the next year?

Also in the recent budget, if you see, the government has allotted only ₹1,900 crore for the river linking project. Same time, we have also got, as you mentioned, we have got export order also in Argentina.

Because of river linking only, we have created capacity in Bhopal. How do you see then next year, what kind of growth you see in India line pipe business?

See,

we have to see the India line pipe business into two categories. One is for export, which oil and gas, second category is for export, which is also for oil and gas, and third is the domestic water.

The domestic water has been low, as I said earlier also, the volumes have been lower, and that is what is getting reflected in our volumes also. Because the fund allocation in the last two quarters in the water sector have been extremely low, there was a fund crunch which was in place.

Now with that getting over, I'm sure there will be a volume uptick which will come into the water sector domestic. If you see the export part of it, the export part of it has been absolutely consistent year-on-year.

We are doing export of a particular volume, and that part of the business remains intact. The third part of the business is the domestic oil and gas, right?

Domestic oil and gas, there were IOCL, EIL, and GAIL, which are the primary buyers. I think so they have been conceptualizing on some of the pipeline projects.

I am happy to report that they have now able to do that. We are seeing that they are about to invest couple of ₹3,000 to ₹5,000 crore in terms of developing their pipeline infrastructure.

We see multiple projects coming up for bidding in the next financial year, and I'm sure we will get a portion of that in any case.

Yeah. Sailesh,

did you hear me clearly? Sir,

Okay. Theek hai.

We'll move ahead.

Good afternoon, sir. Congratulation on very good set of numbers.

Sir, my first question pertains to our US business. Have we already seen the quarterly level peak volume which we can sell out from the US business and they are part of the EBITDA contribution in subsidiary?

That's why we are not increasing our guidance to that extent because domestic volumes would remain weaker for one more quarter?

Good afternoon, Vikas. I think so first to your question of US business.

See, US business our, we are you know whatever quarter-on-quarter production numbers and the guidance what we have given, we are absolutely on track for that, number one. Right now what is operating is a spiral mill out there.

What is going to change is that, in subsequent quarters, let's say in two quarters one quarter down the line, we will have a new HFIW mill which will be there. Then two quarters down the line by the end of this year, we would have our new LSAW mill coming up out there.

Those volumes will start ramping up in US, and then you then then the numbers in US will drastically change. Right now what you're what you are seeing is all what you are seeing is the numbers of our order book which is out of our spiral mill and which has almost a eight quarter of a clear order book till March of 2028.

It is completely booked at this point in time.

Sir, just a clarification. Once our new spiral mill comes on board, can that spiral mill do some of the existing order book volume as well, or the delivery schedule is set such a way that it won't be possible and we have to seek for the new orders from the US for the new spiral mill?

How should we look at it?

Vikas, to correct, there is no new spiral mill coming up. It is a new longitudinal mill which is coming up.

There is already an existing spiral mill which is already have an order book till March of 2028, so that is completely booked. What is coming new is a new longitudinal mill out there, LSAW mill, right?

To that also

ERW capacity is also we are increasing now, HFSW, which we call?

Yes. We already have an existing mill which is up to 20-inch.

What we have done is we have now taken a new mill which is up to 24-inch mill. We are replacing the capacity from a 20-inch to 24-inch.

That's a replacement of the capacity which is happening out there. Which means that we will have a much more play in a larger section of the market up to 24-inch, which is a big market.

There is a new LSAW mill which is going to come up by the end of this year. These two mills put together will add up significantly to the existing volumes what we are currently doing.

Understood, sir. Sir, my second question pertains to DI business.

Coking coal costs have run up quite significantly and more than I think 20, 25%. Does this kind of sharp cost is covered, or we would have to take a hit for the higher coking coal prices in subsequent order until and unless we get the better pricing?

How should we look at it?

See, the way, Vikas, you have to see things, in any case, we always have a forward coverage of all the raw material for at least two quarters. I am not expecting any hit whatsoever because of this coking coal increase which has recently happened.

There are reasons behind it, right? This coking coal increase is a sudden surge because of the force majeure the coal mines have announced because of the inclement weather out there.

Once we believe that once that element of force majeure settles down, the coking coal prices should get normalized. When we get into the market for fresh buying, that point in time, we would see that the prices are moderated.

In any case, by that time, we will be booking up new orders, in any case, we would have factored for that. Currently I'm agnostic to any price increase because of the coking coal.

Understood, sir. That's all from my side.

Thank you, and [unclear].

Thank you, Vikas.

Good afternoon to the team. I have two questions.

My first question to Mr. Mathur is as Welspun continues to execute across energy and water infra projects, could you share how management is currently thinking about tradeoffs between order book visibility, project complexity, and margin quality?

What kind of changes in tender structures or customer behaviors would prompt you to recalibrate this balance? Just want to understand your view on this.

Mr. Patil, if I understand you correctly, your first question is on the margins, and the second part is about the tender strategies.

That's what you meant?

More or less, how are you planning to decide about the tradeoffs between book visibility, project complexity, and margin quality? A contingency plan if you have in mind.

I just want to understand that particular thing.

See, Mr. Patil, we are, a, there's there's enough business into the market, first and foremost, number one.

I don't see that, the demand uptake has stopped. What we are doing, we are very clear in terms of selecting and cherry-picking the projects on which we want to work around.

That gives us, and we are a tier-one player. We want to we we operate on the top end of the pyramid, and that is where we will continue to play.

That gives me that gives me the niche, that gives me visibility, and that gives me the margin. That is our play right from day one, and this is what we'll continue to do.

I think so in days and times to come, and I think so from a business perspective, we are seeing enough business into the global market which will and and enough niche business into the global market which will keep us fairly occupied.

Thank you. My second question to Mr.

Percy is, beyond the reported financial things, what are the key early indicators you monitor internally, such as milestone billing behavior, inventory cycles, or customer payment patterns, or anything that you particularly observe that helps you assess the cash flow and execution risk before these show up on your numbers?

Mr. Patil, Welspun Corp is extremely focused on the capital allocation policy.

When we are talking about our projects and capital expenditure, a lot of planning goes into that, as well as the working capital management. We prioritize a lot on monitoring the inventory levels, on the receivables, and on all the creditors payment as well.

That's what finally shows up as an improvement in our ROCE, our return on capital employed. Balance sheet health is even a very high priority in addition to the business performance, the order book, and the profit margins.

I hope that answers.

Thank you, and best of luck for the next quarter.

Thank you.

Hi, good afternoon, sir, and congratulations for the numbers. Now, my question to you was regarding the order book.

Could you provide a timeline or a phased plan for clearing the ₹23,600 crore order book over what period?

For US, I think so the order book is right up to March of 2028, right? In India line pipe business, I'm talking, we have a order book in the oil and gas side of it of close to nine months to one year at this point in time.

On the DI pipe side of it, if you look, we have a pending order book of close to 300-odd thousand tons, which gives us a clear visibility [unclear]

Sir, I'm sorry. Your voice is cracking.

Can you repeat, please?

I'm saying for the US, we have a clear Can you hear me? Right.

Yeah. For the US, as I said, we have a clear order book till March of 2028.

Right. India DI [unclear] is one year?

Yeah.

DI pipes is also close to

three quarters. Got it, sir.

Sir, my second question would be regarding the US business. Given the revenue decline in FY25 for the US operations, what specific revenue figure, or maybe the utilization rate if you can share for FY26?

I don't know why you're referring to a revenue decline in US how did you deduce that Why did you say there's a revenue decline?

For previous year, compared to FY25.

[unclear] raw material. There has been a volatility in the raw material prices globally.

Percy, maybe I do not recollect from the top of my head what revenue decline in US. My sense [unclear]

I'll just come in. I'll just come in over here.

I think

Karan

Karan, your question is probably pertaining to the previous year. The US scenario The US scenario started changing dramatically sometime from September '24 onwards when we started getting a strong order book visibility.

If you're referring to the previous year, then of course, at that time, the order book was not there in US. After that, of course, it's a very strong bullish scenario that we have with the focus on oil and gas, fossil fuels, and also of course, the the new administration that took charge from somewhere around December 2024 onwards.

I think your question must have been for the previous year. This year, of course, we have a very strong

I was just comparing Correct. From the previous year to current year, considering what would be the utilization rate we are expecting for current year FY26?

FY26, we are of course Sorry. Go ahead, sir.

Yeah. Percy, yeah Karan.

Yes, sir. [unclear]

which is currently into operations will be close to almost 85 [unclear] capacity utilization it will [unclear]

Sir, I'm sorry. Your voice is cracking.

I couldn't hear.

Almost 85 to 90% capacity utilization will be there for our H spiral mill which is currently operating in US.

Got it, sir. Thank you, and all the best.

Thank you. The next question is from the line of Radha from B&K Securities.

Please go ahead.

Hi, sir. Thank you for the opportunity.

Sir, by when do you expect the anti-dumping measures against Chinese players to be implemented in Saudi? How much incremental DI pipe market could this potentially open up for us?

Radha, good afternoon. I think so the investigation has started.

Probably it is a process. It takes its own time.

It is not about Chinese, it is about imports from wherever the imports are coming. I think so it is a very wide-ranging investigation which seems to be happening.

Maybe it might take some one or two quarter. Probably that's my guess.

We have to understand the whole process, but that's my best guess is. Today, almost two-third of the DI pipes was coming as an import.

Only one-third of the total requirement of the Saudi market was being serviced by the local players. We see a great opportunity once this anti-dumping investigation happens and once our mill comes into play.

I think so this is the two-third market which is coming which we will be able to service that.

Investigation is happening against India also, sir?

I'm sorry?

Is it happening against India also, the investigation?

See, it is fairly, right now it is fairly broad-based at this point in time. It is not country-specific.

It is import-specific that there is an import which is happening, and that need to be curtailed, and they need to work out a sort of a policy or a regulation. [unclear] Okay.

Secondly, in the overseas market, could you elaborate on the progress in obtaining customer accreditations for DI pipe, how large could this opportunity be over the medium term? Additionally, with combined India and Saudi DI capacity reaching 9.5 lakh tons by 1H FY27, how long do you think it will take to ramp up and fill this capacity on a conservative basis?

On the overseas market, I think so we have been focused on the European market for our DI pipes. I think the acceptability of the pipes we have already done some sizable amount of quantity into the European market, and the response has been overwhelming.

I'm sure that over a period of time, it will grow, number one. Number two, the Middle East market is our focus.

Africa market is our focus. This is how we are [unclear] based on the export side of it.

Looks like, and once the Saudi capacity come up, I think so that will primarily be focused on the domestic requirement to start with, and also the reconstruction activity where Saudi government [unclear] So our focus would be from the Saudi market will be local and the projects which is the Saudi government is funding in the reconstruction of in the neighboring market, and all the other markets we intend to service out of India.

Can you color on the customer accreditation from the DI Saudi plant?

See, basically you have one approval there, which is the NWC approval which in any case as Welspun, we only have it. Then it is a matter of going to all the contractors [unclear] executing the projects.

All [unclear] as an organization has it.

Sir. Thank you, and all the best.

Thank you.

Good afternoon, sir. Am I audible?

Now is it audible? Hello?

Sohan, go ahead.

Great execution, sir. Sir, one question.

I'm sorry if I might have missed because I joined recently. What will be the impact of the rising metal prices, especially with regards to steel and aluminum going ahead?

Are the entire bookings have been done for the orders to be executed for the next two, three quarters?

[unclear] raw material is a pass [unclear] we completely [unclear] so at this point in time

[unclear]

whatsoever.

Government announced the nuclear energy. Am I audible?

Hello? Yeah.

Hello, am I audible?

Go ahead, sir.

Yeah. In the budget, the government announced the data center nuclear energy.

What are the opportunities similar to the US we are finding now even in the India?

We have to, these announcements are very encouraging announcements. They have been these such announcements and such things have been a major catalyst in the US market.

We believe that there will all this announcement by government will also be a catalyst in the domestic market. We see opportunities coming up, especially more in our WSSL part of our business where the seamless steel pipes and very high-quality seamless steel tubes are to be supplied.

We are seeing that there could be a great opportunity from a WSSL perspective. Rest, we have to see that what type of infrastructure they are going to create.

I think so it's a matter of time. Definitely, WSSL will be one of the major beneficiaries out of this.

Okay. Sir, one last question if may I ask.

Please.

Yeah. Sir, there are a lot of damages being done to the Russian refineries.

It's been recently in the past few months in the war going on. How are we looking at those opportunities?

Don't you think that we have a good opportunity if the Russian going to do some CapEx for the damaged refineries, we have good business opportunities over there as well? Are we planning to tap something of those opportunities?

Sohan, we have not focused on that yet. We have not explored that as yet.

I think so we will have to see the Government of India policy around that. Right now, honest answer is that we have not evaluated that.

Okay. Okay.

Thanks a lot, sir. That's it from my side.

Thank you.

Am I audible?

Sir. I just wanted to know what was the revenue for Sintex during the quarter and for nine-month FY26?

Yash?

Yes, sir. I didn't Can Can you repeat?

I didn't

Yeah. Sir, what was the revenue for Sintex during the quarter and for nine-month FY26?

Percy, would you take this, please?

Yeah. Yash, Sintex has been keeping on an even keel and their water storage tanks and they've been improving their market share.

For approximately for the nine months number, they should be closer to about 500. I don't have the exact number in front of me, but they should be close to about ₹500 crore.

Okay. Thank you.

Yeah.

Yeah. Thanks for the opportunity, sir.

Sir, I had one question. You mentioned we are replacing the 20-inch diameter in the HFSW mill in USA to 24-inch.

Just wanted to understand what is the rational behind it, and secondly, how is the competition in the USA for the two product categories that we are entering, HFSW and LSAW mill? What is the revenue potential from those two and CapEx and ROC?

Yeah. This was not one question.

You loaded too many questions in the same, but nevertheless, let me answer. Right?

See, what we were in our HFSW mill, we were currently having a capability up to 20-inch. We are seeing a lot of NGL, which is the natural gas liquids, transportation which is going to happen in America.

Typically, natural gas liquids is when you are drilling, you are extracting oil, you are extracting gas, there is some gas which is also coming in a liquefied form. Now that is a very premium product, and that requires a transportation.

We are seeing that for transporting that, there is a 24-inch pipeline is the most optimal, suited pipeline diameter for that. We were not in that area, because we were limiting ourselves to 20-inch.

We were losing out on a business opportunity for 24-inch, which is very, very sizable. That is the reason we took that call that as we are a large player in the American market, we have to have a complete range.

That is the reason we are enhancing our capability from 20-inch to 24-inch. That's the first part of the answer.

The second part of the answer is about LSAW is, once our capacity will come up, there will only be two players in the American market. One would be Welspun, and other is on the west coast of America.

There will be two LSAW players. Looks like the demand, as I said earlier in my call, the demand seems to be coming up significantly for this large-diameter pipeline where very heavy wall-thick pipes are required.

We are also seeing a resurgence in the US offshore market. A lot of offshore projects are being announced.

We see that in the next few years is going to be very, very dominant demand for the LSAW products as well. Thirdly, there will be no imports which is [unclear] So there will be a clear-cut import restrictions.

There will be no imports coming into that particular market, as they're not coming into the spiral. Sir, I missed the last part what you told about imports.

I'm saying once you have the domestic mill operating out there, then it completely neutralizes [unclear] Okay.

Okay. It neutralizes the imports whatever is happening currently.

Currently, it's not imported. Correct.

Okay. Got it.

Correct. That's it.

Sir, CapEx and ROC profile of those two factories of those two mills?

See, at the end when we get a capital allocation to that, we were very, very clear that it has to be at a particular threshold of ROCs have to come in. Our ROCs are close to around of 20-odd percent ROC.

That's what we were talking about, and these are our internal threshold limits for approval. We are sure that we should be able to achieve that.

Okay. Thank you.

Thank you very much.

Thank you very much, gentlemen, all of you, for taking time out today and joining our call today afternoon. We greatly appreciate your interest in our company.

As we have been absolutely making all the strategic steps in the right direction which is going to build this company, and we will take this company to absolutely a next level of earnings and profitability in times to come. I think so as our projects are going to get completed over the next few quarters, two or three quarters at best, the incremental earnings are going to be sizable.

There is a huge growth potential, one. The second part of it, we are emphasizing that the market there is a enough market which is available.

Both the market and our positioning into the market is going to give a new color and new flavor to Welspun Corp. Lastly, I would like to say that if there's any other questions which we have sincerely tried our best to answer all of you questions, but in case if you think that anything has been missed out, please feel free to reach out to me and to Mr.

Percy and or to Goutam, and they will be more than happy to answer any clarifications or follow-up questions you might have. Thank you very much once again for joining us today.

All the very best. Good day.