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Welspun shares jump after $1.8 billion US pipeline order
The single largest order lifts Welspun’s order book to ₹42,000 crore, with execution scheduled across FY28 and FY29.
Welspun Corp.’s shares rose more than 3% on Monday, extending a 15% gain from Friday after the company won its largest-ever single order worth $1.8 billion, or ₹17,200 crore, to supply pipes from its US manufacturing facility.
According to LiveMint Markets, the pipes are intended to transport over 3 billion cubic feet of gas from the Permian Basin across western Texas and New Mexico to the Gulf Coast. The award expands Welspun’s order book to ₹42,000 crore, boosting investor expectations for revenue visibility.
The article notes that the stock reaction appeared larger than the incremental contract value, since the financial benefits will not hit immediately. Execution is planned over FY28 and FY29, and management said on a conference call that the EBITDA margin in the US business is likely to be $250 to $300 per tonne.
LiveMint Markets also highlighted that the order is not recurring, meaning Welspun must repeat similar wins for visibility beyond FY29. It added that the US share of the order book is 60% to 65%, with outcomes potentially influenced by policy changes after the 2028 US elections and by shifts in crude oil and natural gas prices, while importing pipes from India is not viable due to US import tariffs.
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