Steel stock jumps after its associate firm wins ₹1,165 Cr order from Saudi Water Authority

Synopsis: An associate of a leading pipeline manufacturer has secured a steel pipe order from the Saudi Water Authority, boosting revenue prospects for Q4 FY26 and Q1 FY27. 

One of the largest manufacturers of large diameter pipes globally, saw its associate bag Saudi Water Authority order for steel pipes. This deal is expected to show its impact in Q4FY26 and Q1FY27 financial statements.

With a market cap of Rs 20,849 Cr, Welspun Corp Ltd saw its stock open the trading sessions in BSE at Rs 817.15, which is 2.5 percent higher than the previous close of Rs 797.7

What’s the News?

On Tuesday morning Welspun Corp’s announced that its associate company- East Pipes Integrated Company for Industry (EPIC), has secured a major order worth over SAR 485 million or Rs 1,165 crore from the Saudi Water Authority, for manufacturing and supplying steel pipes. 

It is a six-month contract, which is expected to significantly boost Welspun Corp’s consolidated performance, where the revenue contribution will be projected in Q4 FY26 and Q1FY27. EPIC is Saudi Arabia’s leading HSAW pipe manufacturer, and it continues to strengthen its presence in the region by supporting key infrastructure projects under the Kingdom of Saudi Arabia’s Vision 2030. 

Previously, the company had announced that its US subsidiary has secured two major line pipe orders that were worth ~ USD 715 million for Natural Gas and NGL pipeline projects in the United States. These orders ensure strong business visibility and took the company’s consolidated order book to a record Rs 23,500 Crores.

Company & Financial Overview

Incorporated in 1995 and headquartered in Mumbai, WCL is one of the world’s largest manufacturers of large diameter pipes. The company also produces BIS certified steel billets, ductile iron pipes, TMT rebars, stainless steel pipes, and tubes andbars, the company caters to a wide range of infrastructure needs.

Additionally, WCL has further strengthened its portfolio through strategic acquisitions, including water-tank leader Sintex-BAPL and select assets of ABG Shipyard, enhancing its presence in building materials and industrial solutions.

In the latest quarter Welspun Corp Ltd saw a YoY revenue growth of 32 percent, going from Rs 3302 Cr in Q2FY25 to Rs 4374 Cr in Q2FY26, while the QoQ went up by 23 percent from Rs 3551 Cr in Q1FY25.

The YoY Net Profits growth is at 56 percent, going from Rs 283 Cr in Q2FY25 to Rs 444 Cr in Q2FY26, while the QoQ growth stood at 27 percent from Rs 349 Cr in Q1FY25. The company has its 3 year profit CAGR at 40 percent, and the stock has given a compounded return of 48 percent in the last 3 years.

-Adithya Menon

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