Welspun Corp Ltd announced on Thursday (August 20) that it has secured its largest-ever single order worth approximately $1.8 billion (₹17,200 crore) for supplying pipes from its manufacturing facility in the United States. According to a stock exchange filing, this represents the single largest order awarded to the company in its history and marks a defining milestone in its global growth trajectory. The order will be executed between FY 2028-29, providing multi-year revenue visibility for the steel pipes manufacturer. Shares of Welspun Corp jumped 17% on Friday, August 21, hitting a fresh record high after the announcement, marking the biggest single-day gain for the stock since May 20, 2022 when it had risen 17.23%. The company did not disclose the customer or the volume or type of pipes to be supplied, but management revealed that the order is related to the Permian Basin for the export of liquefied natural gas (LNG). The pipes will be used to carry over 3 billion cubic feet of gas from the Permian Basin spanning western Texas and New Mexico to the Gulf Coast, as reported by latest market reports.
Brokerage firm Nuvama said it may have to upgrade its current estimates by 15%-20% following the record order win, as reported by CNBC TV18. As of July 2026, Nuvama's EBITDA estimates were ₹3,796 crore for financial year 2028 and ₹4,308 crore for financial year 2029. The management indicated that EBITDA is directionally headed towards ₹5,000 crore in the next three to four years, reflecting strong operational momentum. The company's EBITDA has shown consistent growth, with ₹1,858 crore in FY25, ₹2,371 crore in FY26, and an estimated ₹2,850 crore for FY27. Welspun Corp's Return on Capital Employed (RoCE) has also seen a steady increase from 20% in financial year 2024 to 23.1% in the first quarter of financial year 2027. On a conference call held after securing the mega order, management said the Ebitda margin in the US business is likely to be $250-300 per tonne, highlighting the attractive profitability of US operations.
Welspun Corp's net cash position has strengthened significantly over the years, with the company reversing from a negative ₹387 crore in FY24 to a positive ₹1,049 crore in FY25, ₹1,627 crore in FY26, and ₹2,336 crore in the first quarter of FY27. The company's first quarter net cash position is after capex of ₹834 crore. This strong cash generation reflects the company's improving operational efficiency and ability to fund growth initiatives. The global order book has reached a record ₹42,100 crore (approximately $4.4 billion), representing the highest in the company's history, with the order book currently split 25:75 between data centre and LNG projects. The US represents the biggest contributor to the order book with a share of 60-65%, as reported by latest market analysis. The company serves customers across six continents and more than 50 countries, with manufacturing facilities in India, the United States and the Kingdom of Saudi Arabia.
Following the record order win, brokerages have raised their earnings expectations significantly for Welspun Corp. Nuvama Broking said, "Consistent order execution and strong order wins impel us to raise FY27E/28E/29E EPS by 3%/13%/20%" and maintains a 'BUY' rating with a revised target price of ₹2,656 (earlier ₹1,890) based on SotP valuation. Equirus Securities increased the FY28E/FY29E Revenues & EBITDA estimates by 18%/31% and 18%/34% respectively to factor in the recent order from the higher-margin US geography. The brokerage retained its 'LONG' rating with a December 2027 target price of ₹3,107 at 13x forward valuation, valuing WSSL/EPIC stakes at 30%/30% holding discount. Management indicated that US operating margins typically remain attractive and the company is directionally moving towards ₹50 billion EBITDA over the next 3-4 years, supported by strong US demand environment, expected Middle East demand, and timely capacity expansion. However, this is not a recurring order, and Welspun will have to ensure such order wins are repeated, especially from the US, for revenue visibility beyond FY29.
Welspun Corp shares surged 4% to a fresh high of ₹2,400 on the BSE on Monday, extending gains for the sixth consecutive trading day after the record order announcement. The stock had previously rallied 15% in Friday's trading session and remains in the green for the sixth consecutive trading day. The stock has risen 180% so far this year and added 45.48% in the last one month, significantly outperforming the Nifty Metal index which gained 4.58% during the same period. The volume in the stock stood at 136.75 lakh shares today, compared to the daily average of 7.07 lakh shares in the last one month, indicating heightened investor interest. Mayank Jain, Market Analyst at Share.Market by PhonePe, noted that the stock's factor scores indicate a strong fundamental picture with Momentum (5/5), Sentiment (5/5), and Low Volatility (5/5) scores. The PE ratio of the stock stands at 71.78 based on TTM earnings ending June 26, reflecting the premium valuation driven by strong fundamentals and growth prospects. Welspun's market capitalization is ₹62,500 crore and it had a cash balance of ₹2,300 crore at Q1FY27-end, so its enterprise valuation (EV) works out to ₹60,200 crore. The EV/EBITDA multiple at FY27's guided EBITDA works out to 21, which is not cheap, though investors may be factoring in the management's possibility that doubling of FY27 EBITDA by FY30 is achievable.
