Welspun Corp Upsizes U.S. Pipe Order by ₹735 Crore, Strengthens Little Rock Facility’s Global Role

Image Source: Realty Plus Magazine

Welspun Corp Ltd. has announced a significant upsizing of its existing coated spiral pipe order for its Little Rock manufacturing facility in Arkansas, USA. The revised order value now stands ₹735 crore higher than previously disclosed, reflecting robust demand from the U.S. oil and gas infrastructure sector and reaffirming Welspun’s strategic importance in North America’s pipeline supply chain.

Key Highlights of the Upsized Order

The coated spiral pipe order for the Little Rock facility has been increased by ₹735 crore (approx USD 88 million)
The order pertains to large-diameter helical submerged arc welded (HSAW) pipes used in natural gas transmission projects
Execution is scheduled across FY26 and FY27, with phased deliveries beginning in Q4 FY25
The upsizing follows additional scope confirmation from the U.S. client, citing project expansion and accelerated timelines

Strategic Significance for Welspun Corp

This development reinforces Welspun Corp’s position as a preferred supplier for critical energy infrastructure projects in the United States. The Little Rock facility, which has historically catered to large-scale pipeline contracts, is now expected to operate at near full capacity through FY27.

The upsized order boosts Welspun’s consolidated global order book to over ₹20,000 crore
It strengthens the company’s footprint in the U.S. market, which now contributes over 35% of its pipeline order value
Welspun’s coated pipe technology meets stringent API and client-specific standards, enabling repeat orders from top-tier energy clients

Operational and Financial Impact

The upsizing is expected to deliver meaningful operational and financial benefits:

Capacity utilization at Little Rock is projected to rise from 72% to 90% by FY26
EBITDA contribution from the revised order is estimated at ₹110 crore, with margin expansion due to scale efficiencies
Welspun will deploy automated coating and inspection systems to meet accelerated delivery schedules
The company has also confirmed that no additional capex is required for this order, as existing infrastructure is sufficient to handle the increased scope.

Management Commentary and Market Response

Welspun Corp’s leadership emphasized that the upsizing reflects customer confidence in the company’s execution capabilities and product quality. The company reiterated its FY26 guidance of ₹15,000 crore in revenue and ₹1,500 crore in EBITDA, with ROCE expected to exceed 16%.

Following the announcement, Welspun Corp shares rose 2.1% intraday, trading at ₹894.60 on NSE. Analysts view the upsizing as a positive signal for sustained order inflows and margin resilience.

Broader Industry Context

The U.S. natural gas infrastructure sector is witnessing renewed investment amid energy security concerns and LNG export expansion. Welspun’s ability to deliver high-grade coated pipes positions it well to capitalize on this trend.

The company is also exploring additional orders from Canada and Mexico for FY27 execution

Welspun’s ESG credentials and zero-waste certification enhance its appeal to sustainability-focused clients

Closing Insight

The ₹735 crore upsizing of Welspun Corp’s coated spiral pipe order for its Little Rock facility marks a strategic win in a competitive global market. With execution timelines locked and operational readiness in place, the company is poised to deliver on its growth ambitions while reinforcing its reputation as a global leader in pipeline solutions.

Source: Moneycontrol – July 29, 2025 Financial Express – July 29, 2025 Machine Maker – July 29, 2025 Welspun Corp Ltd – Exchange Filing, July 29, 2025