Welspun Corp Limited (WELCORP) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Wealthburn Corp Limited Q3 FY26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Sir Anirudh Nagpal. Thank you, and over to you, sir.

Thanks, operator, and welcome, everyone, to the call. I will first thank Wellspun Corp for giving GM Financiers the opportunity to host today's call. So, without much ado, I'll hand over the call to Mr. Gautam Chakraborty, Head Investor Relations, Wellspun Corp, to introduce the management. Over to you, Gautam.

Thank you, Anurud, and good afternoon to all of you. Welcome, everyone, to three and nine months FY26 earnings call of Wellspun Corp. Ltd. On this forum today, we have Mr. Vipul Mathur, Managing Director and CEO, Mr. Percy Burdi, Chief Financial Officer, and Mr. Nilesh Mazumdar, CEO of Syntex. 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, so I request you to please refer to the safe harbor statement in our presentation. As usual, we will start this forum with the opening remarks by Mr. Mathu, and post that, we will open the floor for Q1A. With that, let me hand over the floor over to Mr. Mathur. Over to you, sir.

Thank you. Thank you, Gautam. But friends, a very good afternoon to everyone. I welcome you all for the Q3 FY26 Earning Conference Call for Wellspun Corp. And 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 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. So I think we should utilize the time and we can go ahead for more Q&A. I think that will be more helpful. However, if you want any more detailed information, we are more than willing to do that. So, some of the key operational highlights for this particular quarter was that the line pipe sales volumes for India and U.S. 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 rupees, bringing consistency and long-term visibility across our global operations, across USA, across India. And on syntax, as we have always said, we have been focusing on channel expansion, branding, premium product launch continues. Our strong potential, The OPVC, the strong potential for OPVC market, which is absolutely now in play, and now Sintech securing major approvals for the OPVC and panel 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 Rs. 645. It 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 rupees on account of gratuity and leave and catchment provisions due to the new labor code. Our annualized gross rate stands at more than 24%. The pack for this quarter stands at 453 crore rupees. If you would have seen, the last year Q3 PAT had a one-time gain of Rs. 378 crore on account of proceed from sell-off epic share. So, if we reduce that one-time gain in the last quarter of the last financial year, you know, the PAT is significantly higher in this particular quarter. In spite of the capex of almost 1,700 odd crore rupees during the nine months in FY2026, we continue to maintain a net cash position with net cash position of almost 132 crore rupees. If you see, we had given a guidance of close to 2,200 crore rupees for the whole financial year, and in the nine months, EBITDA guidance of 2,200 crore rupees, and in the nine months, we are already at 1,831 crore rupees. This very clearly suggests that the company is well on track and should comfortably achieve or exceed the full year guidance. And 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 sector section and 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 off, let's talk about US. I think so the US market is absolutely into, continues to be into a bullish mode. We are seeing a significant demand, continuing demand for the pipeline and they are all driven by basically for movement, for gas pipelines, either for LNG export or primarily for data centers. We are seeing the surge of data centers coming up in the US, and with each data center, they have to have their own power plant, and all those power plants require uninterrupted gas for which pipelines are required. So we are into the part of the value chain of the AI data center, and we are seeing a huge surge around at this point in time. If I have to put some numbers, you know, there are almost eight to nine pipelines which are currently being discussed, you know, apart from what have already been awarded. So 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 U.S. offshore is also seeing resurgence. So, so the movement of domestic movement of oil and domestic movement of gas, the carbon capture, the hydrogen pipeline and also resurgence. All in all, all the four boxes in which pipelines are being used is are ticking and you know, we are seeing an upsurge into that. If we now, if we look at if we look at Saudi, Saudi, Saudi Aramco has 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 Jafura gas project. You know, we are also talking of, you know, 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 kilometers of new pipelines. So with Saudi's 2030 vision for both onshore and offshore, it seems to be pretty much on track. And more importantly, Saudi also has been, 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 you know, Wells Fund Corp is significantly expanding its footprint in the Saudi market by putting up a new El Somil out there. And the outlook, both domestic as well as exports, looks extremely, extremely encouraging. When we talk about Saudi, you also know that we are expanding in our DI pipes there. We are putting up a green fill 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-thirds of the quantity which is coming at this point in time is coming through imports. Once our green field project starts producing, the first thing which will probably happen is all the import substitution will stop. So we will have a natural clatter to play with. We are also pleased to report that, you know, the government of the Kingdom of Saudi Arabia has also started some entry-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 a 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 placed 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 backpile and pipe business. So all in all, Saudi, you know, we have very, very, we feel very confident that, you know, the investments what we have made in our longitudinal plant and the DIA plant is definitely bound to give us the benefits of the positioning being out there. As regards India, India domestic market has been slightly tipped. 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. But the export market has been extremely good. We are seeing multiple projects in Qatar, Australia, and Latin America, and some part in the North America where we can supply out of India. So, those projects are, you know, we are seeing a surge in those type of projects, which means the global demand, the global appetite for LNGs and the gas transportation is extremely high. And we see that India, you know, we will continue to focus on more on the export side of it. Recently, you would have also seen that we've got a breakthrough in the Latin American market, in the Argentinian market. It was a fairly, you know, it was a very competitive market. And, you know, 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, whichever on the Bill Finance Minister presented, I think so there was a reference for a lot of infrastructure development for carbon capture. So all in all, WCL India, you know, the Bespin Corp India office is sort of a very unique proposition. So we are, we can produce pie, we can do all type of coatings, we give all type of bends, we are, you know, we have a strong R&D network, we have an excellent customer base, and we have a very, very time-tested proven supply chain. And that positions us very nicely into the global market. In that domestic oil and gas market, as I said, it has been slightly tippet, but looks like that, you know, they are going to, it is going to come up. We expect to see that, you know, with the LNG prices now moderating, we see a lot of LNG coming into India. We see, corresponding to that, we will see a network getting created. And we are also seeing, you know, we are also seeing that GAIL is about to invest almost 2,000 to 3,000 rupees in FY2026 for pipeline infrastructure, including BPCL is also putting up an infrastructure for the families and petrochem. The LNG capacity is bound to grow from 52 million tons, which is currently handled at eight terminals, to almost 86 million tons per annum, Which is, you know, by 13 terminals. So effectively, five more terminals, LND terminals are going to come up. And 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 rupees happening till 2034 in the CGD network. So 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 been, it has taken a little bit of a hit in the last two odd quarters. You know, it was all, it was because of, it was, water is all driven by the government funding. But now we are seeing a complete resurgence of that. We are seeing this interlinking of rivers. We are also seeing the military allocations which were announced yesterday for the LG1 mission. And, you know, all these projects now seems to be coming up on track. If they, if we, and I'm sure the benefits of that, we will start seeing it in the coming financial year. So, 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 it was DI5, you know, we noticed that the J&M has been extended to 2028. which may translate into consistent consumption of DI-5s. The same is also coupled with AMRED-2, 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 a special focus on HAM projects. The new requirement is also coming up in the sewer sector with different types of coatings. We are seeing some very key projects which are going to come up, which is like Maratwara Grid, CITCO, ERCP, PKC, Cane-Betwa, etc. These projects are expected to bring a significant quantity and will have a significant requirement for the ductile iron points. One of our first area is also exports, which, and, you know, we have already started exporting to Europe, Middle East, and Africa, and because of the approvals and degradations was well-known joined. Of late, we in the last, you know, we have seen some fund currents under JGM, but yesterday, the Honorable Finance Minister announced almost a 70,000 rupees allocation to JGM. Once that happens, once, and I'm sure the moment that starts cycling in, which would be, you know, in the very first quarter of the next year, I think we will see a complete resurgence of the projects which have gone slightly slow in the last two quarters. So here on, 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, you know, our focus has, Government of India's 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. You know, they have been focusing upon Atmanir Barat. 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. We are, on top of it, we have also been able to sign, the government has been signing FTAs with multiple countries, including Europe, which is a big market for us. So, all in all put together, you know, as the Welsmann Specialty Steel being a fully integrated steel company, you know, we will be able to leverage not only the domestic market, but also benefit under the FTA in days to come. As we got syntax, if you see, you know, syntax, we have been absolutely, syntax has two components. One is the tank component, another is the pipe component. In the tank component, we have been absolutely steadily making our progress into the market. We have been able, 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, which is where the TAM, the total addressable market is significant, we have started our journey with the OPVC pipe. We have now the improvements and the impennellments in the states, which matters the most to us, and we have already had the breakthrough of the orders, the orders have, you know, and we have already started executing the orders. And now we will see with this enpanelment and accreditation happening for the OPVC-5, we are going to see a big momentum coming up into the OPVC in the syntax market as well. As regards the projects, you know, in our Q2 presentation, we did indicate that, you know, 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 project, ELSO project in America, our ERW project in America, our DI project in Saudi, our ELSO project in Saudi, and two or three projects which we have, which we are doing in India. So a list of seven, eight projects, which we have shared with you in Q2, they are absolutely moving on track. And we are seeing, you know, we are seeing that once, and they will start coming on track, let's say, from the, from the, let's say, the second quarter of this financial year. So in a progressive manner, there, you know, from June onwards, all these projects will start coming into operations and going up to December of 2026. So let's say in quarter, let's say from quarter two to 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 SS&P Global Corporate Sustainability Assessment, which is the DGSI Index, Belspan Corp. is now ranked 5th globally and 2nd in India among the steel companies in 2025. We have achieved an overall score of 78, making a 7% increase from our previous score. So 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, you know, and this improvement in the scores of the DBSI 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.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sneha Talreja from Novama. Please go ahead.

Hi, good afternoon, team, and congratulations on the great set of numbers. Just a couple of questions from my end. Firstly, you mentioned that on budget, of course, there has been great announcement on JTN front, and you also expect the movement 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, the amount which is budgeted, would actually be spent?

Sleya, good afternoon. I think so the last, there is a difference between the last year and this year. I think last year they, you know, they did make an announcement, but they were slow in terms of spending because they wanted to complete, they wanted to do a sort of an auditing about the whole scheme around the AGM. Apparently, it looks like that the audit stands completed, and that's the reason they have now made a subsequent announcement that they would be spending the 70,000 GDP in the next financial year. So, all what we are hearing is that the government is absolutely dedicated to complete all the projects which are already announced under JGM, Zula, and Amrut, which is the urban part of it, and we are very confident that this spending is going to come into play.

You should be also knew that there are some, you know, payments which are pending for the, you know, projects which are already completed. Have we seen signs of revivals around for those funds getting released?

We have seen that, man.

I understand. Our second OPVC grant, you said, you know, there are being developments. What I wanted to understand was, have we received a substantial audibook or could you share some audibook number with us on the OPVC grant?

So, so OPVC, again, this is OPVC is all about, about approvals, accreditations, and empanelment. Our focus has been largely around Chhattisgarh area and the Madhupadesh area and the south. That is the corridor we are looking at this one in time. I am very happy to, and it takes time, you know, when you get, when you, when your product comes into the market, then approval, accreditation, and empanelment process takes its own time Because there's a lot of testings and everything which is required. And I'm very happy to and pleased to report that, you know, 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. And now we are absolutely poised to grow from here.

And you mean you've got the project approvals in place, but order book now will build up?

We have an order book. We have some orders in hand at this point in time. But they are contingent to the approvals, right? And now we have the approvals in place. Now those orders will start getting, will come into the execution mode. And then it will build up the momentum.

And lastly, while now it's very obvious that you are going to overachieve the guidance which is given for S525 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 plan. But in the Q4, when we come for the call, we will give you the guidance.

Sure, sure. Thanks, sir, and all the very best things.

Thank you, sir. Thank you. The next question is from the line of Ashito Ishnemani from GM Financial Office. Please go ahead. Yes, yes, yes. Just a second, sir. Ladies and gentlemen, to ensure management can answer all questions, kindly limit your questions to two per participants. So, you can please go ahead. Ashutosh.

Yeah, thank you. From your commentary, from the next two to three years point of view, majority growth for the company would come from the export market. So, how do you see firstly the 50% penal tariff impact on our business? What negatives does it entail for FelsenCorp?

Ashutosh, good afternoon. You're right. I think a significant growth will come from the export market. But you also have to understand, Ashutosh, that, you know, we are also a local player in most of the markets. Today, we are, you know, we are a local, we are going to be a local player in the Saudi market. And also, we are going to be a local player in the, we are only a local player in the US market. So, that is 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 market, which are non-tariff markets. So, India will focus on non-tariff markets. The tariff markets like America and Saudi Arabia, which are the largest consumption centers, we are now a local player. So, the strategy of being a local and yet a global player, I think so, is panning out extremely well.

And just a follow-up on this, what percentage of revenue from India factory is being sold to U.S. 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. So there is no reason for us to do anything from India. And in any case, you cannot do that. The anti-dumping duties and countervailing duties are so very high that it is commercially unviable. And more importantly, now when we are the local players, neither we will do it nor we will let it happen as well.

And second question is on DI sites. Despite domestic constraint of growth, we have shown 39, there is a healthy volume growth. We just wanted to understand what has driven this growth, which market specifically.

Yes, I mean, 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 fun crunch into the DI market, but I think the order book, the strength of the order book has been extremely robust, you know, and we have seen this primarily coming from the West and the North market, and we have a very, very loyal, strong customer base, And despite all the challenges, you know, we have been able to tie to his tough times. And now, we feel that now in subsequent quarters, things are going to ease out. We will see a further momentum coming up in the DIP exchange.

Okay. Just a follow-up on this. For the DIP, the 13% volume does not include the exports as of now. It's entirely domestic.

No, no. There was some component of export, not a very large component of export, Because, you know, we have been tied up in servicing the domestic market. But at the same time, we have been building our infrastructure for the export that is absolutely now ready. And in subsequent quarters, you will start seeing an export percentage also coming into our DIP sales.

Okay. And if it's EBITDA, if you could just tell for DIP, what it has been in this quarter and the past year?

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

Yes. Thanks a lot, sir.

Thank you. The next question is from the line of Sailesh Raja from BNK Securities. Please go ahead.

Yeah, thank you. Congrats to you and your team, sir. So with respect to India business, our volume declined by 20% year on year, approximately 4,10,000 in the past nine months. So how do you see the volume trend shaping up over the next year? And also in the recent budget, if you see the government has elected only 1,900 pros for the river linking project. And same time, we have also got, as you mentioned, we have got exports order also in Argentina. And because of river linking only, we have created capacity in Bhopal. So how do you see the next year, what kind of growth you see in India linepipe business?

See, we have to see the India linepipe 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 has been extremely low. There was a fund crunch which was in place. But now, with that getting over, I am 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, you know, we are doing export of a particular volume, and that is, that part of the business remains intact. The third part of the business is the domestic oil and gas, right? Domestic oil and gas, you know, there were IOCL, EIL, and GAL, 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 have seen that they are about to invest a couple of, you know, 3,000 to 5,000 rupees in terms of developing that pipeline infrastructure. And we see, you know, multiple projects coming up for bidding in the next financial year, which we will be, and I'm sure we will get a portion of that, in any case. Shailesh, are you, did you hear me clearly?

So, the line from Shailesh has been dropped. We'll move ahead. Participants who wish to ask questions may press star and 1 on their touchtone telephone. The next question is from the line of Vikas Singh from ICICI Securities. Please go ahead.

Good afternoon, sir, and congratulations on very good set of numbers. Sir, my first question pertains to our U.S. business. Have we already seen the quarterly level peak volume which we can sell out from the U.S. business And they are part of the EBITDA contribution in subsidiary. And 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 U.S. business. See, U.S. business, our, you know, we are, you know, whatever quarter-on-quarter production numbers And the guidance, what we have given, we are absolutely on track with that, number one. So, right now, what is operating is a spiral mill out there. What is going to change is that, you know, 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. And then two quarters down the line, by the end of this year, you know, we would have our new ELSO mill coming up out there. So, those volumes will start ramping up in US and then the numbers in US will drastically change. So, right now, 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 quarter of a clear order book till March of 2020. It is completely booked at this point in time.

Sir, just a clarification, once a new spiral mill comes on board, can that spiral mill will, you know, 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 U.S., for the new spiral mill. How should we look at it?

We have to connect, there is no new spiral mill coming up. It is a new longitudinal mill which is coming up. So 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 on the, what is coming new is a new longitudinal mill out there, Elsa mill, right?

And to that also, ARW, the ARW capacity is also we are increasing in the HFSI. Yes. Yes. Yes.

Yes. So we only 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. So there is nothing. So, we are replacing the capacity from a 20-inch to 24-inch. That's a replacement of the capacity which is happening out there. But, so, 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. And there is a new Elfamil which is going to come up by the end of this year. So, these two mills put together will add up significantly to the existing volumes what we are currently doing.

You're not right. And so, my second question pertains to DI business. So, cooking coal costs have run up quite significantly, and more than, I said, 20-25%. So, does this kind of sharp cost is covered in our, or we would have to take a hit for the higher cooking coal prices in subsequent order until and unless we get the better pricing? So, how should we look at it?

The way, because you have to see things, in any case, we always have a forward coverage of coal of all the raw material for at least two quarters. So I am not expecting any hit whatsoever because of this cooking coal increase, which has recently happened. And there are reasons behind it, right? This cooking coal increase is a sudden surge because of the force measure the coal mines have announced because of the inclement weather out there. Once that metal, once we believe that once that element of force measure settles down, the cooking coal prices should get normalized. And when we get into the market for fresh buying, that point in time, we would see that, you know, the prices are moderated. And in any case, by that time, we will also have, we will be booking up new orders. In any case, we would have factor for that. So I am currently, I am agnostic to any price increase because of the cooking coal. Thank you, Vikash.

Thank you. The next question is from the line of Sakhaled Deepatel from iSight, Fendrate, Private Limited. Please go ahead.

Good afternoon to the team. I have two questions. My first question to Mr. Mathur is, as WellSpan continues to execute across energy and water infra projects, could you share how management is currently thinking about trade-offs between order book visibility, project complexity, and margin quality? What kind of changes in tender structures or customer behaviors would prompt you to recalibrate? Just want to understand your view on this.

So, your first question is on, if Mr. Partil, if I understand you correctly, your first question is on the margins, and the second part is about the tender strategy. That's what you meant?

More or less, how are you planning to decide about the trade-offs between book feasibility, project complexity, and margin quality? A contingency plan, if you have in mind, I think you want to understand that particular thing.

So, Mr. Patil, we are, A, there is enough business into the market, first and foremost, number one. I don't see that, you know, 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. So, that gives us, and, you know, we are a tier one player. We want to, we operate on the top end of the pyramid, and that is where we will continue to play. So, that gives me the niche, that gives me the visibility, and that gives me the margin. So, that is our play right from day one, and this is what we'll continue to do. So, 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, and enough niche business into the global market, which will keep us fairly occupied.

Thank you. And 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, for anything that you particularly observe, that helps you assess the cash flow, helps you assess the cash flow, and execution risk before these show up on your number.

Yeah. So, Mr. Patil, Wellsman Corp is extremely focused on the capital allocation policy. So, when we are talking about our projects and capital expenditure, a lot of planning goes into that, as well as the working capital management. So, we prioritize a lot on monitoring the inventory levels, on the receivables, and on all the creditors' payments as well. So, that's what finally shows up as an improvement in our ROSE, our return on capital employed. So, 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.

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

Thank you. Participants who wish to ask a question may press star and one on their touchstone telephone. The next question is on the line of Karan Battalia from NAIQ Capital. Please go ahead.

Hi, good afternoon, sir, and congratulations for the number. Now, my question to you was regarding the order book. So could you provide a timeline or a phase plan for clearing the 23,600 crore order book over what period?

Currently, you know, for US, I think so the order book is right up to March of 2028, right? And in India, we have a clear order book of almost, in India, nine pipe business, I'm talking. We have an order book of, in the oil and gas side of it, of two or two, nine months to one year at this point in time. On the DIP side of it, if you look, we have a bending order book of close to 200 or 1,000 tons, which gives us a clear visibility.

Sir, I'm sorry, your voice is cracking. Can you repeat, please?

I'm saying for the U.S., we have a clear, can you hear me? For the U.S., as I said, we have a clear order book in March of 2028.

Right. And India, DI, one year.

DI pipes is also close to three quarters.

Got it.

So, 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 what, why you are referring to a revenue decline in US. How did you deduce that?

How did you say there is a revenue decline?

For previous, previous year, I mean, compared to FY25.

You understand that, you know, there has been a volatility in the low material prices globally. So, I do not recollect on the top of my head. When you decline in the US, my sense will not be, but nevertheless.

Sir, I'll just come in over here. So, I think, Karan, your question is probably pertaining to the previous year. So, the US scenario started changing dramatically sometime from September 24 onwards, when we started getting a strong order book visibility. So, if you are referring to the previous year, then, of course, at that time, the order book was not there in US. But 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 new administration that took charge from somewhere around December 24 onwards. So, I think your question must have been for the previous year.

This year, of course, we are comparing, correct, from the previous year to current year, considering what would be the utilization rate we are expecting for current year, FY26.

So, FY26, we are, of course, sorry, go ahead, sir.

First, we have current, which is currently into operations, will be close to almost 85% of utilization.

That's why your voice is cracking according to you.

Almost 85% to 90% capacity utilization will be there for the spiral mill, which is currently operating in the U.S.

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

Thank you.

The next question is from the line of Radha from BNK Securities. Please go ahead.

Hi, sir. Thank you for the opportunity. Thank you. Sir, by when do you expect the anti-dumping measures against Chinese players to be implemented in Saudi, and how much incremental DIY-type market could this potentially open up for us?

Another 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, you know, from wherever the imports are coming. I think it is a very wide-ranging investigation which seems to be happening. Maybe it might take one or two quarters. Probably that's my guess. You know, we have to understand the whole process, but that's my best guess. And today, you know, almost two-thirds of the DI5s, you know, was coming as an import. You know, only one-third of the total requirement of the Saudi market was being serviced by the local players. So, we see a great opportunity once this anti-ramping 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 suggest that.

So, investigation is happening against India also, sir?

I'm sorry?

Is it happening against India also, the investigation?

It is, see, it is fairly, you know, right now it is fairly broad-based at this point in time. It is not country-specific. It is import-specific. That, you know, there is an import which is happening and that needs to be curtailed and they need to work out a sort of a policy or regulation.

Okay. Secondly, in the overseas market, could you elaborate on the progress in obtaining customer accreditations for DI-5? How large could this opportunity be over the medium term? And additionally, is it combined India and Saudi DI capacity

So, on the overseas market, I think so, we have been focusing on the European market for our DI types and I think the acceptability of the types, we have already done some sizable amount of quantity into the European market and the response has been overwhelming. I'm sure that Europe will grow, number one. Number two, Middle East market is our focus. This is how we are based on the export side of it. Looks like, you know, and once the Saudi capacity will come up, I think that will primarily be focused on the domestic requirement to start with. And also the reconstruction activity where Saudi is, Saudi government to fund. So our focus will be from the Saudi market will be local and the projects which 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.

Any color on the customer creditations from the real Saudi plant?

I mean, see, you only have, you have, basically you have one approval there, which is the Wellspen, we only have it. So, then it is a matter of going to the, you know, to all the contractors or executing the project.

All WCVC as an organization has it.

Okay, sir. Thank you.

Thank you. Thank you. The next question is from the line of Sohan Joshi from ASC Kalsintalsi. Please go ahead.

Good afternoon, sir. Have I already gone?

So, there is a lot of background disturbance from your mind.

Now, is it audible? Hello.

Yes, yes. Yes, I'm good.

Great, I agree to you, sir. So, one question. I'm sorry, I might have missed because I joined recently. What is the impact of the rising metal patch, especially with the steel and aluminium going on? I mean, are the entire bookings have been done for the orders to be executed for the next two, three quarters?

No, it's been open, raw material is a pass. We completely forgot. So, I guess, anytime, whatsoever.

All right, and now, nuclear energy. Am I audible? Hello? Yeah, yeah, yeah. Hello, am I available?

Yeah, go ahead, sir.

Yeah, so in the budget, the government announced the data center of nuclear energy. What are the opportunities similar to the U.S. we are finding now even in India?

We have to, you know, these announcements are very encouraging announcements. You know, they have been such announcements and such things have, you know, have been a major catalyst in the U.S. market. We believe that 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. So we are seeing that there could be a greater possibility from a WSSL perspective. Thus, we have to see what type of infrastructure they are going to create. I think it's a matter of time. But definitely, WSSL will be one of the major beneficiaries out of this.

Okay, so one last question, if may I ask?

Yeah, please.

There are a lot of damages being done to the Russian refineries. I mean, recently in the past few months in the war going on, so how are we looking at those opportunities? Don't you think that we have a good opportunity if the Russians are 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 we will have to see the government of India policy around that. Right now, the honest answer is that we have not evaluated that.

Okay, okay. Thanks, sir. Let's see. Let's see. Let's see.

Thank you. Thank you. The next question is from the line of Yash from ART Ventures. Please go ahead.

Yes, sir, I just wanted to know what was the revenue for Syntex during the quarter and for nine-month FY26?

Yes, sir.

Sorry, can you repeat?

Yeah, so what was the revenue for Syntex during the quarter and for nine-month FY26?

Prasih, would you take this, please?

Yes. So, Yash, Syntex 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 CR.

Okay. Thank you.

Thank you. The last question is from the line of Ashitosh Nemani from GM Financial Family Office. Please go ahead.

Thanks for the opportunity, sir. I had one question you mentioned. We are placing the 20-inch diameter in the HFIW in USA to 24-inch. So, just wanted to understand what is the rationale behind it, and secondly, how is the competition in the USA for the two product categories that we are entering, HFIW and LSAW mills, and what is the revenue potential from those beach land capex and ROC?

So, this was not one question. You loaded too many questions in the frame, but never delivered. Let me answer. Besides what we were in our HFIW mill, we were currently having the capacity up to 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 have seen that, you know, for transporting that, there is a 24-inch pipeline is the most optimal suited pipeline diameter for that. We were not in a position, we were not in that area because we were limiting ourselves to 20. So we were losing out on a business opportunity for 24-inch, which is very, very sizable. So that is the reason we took that call that, you know, we have, as we are a large player in the American market, we have to have a complete range. And that is the reason we are enhancing our capability from 20-inch to 24-inch. That's That's the first part of the answer. The second part of the answer is about ELSO is, you know, there are, you know, once we, our capacity will come up, there will only be two players in the American market. We are, one would be West one and other is on the West Coast of America. So there will be two ELSO players and looks like the demand, as I said earlier in my call, the demand seems to be coming up significantly for the pipeline, where very heavy voltage pipes are required. We are also seeing, you know, a resurgence in the U.S. offshore market. A lot of offshore projects are being announced. So, you know, we see that in the next few years, it's going to be very, very dominant demand for the elsewhere projects as well.

And thirdly, there will be no imports.

So there will be a clear-cut import restriction. So there will be no imports coming into that particular market, as they are not coming into the spiral.

This is the last part. What you told about imports.

I'm saying that once you have the, I'm saying once you have the domestic mill operating out there, then it completely neutralizes.

It neutralizes the imports, whatever it's happening currently, currently it's net imports. Okay. And for CAPEX and ROC profile of those two factories, of those two mills?

That, see, that we, see, at the end, we, when we, when we made a capital allocation to that, you know, we were very, very clear that, you know, it has to, It has to be at a particular threshold of ROCs have to come in. You know, and our ROCs are close to around 20% ROC. That's what we were talking about. And these are our internal threshold limits for approval. We are sure that, you know, we should be able to achieve that. Okay, yeah. Thank you. Thank you very much.

Thank you. Ladies and gentlemen, in the interest of time, that was the last question. I would now like to hand the conference over to the management for the closing comments.

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 you know, we have been absolutely making all the strategic steps in the right direction, which is going to build this company and which 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, you know, the, you know, the incremental earnings are going to be sizable. So there is a huge growth potential, one. A second part of it, we are emphasizing that the market, there is enough market which is available. So both the market and our positioning in the market is going to give a new color and new favor to Wellspent Corp. And lastly, I would like to say that if there are any other questions, which we have sincerely tried our best to answer all of your 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 or to Gautam, and they will be more than happy to answer any clarifications or follow-up questions you might have. Thank you very much, Vantakin, for joining us today. All the very best. Good day.

Thank you. On behalf of GM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.