Welspun Corp Ltd (NSE: WELCORP) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Ashutosh Somani — Moderator
Salil Bawa — Investor Relations
Vipul Mathur — Managing Director & Chief Executive Officer
Unidentified Speaker
Analysts:
Abhishek Ghosh — Analyst
Vikas Singh — Analyst
Sailesh Raja — Analyst
Ritesh Shah — Analyst
Shweta Dikshit — Analyst
Sneha Talreja — Analyst
Rakesh Wadhwani — Analyst
Sunaina Chhabria — Analyst
Amit Agicha — Analyst
Raman Venkata Kerti — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Corp Limited Q1 FY ’26 Earnings Conference Call hosted by JM Financial Institutional Securities Limited. 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 confutes. Should you need assistance during the conference call? Please signal an operator by pressing star Win Zero on your touchstone phone. Please note that this conference is being recorded.I now hand the conference over to Ashutosh Somani from JM Financial Institutional Securities Limited. Thank you, and over to you.
Ashutosh Somani — Moderator
Thanks, operator, and welcome everyone to the call. I will first thank Welspun Corp for giving JM Financial the opportunity to host today’s call. Without much ado, I’ll hand over the call to Mr Salil Bawa, Head, Investor Relations Welspun Group to introduce the management. Over to you, Saril.
Salil Bawa — Investor Relations
Thank you very much, Ashtorsh, and good morning to all of you. I welcome all of you to the Q1 FY ’26 earnings call of Welspun Corp. Present along with me today on this forum are Mr Vipul, Managing Director and CEO of Corp. I have Mr Percy, Chief Financial Officer; Mr Ashish Prasad, CEO of Asentex BAPL; and Gautam, who takes care of Investor Relation for Corp.
You must-have received the results and investor presentation of the company, which are also available on the stock exchanges as well as on the company’s website. As usual, we will start the forum with opening remarks by the leadership team. Then we will open the floor for the questions. During discussion, we may be making references to the presentation and that’s why I’m requesting you to take a moment to review the Safe-Harbor statement in the presentation. Should you have any queries that remain unanswered after this call, please feel free-to reach-out to any one of us.
With that, let me hand over the floor over to Mr Matur, MD and CEO of Welspun Corp. Over to you, Mr.
Vipul Mathur — Managing Director & Chief Executive Officer
Thank you, Salil, and good morning to everyone. Welcome to — welcome all to the Welspun Corp. Q1 FY ’26 earning or conference call. As a practice, I will start my discussion giving you the brief overview of the key operational and the financial highlights of the concluding quarter, followed with an update on the business environment, our investments, guidance and thereafter, we could have a more interactive session. So just to share the key operational highlights of the quarter one are as under. Number-one, our line pipe sales volume for India and US stood at almost 182,000 tonnes.
Our DI sales volume stood at 65,000 tonnes. Our SS bar and pipes volume — sales volume stood at almost close to 9,000 tonnes. Our company recorded a sale of almost INR160 crores during this quarter. Our consolidated order book stands at approximately INR19,000 crores. This order book of INR19,000 crore gives us a very — it gives us a clear visibility of continued operations of at least eight quarters in America, more than four quarters for all the operations in India, including pipes, DI pipes and SS pipes. The key financial highlights of this quarter was the quarter one FY ’26, we showed a consistent improvement trend.
Our EBITDA stood at INR560 crores. This is the highest-ever quarterly EBITDA. Our EBITDA margins got improved to 16%. The annualized is around 24%. Our PAT for the quarter stood at INR350 crores and we continue to be a net cash company. Despite all the capex is going on, we are still a net cash company with a net cash of INR600 crores. Also, I’m happy to report that given the performance and the future visibility, the has upgraded our long-term facilities to AA with stable outlook. These were the key operational and the financial metrics of the quarter.
Moving on to the next segment, which is the business environment. Let me first talk about the pipe vertical. We are seeing in our pipe business, we are seeing a very strong demand visibility for high-quality longitudinal pipes. We are also seeing that there is a paradigm shift in the technical requirements for all these new projects which are coming up globally both on onshore as well in offshore. These requirements are primarily because the oil and gas fields are getting deeper and they’re getting more corrosive by nature.
As, we have an impeccable track-record of supplying piles for such critical applications and are being treated as one of the top one or two global companies having such global cap — having such capabilities. Our previous order books, the previous executions what we have done is a clear testimony of this capability. On the domestic front, we are seeing that the oil demand in India is projected to get doubled, potentially reaching to almost 9 million-barrels by 2050.
Also, the natural gas consumption is anticipated to grow significantly, potentially more than doubling by 2040. So both oil in — both oil as well as gas is showing us a tremendous upward traction in the Indian context as well. We further note that India intends to expand their oil and gas exploration area by more than million square kilometer by 2030. Boosting this, you would have seen even today, the government made an announcement about this that they would like to open unchartered territories where almost close to-1 million square meters of offshore areas will also get opened for further oil and gas exploration.
We are also seeing a huge in investment in the infrastructure development for LNG. We are — there are more than eight or 10 operational terminals with a combined capacity of 52 million tons, but we see that as we are energy dependent nation, there would be a lot of LNG which is going to come in and we will see an investment coming in this sector as well. The CDD sector, the city gas distribution sector has — is also likely to grow at a CAGR of 10% between FY ’20 and FY ’30. There was a little bit of a slowdown in the quarter three and the quarter-four of the last year because of abnormally high gas prices.
But as now the gas prices — international gas prices have calibrated, we have seen this growth coming back into the CDG sector. We are expecting an investment of additional INR30,000 crores in this segment over the next three years. So all these sectors, whether it is the oil sector in India or the gas sector in India or the exploration sector in India or the LNG infrastructure in India or the CDD sector in India, all these are indicating and pointing towards a fair very, very strong demand potential for quality line pipes where Wilspun is a dominant player.
On-the-water sector, it is going to be — it will continue to be our key focus area. We are seeing huge investments being made or announced by the government with respect to interlinking projects. I’m sure you would be tracking that some of the projects announced are in MP, which is the Ken Betwar project in Rajasthan, ERCP project and in Maharashtra, where massive interlinking projects will now kick-start in months-to come. Further, the water pipeline network for irrigation on account of industrialization and urbanization is also increasing in states like Gujarat, MP, Rajasthan, Haryana, Tamil Nadu and. With our pan-India presence, which means our presence — physical presence in the Western market in Gujarat, our Presence in the central of India, which is in Madhy Pradesh and our presence in our southern market, which is in Karnataka, Wilspun Corp has a complete reach to service all the upcoming water requirements in the — on a pan — on a pan-India basis. So we see a huge traction as that — as that of the last year in this financial year as well. Coming back to the US market, we see a robust demand visibility continues to be there in the US market. Having said that, we have an order book of almost eight quarters from today, we have almost a visible clear order book of more than eight quarters at this point in time. But at the same time, we are also seeing new opportunities which are coming up. We are all — we are in contention for those opportunities. We are seeing that market still growing and I’m sure these opportunities will get converted into business opportunities in times to come. Which means all what I am suggesting, my friends here is that US market remains fairly, fairly robust and we continue to be a dominant player into that particular market and we are seeing a traction of an order book beyond eight quarters as well we also have to see that the US has been US government has been insisting on energy exports. I think so the recent announcement by the US government with respect to the trade deal with Europe where almost $750 billion of energy will be exported is also acting as a catalyst to the growth. This will mean that there are lot of infrastructure pipelines, which will come to the Gulf Coast where this LNG gas will get exported out. So we see a traction coming up for pipelines for LNG export. On-top of it, there will be new LNG terminals, which will get created, which will be — which would be developed and for those LNG terminals, we are seeing a huge demand which will come up for the longitudinal pipes as you know the — which is another plant we are now at this point in time setting up in America. So we are seeing that all-in all, if you see, there is a very strong visibility both for export of LNG to the international market, development of LNG terminals and also the gas requirement to fuel the power plants, which are captive for their data centers. There’s a huge requirement coming of power from the data centers for which the captive power plants are being said adjacent to that. So these are the three areas where we see that the demand in the US market is going to be unabated for the next three to five years’ time. As the leading player into the US market with a market-share of more than 30% at this point in time, you — our will be absolutely poised to capture all these emerging opportunities in times to come. Let us now move to Saudi Arabia. In Saudi Arabia, we have our joint-venture company EPIC, East Pipe. They have — I think so their performance, you would have seen their performance. It has been a phenomenal performance in FY ’25. Even the first-quarter performance was phenomenal. They are — they also enjoy a very, very healthy order book at this point in time. And also they have a very clear business continuity for the next eight quarters, if not more. Further, the Saudi market, as you know, is between two critical segments, one is water and other is oil and gas. Today, the water segment is exploding into the — in Saudi market where a huge — a huge transmission pipelines are being kept from moving water — desalinated water to the consumption centers. This has been going-in for the last three or four years. We see this momentum to stay there for the next two to three years. Having said that, there are sufficient capability and now capacity which is available at this point in time within Saudi. And I think so the existing players, there is a sufficient business for all the existing players to capture to that particular opportunity. So market has reached to a sort of an equilibrium, it has to reach to a sort of a balance where the demand requirement and the capacity available is now going to match. Apart from that, the oil and gas, Saudi Aramco, their development for their oil and gas field continues unabated. They are aiming to increase their production capacity beyond 13 million-barrels per day. They are expecting large fields like Zulu,, and few others, which are going to be the fields which are going — which are — which are developed and also under development — under development fields, we see a huge traction coming up for oil and gas pipelines from Saudi Aramco over the next three to five years’ time. If you remember, we have also announced in this backdrop of this potential, which opportunity which exists there, we have also announced setting up a state-of-art longitudinal part plant in the Kingdom of Saudi Arabia. I’m happy to report that plant — the progress on that plant is as moving as to the track. And I think so by the end-of-the financial year, we should be up and running there. So in terms of opportunity, we are seeing a huge traction both in oil and gas as well as water in the Kingdom of Saudi Arabia. After these line pipes, the large-diameter pipes, which I just talked about, I now want to draw your attention to our Thail Pipe division. That trans where we make the pipes for the transmission — for the distribution network. At this point in time, our order book, we have a strong order book of almost 300,000 tons or more than 300,000 tonnes of an order book. We are seeing that the JGM, the mission support is going to continue for the DI pipe and this will be coupled with Ambred II, which is all about urbanization. However, having said that, I think so the last two quarters or 3/4, we have seen slowdown in the funding — in the funding from the JGMs for certain reasons. But as the schemes are almost on the verge of getting completed, all the schemes, there would be a continued support of JAGM shall come on and these scheme — all the schemes as announced, we believe will get completed. You know despite this slowdown of cash — this slowdown resulted into some inventory pile-up at the various manufacturers end. But we believe — strongly believe and the very — we get very clear indication that H2 onwards, in the second-half of this year things will get completely normalized and we will see a strong demand coming back to the market for the ductilan pipes for the distribution network under the JJM project. Also, we are seeing a huge demand emerging from the irrigation sector. That is expected to be close to additional 2 million to 3 million tons over next three to four years’ time. We are well-poised to cater to this particular requirement and our investor — and our plan at this point in time is almost operational at its 80% to 85% operational capacity. We are also spreading our footprint into the markets into the domestic markets by entering into markets like Haryana, Chattesgar, Punjab, Goa, Odisha and Telangana. Traditionally, we have been restricting ourselves to Gujarat, Rajasthan and Madhya Pradesh, but now we are also expanding our footprint and our presence fields in the other states of the country too. So all these things put together that the mission scheme will come, funding in the mission is likely to come back, the demand in the irrigation sector, the — our penetration into the new markets and more importantly, our focus on exports to the European and the Middle-East market, these four things put together, we see a huge demand traction and profitability emerging out of our tactile iron pipe business. In — if you recollect, we had also announced that we are putting up a ductile iron plant in Saudi Arabia, apart from our longitudinal plant, which I spoke few minutes back. This ductile iron plant project is also moving absolutely on-track. We are seeing a continuous demand for at this point in time in the market in the Saudi Arabian market. As I talked, there is a huge demand for transportation pipelines, which are the large-diameter pipeline and the distribution pipelines, which are the ductile and pipes. So we are seeing a combination of both. I am sure once that facility is commissioned out there, this facility will start-up running and we will have a significant uptick in the order book in that market as well. Further, we also have noticed that there was some imports which were coming into the Saudi Arabbean market of these ductile iron pipes. The government has taken note of that and looking at the investments which we have done and others have done, they are about to start or probably have started some anti-dumping investigations, which will restrict and discourage any cheap imports coming into that particular market. This is strategy. This will anger well with The investments what we are making in the Saudi market. Next, I would like to draw your attention to our very niche and boutique business of SS Bar and pipes and our entity Wilspun Specialty Steel. Currently, our order book stands at close to 10,000 tonnes between pipe and steel. Our bear — our bar sales volume recorded an all-time high in this particular quarter. Our pipe volumes were slightly impacted in this particular quarter because we have taken a much-awaited maintenance shutdown, a planned shutdown in the month of June — in the month of June this year. We are — we wanted to do some — we wanted to prepare ourselves for some very specialized value-added products, which for which we are anticipating some new orders and we wanted to prepare for that. So it was imperative for us to take that maintenance shutdown, which has not been successfully completed and we are back-in operations. Apart from that, as you know, this business is all about certifications, acquisitions and approvals. Our Welspun Specialty Steel has been able to secure very committed acquisitions in the aerospace sector, which is AS 9,100D. We have also received certificate — IBS certification. We are in the process of getting the IBS certification. Also, we are working on some certifications called and others and we are expecting that all these very COVID certifications exercise will get completed successfully by the 3rd-quarter of this year. Our new project facility, which we are commissioning is in the commission — the construction is in-full swing and as targeted, it will also be up and running in-quarter three of FY ’26. So we are preparing ourselves both on the pipe side of it and also on the steel side of it. On the pipe side of it, as I said, we took a maintenance shutdown to prepare ourselves for some value-added orders. And on the steel side of it, we are preparing ourselves by enhancing our capability in bright bar segment and with the commissioning of a new facility, giving us more leverage to enter and to supply steel to the global market. Let me now move your attention to our building materials vertical to-end to start with Syntax. In our Syntax, as you know, Syntax has two major components of business. One is the water sales tank and other is the line pipe — other is the pipe business, the polymer pipe business. On-the-water storage tank, I am happy to report that our penetration on-the-ground has the distributor — which is — which is through the distributors, retailers and the plumbers, I think so that is an all-time high. We are seeing a very increased participation in our — our signature scheme called. This scheme has been very well-accepted, acknowledged by all the people in the value — value chain. Our unique plumber engagement has nearly doubled on a quarter-on-quarter basis. So all what we are at this point in time, we are completely in the process of creating a value chain around distributions, dealer, distributors and the plumber. And on a quarter-on-quarter basis, we have seen significant traction and acceptability and adoptability with — under this value chain. We are positioning ourselves as a premium player as resonates to. So we are going — we are positioning ourselves as a premium supplier and the — we are well-poised to get — and we are well-poised to achieve that objective. We are absolutely on the right trajectory as what we have planned and I’m sure the next quarter — in subsequent quarters, you will see that our continued improved performance is purely demonstrated. On-top of it, you know, we also are extending our total addressable market by moving into the business. With our water tank business and the pipe business pushed together, now our total addressable market moves from, let’s say, INR12,000 crores to INR85,000 crores. This is the landscape which is changing for. We have — and in this — and in this contention, we, as you are aware that we have acquired a company called in, the operation — which is a pipe manufacturing company, polymer pipes. We have already started the pipe production. We have already started the distribution of that into restricted areas and the feedback is very, very encouraging. On-top of it, we have also commissioned our Bhopal plant at this point in time where we are going to make the OPVC pipes. We — as I earlier mentioned as well in earlier calls that this is one — one-product which we are very buoyant about. Our production of OPV s pipes have already started. We are — I’m happy to report that we have got breakthroughs in that particular project in orders by having some orders and which will get start executing in Q2. So we have OPVC plant, which is operational. It is now being supported by an order book and now those orders will come under execution during quarter two of FY ’26. In and substance, continues to be our North. It is going to be a company which is going to create an enormous value for all our stakeholders. We, as wellspun are completely poised and focused and obsessed about the growth of this particular company and all that might what we have is being put across that. We have no doubt whatsoever that in days to come, this will be one of the most — it will be a crown gel of our organization. Coming back to our other segment in the Building Materials, which is the TMT bars segment we are — we are a local player. We are a restricted player into the Gujarat market. We are very focused on quality. We are very focused on serviceability. We are very focused on pricing. We are not a pan-India player, nor we have any ambition to that be. But looking at the demand, looking at the requirement and looking at our capacity, I think so we are doing — we will be focusing in the Gujarat market itself. And we see huge opportunities continue to be there in terms of infrastructure, the developments of the metro expansion which is happening, the new GIF City, the, the connectivity, the new investment — the new investments which have been done by two large conglomerates into the industrial setup. I think so these industrial activities, which are happening within Gujarat will keep our — this asset extremely busy and serviced. We are hoping we are — there was a little dip in the demand as it always happens during the period of monso, but I’m sure that post-August onwards this demand will pick-up. But as I mentioned, we — our focus will be more regional, more quality focus, more service focus and more price and focus. So we are — we are absolutely poised to capitalize on the demand, which is going to come out in the region. Just to briefly give you an update on all the investments. If you recall it, we have — we have given — we have given an update in our investor presentation about all the investments which we are making in America, which we are making in Saudi Arabia, which we are making here in India. All those projects, which are listed there and you or the list you are private to are moving as per — as on-schedule, on-track and in cost. We are — we are committed to deliver those projects as per the guaranteed timelines what we have indicated and I’m happy to report that all the projects at this point in time as we speak are absolutely on-track. So with respect to our guidance, we gave the guidance for the financial year 2026 and our quarter one results are clearly an indication that we are on-track with respect to that. I am very confident that with the performance of all our entities, the pipes, the seal, the pipe, the, the WSSL, I’m sure that our company will be in a position to meet, if not exceed the guidance given for FY 2026. Last but not the least, we continue to maintain our very strong focus on sustainability, people and digitalization. We believe these are the three pillars, growth, green are the pillars for our development and we are obsessed with highest governance standards and transparency across the organization. I think so these are some four to five basic hygiene factors around which Wellspun Corps works around. We have been — we have been absolutely working within our guardrail. We have been absolutely following the communication what we have given to the street. And friends, I just want to let you know that we will continue to maintain a very sharp focus in further gaining the momentum in the next subsequent quarters to come. With this, I request the moderator to open the floor for any question — any questions you might have, which more — with me and my team will be more than happy to answer. Thank you very much.
Questions and Answers:
Operator
Thank you very much. We We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and take. 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 Abhishek Ghosh from DSPM. Please go-ahead.
Abhishek Ghosh
Hi, sir. Thank you so much for the opportunity and congratulations for a great set of numbers at a time when you know things are not that great as well as underlying economy. Sir, few questions.
Operator
I’m sorry to interrupt you, Mr Abhishek. There is a disturbance from your background.
Abhishek Ghosh
Is it better now?
Operator
Yeah, there was some sound coming. I don’t know if it was a bottle. Can you please something — speak something?
Abhishek Ghosh
Yeah. Is it better now? Hello?
Operator
Yeah, please.
Vipul Mathur
Go-ahead.
Abhishek Ghosh
Yeah. Yeah, hi, sir. Thank you so much for the opportunity and congratulations for great set of numbers. A few questions which I had in terms of the commentary that you gave in terms of if you look at the India piece, the interlinking of river, whenever it kind of comes through, what can be the opportunity size that can come through given the states which are kind of working around? Any thoughts on that, sir? And how should we look at it from a two to three-year perspective?
Unidentified Speaker
The opportunity or interlinking of is mammoth. You know the way the projects are currently being conceived and the way they are being planned, it could be more than 1 million tonne of an opportunity which may come up to start with, right? And these opportunities are currently happening in — will happen in the state of Madhya Pradesh to follow it up within Rajasthan and then in Maharashtra. So we are very, very optimistic and buoyant about this particular opportunity. We are — and we are very — we are confident that we will have a piece of share out of this opportunity because of our geographical presence into those states.
So coming to your question, the volumes could be very, it could be exceeding more than 1 million ton and it is no more an opportunity which is — which is like — which is under evaluation. It is something which is now going to happen on-the-ground very shortly.
Abhishek Ghosh
Yes. That’s very helpful. Sir, also you spoke about the demand coming in coming in from the irrigation segment, you called out that 2 million to 3 million tons opportunity can come in from there. Which kind of pipes will go in there and how should one look at the timelines here?
Vipul Mathur
So I — my sense, Abhijit, is that irrigation predominantly has been serviced by HDP pipelines in the — there could be a — there will be a paradigm shift which will happen and these pipes will move more towards OPVC and ductile pipes because at the end-of-the day, these pipes guarantee an almost 50 years service guarantee, more than 50 years of service guarantee, which primarily is a substandard SBP pipes, which had been supplied by the industry in the past has not met that expectation.
So we see irrigation as a huge emerging opportunity where both and OPVC pipe and very-high quality SDP pipes will be used. Should be — will be used and should be used to use.
Abhishek Ghosh
Okay. And you think this is again something that should fructify over the next 12 to 18 months? Is what the expectation is?
Vipul Mathur
Yes. Yes. I’m very confident about it.
Abhishek Ghosh
Okay. Okay. Sir, lastly, coming to the DI pipe as far as the domestic market is concerned, we have seen some slackness which you have also mentioned in your comments, how should we see going-forward, do you see because of multiple delays in projects, payment issues and subsequently lot of supply also had come in, how should one see over the next 12 to 18 months both on your order book ramp-up of your facility and margin profile here?
Vipul Mathur
Yeah. See, there has been a momentary slowdown over the last two quarters. That’s very clear. There is no doubt about it. But having said that, structurally, are we seeing any change? The answer is no. I still believe — we still feel that the mission is a great mission for the development of getting water to every household, right? And it is fundamentally a very strong scheme. It has and it will be completed. I think it has met some cash — cash-flow challenges in the last two quarters, but we have a strong belief that it will come back with — it should come back-in the second-half of this particular year. So we have no doubt what number-one.
Number two, more than that, more than that, we are seeing a big traction coming up in, which is the urban scheme, right? We have to understand that any developed economy has to invest into infrastructures like this. We as an economy are developing and we will continue to invest like that. So I don’t see that we should carry any doubts whatsoever that whether structurally these schemes will be there or not. I think so it is a momentary mismatch which is happening. It is a matter of time. They will — these things will come on-track. We are hopeful that it is the second-half of this year. We will see that full flow coming into this segment.
Abhishek Ghosh
Great, sir. Sir, just on the US piece, you called out that your market shares are 30% now. Sir, in the last cycle, what would have been our market shares in that 2018, ’19, ’20 cycle?
Vipul Mathur
Yeah. We have always been able to maintain a share in north of 20%. Typically historically, we are close to 22% 23% market-share this year, this time, because of the length of the orders what we have and the extent of the duration of orders what we have, we are close to 30%. But by far, we are at the largest market-share. I think what is important is that by far we have the largest market-share in the US market.
Abhishek Ghosh
Okay. So sir, given the construct of the demand outlook, multiple levers of growth, strong visibility, a 15% to 20% EBITDA growth is something in the medium-term, it appears given the kind of capex that you have done, it appears fairly — fairly visible from here on. Is that the way one should look at from here on?
Vipul Mathur
Abhishek, you have my guidance for the full financial year 2026. I see no reason why should we not meet that and-or if not exceed that. That answers — that probably answers your question, if I’m not wrong.
Abhishek Ghosh
Yes, great. Thank you so much and wishing you and your team all the best for this continued sustained performance. Thank you so much.
Vipul Mathur
Thank you, Abhishek. Thank you very much.
Operator
Thank you. Thank you. A reminder to the participants to limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. Thank you. The next question is from the line of Vikas Singh from ICICI Securities. Please go-ahead.
Vikas Singh
Good morning, sir, and congratulations on very good set of numbers. Sir, my first question pertains to Saudi wheel. Sir, we are setting up a independent facility there while we have a basically JV where we have a minority partner. So we would be bidding for the same kind of orders in the same geography. So the — is there a conflict of this can arrive and because of which we need to sell-off the remaining shares in the Saudi heavy partner
Vipul Mathur
Good morning, Vikas. Vikas, I think so we will have to see this issue from a very different lens altogether. It’s a fairly complementing setup we are putting up. The joint-venture in which we are the shareholder reduces spiral pipes. Those pipes have a different market altogether. What we are setting up is longitudinal pipes and the RL pipes. So the way it has to be seen that between our joint-venture entity and our 100% ownership, we will be covering the full basket, supplying the spiral pipes, supplying the longitudinal pipes and supplying the ductile pipes under one-room.This is the synergy and a powerhouse, which we are creating in Saudi.
Vikas Singh
Notice, sir. Sir, my second question pertains to the 1Q results, especially from the standalone side. I believe that we have a very good export orders because of which were numbers on the standalone was pretty good. So is that the order has been fully executed and going-forward, the standalone EBITDA per ton would come down and that’s why we are not increasing our guidance because usually we are second-half heavy in terms of EBITDA. Because you are a veteran, you understand this business is all about the product mix to be run-in that particular quarter, right?
Vipul Mathur
This quarter, probably the product mix from a margin perspective would have been a little more favorable. But looking at the overall order book, what we have at this point in time, I think so on a quarter-on-quarter basis, we should be in a position to match and deliver the expectations or the guidance what we have to the market.
Vikas Singh
Notice, sir, the split of the order book between India and US, if you can give us? That’s my final question.
Vipul Mathur
Between India and US, we have close to-1 million tonne of an order book at this point in time. And this is excluding Saudi, just I’m talking of India and the US and I think so it is close to 600,000 tonnes in US and almost close to 400 odd tonnes in India. No, sir. That’s all from my side and all the best for future.
Vikas Singh
Thank you.
Operator
Thank you. The next question is from the line of Shailesh Raja from B&K Securities. Please go-ahead.
Sailesh Raja
Sir, congratulations on delivering such a strong performance. So my question — I have two questions to ask. First question in the OPVC pipe segment, we understand that several new entrants, including a large player like Astral are procuring machinery from Chinese manufacturers at a cost of INR20 crores per land. In contrast, if you see companies like Supreme, they are sourcing equipment from molecule at a significantly highest cost of INR50 crore INR60 crores per land. So given this cost disparity, how do we plan to stay competitive or this place using Chinese machinery? So even accounting for quality differences, do you believe there is a large-enough customers customer-base willing to pay 15% 20% higher a premium for products from
Vipul Mathur
That’s a — that’s a very good question you have askedish. First and foremost, we all have to be very clear that OPVC is not a normal commodity product. It is a very-high technological product being used for very specific applications. Now when you — when you talk about a change in technology, of course, you will have impacts of some Chinese coming in here, some there. But over a period of time, I think so this maturity will come into this particular market where acceptance of technology will be driving the growth and the demand for this particular segment. We strongly believe into that.
We have — we have a very clear foresight about it. Initially, there could be some hiccur, there could be some challenges, there would be some pressures of low margins and this, yes, it is normal in the business. It will be there. But over a period of time, in — and I’m not talking of time over year, over quarters, people will understand what is the value of quality for these pipes. If you — I would like to draw your attention, if this is what precisely happened in the SDP pipe segment as well. Almost 1,000 plants came up and mushroomed all over India, right? But effectively, there the top four or five players are now going to be the one who will be in a position to service that requirement. So there is a shift in the — in the user mindset that they prefer quality over price. It takes time even in this OPU, it will happen the same way.
Sailesh Raja
Okay. Okay, sir. Thank you, sir. My second question, we have reported EBITDA of INR290 crores from all our subsidiaries. So after backing out the normalized EBITDA contribution from, TMP, which collectively accounts at roughly around INR100 crores. But the remaining INR190 crores appears to be attributable to the US corporation. That translates roughly around INR25 per kg per kg plus in US and interestingly, if you see even in India also we reported INR18 rupee per kg. So could you please break-down India and US separately and help us understand the key driver behind the sharp improvement, whether this limits are is sustainable in US could you please talk about that?
Vipul Mathur
First, we don’t — we generally give an overall guidance, have always given that guidance that what is the typical EBITDA, what we get-in US and what is the typical general EBITDA we get-in India. I don’t think so we will be in a position to share the specifics around that. The fact of the matter — and as I earlier said, this is also a matter of a combination of the product mix what you are executing in this particular quarter. But given the order book what we have in India, given the order book what we have in US, you know, I think so we have — we have — we have clearly captured that and given as a very clear guidance to the street and I am very sure that we will be able to maintain that.
Sailesh Raja
Okay. Thank you, sir. All the best.
Vipul Mathur
Thank you.
Operator
Thank you. The next question is from the line of Ritesh Shaha from Investec. Please go-ahead.
Ritesh Shah
Yeah, hi. Sir, thanks for the opportunity. Sir, my first question was top-down. How do — how should we gauge the impact of tariffs and regulatory tailwinds locally. Tariffs, I mean the global tariffs and regulatory tailwinds as local.
Vipul Mathur
Ritesh, good morning to you. I think so when you are talking about tariffs, you are probably talking about the US tariffs. If am I right?
Ritesh Shah
That’s right. That’s right, sir.
Vipul Mathur
I think, sir, US tariffs are creating quite a bit of an uncertainty into the global economic market. There’s no doubt about it. But if I have to narrow my vision and purely think from Welspun perspective, I think so it is entering well with us because I am a local producer, a local player in America. I am not dependent on any export out of any other continent or India. So I am actually benefited out of this tariff. I have a sorry for my being a little — have having a little myofic and a vested view to that, but that’s the case. I am a domestic player in America, so I’m not impacted, number-one.
So tariffs in America might be hampering globally, but for, it is in — it is helping us out. And if you see, you know, keeping that potential and that benefit into mind, we announced our expansion. We believe that all the countries in the world are you encouraging local production, local manufacturing and this is going to be the new world order, which is going to emerge. Keeping that into mind, we are spreading our wings in Saudi Arabia, where also you have a domestic protection and in America where also we are seeing a huge traction, which is coming for domestic protection.
So as Welspun, we have adopted to a core principle of core products and core geographies. So our core product continues to be pipes and our core geographies happen to be India, Saudi Arabia and America. It is in these — it is in this paraphrase we are working please.
Ritesh Shah
All right. Sir, just a related question. My question was basically the guidance that we have given, does it also factor-in the tailwinds because of the tariffs which have been imposed and given we are in a quite a favorable situation? And if you could also highlight, if I remember, we had certain volumes from India, which were exported, I’m not sure whether it hit the US shores. Do we still have those volumes if the question is correct? And are we looking to continue that if at all?
Vipul Mathur
Yeah. So you’re right. We are — from India, we were exporting a lot of longitudinal pipes to the international market, including America in the earlier days. We will continue to be present into the international market, excluding America for the longitude where we are setting up our own. But there is a — there is a potential in the rest of the world where our product will continue to grow.
Ritesh Shah
All right. And sir, the guidance what we have given, does it include the tailwinds because of the benefits of the tariffs specific to the situation that we are in quite a positive one?
Vipul Mathur
See, Ritesh, these are confirmed order books what we have. We are a B2B company. We have confirmed order books in America. We have confirmed order books in India. When I say confirmed order books, you know all everything is. So when we have given the guidance, all those things have been taken care of and accordingly, the guidance has been given to the marketplace.
Ritesh Shah
Right. Sir, if I put it the other way around, say, six months out, if we had to go and bid for the same project, will we be on a better footing as compared to what we were say six months back or right now, given the tariffs have come? I’m just trying to understand the incremental ROCE and the margin profile. Can it get incrementally better because of the macro that we are in?
Vipul Mathur
I think we will have to judge this situation from a demand and supply gap. I think so the demand seems to be fairly robust in the American subcontinent. You know, in six months down the line, if you know which we — and we believe that the demand is going to be as robust. And if the capable — capacities are booked, then of course, you will always be in a position to improve on your margins. So it’s also a demand in the supply gap in the market at that point in time.
Ritesh Shah
Sure. And sir, my second question is on polymers. I’ll just pick-up from where Sailesh left. We have investment of almost INR1,300 crores. It’s a sizable number. What we have indicated is from FY ’25 to ’27. How should we break this number of INR1,300 crores? Is there a number which has been earmarked for OPVC and what is — how do — how do we look at the outlook or incremental ROC on this business?
Vipul Mathur
So first and foremost, this INR1,300 crore is the investment which is going to happen over a period of time over the next two or three years’ time, number-one. Number two, largely the investments are going to happen for our OPVC business. We strongly believe that this is a game-changing technology. It’s a technological product. It is — it has a huge potential and we are extremely buoyant about this particular product. It — as Salesh asked that question and I answered that is it going to happen overnight? The answer is no, but we have a very strong conviction about Its product, its quality, its sustainability, its utilization and acceptability by the customer.
Ritesh Shah
So breakup of INR1,300 crores, what part of it would be earmarked for OPVC?
Vipul Mathur
Largely it will be. Largely it will be OPVC. I mean, I may not have the specific breakups at this point in time. I think so you can reach-out to Percy and they can give you the specific breakup, but largely it is going to be the OPVC business.
Ritesh Shah
Sure, sir. I have more questions. I’ll join back the queue all the very, sir. Thank you.
Vipul Mathur
Thank you,.
Operator
Thank you. The next question is from the line of Shweta Dixit from Systematix Group. Please go-ahead.
Shweta Dikshit
Hi, good morning. Thank you. Am I audible?
Vipul Mathur
Yes, please.
Shweta Dikshit
Yeah. So sir, my first question would be on the expected margin profile for the new L4 facility that we have announced in US and what kind of margins can we look at is and in for FY ’27, any numbers that you could guide from the new plant in terms of the volume that we could derive in FY ’27 itself? So that’s my first question. My second question is on the capex. Now we are 1/4 — now we’ve entered second-quarter now. And any visibility on what is likely to be the capex for this year and how much was spent in the first-quarter?
Vipul Mathur
So Sveka, let’s say, for your first question about the new LSO plants in Saudi as well as in the US. I think first and foremost, let me just tell you, Switha, that when we announce any capex, we have a process to follow. We are very clear about what is the market demand going to be in those markets over the next three to five years’ time. What is the investment we are making and what is the return on capital employed? We have done all those due-diligence that only we got our respective Board approvals to go-ahead with that. I am very sure.
Right now, as we speak, we are completely focused in terms of executing the project part of it. We are still six months-to nine months-to 12 months away at this point in time in various geographies. So right now, it will be slightly premature to talk about the margins. But I want to assure you, that we have done a complete assessment of the market, complete assessment of the role, what Welspun we can play, what share we can have and moving forward over the next two, three, five years’ time, what is the margins we can make out and that all has always been factored before we took that investment decision.
So I think so let us wait those investment to get crystallized the project plans to come up. And I think so then it will be more prudent to share on a quarter or half yearly basis at what are the margins we are going to make, number-one. Number two, coming to your second question about capex, we have clearly what is the capex what we are going to do this financial year. If you see our investor presentation, we have clearly mentioned what are the projects we are working on, what type of capex we are going to put. And typically, as I say that all this capex, what we have recolated will happen over the next four quarters to five quarters now
Shweta Dikshit
Going by 1Q run-rate of around INR450 crores that we’ve done in 1Q, when we look at almost INR2,000 crores of capex this quarter full-year as well if you annualize it and that should still leave us another probably to INR1,000 crores INR1,200 crores stated for FY ’27 going by the target is 36 numbers.
Vipul Mathur
Whether by design, the capex are more backloaded. You can safely assume that we would be doing close to almost 40 odd percent in this year and the balance in the next financial year. What is important, is to understand is that all this capex are being funded out of our strong operating cash-flow itself. So it has no impact which is happening on the debt side of it. I think so that’s more important for everyone to understand here. But the spread of the capex will be over the two years’ time and by design, typically they are 40% 45% in the first year and the residual in the second year. That may be a right assumption to make, please.
Shweta Dikshit
Thank you. Understood. Thank you so much. I’ll join back the queue.
Vipul Mathur
Thank you.
Operator
Thank you. A reminder to participant to limit your question to per — two per question. If you have follow-up question, we would request you rejoin the queue. The next question is from the line of Neha Talreja from Nuvama. Please go-ahead.
Sneha Talreja
Hi, good morning, sir, team and congratulations on great set of numbers. Just wanted to understand, you mentioned about OPVC orders getting received. So what is the order booking looking like and which are the places from there please received orders? Some color would be helpful here.
Vipul Mathur
Thank you. Good morning, sir. As I said, we have breakthroughs in OPVC orders. They are coming from various states at this point in time. They are coming from the East, they’re coming from central, they are coming from South. These are early days. I’m not saying these order book is huge at this point in time, but they are good enough to start with and good enough that acceptability of the product which seems to be settling down. And as we speak, I think so this momentum is getting built-up — being built-up on a month-on-month basis.
We are seeing a lot of traction, which is now coming up on the OPVC pipes. We are also seeing a lot of the states, government — trade governments also acknowledging and accepting and working in terms of specifications to accept OPVC pipes. I think so these are very fundamental works which are being done, supported by a good order book what we have to start our project.
Sneha Talreja
Okay, that’s good to hear. Just wanted to understand some numbers here. What is the capacity likely to look like by end of March 16 and March 17, and how do you see the utilizations of these capacity going? And at what capacity do we actually start making money because if I’m not wrong, these are huge capex capacity plans?
Vipul Mathur
And if I’m correct, you’re asking with respect to OPVC only.
Sneha Talreja
Only OPVC. Yeah.
Vipul Mathur
I think so it’s a — it’s a little difficult. It’s little premature to tell something like that, to be honest, to predict something like that. I think so there is a lot of fundamental work, groundwork which has to be done in terms of acceptability and acceptance of the product into the specification. I think so that basic work is currently being done on one-side. On the other side, what is being done to keep the plants completely operational to keep on servicing so that the product quality is also getting established into the market. I think, sir, you will have to — we will have to wait on a quarter — so one or two more quarters to really crystallize the number.
If I draw your attention to the last quarter discussions, what I mentioned that way that our focus will — to our focus will be to start producing and dispatching OPVC pipes in this particular quarter. We are walking the top. We have started producing and started dispatching. Last-time also said it is something which we have to build over a period of time. We are going to do that. We are patient to do that and we are more than confident that we will be very successful in that. So I think so you will have to give us some few more quarters when we start discussing exact what are the volumes, what are the predictions, what are the margins. I think so it might be a little good idea to be a little more patient for one or two more quarters, please.
Sneha Talreja
But I say that the understand. Understood, sir. Understood. Thanks a lot team and all the very best.
Vipul Mathur
Thank you.
Sneha Talreja
Thank you, sir.
Operator
Thank you. The next question is from the line of Rakesh from Nine Riverse Capital. Please go-ahead.
Rakesh Wadhwani
Hi, am I audible?
Vipul Mathur
Yes Good morning.
Rakesh Wadhwani
Good morning, sir. Thank you very much for the opportunity and many congratulations to the team for the great set of numbers. Sir, with respect to the EBITDA profile that we are seeing, the volume growth is not high like a single high-digit, but the EBITDA growth is very strong number north of 20% 25%. Just wanted to understand one of the reason you highlighted is good that the order — the orders that were executed were of a high-margin. Is there any other reason for the higher improvement in margins or the profits?
Vipul Mathur
So that is I think so some of your earlier speak — we talked about it in the earlier part of this. EBITDA profile is a factor of what is the product mix what we are executing in that particular quarter. This particular quarter, we have a very — I mean, we had a nice product mix and that will related into this number. Having said that, I think so our product mix for the subsequent quarters also look very-high, reasonably decent. And I’m very sure that we should be in a position to deliver our EBITDA what we have given you as a guidance.
Rakesh Wadhwani
Okay. Sir, one last question from my side. With respect to the plant utilization, what was the plant running at what was the utilization rate for plant in India and the US in the Q1?
Vipul Mathur
Yeah. I think the plant utilization at US level was very-high. I think so we — probably it will be close to 80%, 85% of our plant-level utilization. In India, various plants at various locations have different utilization levels, right? The plants which were for meant for oil and gas, let’s say, if I talk about our longitudinal plant, which is primarily all-in gas export plant, it would have seen almost 80%, 85% utilization. But plant utilization for the plant for water where we are producing pipes for water application, we saw a lower utilization. Quarter one historically is a low utilization zone where the budgets and everything starts in and then we see that pickup happening in The second-half in the quarter two onwards. So there the utilization would have been close to 40% 45% to 50%.
Rakesh Wadhwani
That’s very helpful. Sir, in your opening remarks, you mentioned the plant of — a new plant in Saudi will start in this year. But in the presentation, it is mentioned it will start operating 26th just clarifications.
Vipul Mathur
I said in the financial year, not the calendar year, we are still hopeful that we should be able to do in the longitudinal plant commissioning in this financial year, please. Maybe my apology if I sounded that it is I meant this year, my mistake, please, if I mentioned that please.
Rakesh Wadhwani
Okay. Thank you, sir. That’s very helpful. Thank you and all the best.
Vipul Mathur
Thank you, Rakesh.
Operator
Thank you. The next question is from the line of Sunena Chabria from Chola Securities. Please go-ahead.
Sunaina Chhabria
Yes, hello, sir. Am I audible?
Vipul Mathur
Yes good morning to you. You are.
Sunaina Chhabria
Yes. Good morning. Thank you for the opportunity and congratulations on a great result. So I just have a follow-up question with respect to the volumes and EBITDA margin that is there for Wealth. So like you said, the product mix was a bit better this time. So are you looking at which products are you looking at which gives this kind of margin benefit? Is it the FS bar pipes or is it the line pipes and DR pipes, if you could give a bit of color over there?
Vipul Mathur
It’s a blend of all. Let’s say, historically, the best of the margins comes from the product what we make in US that’s where you have the highest EBITDA, highest margins you have there, followed by our oil and gas products and equally supported and collaborated by our stainless steel. So it’s a blend of all the three things which happen at this point in time and that results into this metrics. So that’s the way you have to say. So it’s a little. When you make multiple products, you know, you’ll see a blend coming into play. So all what matters is that what is the product mix which running in that particular quarter, I think so there is a lot of signs which goes behind working around that.
And I think so that’s what’s always being done. But let’s focus on that, what is the EBITDA which is coming, what is the margins which are coming and more importantly, is it sustainable in future and are we getting to the guidance which we have given? And to that the answer is yes.
Sunaina Chhabria
Okay. And just the second question is, so you’ve spoken about the margin in the US and in India. If you could give a bit of a range as to where it looks like in KSA in the Saudi Arabian market within you know the business that is already there and the new facilities which are coming up. So what is the margin looking like over there?
Vipul Mathur
Sure. So let’s say the facilities what we have, which is the facility, I think so it’s if those numbers are in public domain and I’m sure you have an excess to that, you could see that what type of margins they are operating at. There is nothing hidden around that, number-one. Number two, coming back to the new investments which are going to come up there, you know, as I said earlier, we see a very strong demand, a very strong potential and being wellspun into local market — as a local parent Saudi Arabian market, we will definitely be into a pole position in subsequent quarters to come once we start our operations.
But I think the margins is also a factor,, you will agree is the demand in the supply gap remaining at that point in time. So hypothetically to predict that what are the margins going to be there, you know, six quarters down the line when I’m going to start will be slightly premature. My request would be that as we — let us first commission the project, let us start our operations. And then I think so, we will love to give you the detailed visibility as I always do for all our businesses, for that business too. So that will be a very appropriate time to question and challenge about the margins. Right now, I mean, my personal opinion, it is slightly premature.
Sunaina Chhabria
All right. Thank you so much. Best of luck for the next quarters.
Vipul Mathur
Thank you.
Operator
Thank you. The next question is from the line of Deshna from N Wealth. Please go-ahead.
Vipul Mathur
Hello. Good morning,
Operator
Desha. Desha, hello. MS., your voice is not audible. Hello.,
Ashutosh Somani
Let’s go to the next one.
Operator
Yes. The next question is from the line of Amit Agicha from H.G. Hawa. Please go-ahead.
Amit Agicha
Yes, good morning, sir. Am I audible?
Vipul Mathur
Yes, please a lot. Good morning.
Amit Agicha
Yeah. Yeah, thank you for the opportunity and congratulations for good set of numbers. Sir, my question was connected to the business. Like with TAN increasing to INR85,000 crores post the pipe launch, what is your targeted market-share over the next three years?
Vipul Mathur
Amit, I think so I have Ashish here and probably he will be in the best of the position to give you absolute ground reality and ground run on to that. Ashish, can you take that please?
Unidentified Speaker
Yes. Thank you, Vipul for giving the chance. Amit, we — as we have stated before, we are up — we are a premium player, that’s where our brand is and we are targeting a 5% market-share by FY 30. We continuously work on increasing the total addressable market. So we will look at other opportunities of where we are playing to our core strategy and we are able to increase that. At this point of time, our addressable market stands at INR85,000 crores. But over the next few years, we expect that we will penetrate more and we will also have opportunities to increase our addressable market.
Vipul Mathur
I mean, the way you have to see — see, is a — it’s a company in making. You know, it’s an icon in making, you know. And today to hold accountable that what is going to happen tomorrow, I don’t think so that may be the most appropriate way. Probably, I think so it’s more about belief, more about trust and more about the brand. I think so it is a strong brand. It has a huge brand recall. It is a premium product.
We will continue — our focus is on water storage stacks and pipes and I have no doubt whatsoever, nor should have anyone have any doubts whatsoever in their mind that over year over quarter-on-quarter basis, this company is going from you know is only going to grow from here.
Unidentified Speaker
But if I may just add Amit, you should also note and heartening to note that the work which we have done around revitalizing the brand and the positioning of the brand, which fintechs, which we have sharpened around, Saint, sorry, that has landed very well in the market. And as we have gone into our pilot market, I think we are finding good acceptance of the product superiority as well as the brand positioning, which is in-line with our premium image, which we want to — which we aspire for.
Amit Agicha
And, second question was connect to the order book. Like can you just give a breakup of how much is export and how much is domestic?
Vipul Mathur
Yes. Amit, I think so, as I said, our domestic — you know, I have a bifurcation for India as well as for Americas, which I said is close to-1 million tons, 600,000 tons in American, close to 400,000 tons in India. I think so the subsequent breakup, I will ask Gautam to reach-out to you, you know separately and give you the breakup. I may not have ready available, but broadly this is what the order rate is to be..
Amit Agicha
I will of to come, sir. All the best for the next quarter.
Vipul Mathur
Thank you,.
Amit Agicha
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Shailesh Raja from B&K Securities. Please go-ahead.
Sailesh Raja
Two questions. So we have entered the DI segment to reduce the business volatility and while performance was strong last year, but now the entire industry is seeing pricing pressure building up due to lot of capacity addition and new players entering. So in worst-case, if the pricing pressure persists, then what does our plan be? Just for my understanding and asking that incremental 2 lakh tons that we have added, can we explore we relocating only the DI mini to Saudi similar to how we shifted the Elsa line, just to unlock the value. So what is our plan here?
Vipul Mathur
Salesh, first and foremost, I think so these are very unwarranted fears. I can understand that we — one or two-quarter slowdown has given rise to some doubts in the mind. See, when fundamentally we are not seeing any fundamental shift in this medal scheme, we are not seeing any fundamentals, please. This scheme is our pioneer signature scheme of the country. It is there and it will be there. We still see a traction of at least next three to five years into that number-one.
Number two, as I said, it will be coupled up with urbanized scheme, which is. Please understand recycled water, seaway are the schemes which are yet. Any growth, any developed economy will always go for certain or those applications as well, those schemes as well. I think we are there for the long-term. I don’t think so that there is any reason to be unduly concerned about the viability of the project. There could be one or quarter, one, two-quarter here and there, it can happen, it can happen in any business. But so is the case here. But is there a fundamental issue happening on-the-ground, we don’t believe that. So we have not even given Given it a thought that what could be our plan B? We are very clear that this — this is the right investment. It is an investment which is to pay us back. It is going to be there for sustainable time and it is going to — it is — and that it is with that conviction we have gone to Saudi, it is that conviction we are also exporting — opening the market for exports. So our conviction level has not gone down. And Salesh, my request would be that do not see one or two-quarter industry setbacks or as a — you know, as something which will carry-forward for the very long-time. I don’t think so fundamentally, there is any major shift which is happening.
Sailesh Raja
Okay, okay, sir. Sir, one last question. Sir, our component cash-flow from operations, it has grown 16% over the last six years. So that is very commendable you there and very few companies and listed companies have reported such very strong CAGR in CFO, that is 16% actually for the INR3,000 crore investment. Now with planned capex of INR5,500 crores of investments, what kind of CFO CAGR that you are expecting in next five, six years?
Vipul Mathur
Salesh, first, let me — let me just tell you that, A, we have crystallized the capex. I want to tell you that’s how those fundamentally operate. We have crystallized the capex. We have clearly that to the market. We have clearly said that we will never, ever let our net-debt to EBITDA exceed 1, right? Even if you see for this particular quarter, we are hovering around 0.3 or something
Unidentified Speaker
If I correct, sir. Yeah, we are actually net cash-in a position. So that is the thing. But please go-ahead, sir.
Vipul Mathur
So I mean, we are — it is under these, we will operate. So I mean — and of course, it is a factor of operating cash-flow, the free-cash flow, what is the businesses I have, all these — all that exercise diligence have been done. At a principal level, we are very clear that we have to manage our net-debt. We will not — we will not exceed that. We will have to manage our project cost and the fine lines. So we are where have been established and we will operate under those gardens only. So I am not — I mean don’t — all what I’m trying to tell you, Salesh, that there will be no surprises will be coming up the table.
Unidentified Speaker
Shalesh, if I may just add, the cash — the capex is also spread over two, three years and combined with our strong operating cash flows from our businesses, we are very confident that our balance sheet will remain in a very strong position and our guidance for net-debt to EBITDA is also already put out in the public domain. And you can see the confidence that is getting mirrored in the upgrade that also happened very recently. Yeah, see that.
Sailesh Raja
Okay, sir. Thank you, sir. All the best.
Operator
Thank you. Thank you. The next question is from the line of Raman from Sequent Investment. Please go-ahead.
Raman Venkata Kerti
Hello, sir. Can you hear me?
Vipul Mathur
Yes,, good morning. We can hear you.
Raman Venkata Kerti
Good morning, sir. Congratulations on excellent set of results. I just wanted to understand, is there any onetime profit in terms of like — in terms of EBITDA margin, I mean in-product mix?
Unidentified Speaker
So Raman, in the standalone results, if you see, you will see the Navian Shipyard impact coming in. So that will be there in the standalone. However, in consolidated numbers, there is no such exceptional item in this Q1. So the numbers that you are seeing, the EBITDA that you are seeing consolidated of INR560 crores, that is largely business EBITDA, nothing exceptional.
Raman Venkata Kerti
So what was the — how was the margin improved? Is it operational efficiency at me or the value — the share of value-added products increased due to which EBITDA margin was higher.
Unidentified Speaker
Number-one, I think that already got answered a while back. So the mix of the orders that we are having in this Q1, so India exports, Elso, US coming in, all these things are obviously helped the margins and we are very confident that this is sustainable.
Raman Venkata Kerti
Okay, sir. And my second question is with respect to the fintech. So we are doing INR1,300 crores investment. I just wanted to understand with respect to OPVC pipe, I just wanted to understand this OPVC pipe segment, what is the product? And can you give any rough estimate of asset sir?,
Vipul Mathur
I think so we talked about it in — someone asked this question. I said see, OPVC is a business in making. We have started the production. We already have an order way through. We will be executing in the second-quarter. We are seeing that there is acceptability and acknowledgement across various states, which are coming out with massive distribution network projects in their state. They are recognizing OPVC and they are incorporating into the specification.
I think so these are some basic principal fundamental groundworks which are happening at this point in time, which is the for its growth. So right now, all what we are doing is to create a long-term story around OPVC on which we are we have gone with our fullest conviction.
Raman Venkata Kerti
So I just wanted to understand the product. What’s the difference between UPVC and OPVC or normal PVC?
Vipul Mathur
Gentlemen, this may not be the right for them government to explain you the technical differentiation between the products. I will encourage that you come and visit our plant. I extend the warm invitation to you very under the same roof, you could see an HBP pipe to the UPVC pipe to the CPVC pipe to the OPVC pipe. I think so, one has to really understand the technicality and the superiority of this particular product. We are — this investment by Wellspun is being done after very detailed evaluation about the product suitability and the conviction about the product.
So I think so it will be a very good idea, Raman, that I mean that more than the financial analysis, the technical analysis of this product is also being undertaken and I request you to kindly come and join us at our plant one of these days.
Raman Venkata Kerti
Okay, sir. Thank you, sir.
Vipul Mathur
Thank you.
Operator
Thank you. Ladies and gentlemen, we will take that as the last question. I now hand the conference over to Mr Vipul for closing comments.
Vipul Mathur
Thank you very much, gentlemen, for joining us today for this Welspun Corp Q1 FY ’26 con-call. I believe that we — all the questions what were being raised have been appropriately and adequately answered. But having said that, if you still have any other pending queries in your mind, I think so my team is already there to service that.
Also, I would like to take this opportunity to tell you that the company is absolutely on a growth path. We are very clear. We have very clearly articulated our strategy that what are we going to be in the next 24 months’ time. We are also very clear that what are we going to be in next 36 months’ time and 48 months’ time. Our investments, if you see, are coming on-stream sequentially and we’ll see those incremental margins, profit, EBITDAs and growth coming into a very sequential panner.
You know, friend, all what we are writing here is a story for the next five years with a very clear vision for 2030. I think so these are exciting times here, great opportunities. And at Welspun, we are completely poised to capitalize upon it. Having said that, we would like to maintain our global positioning in all the segments what we are, our customer-centricity, which we are known for and our quality obsession, which has brought us here.
So I think so these fundamental principles with financial discipline, we are navigating this company to a next side. We — and we have always been blessed with your trust. We believe that you will continue to have your faith and trust into us and we assure you that you will not be disappointed. Thank you very much for joining today. Have a good day. Thank you.
Operator
Thank you. Ladies and gentlemen, on behalf of Wellspun Corp Limited and JM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines