Welspun Corp Ltd (NSE: WELCORP) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Goutam Chakraborty — Head of Investor Relations
Vipul Mathur — Managing Director and Chief Executive Officer
Percy Birdy — Chief Financial Officer
Analysts:
Anirudh Nagpal — Analyst
Sneha Talreja — Analyst
Ashutosh Nemani — Analyst
Sailesh Raja — Analyst
Vikash Singh — Analyst
Sucrit D. Patil — Analyst
Karan Bhatelia — Analyst
Radha Agarwalla — Analyst
Sohan Joshi — Analyst
Yash Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Welspun Corp Limited Q3 FY ’26 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 Anirudh Nagpal. Thank you. And over to you sir.
Anirudh Nagpal — Analyst
Ladies and gentlemen, good day and welcome to Wealth Burn Core Limited Q3FY26 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 Anirodh 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 Financial the opportunity to host today’s call. So without much ado, I’ll hand over the call to Mr. Gautam Chakraborty, head Investor Relations, Wellspan Corp. To introduce the management. Over to you Gautam.
Goutam Chakraborty — Head of Investor Relations
Thank you Anirudh. And good afternoon to all of you. Welcome everyone to EN9 months FY26 earnings call of Wellspun Cop Ltd. On this forum today we have Mr. Vipul Mathu, Managing Director and CEO, Mr. Percy Birdie, 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. Mathur and post that we’ll open the floor for Q and A. With that, let me hand over the floor over to Mr. Mathur. Over to you sir.
Vipul Mathur — Managing Director and Chief Executive Officer
Thank you. Thank you Gautam. But friends, 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 a 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 and A today because I am sure that you, all of you would have seen the investor presentation and there is a very detailed outlook has already been provided.
So I think so we should utilize the time and we can go ahead for more Q and A. I think so that will be more helpful. However, if you want any such, you know, 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 US stood at almost 265,000 tons. We the DI pipe sales stood at almost 92,000 tons. The stainless steel bars and pipe sales volume stood at almost 6000 tons and 1600 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 Syntex you know we have, 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 Syntex 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 Q3FY26 EBITDA stood at rupees 645 crore. 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 encashment provisions due to the labor code. Our annualized grosse stands at more than 24%. The pack for this quarter stands at 456 rupees. If you would have seen the last year Q3 PAT had a one time gain of rupees 378 crore on account of proceed from sale of 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 1700 crore ps during the nine months in FY2026 we continue to maintain a net cash position with a net cash position of almost 132 crore. If you see we had given a guidance of close to 2200 crore rupees for the whole financial year. And in the nine months EBITDA guidance of 2200 crore rupees. And in the nine months we are only at 1831 crore.
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 and 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 up, let’s talk about us. I think so. The US market is absolutely into a, continues to be into a bullish mode. We are seeing a significant demand, continuing demand for the pipelines and they are all driven by basically for movement for gas pipelines either for LNG export or primarily for data centers.
We are seeing a surge of, you know, in that surge of data centers coming up in US and with each data center there is they, you know, they have to have their own power plant and all those power plants requires 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 the 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 US offshore is also seeing resurgence. So the movement of domestic movement of oil, 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 upside into that. If we now, if we look at, if we look at Saudi, Saudi.
The 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 Defura gas piping. Defura 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 going up. 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 pipeline. 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, welcome Corp. Is significantly expanding its footprint in the Saudi market by putting up a new formula there. And the outlook, both domestic as well as force looks extremely, extremely encouraging. When we talk of Saudi, you also know that we are expanding in our DI pipes there.
We are putting up a greenfield capacity for DI pipes and the market is very buoyant. There is a lot of infrastructure development which is happening. There is 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 2/3 of the quantity which is coming at this point in time is coming through imports. Once our greenfield project starts producing, the first thing which will probably happen is all the import substitution will start. So we will have a natural platter to play with. We are also pleased to report that, you know, the government of the Kingdom of Saudi Arabia has also started some anti 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 other neighboring countries. And we feel that that will also be a great opportunity for our ductile iron pipe business. So all in all Saudi, you know, we are very, very. We feel very confident that you know, the investments what we have made in our longitudinal plant and the DI plant is will.
Is definitely bound to give us the benefits of the positioning being out there. As regards India, India market, you know, you know India domestic market has been slightly tippered. You know, 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 have, you know, we have, 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 we will continue to focus on more on the export side of it. Recently you would have also seen that we got a breakthrough in the Latin American market, in the Argentinian market. It was a fairly, it was a very competitive market. And 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 pipeline and we also are dissecting the recent budget. Whichever honorable 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 Westman COP India offers a sort of a very unique proposition. So we are, we can produce pipe, we can do all type of coatings, we give all type of bends. We are, you know, we have a strong R and D network. We have an excellent customer base and we have a very, very time tested proven supply chain that positions us very nicely into the global market. In the domestic oil and gas market, as I said, it has been slightly tipping 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 a corresponding to that. We will see a network getting created and we are also seeing, you know, we are also seeing that Gale is about to invest almost 2 to 3,000 crore rupees in FY 2026 for, for pipeline infrastructure including BPCL is also putting up an infrastructure for refineries and petrochem. The LNG capacity is bound to grow from 52 million tons which are, which is currently handled for 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 CD network is also bound to grow and we are seeing a total investment of close to 40,000 crores happening till 2034 in the CDD 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, water has been, 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 Delhi one mission. 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 in quarters to come.
As regards DI pipe, you know we noticed that the JGL has been extended to 2028 which may translate into consistent consumption of DI pipes. The same is also coupled with Amrit 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 special focus on HAM projects. The new requirement is also coming up in serious sector with different type of coatings. We are seeing some very key projects which are going to come up which is like Malatwala Grid, citco, ercp, PKC 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 decorations what wellspun enjoy off late we in the last, you know we have seen some fund currents under JGM but yesterday the Honorable Finance Minister announced almost 70,000 crore allocation to JJ. If once that happens once and I’m sure the moment that starts trickling in which would be you know in the very first quarter of the next year I think so there we will see a complete resurgence of you know of the.
That all the projects which have. 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 in the pipe. You know our focus as government of India 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 at. 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 FTA with multiple countries including Europe which is a big market for us. So all in all put together, you know as the Welspun specialty seal being a fully integrated steel company you know we will be able to leverage not only the domestic market but also benefit under the FDA in days to come. As regards 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 a where the time, the total addressable market is significant. We have started our journey with the OPVC pipe. We have now the approvals and the impanelements 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 order and now we will see with this impanelement and accreditations happening for the OPVC pipe, we are going to see a big momentum coming up into the OPVC in the Syntex market as well. As regards the projects, you know, as I In, in our Q2 presentation we did indicated 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 elsewhere project in America, our ERW project in America, our DI project in Saudi, our elsewhere 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 2 to between quarter 2 and quarter 4, all the projects which we have embarked upon will all be delivered.
Lastly, on sustainability, I am very happy to share that. As for the latest SSP Global Corporate Sustainability Assessment which is The DDSAI index, Wellspun Corp. Is now ranked fifth globally and second in India among the skilled companies into 20. In 2025 we have achieved a 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 DGSI 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.
Questions and Answers:
operator
Thank you very much. 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 two 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 Nuvama. Please go ahead.
Sneha Talreja
Hi, good afternoon team and congratulations on great set of numbers. Couple of questions from my end. Firstly you mentioned that on budget, of course there has been great announcement on JBM 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, you know, see the spending coming in from government. What’s the confidence that we have for this particular year that the amount which is budgeted would actually be spent?
Vipul Mathur
Good afternoon. I think for the last, there is a difference between the last year and this year. I think last year they, you know, they did made 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 jgn. Apparently looks like that the audit is stands completed. And then you know, and, and they, and that’s the reason they have now made subsequent announcement that this, they would be spending the 70,000 crore rupees in the next financial year. So all what we are hearing is that the government has, is absolutely dedicated to complete all the projects which are, which I already announced under JGM Ruler and Amrut, which is the urban part of it. And we are very confident that this spending is going to come into play.
Sneha Talreja
It should be also new that there are some, you know, payments which are pending for the, you know, projects which are already completed. Have we seen signs of revival around for those funds getting released?
Vipul Mathur
We have seen that ma’a m.
Sneha Talreja
Second OPVC front you said, you know, there have been developments. What I wanted to understand was have we received a substantial order book or could you share some order book number with us on the OPVC front.
Vipul Mathur
Yeah, that’s so. So op, OPVC again, this is, OPVC is all about, about approvals, accreditations and impediment. Our focus has been largely around Chhattisgarh area and the Madhya Pradesh area and the south. That is the corridor. We are looking at this point 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 panelment process takes its own time because there’s a lot of testings and everything which is required. And I’m very happy to and please 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, and now we are absolutely poised to grow from here.
Sneha Talreja
Understood. So you mean you’ve got the project approvals in place but order book now will build up.
Vipul Mathur
We have, we have order book, we have some, we have some orders in hand at this point in time but they are contingent to the approvals. Right. And now, now we have the approvals in place now those, those order, those orders will start getting, will come into the execution mode and then it will build up the momentum.
Sneha Talreja
And lastly, while now it’s very obvious that you know you are going to overachieve the guidance which was given for FY25 as a whole. Any guidance that you would want to give for next year.
Vipul Mathur
It’s a little premature, 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, you know, we are working on the, our annual business plans. But in the Q4 when we come for the call, we’ll give you the guidance.
Sneha Talreja
Sure. So thanks sir. And all the very best team.
Vipul Mathur
Thank you sir.
operator
Thank you. The next question is from the line of Ashutosh Nemani from JM Financial Office. Please go ahead. Ladies and gentlemen. Yes, yes, yes, sir. 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.
Ashutosh Nemani
Yeah, yeah. Thank you. From your commentary, it seems from for the next two to three years point of view, majority growth for the company would come from the exports market. So how do you see firstly the 50% penal tariff impact on our business? What negatives does it entail for Belen Corp?
Vipul Mathur
Good afternoon. You are right, I think so. 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 they also. We are going to be a local player in the, we are only a local player in the US market. So tariff 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 market. The tariff markets like America and Saudi Arabia which are the largest consumption center. 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.
Ashutosh Nemani
And just to follow up on this, what percentage of revenue from India factory is being sold to U.S. customers as of now?
Vipul Mathur
Nothing. Zero. We are not, we are not supplying anything. Yeah, we are not, we don’t intend to do anything from India because we, we have a local presence on the ground. So there’s no reason for us to do anything from India. And in any case you cannot do that. You know, there, the anti dumping duties and countervailing duties are so very high that it is commercially unviable now. And more importantly now when we are the local player, you know, you know, we don’t, we don’t neither we will do it nor we’ll let it, let it happen as well.
Ashutosh Nemani
And second question is on DI pipes, despite domestic constraint of growth, we have shown 39 there isn’t a healthy volume growth. So just wanted to understand what has driven this growth. Which market specifically?
Vipul Mathur
Yes, I mean it is all about, it is all about the customer confidence and the trust they have in our, in our serviceability and in our quality. Despite that, there has been a fund crunch into the DI market. But I think the order book, the strength of the order book has been extremely robust. 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, we have been able to tie to these tough times. And now we feel that now in subsequent quarters things are going to ease out. We will see a subs for a further momentum coming up into dip chains.
Ashutosh Nemani
Just to follow up on this for the dip, 39% volume growth does not include the exports. As of now it’s entirely domestic.
Vipul Mathur
No, there was a, there was some component of export, not a very large component of export because you know we have been, 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 you’ll be from in subsequent quarters you will start seeing an export percentage also coming into our dip sales.
Ashutosh Nemani
Okay. And since it’s ebitda, but if you could just tell for DNA what, what it has been in this quarter and the past year.
Vipul Mathur
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. Okay. Because right now all what I have is a consolidated number in front of me. If you want to see a product wise emitter. I think so. Mr. Persian team can, you know, can help you offline please. Will that be okay?
Ashutosh Nemani
Yes. Thanks a lot sir.
operator
Thank you. The next question is from the line of Sailesh Raja from B&K Securities. Please go ahead.
Sailesh Raja
Yeah, thank you. Congrats to you and your team, sir. So with respect to India business, so our volume declined by 20% year on year. Approximately 4 lakh 10 in 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 allotted only 1900 crores for the river linking project. And same thing 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 line pipe business?
Vipul Mathur
See we have to, we have to see the India line pipe 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 had been extremely low. There was a fund crunch which was in place. But now with that getting over, I’m 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 have, you know, we are doing export of a particular volume and that is that, 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 GALE 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 are seeing that they are about to invest couple of you know the three to five thousand crores in terms of developing that pipeline infrastructure. And we see you know multiple projects coming up for bidding in the. In the next financial year which we will be and I’m sure we will get a portion of that in any case. Yeah. Hello, are you. Did you hear me clearly? So hello.
operator
The line from Shailesh has been dropped.
Vipul Mathur
Okay.
operator
We’ll move ahead. Participants who wish to ask questions may press star and one on the touchstone telephone. The next question is from the line of Vikash Singh from ICICI Securities. Please go ahead.
Vikash Singh
Good afternoon sir and congratulation on very good set of number. Sir, my first question pertains to our US business. Have we already seen the quarterly level peak volume which we can sell out from the US business and they are part of the EBITDA contribution in subsidiary and that’s why the we are not increasing the our guidance to that extent because domestic volumes would remain weaker for one more quarter.
Vipul Mathur
Good afternoon. Because 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. 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 2 quarters, 1/4 down the line we will have a new HFIW mill which will be there and then 2/4 down the line by the end of this year, you know we would have our new el saw mill coming up out there.
So those volumes will start ramping up in us and then you then, then the numbers in US will drastically change. So right now what you are, 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 eight quarter of a clear order book till March of 2028. It is completely booked at this point in time.
Vikash Singh
So just a clarification. Once a new spiral mill comes on board can that spiral mill with 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 US for the new spiral. How should we look at it?
Vipul Mathur
Because to correct 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 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 also.
Vikash Singh
Right. And to that also erw this ERW. Capacity is also we are increasing Y which we follow.
Vipul Mathur
Yes, yes, yes. So we already have a existing mill which is up to 20 inch. What we have done is we have not taken a new mill which is up to 24 inch. 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 acting 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 alpha mill 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.
Vikash Singh
My second question pertains to DI business. So coking coal costs have run up quite significantly and more than I said 20, 25%. So does the this kind of sharp cost is covered in our or we would have to take a hit for the higher coking coal prices in subsequent order and until and unless we get the better pricing. How should we look at it?
Vipul Mathur
The way, Vikash, 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 majeure. The you know the coal mines have announced because of the inclement weather out there. Once that metal once we believe that once that element of force major settles down the cooking coal prices should get normalized. And when we get into the market for fresh buy that point in time we would. 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 factored for that. So I’m currently I am agnostic to any price increase because of the coking coal.
Vikash Singh
Notice. Sir, that’s all for my test. Thank you.
Vipul Mathur
Thank you Vikash.
operator
Thank you. The next question is from the line of Sucrit D. Patil from Eyesight Fintrade Private Limited. Please go ahead.
Sucrit D. Patil
Good afternoon to the team. I have two questions. My first question to Mr. Mathur is. As Wellspun 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 behavior would prompt you to recalibrate? Just want to understand your view on this.
Vipul Mathur
So your first question is on if Mr. Patil, 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.
Sucrit D. Patil
More or less. How are you planning to decide about the trade off between book visibility, project. Complexity and margin quality? A contingency plan if you have in mind. I just want to understand that particular thing.
Vipul Mathur
So Mr. Patil, we are a. There is, there’s 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 be. We operate on the top end of the pyramid and that is where we will continue to play. So that gives me, 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 which will and, and enough niche business into the global market which will keep us fairly occupied.
Sucrit D. Patil
Thank you. And my second question to Mr. Peri is beyond the reported financial 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. Healthy assess the cash. Cash cash flow and execution the risk before these show up on your number.
Percy Birdy
Yeah. So Mr. Patil, Wellspun Cop 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.
Sucrit D. Patil
Yeah. Thank you. And best of Luck for the next quarter. Thank you.
operator
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 Bhatelia from MAIQ Capital. Please go ahead.
Karan Bhatelia
Hi, good afternoon sir and congratulations for the numbers. So 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.
Vipul Mathur
Currently has. 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 a order book of. In the oil in side of it of close to 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 300 or thousand tons which gives us a clear vision.
Karan Bhatelia
I’m sorry, your voice is cracking. Can you repeat please?
Vipul Mathur
I’m saying for the US we have a clear. Can you hear me?
Karan Bhatelia
Yeah.
Vipul Mathur
Yes, for the U.S. as I said, we have a clear order book in March of 2028.
Karan Bhatelia
Right. And India DI pipes — 1 year?
Vipul Mathur
Right. And India 1Di pipes is also close to 3/4.
Karan Bhatelia
Got it. Now the 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.
Vipul Mathur
I don’t know what, why you are referring to a revenue decline in us. How, how did you deduce that? How did you decline for previous.
Karan Bhatelia
Previous year? I mean compared to FY25?
Vipul Mathur
You know the law. There has been a volatility in the raw material prices globally. So Percy, maybe I do not reflect on the top of my head. What will you decline in us? My sense, not deep. Nevertheless.
Percy Birdy
Yeah, I’ll just come in over here. So I think current 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 the 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, yeah.
Karan Bhatelia
Comparing correct from the previous year to current year, considering what, what would Be the utilization rate we are expecting for current year FY26.
Percy Birdy
So FY26 we are of course sorry. Go ahead sir.
Vipul Mathur
Yeah. Which is currently into operations will be close almost 85 utilization. It will.
Karan Bhatelia
That’s why your voice is cracking. I couldn’t hear.
Vipul Mathur
Almost 85 to 90% capacity utilization will be there for our spiral mill which is currently operating in U.S.
Karan Bhatelia
Got it sir. Thank you. And all the best.
operator
Thank you. The next question is from the line of Radha from B&K Securities. Please go ahead.
Radha Agarwalla
Hi sir. Thank you for the opportunity. Sir. By when do you expect the anti dumping measures against Chinese layers to be implemented in Saudi? And how much incrementally DI type market could this potentially open up for us?
Vipul Mathur
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 so it is a very wide ranging investigation which seems to be happening. Maybe it might take some one or two quarters. Probably that’s my guess. I. You know we have to understand the whole process. But that’s my best guesses. And today come, you know almost 2/3 of the DI pipes, you know was was coming as an import. You know only 1/3 of the total requirement of the Saudi market was being serviced by the local players. So we see a great opportunity once this entry jumping investigation happens and when the mill come comes into play. I think so this is the 2 3rd market which is coming which we will be able to suggest.
Radha Agarwalla
The investigation is happening against India also. I’m sorry, is this happening against India also? The investigation?
Vipul Mathur
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. It is import specific that you know there is an import which is happening and that need to be curtailed and they need to work out a sort of a policy or regulation.
Radha Agarwalla
Okay. Secondly, in the overseas market could you elaborate on the progress in obtaining customer accreditations for Di5? How large could this opportunity be over the medium term? And additionally with combined India and Saudi bi capacity reaching 9.5 lakh tons by 1h FY27 how long do you think it will take to ramp up and fill this capacity on a conservative basis?
Vipul Mathur
So on the overseas market? I think so. We have been focusing on the European market for our DI types. 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 it will grow number one. Number two Middle east market is our. This is how we are based on the export side of it looks like. You know. And once the Saudi capacity comes I think that will primarily be focused on the domestic requirement to start with and once and also the reconstruction activity where Saudi is the Saudi government. So our focus will be from the Saudi market will be local and the projects which is 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.
Radha Agarwalla
Any color on the customer accreditation from the BI Saudi plant.
Vipul Mathur
See, you only have. You have basically you have one approval there which is the NWC approval which in any case we only as well we only have it. So then it is a matter of going to the you know to all the contractors executing the project as an organization has it.
Radha Agarwalla
Okay sir, thank you. And all the best.
Vipul Mathur
Thank you.
operator
Thank you. The next question is on the line of Sohan Joshi from ASC Consultancy. Please go ahead.
Sohan Joshi
Good afternoon sir. Am I audible?
operator
So there is a lot of background d isturbance from your end.
Sohan Joshi
Now is it audible? Hello.
operator
Yes, yes, yes.
Sohan Joshi
I’m good. Great. So one question I’m sorry I might have missed because I joined recently. What will the impact of the rising metal price just for with regard to steel and aluminum going ahead? I mean other entire bookings have been done for the orders to be executed for the next two three quarters.
Vipul Mathur
So at this point in time. Government announced the nuclear energy.
Sohan Joshi
Am I audible? Hello.
Vipul Mathur
Yeah, yeah, yeah.
Sohan Joshi
Hello. Am I audible?
Vipul Mathur
Yeah, go ahead sir.
Sohan Joshi
Yeah. So in the budget the government announced the the data center nuclear energy. What are the opportunities similar to the US we are finding now even in the India.
Vipul Mathur
We have to you know these announcements are very encouraging announcements. You know they have been these such announcements and such things have you know have been a major catalyst in the U S market. We believe that they will all 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 we are, you know we are you know where the seamless steel pipes and very high quality seamless steel tubes are to be supplied. So we are seeing that, you know there could be a greater positive from a WSSL perspective. Rest we have to see that 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.
Sohan Joshi
Okay, one last question if may I ask.
Vipul Mathur
Yeah, please. Yeah.
Sohan Joshi
There are A lot of damages being done in the, to the Russian refineries. I mean even 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 Russian go to do some capex for the damaged refineries, you know, good business opportunities over there as well. Are we planning to tap something of those opportunities?
Vipul Mathur
So we have not, we have not focused on that yet. We have not explored that as yet. I think we will have to see the, we have to see the government of India policy around that right now. Honest answer is that we have not evaluated that.
Sohan Joshi
Okay. Okay, thanks a lot sir. That’s it on my side.
Vipul Mathur
Thank you.
operator
Thank you. The next question is from the line of Yash from Aart Ventures. Please go ahead. So Yash, can you unmute your mic?
Yash Mehta
Yeah. Am I audible?
operator
Yes, you are audible?
Yash Mehta
Yes sir, I just wanted to know what was the revenue for syntax during t he quarter and for 9 month? FY26?
Vipul Mathur
Sorry, can you repeat? Yeah.
Yash Mehta
So what was the revenue for syntax in during the quarter and for 9 months FY26?
Vipul Mathur
Would you take this please?
Percy Birdy
Yeah. 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 it should be close to about 500 cr.
Yash Mehta
Okay, thank you.
operator
Thank you. The last question is from the line of Ashutosh Nemani from JM Financial Family Office. Please go ahead.
Ashutosh Nemani
Yeah, thanks for the opportunity. Sir, I had one question you mentioned. We are replacing the 20 inch diameter in the HFIW meal 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 means and what is the revenue potential from those Capex and roc?
Vipul Mathur
So this was not one question. You loaded too many questions in the same. But nevertheless let me answer. Okay, Right. So see what we were in our HFIW mill, we were currently having a 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. There is some gas which is also coming in a liquefied form. Now that is a very premium product and that requires transportation.
We are seeing 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 days which is very, very sizable. So that is the reason we took that call that you know, we have, we as we are a large player in the American market, we have to have a complete trade. And that is the reason we are enhancing our capability from 20 to 24.
That’s the first part of the answer. The second part of the answer is about Elo 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 well and other is on the west coast of America. So there will be two ELO players. And looks like the demand, as I said earlier in my call, the demand seems to be coming up significantly. So for this pipeline with very heavy voltage pipes are required. We are also seeing, you know, a resurgence in the US offshore market.
A lot of offshore projects are being announced. So you know we see that in the next few years is going to be very, very dominant. Demand for the ELSO protects as well. And thirdly, there is no importance. So the, 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.
Ashutosh Nemani
This is the last part, what you told about import.
Vipul Mathur
I would say that once you have that. I’m saying once you have the domestic mill operating out there then it completely neutralizes.
Ashutosh Nemani
Okay, it neutralizes the imports. Whatever it’s happening currently, currently it’s not imports. Okay. And for Capex and ROC profile of those two factories.
Vipul Mathur
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 odd percent ROC. That’s what we were talking about. And these are our internal threshold limits for approval. We have, we are sure that, you know, we should be able to achieve that.
Ashutosh Nemani
Okay. Yeah, thank you.
Vipul Mathur
Thank you very much.
operator
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.
Vipul Mathur
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, you know, we, you know, we have been absolutely making all, all that, all the strategic steps in the right direction which is going to build this company for, you know, to, 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 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 Wellspring Corp. And lastly, I would like to say that if there are any other questions which we have, we sincerely tried our best to answer all of you 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 once again for joining us today. All the very best. Good day.
operator
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.