Welspun Specialty Solutions Ltd (NSE: WELSPLSOL) Q4 2026 Earnings Call dated May. 04, 2026
Corporate Participants:
Goutam Chakraborty — Head of Investor Relations
Anuj Burakia — Chief Executive Officer and Whole Time Director
Navin Agarwal — Chief Financial Officer
Analysts:
Manish Doshi — Analyst
Shaurya Shah — Analyst
Maitri Shah — Analyst
Unidentified Participant
Sunil Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Wellspan Specialty Solution Limited Q4 and FY26 earning conference call hosted by 361 Capital Market. This conference call may contain forward looking statement about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Gautam Chakraborty. Thank you. And over to you sir.
Goutam Chakraborty — Head of Investor Relations
Thanks Danish. And good afternoon to everyone. On behalf of Wellspan Specialty Solutions Ltd. I welcome all of you to the company’s Q4 and financial year 2026 results call today. On this call we have Mr. Anuj Burakia, Chief Executive Officer and full time Director, Mr. Navina Agrawal, Chief Financial Officer of the company and also Mr. Percy Birdie, Chief Financial Officer for WellsWarn Corp. The investor presentation is already uploaded on the stock exchanges and also on our website and I hope that you have had a chance to review it.
Request you to please refer to the safe harbor statement in our presentation during today’s discussion. Now we’ll start the forum with the opening remarks by Mr. Boracaya and then we’ll open the floor for Q and A. So I’m just handing over the floor to Mr. Boracaya. Over to you sir.
Anuj Burakia — Chief Executive Officer and Whole Time Director
Thank you, Gautam. Good afternoon everyone. I warmly welcome you all to the quarter four and financial year 26 earnings call of Wellsman Specialty Solutions Limited. Thank you for joining us today. I will begin with a brief overview of the global macroeconomic environment followed by insights into the industry landscape and our company’s performance. Before we move into an interactive question and answer session.
The global economy in financial year 26 has been shaped less by traditional cyclical demand supply dynamics and more by geopolitical developments which have significantly impacted market conditions. The expansion of US Trade restrictions from targeted sectoral measures to broader reciprocal tariffs has introduced structural disruptions to cross border trade flows.
According to the International Monetary Fund’s latest World Economic Outlook, global economic growth is projected at 3.1% for 2026 and 3.2% for 2027, compared to 3.4% recorded in 2025. The Indian economy, however, continues to remain relatively resilient despite ongoing global conflicts. The Reserve bank of India has maintained its FY26 global growth forecast at 7.6% while projecting a moderation of 6.9% in FY27. Quarterly growth for financial year 27 is expected at 6.8% in quarter one, 6.7% in quarter two before improving to 7% in quarter three and 7.2% in quarter four.
That said, the RBI has cautioned that geopolitical tensions, including developments in Iran, along with elevated energy prices, could weigh on the outlook at Wellspun Specialty Solutions Amid heightened volatility and uncertainty arising from global trade actions and demand shifts, we remain proactively engaged with our customers. Our focus continues to be on navigating the the evolving external environment, maintaining operational resilience and steadily enhancing volumes.
I am pleased to share that during financial year 26 we expanded our market reach by onboarding 43 new customers while continuing to strengthen strategic and meaningful engagement across our existing customer base. From a volume perspective, total product sales volume in financial year 26 increased by 37% within this stainless steel seamless pipe grew by approximately 10% year on year while stainless steel bar volumes registered a strong growth of about 45% year on year. I would also like to highlight that overall pipe and tube volume growth got impacted primarily due to a planned maintenance shutdown of approximately one and a half month during H1 of financial year 26.
Our financial year 26 financial performance was in line with expectations with strong improvement in profitability for the year. Total income grew 21% year on year to about 904 crores. Operating EBITDA increased 52% year on year to rupees 47 crores with margins benefiting from improved operating leverage. Cash profit after tax stood at rupees 39 crores, marking a more than threefold increase over the previous year. During the year, our Sendri fundamentals were recognized through rating upgrades by CARE Ratings with our long term rating improved to CARE AA negative and short term rating maintained at Care A1 plus including our commercial paper.
This reflects enhanced balance sheet strength and execution discipline. We continue to advance our value add strategy through key accreditations and product development as 9100D for aerospace IBR for alloy steel bars and tubes Norsoc’s M650 certification commercialization of T91 tubes for power sector development Order from Nuclear Power Corporation of India for nickel alloy 800H steam generator tubes which is under development at this point in time. These milestones strengthen our positioning in high specification and regulated segments supporting sustainable growth and margin expansion.
I am pleased to share that our Breitbar project has been successfully installed and is currently under stabilization. This initiative along with other demottlenecking and capability enhancement efforts strengthen our operational backbone and position us well to drive higher utilization across our steel and pipe making capacities. We remain focused on expanding our portfolio of value added products and grades while simultaneously strengthening capability and broadening our market reach and customer base.
On the sustainability front, our transition towards renewable energy has accelerated meaningfully. The share of renewable electricity consumption increased from approximately 31% during FY25 to 58% during FY26 with the quarter four run rate exceeding 70%. This progress reflects our firm commitment to sustainability and align with our long term ESG priorities. I am also very pleased to share that Wellspurn Specialty is once again awarded with great place to work and more importantly featured in the top 30 Indian companies in mid size manufacturing.
While margins have remained under pressure due to a challenging external environment and subdued demand, particularly in export markets, we continue to execute with discipline. Our focus remains on improving throughput, strengthening core operations and building a resilient platform for sustainable long term growth. In the near term, we have sharpened our focus on domestic market to drive performance while staying well positioned to capitalize on a recovery in global demand.
With that, I would now like to open the floor for your questions please.
Questions and Answers:
Operator
Thank you so much sir. Ladies and gentlemen, we will now begin with 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’ll wait for a moment while the question queue assembles. The first question come from the line of Manish Doshi from 361 Capital Market Ltd.
Please go ahead.
Manish Doshi
Hi. Hi. Am I audible? Yes,
Anuj Burakia
You are very audible.
Manish Doshi
Sure Sir. Stainless seamless types volumes have declined 17% year on year. Can you please help me out with the breakup of domestic and export mix for that seamless types and accordingly year on year comparison for exports and domestic mix.
Anuj Burakia
So Manish, I’ll just correct you here so you Know, our volume of pipe year on year have not declined, they have increased. You know, if I talk of financial year 25 to financial year 26, it has increased by about 10%. And as I said in my opening remarks that, you know, that is basically you can say after we have had a planned shutdown maintenance during H1 of the year for 1 1/2 months. So our run rate, if we really look at it, is in line with what our expectation and our projection was as far as export is concerned.
Yes, I think export markets have been difficult for the last few quarters. And on pipes approximately, I can tell you, like last year we had done about 20% export by volume and which has, you know, come down to almost 10% this year.
Manish Doshi
Okay, sir, I actually wanted to know for quarter on quarter basis it has declined. So maybe you can,
Anuj Burakia
If you see it’s a, you know, it see first of all, there are some time differences, you know, some of the contracts that required supplies to be done in a particular period of time. And plus also there have been this time, you know, some, some significant volume which is goods in transit and which could not be recognized as sales, you know, on the 31st of March. So I think these are just, I mean we, I would suggest that we, you know, on a one particular quarter we cannot really gauge, you know, the overall long term buildup and overall, you know, growth in the pipe volumes.
Manish Doshi
Okay, sir, sure, sir. So my next question would be related to the order book. So may I know the order book value as such and how much is the pipes and how much is, you know,
Anuj Burakia
It can tell you roughly, you know, we, we are still hovering as we used to, you know, roughly around 200 crores worth of order book. And also it’s a fact that the proportion of export has definitely reduced, you know, over past periods. Normally we would always give, you know, the, let’s say projections or indications based on time periods. So our objective always is to have a pipe order book of at least four to five months which has come down to, you can say about three months. And here we have projects or let’s say, you know, plans in place how to get back to four to five months.
Similarly, on the steel, normally, you know, we would desire to have a order book of three months and which has also come down to about two months. But I think these are temporary, you can say, know, temporary situations. And as the market, you know, currently ends, we feel that with this improvement that we are seeing in the external markets or in the export markets, particularly in next two quarters, we Will see a, you know, big change coming back to the order books.
Manish Doshi
Okay, let’s hope for that. So I have another question related to the, you know, the guidance as such. Can you help me out with volume growth which we are expecting for stainless steel bars and pipes for the coming year?
Anuj Burakia
So Manish, had it been a very steady state market, it would be much easier, you know, to really give a guidance. Like last year we knew that there were volatility and based on that we had some plans and we had given a guidance that we will grow by 20 to 30%. Now despite unexpected Iran conflict that started, we could still get that growth and we could still deliver. And like in previous quarters also we had said that next year also we are definitely looking at growing by 20 to 30%. But you know, this is a guidance based on firm plans, firm strategy and you know, firm business plan that has been already built.
Now this definitely, I would say if things externally becomes better, we can perhaps achieve even better. So we cannot completely discount, you know, the external environment which still remains very uncertain and very volatile.
Manish Doshi
Agree to that. Lastly, sir, I have questions. Added to the current numbers, we can see that the payable days have actually increased to somewhere around 140, 145 odd days. Any, any reason why there is a sharp increase?
Anuj Burakia
Well, these are, I mean depends on the customers and depends on the projects. First of the important is whether the payable days are overdue or they are not. So they are not. Right. So if we are selling into projects wherein by design the, let’s say deferred payment is for 60 days or 90 days or likewise. So when we are selling more into India, more into strategic sectors, normally the payment terms are little more deferred than exports. So that may be the reason that you know, some days are increased.
But I think that’s pretty well within the norms.
Manish Doshi
No, I was talking about payable days as in the suppliers are payable.
Anuj Burakia
I think that is, yeah, I think CFO can really address.
Navin Agarwal
Let me Just pitch in here. Our payable days based on sales was say around 160, 30 days in the previous year. Now it is around 160 days. So this is a change which has happened. And these are like normal business basically.
Anuj Burakia
So time difference. Basically. If you see, you know, this is reported at the end of the month but then maybe in two months this will come back to 130 or maybe even 120. Because if you see, you know, the cash balance has increased. So it is only that when they are falling due, then you are Paying them.
Manish Doshi
Okay, that’s it.
Anuj Burakia
Okay, thank you.
Operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touch from telephone. Our next question come from the line of Shaurya Shah from Equity Securities Private Limited. Please go ahead.
Shaurya Shah
Yeah, hello sir. So just first question with respect to order book that you mentioned. Right. So may I know what segment or industry this demand is largely coming from from the perspective of our order book?
Anuj Burakia
So it’s not, I would not say any particular, it’s again a mix. We have been discussing these segments where we operate and I think the same sectors we are operating at this point in time as well. Steel particularly, if you ask me, it’s a very wide range. It goes into so many sectors and when we are selling into, let’s say forgers or stockholders who are niche stockholders. So we really would not know as to where it will end up at all times as far as price and tubes are concerned. As I said, you are almost 85, 90% sales are happening in domestic and there, you know, our focus is absolutely on only strategic sectors.
So most of the sales obviously is coming from energy, which includes oil and gas, thermal, some bit from nuclear. This is one sector that we are, that we are really expecting to grow over next two to three years time. And we are you know, we are completely, let’s say ready, you know, to grab that opportunity.
Shaurya Shah
Okay. And we are also seeing some good traction from the exports side as well. And from the order book perspective,
Anuj Burakia
The export side is not only about wealth specialty. Right. So overall demand has shrunk and you know, to be honest, the stockholders are having lower stocks than what usually they would carry. And that is all coming out of, you know, lost confidence or, you know, lack of optimism at this point in time. So imagine a situation if let’s say the conflict ends and everything is fine and you know, European economy does bit well, then no wonder, I mean we’ll see flurry of demand coming. But whether it will be appropriate for me to say that this is definitely going to happen in next two quarters, it’s uncertain, you don’t know.
But eventually the demand will come. The source or the supply chains are not going to undergo drastic changes. So it could be a time difference, but eventually the demand will come.
Shaurya Shah
Okay. Okay. And from the perspective of the Bright Bar project as well, of course you said giving a guidance will be difficult during these times. But on a broader basis, like from the Bright Bar project perspective, what, what kind of industry or segment are we targeting here? The Demand to come from. And on a broader basis, do we have any plans of what kind of growth do we expect this project to see?
Anuj Burakia
So first of all, as you know, we had earlier also guided the bright bar capacity is required as a. Was required as a demottlenecking action. We already had some bright bar capacity but which was always falling short and we were yet to look for outsourcing and the quality was a challenge and you know, so we wanted to have everything in house and remain ready for next level growth. So this was an important step which was to be taken. Number two, you see anything? I would say 90% plus volume that get exported is all bright.
Right. So we have to have that capability ready at hand when it comes to exports. Third is within domestic. There are certain segments like, you know, the other pipe and tube industry. There are segments wherein the grades like super duplexes or nickel alloys normally are sold as bright bars. So again, the application for all these grades is again, you know, wide spectrum. It is not that it’s going into one particular industry or a particular application.
Shaurya Shah
Okay, okay, understood. Yeah.
Anuj Burakia
It’s overall broad racing of, you know, a value added facility and which also is a showcase as this is one of its kind and customers, especially the export customers. World is like, you know, to have this kind of facility for gaining confidence and giving you more business.
Shaurya Shah
Correct. Understood. Yeah, that’s it from my side. Thank you so much for answering the questions.
Anuj Burakia
Thanks, thanks. Thank you.
Operator
Thank you. Ladies and gentlemen, you may press STAR and one in order to ask a question. Reminder to all the participants that if you wish to ask a question, you may press star N1 on your Touchstone phone. Our next question comes from the line of Maitricia from Sapphire Capital. Please go ahead.
Maitri Shah
Hello, I’m audible.
Anuj Burakia
Yes, you are audible and agree. Thank you.
Unidentified Participant
Good Evening. Congratulations on the result. A few things. Firstly, on the growth like now you mentioned there are a lot of headwinds from the macro scenario going on. What sort of growth are you expecting in maybe on the conservative side for this year and margin on the market. Yes, sorry, please go ahead.
Anuj Burakia
I already said, Matthew, that we are still looking at going anything between 20 to 30% this year. I think it will not be fair to make an assessment or declaring an assessment what is going to happen each quarter. Right. But overall we have a strategy in place. We know which customers we are approaching, we know which projects we are working on and we are more than confident that unless something very, very drastic external thing happens, we will. We Are very confident we’ll be able to achieve 20 to 30% could be even more depending on the market.
Now, I think Would not be inappropriate for me to really talk about it. What only I can talk about is that if you would have carefully seen the last year, what has started to happen is as we are increasing the utilization, our operational efficiencies are kicking in. Right. So In simpler words, we can say that every additional ton, you know, and that too when we are chasing value over volume, which means that our growth of volume is, you know, despite it is 30%, 35%, I would still call it modest. Because we have not been chasing volumes on low value, low grade stuff. So we will remain focused on that. And while we are focused on that, so every additional tonnage that is adding to our portfolio is only going to bring hopefully disproportionate margins compared to the external, the existing average.
So the key remains the same. What had been for last four quarters, we have been saying that we want to utilize our capacity more and more, but in a meaningful manner. And that is what we are going to follow over next few quarters as well.
Maitri Shah
Correct. But we’ve seen in the last four quarters, we’ve seen a bit of a kind of, I would say like a dip on the realizations as well. So do you see that kind of improving for the next year or do you see them being stable for next year? The realization per ton, where do you see that number going?
Anuj Burakia
Realizations are a factor of two things because we are not selling one particular grade or one particular product. So realization are a factor of two things. Sometimes you will find, you may find while the prices have gone down, the realization pattern increases because the grades which sell at a higher price have more proportion in your sales mix. Okay.
So to make it simple, I can tell you that the realizations have definitely gone down. And That has gone down by, you can say about 5% if I look at, you know, on a pertinent basis. At the same time, the raw material obviously also gets corrected, but may not be with the same degree. And that is why the pertinent margin gross margins might have taken some hit.
Now Those are made good by this operational efficiencies that have come in and which have, you can say, which have brought in much higher plus than the difference of the material margin that got hit because of the market factors.
Maitri Shah
Correct. The margins, I feel like are going to increase through operating again, maybe the higher grade volume chasing that we’re going to, but we’re gonna have the upside.
Anuj Burakia
So I, I can say, you know, with confidence that Currently what’s existing in the market is perhaps, perhaps the bottom, you know, things. If you look at scrap prices, of course they, you know, now in last three, four weeks we have seen that they have started to increase and we are watching carefully. And accordingly the prices have also started to go up. But I think it’s more pushed by the cost increase and less by the demand. But in the last year, FY26, I can say, you know, the pricing level was perhaps near to bottom
And The last one quarter also got hit by increase of energy costs which had to be absorbed. As good company, you cannot really pass on everything. So but now, you know, slowly the market start absorbing the effect and then, you know, then that plus effect will also seemingly start coming very soon.
Maitri Shah
And one question on the effective tax rate. Would you expect that to be for FY27 and FY28?
Anuj Burakia
Sorry, I your voice pro. Could you please.
Maitri Shah
Effective Tax rate for FY27 and 28.
Anuj Burakia
So that is 25%. Yeah, 25%. But you see, since we have, you know, the accumulated losses in the company of the past. Yeah. Accordingly the deferred tax asset is, gets created and so, so your PBT basically becomes a pet.
Maitri Shah
So we still have those for FY27 at least.
Anuj Burakia
Yes, yes, we have, we have close to, you can say 500 crores, which culminates to about more than 120, 130 crores of tax shield.
Maitri Shah
That is great. And in the presentation you mentioned that we have kind of been upgradated for the aerospace application. So any, any kind of color you can give on that. Is that a new industry that we’re going to be branching out to? Any innovations we’re doing on that side.
Anuj Burakia
So one similar example of I think some other accreditation I’d explained in the past. I’ll, I’ll just repeat that. You see what happens is these are accreditations, right. So which means that if we are selling a grade which is say for example, an X grade that sells for oil and gas and that also sells for aerospace. Now aerospace accreditation means that your quality, particular quality requirements of the same grade are aligned or in line with what an aerospace criticality needs. Okay.
Now what happens is, let’s say if there is a, there is a large stockholder who is holding that X grade particular size would always want that with the material.
Every other accreditation comes so that don’t have to keep, you know, multiple pieces or multiple stocks of the same material. Are you with me? So let’s say if a, if a stockholder in Germany Wants to keep that particular item. And if I am offering them five certifications and aerospace is missing, they would like to buy from somebody who can give them all 6.
So in a way it’s a, it’s a confidence building that when the customers see that the company is aerospace approved, I mean obviously they, you know, look at you differently. And second is also a requirement for, you know, selling larger volumes into a wider
Maitri Shah
Customer base. Yeah. Hello. Hello.
Operator
Ladies and gentlemen, the line for management has been disconnected. Request you to please stay connected while we reconnect them. Thank you. Ladies and gentlemen, the line for management has been reconnected. Over to you, sir.
Anuj Burakia
Hope I could explain aerospace certification. Well,
Maitri Shah
Yes, yes, yes. Thank you so much for answering. Thank you. All the best.
Anuj Burakia
Thank you. Thank you so much.
Operator
Thank you. Our next question comes from the line of Jash Burji from JBURG Investment. Please go ahead.
Unidentified Participant
Hello. Congratulations. Hello.
Anuj Burakia
How are you
Unidentified Participant
All? Well, I have a question on the raw material movement in prices. How do we compare between the lag between the raw material movement prices compared to the price reset?
Anuj Burakia
Like every other, I would say every other material, the fall in the price is captured immediately and the rise in the price takes time to sell. So but I mean on a serious note, I mean you see in stainless steel, I can tell you that this, you know, the important elements, which is the scrap and a couple of important ferro alloys, which is nickel and molybdenum, if there are just fine tuning happening. So obviously, you know, it takes time to really pass on both sides. So company may get benefited for some time or it may be at a, you know, adverse situation for some time.
But when there is a stark difference, like for example, nickel increased by $2,000 on LME over a period of, let’s say one week. So That gets passed on almost immediately, everyone increases the price. Similarly, if the scrap increased by $100 for example, and which actually happened in last three, four weeks, the scrap and everything has gone up by anything between 100 to $300. So that has been now captured in the costing and you know, the pricing has been accordingly changed.
Unidentified Participant
And you would say that this is larger to cost increases than demand, right?
Anuj Burakia
Yes, you can say that. Because you see, scrap is something which is a global factor. It is not something which is only India centric or India dependent. So obviously when the freights have increased globally, seafarers have increased, there are restrictions in the supply chain and all of that has pushed up the scrap prices across, not just stainless steel scrap. If you look at mild steel scrap Also has gone up. So that is a factor and so that is something which has increased the cost and due to which the prices have also gone up.
We are seeing little traction on the demand side. But normally in a, in a steady state market if stainless steel has to go up by 300, $400, then it has to be, you know, conventionally we have seen that it is always based on demand or let’s say due to demand increase. But here is a mix of both, I would say
Unidentified Participant
And the NPCR steam generator cubes that we have developed in the order that you’ve got for it. What stage of commercialization are we at in that and the revenue potential in this.
Anuj Burakia
So this is as I, you know, as we mentioned that this is the development order in first place. So this is a product which is the heart of nuclear power plant. And you can say that for decades, you know, this had been an item highly protected because of its criticality. And it is only very recently that you know, the, the authorities have become open based on very detailed assessments and audits, a development order has been awarded. Now the process of getting, you know, quality assurance plans and all of that approved is a very detailed and very headbare.
So, so this was, this award was towards the end of last year and currently we have already ordered the raw material. So you can say it is in process. And we see, we expect in next two quarters we will make meaningful progress and we are targeting that within next two to three quarters we are able to deliver successfully.
Now this actually will mean a very significant addition of you can say an approval or a, you know, capability in the company as this is a high value product and all nuclear plants that get built in India and there are, you know, if you look at NPC policy or government policy, they’re looking at adding almost more than 20 gigawatt in probably next 10 years and which is a huge for nuclear.
And having this steam generator tubing approval means that not only steam generator but you know, the next criticality tubes which are also high value, they also, they automatically get added to the capability and the market opens for us. So this is, this is like building our muscle for, you know, grabbing the opportunity which we are seeing around the corner.
Unidentified Participant
Thank you so much. Pretty much clear with everything. All the best.
Anuj Burakia
Thank You.
Operator
Thank you. Next question come from the line of Jigger Shaw from Financial Research. Please go ahead.
Unidentified Participant
Yeah, thank you for taking my question sir, and congratulations. A good set of numbers. So did you mention the current order book, sir? But I don’t know if I’VE missed it.
Anuj Burakia
Okay, we. Thanks Jigar. So we mentioned approximately about 200 crores in value and honestly not to my liking but that’s what the situation outside is. And this is, this cannot force us to start chasing volume instead of value. So we stick to our cardinal principle of only chasing value. And therefore despite the external conditions we still you know wish to only chase value. And we have plans and we are very, very confident that in next two quarters we’ll be back to our original state where we had like almost three months of order book and steel and four to five months in pipes and.
Unidentified Participant
Okay, and so what would be the. If you could give a perspective of the capacity utilization across various segments.
Anuj Burakia
We have a good headroom. I would say last year we utilized on Steel about 50% of the capacity which means we can from here we have the capability to double up our production. Of course it will happen in steps and stages and that’s why we are targeting anything between 20 to 30% this year as well. And similarly on pipes and tubes you can say we are. We are utilizing about 60, 65% of the capacity. And so there also we have a headroom to grow
Unidentified Participant
And any guidance on CapEx for the current year.
Anuj Burakia
So currently see we did major capex on right bar facility and some upgradations last year. So this year we do have plans for some upgradations and you know automation and those kinds. We are not going to add any great new facility or you know new new capacity. So I would think about 10 crores of total capex this year some of which is a part of a spillover from the erstwhile project which is already going on and maybe some, some bit of new additions and upgradations here and there but nothing great, nothing, nothing major this year.
Unidentified Participant
Thank you sir and all the best. Thank you.
Anuj Burakia
Thank you. Thank you so much.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and one on the touch on telephone. Our next question comes from the line of Sunil Jain from Nirmal Bank Securities. Please go ahead.
Sunil Jain
Thanks for taking my question. My question relate to more of your own business. So how much of the revenue and how much is the export to the Middle east countries where the currently the situation is disturbed.
Anuj Burakia
If I since your voice broke in between. So in if I understood correctly you are talking of export business, right?
Sunil Jain
Yeah.
Anuj Burakia
Right. And so specifically you see we are into two products which is bars or let’s say steel. Now steel is something which will sell to you can say mostly into B2B right. When I say B2B. So if we are selling our steel to a forger, now the forger may be utilizing it to produce flanges or you know, shafts and then exporting it to Middle East. So we may not know in all the cases how much of our steel is going and landing into Middle east area. Right. But I can tell you that as far as domestic market is concerned, the effect seems less since the volumes have grown.
And you know, there we are seeing a very good traction as far as export is concerned to let’s say Europe and also to Southeast Asia, which are again big suppliers of steel or related manufactured component to Middle East. We are definitely seeing a dip in demand and that is what is reflecting in our proportion of exports.
Also. So similar is the case of pipes and tubes where the tubes are going into heat exchangers or other, you know, different kind of equipment and then those are getting exported into various countries, including Middle East. So it is somewhere bringing an effect, no doubt about it. But if you’ll ask me that what we are directly exporting to Middle East, I mean we have very, very low exposure.
Sunil Jain
Okay, sir, that’s good. So second question relate to you said that this selling through B2B. So can you define how much is sold through channel or distributors and all and how much percentage is direct to the consumer like OEM and all?
Anuj Burakia
Well, you see, I think our as far as India domestic, which is a main market at this point in time, and export remains only 20% in steel. The culture in export market, you can say is that most of it goes to the stockholders and they are very large, you know, each of those. And that includes the likes of Thyssen Krupps and the JK Metals of the world who are holding stocks in billions. And the business design is such that when a customer comes, let’s say refining a refinery goes into shut down, maintenance, they would require 500 different items.
Right. And what we are supplying make, you know, could be maybe 3, 4, 5, 10 items out of that. So all these stockholders are large aggregators and they, you know, kind of complete the bill of material when it comes to large requirements. So that is how things operate, you know, in most of the export markets, including South Africa, Europe, Taiwan, anywhere we go here in India, I would say 90% plus of our sales are going directly to the users, to the, either they are forgers or pipe mills or machining companies or you know, any of those.
Sunil Jain
Okay, great. So last question related to the price increase which has happened recently. So is there any time there Will be definitely time difference between you procure your raw material and the finished product goods is sold. So do we make inventory gain in that or. No.
Anuj Burakia
See we, from, from the very beginning we had been very disciplined in our raw material coverage. And we don’t, you know, we don’t take exposures which can. We have seen times when things can really go haywire. So in our case, you can say we are literally sort of back to back and the inventories that we carry in our order book all the time would nearly be the same. So if there is an increase in raw material price, you know, whether we buy that raw material the same day or not, but we increase our selling price and vice versa.
Sunil Jain
Great. Thank you very much for answering my question.
Operator
Thank you ladies and gentlemen. Anyone who wishes to ask a question may Press Star and 1. Our next question come from the line of Savik Monty from Noama Wealth Management. Please go ahead.
Unidentified Participant
Hello. Hi sir.
Anuj Burakia
Hello.
Unidentified Participant
Hi. The first one being what would you estimate our volume growth would have been if we had not taken the planned maintenance? And the second one is with respect to the domestic market. Currently as we are focusing on domestic market, could you give us some quantitative numbers in terms of if you have increased our branding spends, if we have expanded our sales team in order to penetrate the domestic market. Thank you.
Anuj Burakia
So I will take the second part first. Of course we are expanding our team as we expand customer base as we have to approach different segments and different customers. And you see this is a business which doesn’t, where it is very rare, you know, that you are able to sell thousands of tons in one deal. These are always small, small numbers. And therefore obviously the effort, customer effort is very, very high. So we are consistently adding capability and competence to our sales team, number one.
Number two, as far as the, your first part was concerned. Just. Just one thing. Yeah, So. So as you know, I was mentioning the number of months that the shutdown had was taken was one and a half month. So if I just literally take that as a mathematics, you know, probably instead of 10%, we would have grown by 20%.
Unidentified Participant
No. So do you think, I mean looking at the market scenario, do you think we would have been able to grow at 20% is my question?
Anuj Burakia
Yes, of course, why not? I mean, see this shutdown was in H1 and you know, we always were sitting on the order book, including now. So it was a planned shutdown which was planned during FY25 in the middle of FY25. And some of those things required lot of, you can say, preparation Ordering of spares and you know, ordering of services. And so it was well planned and a major one was taken. And then it started to give the desired benefits of productivity, quality, you know, lesser downtime and things like that.
And this is something that requires to be done or is recommended to be done every five years. Right. So. So we had completed five years ever since into, you know, 2020, this, this major overall was done. And then I see this coming again, maybe towards 30, 20, 30, 31.
Unidentified Participant
Understood. Thank you. Thank you so much.
Anuj Burakia
Yeah, thank you.
Operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question, press star and 1. Our next question comes from the line of Manish Doshi from 361 Capital Market Limited. Please go ahead.
Manish Doshi
Hi sir, I just had one small bookkeeping question. So investments for this FY26 has actually increased. Can I know the nature of the investments that will be also?
Anuj Burakia
Yeah, thanks Maniji. I think I’ll request our CFO, Mr. Nami to take up this question.
Navin Agarwal
Yeah. Our investments and cash includes some amount of cash, some amount of fd, some amount of mutual fund and bonds investment in PC.
Manish Doshi
Thank you. Thank you. Thank you.
Navin Agarwal
Thank you.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and 1. Is there no further question from the participant? I would like to hand the conference over to the management for the closing remarks. Thank you. And over to you team.
Anuj Burakia
Thanks everyone. In closing, we remain firmly focused on driving continuous improvements in operational performance and efficiency while proactively addressing evolving customer requirements. Our strategy is centered on capturing opportunities early, strengthening our market position and expanding our presence across both existing markets and new geographies, laying a strong foundation for sustainable long term growth. Regarding this next phase, when wellspun Specialty continues its transformation from a foundational strength to a bold and respectable contender, our vision remains clear and focused towards maximizing stakeholders value we trust.
We have addressed your questions satisfactorily. Should you have any further queries, please feel free to reach out to our investor relations team who would be happy to assist. Thank you once again for joining us today. We look forward to connecting with you again soon.
Operator
Thank you so much, sir. Ladies and gentlemen, on behalf of 361 Capital Market Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line.