Welspun secures record $1.8 billion US order as backlog reaches $4.4 billion

Welspun Corp. has secured the largest single order in its history, winning a contract worth about ₹17,200 crore ($1.8 billion) to supply pipes from its manufacturing operations in the US.

The order will be executed during FY28 and FY29, the Mumbai-based company said in a regulatory filing on Thursday, 20 August.

The contract pushes Welspun’s global order book to a record ₹42,100 crore ($4.4 billion) and secures work for the next several years. Before the jump in its shares on Friday, the order was worth roughly a third of the company’s market capitalization.

Welspun named neither the customer nor the project. It also withheld the volume and specifications of the pipes to be supplied, describing the client only as a major global energy company.

The company said the contract reinforced its position in North American energy infrastructure.

Shares of Welspun Corp. climbed as much as 12.1% on Friday to a record ₹2,246, or about $23.50. By 10.04 am, the stock had risen about 173% since the start of the year.

The contract will not contribute to revenue immediately, as deliveries are not due to begin until FY28. It does, however, lock in a substantial production schedule for Welspun’s US business through FY29.

Welspun runs a pipe manufacturing complex in Little Rock, Arkansas, supplying oil and gas producers, pipeline operators and infrastructure companies. The site makes spiral and electric-resistance-welded pipes and offers coating and double-jointing services.

The company is investing another $150 million in Little Rock to build a longitudinal submerged arc welded pipe mill. Once completed, the complex will be the only US facility able to manufacture line pipes ranging from six to 56 inches in diameter, according to the Arkansas Economic Development Commission.

Welspun expects the mill to begin operating by the end of 2026 and start making a full financial contribution in FY28, when work on the new contract is also scheduled to begin.

Demand in the US has been led by liquefied natural gas export projects, oil and gas pipelines and rising electricity consumption. Welspun is also seeing more business from gas-fired power infrastructure being built for artificial intelligence data centers.

Chief Executive Vipul Mathur told analysts in July that US demand remained “very, very buoyant,” with some prospective projects offering work through FY29.

At the time, about 75% of Welspun’s US order book was linked to pipelines carrying gas to Gulf Coast export terminals. Infrastructure serving data centers accounted for the remaining 25%, and Mathur expected that share to grow with subsequent orders.

Welspun has not disclosed whether the latest contract is connected to an LNG project, a data center development or another part of the energy market.

The order comes after Welspun posted record operating earnings in the first quarter. Revenue rose 15% from a year earlier to ₹4,081 crore ($426 million) during April to June, while earnings before interest, tax, depreciation and amortization increased 35% to ₹756 crore ($79 million).

Reported net profit nearly tripled to ₹1,046 crore ($109 million), helped by a one-time gain of ₹548 crore ($57 million) from the partial sale of its stake in Saudi Arabian pipe maker East Pipes Integrated Company. Excluding exceptional items, profit increased 42% to ₹499 crore ($52 million).

Welspun makes line pipes, ductile-iron pipes, stainless-steel products, water tanks and plastic piping across India, the US and Saudi Arabia. North America now accounts for a growing share of its orders and investment.