Shares of Welspun Corp Ltd are in focus following an announcement that its Saudi-listed associate, East Pipes Integrated Company for Industry (EPIC), has secured a significant contract from Saudi Aramco. The deal, valued at 771 million Saudi Riyal, approximately Rs 2,000 crore or $200 million, involves the manufacturing and supply of steel pipes.
Details of the Aramco Contract
The contract with Saudi Aramco has an estimated execution period of six months. Its financial impact is anticipated to be recognized across the fourth quarter of the fiscal year 2027 and the first quarter of fiscal year 2028. EPIC, a prominent manufacturer of Helical Submerged Arc Welded (HSAW) pipes in Saudi Arabia, operates fully integrated manufacturing facilities and has a proven track record of delivering large-scale projects, aligning with Saudi Arabia's Vision 2030 for infrastructure and energy development.
Impact on Welspun Corp Stock
The announcement spurred positive market reaction, with Welspun Corp's stock closing 8% higher at Rs 2657.70 on Friday, up from its previous close of Rs 2460.50. This surge increased the firm's market capitalization to Rs 70,107 crore. The company's shares have shown strong performance throughout 2026, gaining around 232% year-to-date, making this new order a significant development for investors tracking its growth trajectory.
Broader Growth and Strategic Orders
This latest order from Saudi Aramco comes just about a month after Welspun Corp secured its largest-ever order. That previous contract, worth $1.8 billion (nearly Rs 17,200 crore), was for the supply of pipes from its manufacturing facility in the United States. These consecutive wins have bolstered Welspun Corp's consolidated order book to a record Rs 42,100 crore, equivalent to approximately $4.4 billion.
Company Profile and Future Outlook
Welspun Corp Limited is deeply involved in the manufacturing of steel and plastic products. Its operations include the production and coating of high-grade submerged arc welded pipes, hot rolled steel plates, and coils. The company also provides services related to welded line pipes, ductile iron pipes, stainless steel pipes, tubes, and bars.
Looking ahead, Welspun Corp has set ambitious financial targets, aiming for a revenue of Rs 20,000 crore and an EBITDA of Rs 2,850 crore for the fiscal year 2027. The continuous expansion of its international order pipeline underscores the company's robust growth outlook in the global market.