Synopsis: Welspun Corp is expanding beyond oil and gas into defence, nuclear, aerospace and energy transition, backed by a ₹23,500 crore order book, Q2 FY26 revenue of ₹4,374 crore, 32.5% YoY growth, and strong multi-year visibility across the US, India and Saudi Arabia.
Welspun Corp is steadily repositioning itself beyond its traditional oil & gas and water pipeline business, expanding into a wider set of critical and strategic sectors that include defence, nuclear, aerospace, energy transition and advanced industrial infrastructure. While large-diameter pipes for oil, gas and water continue to anchor its revenues, recent management commentary and capacity investments indicate a deliberate push towards higher-value, strategic and regulated end markets, supported by a strong balance sheet, a record order book of Rs. 23,500 crore, and multi-year visibility across geographies.
This expansion is not a sudden pivot but a calibrated broadening of Welspun’s manufacturing and engineering footprint, leveraging its stainless steel bars and pipes capabilities, global certifications, and long-standing execution credentials across complex infrastructure projects.
Welspun Corp Limited, with a market capitalization of Rs. 19,256.72 crore, closed at Rs. 730 per equity share, down by 1.77 percent from its previous day’s close price of Rs. 743.15 per equity share.
Welspun Corp Limited has delivered returns across multiple timeframes, with a 1-month return of -7.94 percent, a 3-month return of -20.33 percent, and a 6-month return of -22.04 percent The stock has delivered a -2.34 percent return in the past 1 year and in the longer frame of 5 years it has delivered a return of 491.06 percent.
Welspun Corp Limited, headquartered in Mumbai and incorporated in 1995, is a global manufacturer and distributor of steel pipes, tubes, bars, coils, and plates, operating in India, the US, and internationally. It has two main segments: Steel Products and Others. Its offerings include carbon steel line pipes, ductile iron pipes, stainless steel and alloy products, thermo-mechanically treated bars and billets, pig iron, PVC/CPVC pipes and fittings, water storage tanks, industrial containers, and prefabricated structures. The company also provides infra project services, turnkey solutions, and custom polymer-based products.
Defence Segment
Welspun Corp has confirmed its participation in the defence sector through the supply of high-grade stainless steel bars and pipes, which are critical inputs for defence manufacturing and infrastructure. This segment demands stringent quality standards, traceability and compliance, aligning well with Welspun’s existing specialty steel capabilities. While defence is not yet a dominant revenue contributor, management has clearly identified it as a focus growth area, particularly as India continues to localise defence manufacturing and expand domestic sourcing.
The defence segment also benefits from longer product qualification cycles, which create high entry barriers and reduce competitive intensity once approvals are secured. Welspun’s strategy here is to steadily scale its presence by supplying specialised components rather than chasing large-volume commoditised contracts, thereby improving margin quality over time.
Nuclear Segment
In the nuclear segment, Welspun Corp has indicated its intent to enter and build capabilities rather than positioning itself as a fully established supplier today. The company has highlighted nuclear as an opportunity where precision stainless steel pipes and bars are required for nuclear facilities and associated infrastructure, an area that demands exceptional metallurgical control and regulatory compliance.
Management commentary suggests that nuclear is being approached as a long-term strategic segment, where initial engagement, certifications and technical approvals precede meaningful order inflows. The company says that they have not yet made any prototype on ground and it is a long term pan which could be around 5-10 years.
Aerospace and Space
Welspun’s specialty stainless steel business also positions it to address aerospace and space applications, where specialty stainless steel bars and pipes are used in highly engineered components. Similar to nuclear, this is not yet a volume-driven business but a precision-led segment that complements the company’s strategy of moving up the value chain.
The company’s approach here is consistent with its broader specialty steel roadmap expanding customer coverage, meeting stringent technical specifications, and supplying mission-critical components where quality and reliability matter more than scale alone. Aerospace and space are being developed as future-facing verticals rather than immediate revenue engines.
Energy Transition
Welspun Corp has also outlined its participation in energy transition infrastructure, particularly through hydrogen-ready pipelines and carbon capture and storage (CCUS) pipelines. These offerings build naturally on the company’s existing expertise in large-diameter line pipes while aligning with evolving global energy systems.
While hydrogen and CCUS are still emerging markets, Welspun’s early positioning allows it to remain relevant as pipeline specifications evolve. This segment reinforces the company’s ability to adapt its core manufacturing strengths to new energy ecosystems, without diluting focus on its traditional strengths.
United States Expansion
The United States remains Welspun Corp’s most critical growth geography, with the company reporting more than two years of order visibility extending up to FY28. Its U.S. operations are centred on large-diameter line pipes for oil, natural gas, LNG-linked infrastructure and gas-based power requirements for data centers, including emerging demand linked to data-center-driven energy needs.
Recent large U.S. orders, part of the overall Rs. 23,500 crore consolidated order book, have ensured sustained capacity utilisation and long-term execution visibility. The U.S. business provides Welspun with scale, stable margins and exposure to structurally growing energy infrastructure demand, supporting the company’s broader diversification strategy.
India Expansion
In India, Welspun continues to operate across oil & gas pipelines, water infrastructure and urban-rural water supply, while gradually expanding its footprint in strategic manufacturing segments such as defence, nuclear and specialty steel applications. Water infrastructure remains a core pillar, with pipes supplied for drinking water transmission, irrigation, river-linking projects, sewage and desalination systems.
At the same time, India serves as the base for Welspun’s specialty steel expansion, enabling the company to support defence, nuclear and aerospace customers domestically as localisation gains momentum. The India strategy balances volume-led infrastructure demand with capability-led strategic sectors.
Saudi Arabia Expansion
Saudi Arabia represents a long-term strategic geography for Welspun, driven by oil & gas expansion, water infrastructure and localisation policies. The company is investing in manufacturing capacity in Saudi Arabia to serve energy, water and infrastructure projects, reducing dependence on imports and aligning with regional localisation goals.
Saudi operations enhance Welspun’s ability to serve large, long-duration projects in the Middle East, particularly in oil & gas pipelines, desalination-linked water transmission and associated infrastructure. This regional expansion strengthens order visibility while diversifying geopolitical and execution risk.
Financials
Revenue for Q2 FY26 stood at Rs. 4,374 crore, marking a strong 32.5 percent YoY growth over Rs. 3,302 crore in Q2 FY25 and a 23.2 percent QoQ increase from Rs. 3,551 crore in Q1 FY26, indicating robust topline momentum driven by improved demand and scale-up in operations.
EBITDA rose to Rs. 591 crore in Q2 FY26, registering a sharp 47.8 percent YoY growth compared to Rs. 400 crore and a 12.6 percent QoQ growth over Rs. 525 crore, while profit after tax surged to Rs. 444 crore, up 56.9 percent YoY from Rs. 283 crore and 27.2 percent QoQ from Rs. 349 crore, reflecting strong operating leverage and improved profitability.
A return on equity (ROE) of about 18.6 percent and a return on capital employed (ROCE) of about 21.2 percent, and debt to equity ratio at 0.19 demonstrate the company’s financial position. The stock is currently trading at a P/E of 12.4x lower as compared to industry P/E of 19x.
Taken together, Welspun Corp’s expansion into defence, nuclear, aerospace and energy transition sectors reflects a deliberate evolution rather than a deviation from its core strengths. Large-diameter pipes for oil, gas and water continue to anchor revenues, while specialty steel products open doors to high-barrier, high-specification sectors.
With a record order book of Rs. 23,500 crore, multi-year visibility in the U.S., expanding capabilities in India, and a growing manufacturing presence in Saudi Arabia, Welspun is positioning itself as a diversified infrastructure and critical-sector supplier, capable of participating across traditional, strategic and next-generation markets without compromising financial discipline.
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