Welspun Corp Limited , a prominent player in the steel pipe manufacturing industry, has taken a significant legal step by filing a Statement of Claim against Wasco Coatings Limited and Wasco Energy Limited. The arbitration proceedings, initiated under the Rules of Arbitration of the International Chambers of Commerce in London, seek damages ranging from USD 35.5 to 43.5 million.

Background of the Dispute

The conflict stems from a Shareholders Agreement (SHA) signed on August 25, 2015, between Welspun Corp and Wasco Energy Limited. This agreement led to the formation of a joint venture company, Welspun Wasco Coatings Private Limited, in India. Wasco Coatings Limited later adhered to this agreement, committing to hold shares and fulfill obligations on behalf of Wasco Energy.

Core of the Contention

The crux of the dispute lies in Wasco Coatings' alleged failure to comply with a crucial clause in the SHA. According to Welspun Corp, Wasco Coatings was obligated to:

1. Notify Welspun Corp
2. Offer an option to acquire 25% shareholding in any new concrete weight coating plant established in Qatar and certain other Middle Eastern countries

Welspun Corp claims that around 2019, Wasco Coatings incorporated a company in Qatar engaged in concrete weight coating without providing the required Option Notice. This action, Welspun asserts, resulted in a lost investment opportunity in Qatar.

Financial Implications

The arbitration claim filed by Welspun Corp is substantial, ranging from USD 35.5 to 43.5 million. This amount represents the company's estimate of the investment opportunity lost in Wasco Qatar. Additionally, Welspun Corp has included other non-monetary claims and reliefs in its filing.

Welspun Corp's Financial Position

While this legal action is significant, it's worth noting Welspun Corp's robust financial standing. As per the latest balance sheet data:

These figures suggest that Welspun Corp is in a strong financial position to pursue this legal action, with growing assets and equity.

Implications and Outlook

This arbitration case highlights the complexities of international joint ventures and the importance of adhering to shareholder agreements. The outcome of this case could have significant implications for both Welspun Corp and the Wasco entities, potentially affecting their future collaborations and market positions in the Middle East region.

As the arbitration proceedings unfold, stakeholders will be keenly watching for any developments that could impact Welspun Corp's financial outlook and its strategic position in the global steel pipe manufacturing industry.

Welspun Corp Limited (WCL), a leading player in the pipes and steel industry, has reported a significant 53% year-on-year increase in profit after tax for the second quarter of fiscal year 2026. The company's financial performance and future outlook were highlighted during its Investor Day presentation held on November 13, 2025.

Financial Highlights

WCL's Q2FY26 results showcase robust growth across key financial metrics:

The company's EBITDA margin improved, with EBITDA growing faster than revenue, indicating enhanced operational efficiency.

Operational Performance

WCL's operational metrics also showed significant improvement:

• Total pipe production increased by 22% year-on-year to 252 KMT in Q2FY26.
• Sales volume rose by 22% to 79 KMT compared to the same quarter last year.

Strong Order Book

The company reported a robust order book valued at approximately INR 23,500 crores, comprising:

• Line Pipes (India + USA): ~1,250 KMT
• DI Pipes: ~355 KMT
• Stainless Steel Bars & Pipes: ~6,950 MT

This substantial order book provides visibility for future revenue streams and underscores the company's strong market position.

Strategic Expansion and Growth Drivers

Welspun Corp highlighted several growth drivers and strategic initiatives during the Investor Day presentation:

1. USA Operations: WCL is the largest player in the USA, offering pipes from 6" to 60" OD, including DJ and coating capabilities. The company is well-positioned to capitalize on the growing demand for natural gas infrastructure in the US.

2. Kingdom of Saudi Arabia (KSA) Expansion: WCL is set to become the largest player in KSA with new greenfield projects expected to be operational by Q1FY27. The company's expansion aligns with Saudi Arabia's Vision 2030, which presents significant opportunities in infrastructure development.

3. India Growth: The company is expanding its product range in India, including a full range of plastic pipes under the Sintex brand, targeting both B2B and B2C segments.

4. Stainless Steel Segment: Through Welspun Specialty Solutions Limited (WSSL), the company offers an integrated facility for stainless steel production, from steel-making to finished pipes.

Financial Strength and Credit Ratings

WCL maintains a strong financial position with a net cash position of INR 11 crores, even after significant capital expenditure of INR 950 crores in H1FY26. The company's credit ratings remain strong, with AA ratings and stable outlook from CRISIL and CARE for long-term facilities.

ESG Initiatives and Workplace Recognition

The company emphasized its commitment to environmental, social, and governance (ESG) practices. WCL has been certified as a Great Place to Work for two consecutive years, with improved scores in trust index and employee satisfaction metrics.

Management Guidance

The presentation indicates that the company's leadership is focused on sustainable growth, margin improvement, and maintaining a strong return on capital employed (ROCE). The management has provided guidance for revenue growth of 10-12% CAGR over three years, with EBITDA margins of 22-23% and ROCE targets of 25%.

Conclusion

Welspun Corp's strong Q2FY26 performance, coupled with its robust order book and strategic growth initiatives, positions the company well for future growth. The company's focus on expanding its presence in key markets like the USA and Saudi Arabia, along with its diversification into new product segments, may provide multiple avenues for sustained performance in the coming years.

Investors and stakeholders will likely watch closely how WCL executes its growth plans and maintains its financial strength amidst global economic challenges and evolving market dynamics in the infrastructure and energy sectors.