AI Data Centres, LNG Exports and Oil Pipelines: Why the US Remains Critical for Welspun Corp

Synopsis: A global pipe maker’s US business is fully booked through FY28, with AI data centres, LNG exports, and oil pipelines driving demand that stretches years ahead.

The world’s largest maker of large-diameter line pipes is sitting on a record order book, and much of the momentum is coming from one market – the United States. Rising energy demand, a surge in liquefied natural gas exports, and the growing power needs of artificial intelligence data centres are creating a multi-year pipeline of orders that keeps stretching further into the future.

Welspun Corp Limited is one of the world’s largest manufacturers of large-diameter line pipes, with manufacturing operations in India, the United States and Saudi Arabia. The company’s US spiral mill, which produces pipes used in energy and water infrastructure projects, is already fully booked through FY28 – a clear sign that demand in the country is not a short-term trend.

Why the US Market Is Heating Up

First, the United States is rapidly expanding its LNG export capacity. As Europe and Asia seek alternatives to Russian gas, American LNG has become a key supply source. Transporting natural gas from production fields to export terminals requires extensive pipeline infrastructure, and that means more orders for large-diameter pipes.

Second, the boom in AI data centres is creating electricity demand at a scale the US grid was not built to handle. To meet this need, power companies are investing in new gas-fired generation plants and expanding the natural gas pipelines that feed them. According to the company’s FY26 investor presentation, this power demand linked to AI data centres is among the key reasons for strong multi-year visibility in the US market.

Third, oil pipeline infrastructure in the US is seeing a resurgence. After years of underinvestment, producers are once again building and upgrading pipelines to move crude from shale fields to refineries and ports. This trend adds another layer of order visibility for pipe manufacturers with US operations.

Record Order Book and Strong FY26 Numbers

Welspun Corp ended FY26 with a global consolidated order book of approximately Rs 25,350 crore, an all-time high. This includes line pipes for India and the US, ductile iron pipes, and stainless steel bars and pipes.

On the financial side, the company posted FY26 revenue from operations of Rs 16,770 crore, up 20% year on year. EBITDA came in at Rs 2,371 crore against a guidance of Rs 2,200 crore, with an EBITDA margin of 14%. Profit after tax, excluding exceptional items, grew 42% year on year to Rs 1,613 crore. The company also reported a net cash position of Rs 1,627 crore despite capital expenditure of Rs 2,532 crore during the year. Line pipe volumes from India and the US combined grew 12% in FY26 to 954 KMT, while ROCE stood at 22.%.

FY27 Outlook

For FY27, the company has guided for revenue of Rs 20,000 crore and EBITDA of Rs 2,850 crore, implying growth of 19% and 20% respectively over FY26 actuals. Capacity expansion projects in the US and Saudi Arabia are expected to be commissioned in FY27, which should support higher volumes going forward.

About the Company: Welspun Corp Limited is the flagship company of Welspun World. It makes large-diameter line pipes, ductile iron pipes, stainless steel bars and pipes, TMT rebars, and water storage solutions under the Sintex brand. It has manufacturing plants in India, the US and Saudi Arabia, and serves customers across more than 50 countries.

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