Ladies and gentlemen, good day and welcome to Welspun Corp Ltd Q4 FY 2026 earnings conference call hosted by 360 ONE Capital Market Private Limited. As a reminder, all participants' lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero at the touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sailesh Raja from 360 ONE Capital Market. I now hand the conference over to Mr. Sailesh Raja from 360 ONE Capital Market Private Limited. Thank you, and over to you, sir. Yeah. Thank you, Nitesh, and welcome everyone to the call. We would like to thank Welspun Corp for giving 360 ONE Capital the opportunity to host this interaction today. Without taking much time, I would now like to invite Mr. Goutam Chakraborty to introduce the management team. Yeah, over to you, Goutam. Thank you, Sailesh, good afternoon to everyone. Welcome to Q4 and FY 2026 earnings call of Welspun Corp Limited. On this forum today, we have Mr. Vipul Mathur, Managing Director and CEO, Mr. Percy Birdy, Chief Financial Officer, and Mr. Yashovardhan Agarwal, Director, Sintex. You all must have gone through the results and the investor presentation of the company, which are also available on the stock exchanges and on our website as well. During the discussion, we may be making references to this presentation, I request you to please refer to the safe harbor statement, which is there in our presentation. As usual, we'll start the forum with the opening remarks by Mr. Mathur, post that, we'll open the floor for the Q&A. With that, let me hand over the floor to Mr. Mathur. Over to you, sir. Thank you, Goutam. A very good afternoon to everyone. Let me welcome all of you for our Q4 and FY 2026 earnings conference call. To start with, I would just like to highlight the key performance financial parameters for the quarter and the full financial year. Post that, we can have a more elaborative, detailed, interactive sessions where I would be more than happy to answer any and every questions what you might be having. The key highlights for Q4 and FY 2026 are as under. Our revenue from operations for FY 2026 was almost close to INR 17,000 crore. Our EBITDA is close to INR 2,370 odd crore. Our PAT is INR 1,613 crore, which is up 42% on a year-over-year basis. Our order book currently stands at more than INR 25,000 crore, which is equivalent to $2.5 billion. Welspun continue to be a net cash company despite all the CapExes what we are doing. I'm sure you would have seen our OCF and the free cash flow, what we have generated over this year. The improvements in our EBITDA margins, we have recorded a CAGR growth of 43% year-on-year basis. Our EBITDA margins have been in excess of 14%, and our ROCE has been around 22.3%. If you recollect, friends, at the start of the year, FY 2026, we had given a guidance of INR 17,000 crore of revenue and INR 2,200 crore of EBITDA. As against that, we have been able to maintain our revenue guidance of almost INR 17,000 crore and surpass the guidance, which as against INR 2,200 crore, it stands at INR 2,371 crore. The third guidance, what we had given was that we will maintain our ROCE in excess of 20%, and we have been able to achieve that. I'm also pleased to report, and I'm sure you have noticed, that we have been able to maintain our EBITDA growth and EBITDA margins. These have been the key financial highlights for this particular financial year. The way the last year we had performed, we had seen a very strong tailwind in the businesses across all the geographies, especially in U.S., Middle East, and in India. By our geographical positioning in all these three geographies, we have been able to make the most of it. As you are also aware that we have made significant investments, further investments in these geographies. Looking at the current geopolitical situation and looking at the situation that each country is now deriving for themselves, we see a very strong tailwind for the next few years in all the three geographies, especially U.S. and the Middle East. Let me focus a lot more today on the growth part of it, and I would like to cover each and every continent just to bring in further clarity for all my friends here. First and foremost, let's talk about the U.S., where we have a very significant dominant presence. Today. The U.S. oil and gas economy is seeing a paradigm shift where we are seeing the gas and oil, both of them growing exponentially, resulting into a massive requirement for pipelines for the next couple of years, at least five to seven years. The key economic drivers, economic and business drivers for gas is the LNG exports. Today, as you are aware, U.S. has two or three very high producing basins, Permian happens to be the biggest among lot. They are drilling for the oil, as you know, they are generating or they are producing a lot of gas. This gas needs to be transported to the Gulf Coast, then in form of energy, in form of LNG, it is being exported to the European and the Asian market. This value chain is so strong at this point in time because on one side, we are seeing an excess of gas availability at a very, very cheap price. If you would see, the Henry Hub price is around $3, the international price of LNG is hovering anything between $15-$20. The arbitrage between $3- $20 is giving a sufficient push for all the E&P companies, all the midstream companies to create assets, build assets to transport this gas and monetize this event. This is one of the key drivers which is defining the growth of demand for line pipes in America. The second key driver, which is defining the growth and the demand for the line pipes in America, is the development of multiple AI data centers. There's a huge capital investment, as you are aware, which is happening all across America in terms of creating indigenous data centers. These data centers require uninterrupted power. They are power guzzlers. Looking at the situation, that the national grid reliability being poor, they are putting up independent power plants beside their data centers, and these power plants are gas-based power plants for which the gas need to be transported. When the gas need to be transported, you require pipelines. With the upsurge of multiple data centers which are happening in the U.S., we are seeing a huge surge of pipelines coming up connecting the power plants attached with these data centers. This is the second growth driver currently which is happening. The third growth driver in the U.S. market is also after a long time, we are seeing the resurgence of oil. Today, U.S. is one of the largest producer of oil in the world. After factoring for their domestic consumptions, now they are into a surplus for exports. We are seeing a phenomena of oil exports also coming into the international market, especially to the Europeans and the Asians market, as we are seeing the Russian oil and gas receding from the market. They seem to be capturing that particular market. Both oil and gas, with the arbitrage what they have, currently they produce oil around $40 odd, and with the pricing around in excess of $80, the economic arbitrage is once again allowing them to invest into the oil pipeline. This phenomena is happening after a long time. The U.S. demand drivers primarily are coming from three factors. Number one is on account of LNG exports. Number two, on account of oil. Number three, the demand which is coming up into the AI data centers, in which we are also a part of the value chain. This is a sort of a paradigm shift. This is a fundamental restructuring which seems to be happening in America, and we believe that this play is not a temporary play. Instead, this play is going to be for the next five to seven years' time. We, as Welspun Corp, have a major dominant presence in that particular economy. We currently enjoy more than 33% or 35% of market share. We are seeing a lot of significant emergence of pipelines in the near future. Accordingly, as you are aware, that we have made some more capital investment in terms of new plants, and I am pleased to report that all of our plants are almost booked till FY 2028. With the visibility which seems to be emerging, with the projects what we are seeing, we are more than confident that this order book will only significantly grow from where we currently stand. If I now move to the Middle East. Some countries are working on energy security, and some countries are riding the wave of having economic benefit deriving out of this energy deficiency in the global market. Today, Middle East is also one of the region where there's a huge energy availability, and they are also in the process of monetizing it significantly. They are intending to diversify their portfolio. They are intending to diversify their infrastructure in terms of producing more oil, more gas, and multiple points for evacuation. We have seen in the recent past that while they had sufficient oil, sufficient gas, but they were choked that they could not evacuate it. I think so that learning has gone down deeply into the system, and just about every Middle East economy, oil and gas producing economy, is now focusing on opening up their infrastructure segment and developing multiple evacuation points, which will also require massive pipelines coming up in times to come. As Welspun, we have a dominant presence now in Middle East, especially in the Kingdom of Saudi Arabia. Given the projections, what we are seeing, and given the information, what we are getting from the ground, I think so this market looks extremely promising for us. On the Saudi Arabia, on the Middle East side, as oil and gas is critical, equally critical is the water sector for them. They are investing heavily. They have been investing heavily into the water infrastructure sector for many years, and that goes unabated. We are seeing massive desalination projects still coming up on stream. We are witnessing that multiple pipelines will be required, large diameter, multiple pipelines, which will be required for transporting this desalinated water to the cities. On top of it, we are seeing when this water will come to the cities, there would be a massive distribution network, which has to be created in order to ensure that this water reaches every household. It is in keeping this in view, the distribution network, friends, you are aware, we have invested into our company, in a DI company. We are setting up a greenfield DI pipe project, and we expect to see the benefits of this distribution network in which primarily the DI pipe is being used to benefit out of the same. In the Middle East, it is not only about oil, gas, but it is equally important about water. As your company has invested and have an absolutely local footprint now in place to capture this upcoming opportunities. Coming back to India, which is the third geography where we have a significant presence. We have seen in the last two quarters a sort of a fairly muted growth for various reasons known to you. We expect this situation to continue to prevail for certain times. We understand the country will have some more different priorities at this point in time. To that extent, we expect that the growth here in India could still stay muted. Nevertheless, having said that, India as a country will have to work around. They are working with respect to energy security. There will be a network of oil, there will be a network of gas, and there will be a network of CGD, which is the City Gas Distribution network, which has to be built. The pace might slightly vary, but I don't expect that these things will come to a standstill. The feedback, the government intent, and the allocations, what we are seeing is definitely supporting a sort of a consistent growth rather than an exponential growth, what we could have expected. We see a sort of a consistent growth in all the three sectors, for the oil network, for the gas network, and for the CGD network. Having said that, the water requirement in the country, the investment in the water infrastructure in the country, we are very confident we'll see a sort of an exponential rise. Water, again, being a sort of a scarcity and required for massive irrigation purpose. We are seeing some very large projects which were announced the last year. They're now being coming on stream in this financial year. We see a growth coming up into the water sector, where a lot of large diameter pipes will be required. We have seen that in the allocations under the Jal Jeevan Mission have been fairly decent. We have seen that the allocations have started trickling down to the state governments. The things which were more or less standstill in the last two quarters, we have started seeing traction and movement around that. I am expecting that keeping water as a priority, the government is absolutely focused in terms of giving a further push to this particular sector. I am sure that in maybe one or two quarters could be slightly muted, but the H2 part of the financial FY 2027 could see an acceleration once we have come out with this current geopolitical situation. Lastly, I also want to give you an update with respect to the projects, what we are currently executing. As you are aware, we are executing two major projects in Saudi Arabia. One, a large diameter pipe plant, another, the ductile iron plant for water distribution. We are progressing well. This geopolitical situation has not impacted the progress of these projects. There would have been some supply chain disruptions here and there, but largely, things are absolutely under control. We would see that both these projects will come in stream in FY 2027. We will see the economic benefit, the revenues, and the margins started trickling in FY 2027 itself. Likewise, as you are aware, that we are investing into two assets in the U.S., one large diameter pipeline, which is LSAW, and also replacing our capacity of existing small diameter pipeline. Both these projects are absolutely up on track. One of them, which is the HFIW plant, will come in stream by the end of Q1 of this financial year, which is absolutely as per the plan. Our large diameter pipe plant, which is the LSAW plant, will also come up in operations by the end of this calendar year. We will see all these assets started giving us some upside and margin accretion in this financial year. The full impact, the full benefit of these pipes, of these investments, we would start seeing in FY 2028. Keeping our business in hand, which is almost $2.5 billion, keeping in view that these investments which we have made in these two geographies are coming on stream, keeping in view the underlying dynamics of tailwind into the oil, gas, and the water sector, the management is where we are very confident that we would be doing exceedingly well in FY 2027, and accordingly or very confidently, we have given a guidance of a top line for INR 20,000 crore and an EBITDA of INR 2,850 crore, which is almost a 20% jump on a year-on-year basis. Friends, you will acknowledge and accept that in the challenging times, to make these commitments requires lot of conviction. I am pleased to say that at Welspun, looking at our order book, looking at our executional capability, looking at the premium segments in which we operate at, considering our global reach with global customers, I am very confident that we will deliver, if not exceed, the guidance what we have given. Thank you joining us. I sincerely appreciate you hearing me out, and I am sure that you could have multiple questions around that. With this, I would like to end my comments and open the floor for discussions for any question and answers. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment for the question to assemble. The first question is from the line of Ritesh Shah from Investec. Please go ahead. Hi, sir. Congratulations for a good set of numbers. Sir, if you could provide more color on the quality of the order book by region, I think that would be of great help. Sir, second, you indicated that we are completely booked until FY 2028, I think there's a good and a bad of it. Good is probably we would have already contracted our EBITDA pattern would already be fixed. Given the macro is improving, how should we look at it? Typically, if we had some capacity free, probably we could have asked for more profits on the same order. I'm not sure whether that's the right way to look at it, I would love to have your thoughts. Third is, sir, you indicated on the water projects in Middle East, if you could highlight certain countries. I just read about Jordan giving out a large order. I'm not sure whether we are there, but I presume we would be one of the beneficiaries over here. I think those are three broader questions, sir. Yep, I'll just stop over there, sir. Thank you, Ritesh. Thank you. I think so these are good questions. First and foremost, your question with respect to the quality of order book. I think so we have a strong order book at this point in time, which is almost close to $2.5 billion. It is spread over India as well as in U.S. In India, if I just give you a reference, we would be having close to 1.2 million-1.3 million tons of an order book at this point in time. Out of that, almost 2/3 would be out of U.S., 1/3 would be out of India. This is a very high quality order book. In terms of the margins, these are fantastic orders what we have. Coming back to your question that while this was good, but also that have we overcommitted ourselves and have we lost on the opportunity? My friend, the answer is no. As I said, we are one of the most dominant player in both these geographies, especially in America. The quality of order book, what we have is extremely good in comparison to what the others would be having. Number three, in terms of some capacity, we still have some capacities which are available on our large-diameter side of it. We have strategically kept that open, knowing fully that there would be an opportunity which will come up. We would be able to leverage upon that. I'm very sure that even if we are saying that we have booked till FY 2028, we can still accommodate certain capacities in between if we can get very high, even better value-added orders. We have kept those flexibilities inbuilt into our system, and be rest assured that at Welspun, we will never let go a very profitable opportunity. Number three, coming back to the water sector, water projects. Water projects are growing, mushrooming all across Middle East, especially in Saudi Arabia and all the neighboring countries as well, but Saudi Arabia taking the lead. We are seeing a massive urban growth happening in that country, which requires massive water distribution requirement, and that is where we are seeing the play of DI pipe. Once we come in stream during the course of this year, we will see a huge fraction coming up around that. Also, countries like Iraq, countries like Jordan, they are also pushing their water infrastructure project. We are participants in those particular projects. In some places, we are also in pole positions, and as and when they will materialize, we will keep you updated. In terms of an opportunity, these are opportunities which are there, and we are present, and we are there in a pole position. I hope, Ritesh, that answers all the questions what you have raised. Yes, sir. Sir, just a follow-up. Sir, you emphasized a lot on quality of order book being extremely good. Sir, is it possible to put some quantification over here or some more qualitative remarks to appreciate the quality of order book? Is it like very large dia pipes, or is there an element of coating, testing which is there? Basically, the idea is to not look at it on a per kilogram basis, to appreciate what you do better or what we have in better. It will help us with that, sir. Ritesh Shah, all what we have is mostly large diameter, primarily in the oil and gas space. Right? Especially if you want to see in U.S., I think so we are at this point in time, the entire order book what we have is for the gas space. Today, all the pipes what we are producing either are being used for LNG exports, as I said earlier, or being used for carrying gas to powering the data centers. In these two segments, you deal with one of the top two or three players of the midstream companies in that economy. We have a historical track record with them, and we have orders from them only. We are playing with the premium customers in the premium space, and that is why I am saying that the quality of the order book is good, and that is giving us the confidence, Ritesh, to stick our neck out and give a clear-cut guidance, even in these challenging environments, to give a clear guidance of more than 20% growth on a year-on-year basis. Perfect, sir. I'll join back the queue. All the very best. Thank you. Thank you. Thank you. We have next question from the line of Chetan Sharma from Systematix Shares and Stocks Limited. Please go ahead. Thanks for the opportunity, sir. Am I audible? Yes, please. A couple of questions, sir. From our Middle East plant, sir, are we exporting anything to nearby countries? If yes, then those shipments have experienced any delay? The second one is that does the shipping cost has increased, especially freight charges driven by the higher fuel and insurance cost? Chetan, good morning. I think first and foremost, our Middle East plants, they are in the process of being commissioned, as I said. They will come up fully in operations during the end of this year. The question of currently exporting from there is not there. To the larger question that will those plants will also be exporting from Saudi Arabia, the answer is yes. As and when we will start our operations, primarily our focus would be within Saudi Arabia, but that geopolitical positioning and the location enables us to look at the international export market from there. We will definitely be reaching out to that. To your second question, yes, there has been a supply chain disruptions which have been there. We have seen the shipping cost going up. Fortunately, all the contracts what we had, we were not impacted. There was some minor abrasion here and there, but largely, because we had long-term contracts in place, and all those contracts got honored. Largely, all what we have at this point in time, we did not get impacted because of the increased cost of the shipping. Yes, there has been a significant increase which has happened, and the good part is that we did not get impacted in our existing orders. In the future orders, our future projects what we are participating, accordingly they have been factored for. Okay. Thank you, sir. Last two questions, sir. Is there any hike in the industrial diesel cost, sir, and in absolute term, in percentage term? I'm sorry. Industrial diesel cost price. Domestically? Yeah. Sir, we are seeing that the way the prices are going at, everyone is fully aware of that, Chetan. I mean, there is a cost escalation which has happened, there is no doubt about it. Most of our orders which are primarily export, it is not impacting too much. On the domestic orders, we are negotiating the contract accordingly, factoring with the new diesel cost. One last question, sir. In this quarter, there is no order book breakup according to volume is given in the presentation. If you could guide on that. Hello? Participant, please your management line has disconnected. Please wait, I'm reconnecting. Participants, please note we are reconnecting management line. Participants, our management line has reconnected. Over to you, sir. Yeah. Thank you. Our apology for this glitch. Hello? Yes. Yes, Chetan, did you get your answer? Sir, one last question, sir, on the order book front only. That in this quarter, there is no breakup regarding the order book. Okay. If you could guide on that. Chetan, we have given a sort of a consolidated order book. Today, we are a global company, breaking it up into pieces and this and that, I think so may not be. We can discuss offline. Okay, sir. If you see, the consolidated book stands at around almost INR 25,000 crore. Correct. With almost 2/3, 1/3 breakup here between America and India. Rest details, I think I'm sure that we can share with you offline. Okay, sir. Thank you. That's it from my end. Thank you. Reminder to all the participants, please restrict yourself to two per question. Reminder to all the participants, please restrict to two per question. We have next question from the line of Vikas Singh from ICICI Securities. Please go ahead. Good afternoon, sir, and thank you for the opportunity. My first question pertains to the kind of the supply constraints you are projecting in the future and our capacity coming. Usually, during these times, many of the players try to secure the production capacity. Have we started to get the trial orders or people seeking the inquiry to book our upcoming capacity beforehand, given the waiting period is too long? Good morning, Vikas. Good afternoon, Vikas. This question is. Saudi as well as U.S. new capacities. That's correct. I think so we are gaining a lot of traction with respect to the new assets. At least in the U.S., at least I can tell you that we have not only started getting inquiries, but at the same time we have started getting orders for our new plant what we are setting up there. I think so we are starting with a fairly healthy order book at this point in time with respect to that plant which is going to come up. In case of Saudi, we have started seeing traction. A lot of inquiries have started coming to us. Domestic inquiries start coming to us. I'm very sure that by the time the plant will get commissioned, before that, in any case, we would have a significant order book even for our Saudi plant as well. Noted, sir. Sir, my second question pertains to our cash usage. Given even in next year our guidance are super strong and the CapEx would be lower, we would end up generating more cash than what we can consume. What's the plan though, basically, because these capacities would be coming just on a limited basis, probably we would not go for further expansion. What will we do with the cash? That would impact our ROEs as well. I think that's a fair point you are making, Vikas. If you look at it, despite we have been into the CapEx mode for the last one year, we still have been generating sufficient free cash flow from the business. We will continue to generate sufficient cash in times to come as well. Yes. What we strongly believe, first and foremost, our focus right now is to see to it that all these plants come on stream as quickly as possible and in time, which we are pursuing, and we are confident that they will happen. Number one. Number two, our priority would be to book these plants to their brim. Today, the type of tailwind, the type of market dynamics, what we are seeing, our second focus would definitely be around that we are able to leverage this particular situation, and which we are more than confident to do that. Once we are able to accomplish these two things, then only the question of cash generation will happen. It is a question to be thought about. Is that cash generation going to happen? The answer is yes. I guess it is few quarters away when these questions will become even more relevant, and I'm sure we will be able to give you a very clear-cut plan with respect to as to what are we going to do with the same. Noted, sir. Right now our focus happens to be absolutely bringing these projects into operations, and number two, booking these assets with profitable orders. We are taking a very structured, focused approach towards in that particular direction. At the point in time when this question will come up, we will be ready with an answer. Noted, sir. If I may squeeze in one last question. Sorry for interrupting, Mr. Vikas Singh. Please rejoin the queue for the follow-up question. Sure, no problem. Okay. Reminder to all the participants, please restrict yourself to two per question. We have next question from the line of Pratik Dharmshi from Union MF. Please go ahead. Yeah. Congratulations, the team, for a solid set of numbers. My only question is. Pratik, may I just ask you to just level up your volume, please, a little bit. Yeah. Sorry for that. My question was on the long-term outlook. You mentioned multiple opportunity at the onset of the call in terms of data center, in terms of gas opportunity in the U.S., Middle East, et cetera. In terms of slightly longer term, five to seven years, this run rate which you're getting in terms of order inflow as well as on the growth side, do you reckon it as a sustainable number? How should one read it from slightly longer term point of view, considering you have the inquiries in the pipeline? Pratik, let's see this issue in two contexts. Number one. In FY 2026, if all the companies in America can get a visibility and a confirmed order booking. Forget about Welspun for a minute. Apart from Welspun also. It is not that only I am booked, all others are also booked. If you see in FY 2026, if all the companies can get a visibility for next two years or three years till end of FY 2028, that itself is a clear indicator as to what structural changes are happening on the ground, number one. Number two. As now things are getting more crystal clear, as we are seeing more clarity emerging that what type of data centers are coming up, number one. Number two. What type of possibility of LNG export which is going to happen. What type of oil and gas network is going to get created. It is giving us a very clear sense that this is there for the long haul. We are local there. We are plugged. We are in the market. We are servicing those customers. We are interacting with them on day-to-day basis. They are discussing their plans, that this is what they intend to do. When we are hearing their plans and when we are seeing the micro and the macro indicators that LNG at $3 versus $18, oil $40 versus $100, I think these are no-brainers that this investment and the surge in data centers. They are talking of more than 5,000 data centers in America. These indicators are very clear that this is a fundamental shift which seems to be happening on the ground, it is there for the long term. We are fairly optimistic that this is not a short-term issue. This is a long-term structural changes which seems to be happening in that particular country. Got it. Many congratulations once again. Thank you. Thank you. Reminder to all the participants, please restrict yourself to two per question. We have next question from the line of Sneha from Nuvama. Please go ahead. Hi, team. Thanks a lot for the opportunity. Just couple of questions from my end. Firstly, on the plastic pipe division, how much we've been able to do in FY 2026, and what are our targets going ahead, and similarly for water tanks? Can I ask, Yashovardhan, please, if you can address that? Yashovardhan. Repeat that. Sorry. Sneha, can you just repeat the question? Repeat the question. Yashovardhan wasn't there to answer this, please. Sure. What I wanted to understand is how has your plastic pipe division fared in FY 2026 along with water tanks, and what is the outlook for coming years for both these businesses? Pipes we started in 10 states. Acceptance of the product has been very successful. Learning additions were there, but now the product has started moving, so now we are in the channel-building phase. For tanks, we've had a very strong year. Unfortunately, March with the LPG, because our tanks are a little difficult for storing, so that primarily what we saw in pipes did not happen in tanks as much across all players. Now that we are aggressively following the economy segment in tanks, we are very bullish on the growth of tanks as well. In case of numbers, could you quantify that, how much was FY 2026, and where are we headed for the next two to three years? We're looking at double-digit growth. I mean, besides pipes, but in tanks, we're looking at a double-digit growth every year. FY 2026 revenues for both the division would have been? Existing businesses would have been Sorry. I think it was in excess of something like INR 600. INR 610. Yeah, INR 600 odd crore. The way things are looking towards at this point in time, I think what Yashovardhan is trying to say, both the pipe business and the tank business are showing strong collections. In the last one quarter, you have seen that there has been a crunch in the market because both are directly related to the water sector. We have seen a little bit of a slowdown there, but the thing seems to be coming back on the track. We are very sure that both these segments will kick start sooner rather than later. We are hoping that we should be touching a sort of a revenue and margin growth in excess of 10% in both the cases. Understood. Secondly, on the DI pipes business, how much government allocations have we started seeing? I know you have mentioned two quarters that you are seeing some amount of excitement and payments starting. Could you give more current flavor on it? On the DI side of the business, the conditions have been tough. There are two reasons for that. There has been overcapacity issue, number one. There also has been an issue of payments not coming in. At least one part is getting addressed. The payments have started coming in. We are seeing payments coming into multiple states. We are seeing an uptick. We have already started seeing an uptick coming into that particular business. That's one. Number two, the issue with respect to overcapacity still remains. There's no doubt about that. We would have to find alternate ways and means how are we going to use our capacities? We, being on the port, export seems to be one of our target areas, and we are going to grow that vertical exponentially. Got that. Last. We have next question from the line of Parth Bhavsar from Investec. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity, and congratulations on good set of numbers. My first question is, basically, when do you say no to a particular project? That's a good question. I don't have an answer to that, to be honest. You're stumping me. Why would I say no to a project? What are the threshold ROCE levels? No. You are talking of a capital project or a project where we are bidding? Where you are bidding. Yeah. No. See, Bhavsar, that is a factor of what is that particular project, number 1. What is the competitive landscape around it, number two. How does it fit into our scheme of things in a way that we want to be a niche player? We are not a commodity player. We don't want to play on the lower end of the commodities, especially when I'm talking of the large-diameter pipes for oil and gas sector. I think all these considerations goes into our evaluation before we take a call. There's no one simple answer to that, what is the threshold. I think so we see it from multiple facets, multiple points of view, and then we take a call, Bhavsar. Got it. Sir, just wanted to understand how do we year-over-year target our profitability, because there is a lot of lumpiness in your profitability, right? Just wanted to understand, going ahead in future, how do we plan to target this? Are there specific projects that we are looking at, will there be a continuous lumpiness in your profitability, at least in carbon line pipes business? I think if you see the performance over the last four years, there has been a continuous growth. I will not agree that there has been a lumpiness or we have de-accelerated from there. I think so we have only grown. If you see our performance over the last four years, our EBITDA are in a CAGR of 43%, number one. That's beside the point. As I said, that we are present into quality markets. We deal with premium customers into the premium segment. This is the ethos under which we work at, and I think so the entire infrastructure, the entire facilities have been created and built around this ethos only. Right? I'm sure that if there is a demand in the market, which seems to be there, the underlying tailwind which we are talking about, which is there and which is likely to be there, I think so we should be able to protect, if not exceed or improve our margins. Sir, do you see a bigger enough shift in spreads and in coming two, three years or five years? Mr. Bhavsar, please rejoin the queue for the follow-up question. It's a request. Sir, it is the same question, just a continuation. I'll just end it with this. Yeah. Sir, I just wanted to understand. How do you see if there will be a sudden jump in profitability over the next to two three years? What would be the drivers for the jump? No, I've already told you that. See, jump in profitability is a factor of what type, of what quality of business you are participating into. As I said, the market is buoyant, the demand is strong. We are with the right set of customers. We have a right product to offer. We play in the niche market. We have been delivering profitability. There's no reason why anything should change from here on. Perfect, sir. Thank you so much for answering my questions. Thank you. Thank you. We have next question from the line of Netra Deshpande from Mirae Asset Sharekhan. Please go ahead. Thank you, sir, for the opportunity, and congratulations for the good set of numbers. Am I audible? Yes, you are, Netra. Okay. Good afternoon. Thank you, sir. Sir, you said just now, two large plants which are going to commission in this year. Just would like to know what would be the timeline and what the targets, starting and for the completion of this target, as that would be the new capacity which is going to line up in this. That is my first question. second question, it is, we have seen slight reduction in the volumes of SS pipes. For the segment-wise capacity, can you please explain? If you can please include the Sintex revenue also for the forward guidance, that would be grateful. Also we have seen that the input cost has also slightly increased due to the steel charges. The first question that remains, that is the new large project that you announced that is going to start in this year. Netra, as I said, all these projects, the two large projects which we are currently executing in Saudi Arabia as well as in U.S., are on track. There have been some minor supply chain disruptions here and there, they are not going to impact the project per se. We said that they will all come in stream within this financial year straightaway. We are absolutely clear and confident, we see no reason that why they should not be coming. I also mentioned that both these projects, not only they will come on stream, but they would start also contributing to our top line and to our bottom line and the margins in this financial year. That is the endeavor we are trying to do, I am very confident that we should be able to do that. Now, whether it will be for one quarter, two quarters, three months, two months, that's something which we have to see all these assets will now come on stream in this financial year straight up. We will see some impact of this, some uplift coming from that, and the full impact coming then the next financial year. To your question, that volume reduction in SS. There has been some slowness in the European market. We were one of the large exporters of SS pipe to the European market. Because of the CBAM and all the prevailing conditions and the supply chain, what has disrupted over the last one quarter. There has been a reduction in the volume. The good part is that this could be a sort of a temporary phenomenon. The good part is that the domestic market has bounced back very significantly. The demand in the domestic market, especially in the power sector, is coming out to be very strong. We are one of the largest player in the power sector from our stainless steel perspective. We are very confident that this domestic demand which has bounced back, we will see a lot of traction coming to our stainless steel business. To your third question about Sintex, that's a fair point. I think so from next quarter onwards, we'll start giving guidance about Sintex, and we can start bringing a little more clarity about the volumes and everything. That's a fair point and that's a fair ask, and I think so, we will do that. With respect to the input cost, your last question. Input cost is a pass-through cost to us. The input cost has gone up because on account of freight, on account of fuel, on account of something here and there. But these are typically correspondingly our top line. They are already factored into our top line. They are a pass-through, I don't think so there's too much to read around the input cost because they generally get embedded into our top line and they are a pass-through to our customer side of the thing. Okay, sir. Thank you, sir. Thank you. God bless you. Thank you. I'll be- Thank you. We have next question from the line of Sarvesh Gupta from Maximal Capital. Please go ahead. Good afternoon, sir. Sir, couple of questions. One is on the share of profit and loss from associates. That is also has grown pretty strong in this quarter as well as for the year. What is the sort of the expectation for that in this financial year? I'm assuming that most of the capacities would be running at 100%, so can we see any growth coming from this line item. Related question to that is, because we have so much cash, so is there an opportunity to increase our stake in these associates and JVs? Sarvesh, to your first question, our JV, which is East Pipe, is doing exceedingly well, and this is clearly getting reflected into their performance and in their profitability. That is what you are seeing as a profit of JV coming as a line item into our balance sheet as well. Yes. That is one company that is again, they're into the pole position in the Saudi market. Today, they are the leaders into the Saudi market at this point in time, and they're doing phenomenally and exceedingly well out there. I am sure that their performance will continue to be like this in quarters and years to come because of the underlying demand which is there in the water sector in the Saudi market. If that continues to happen, I am sure that our profit of shares will also see similar returns, if not better. Coming to your second question with respect to the cash and the position what we have and we are going to increase our stake. I think these are certain decisions at the board level. It is much above my pay grade, to be honest. I think so these are some strategic questions which we keep on evaluating at our board level. At this point in time, we are not contemplating anything. As I said, these opportunities, including increasing, decreasing, new M&As, this, that, these are all very strategic questions and which we have a very collaborative, empowered, and a very professional board, and these are the questions which we keep on discussing there, Sarvesh. Okay. Secondly, on the working capital days, I think this has primarily come down because of the advances from the customers, and maybe this is mostly happening because in the U.S., people are paying us advances to book the capacities. How do we look into this situation and how do we extrapolate this going forward? One of the drivers for our ROCE is this negative working capital days that we have now achieved. Percy, can you? Sure. Sarvesh, yes, the market is so buoyant that there are advances coming from the customers on many of the orders. Looking at the outlook in U.S., I think we will continue to get more and more orders and where these type of advances will keep trickling in. We see that while the earlier advances will get utilized as we produce and we ship out, but we are hopeful that the newer orders will keep coming on the similar terms. You can say this is likely to continue. Okay. For this year guidance, how much have we assumed from the new capacity? Mr. Sarvesh Gupta, sorry for the interruption, Mr. Sarvesh Gupta, please rejoin the queue for the follow question. Sure. We have next question from the line of Anand Darshan. Please go ahead. Hello, Anand. Good afternoon, sir. Thanks for the opportunity, and congrats on great numbers. Sir, my first question is regarding Welspun Mauritius has sold its 22% stake in EPIC to Welspun Pipes U.S.A. for a total consideration of INR 2,500 crore. What was the rationale behind this internal restructuring, and how does the management plan to utilize the cash proceeds at the Mauritius entity level? Anand, this is a part of our restructuring exercises which we are doing across all our entities. Earlier, if you see, this entity was sitting in Mauritius, now it is sitting in U.S. This is a part of our plan that we want to park these entities into high-growth areas, where we can achieve more flexibility in days to come, in times to come, if we really want to do something around that. We felt that it will be more prudent for us to, instead of keeping it under a Mauritius entity, it is more prudent to keep it under the U.S. entity. That's a part of a normal restructuring so that we are able to create values around it as and when an opportunity arises. It is only with that simple objective that we have been doing that and have executed that. Right, sir. My second question is regarding this Indian players like Jindals, Man Industries and Rashmi Metaliks are increasingly looking and expanding into the Middle East market. Given this rising competitive intensity, how do you view the demand outlook pricing environment and your competitive position in this region, sir, over the medium term? We are also watching with equal curiosity at this point in time. What you're saying is absolutely right. Just about every other leading Indian manufacturer has shown their intent to be into that particular market, which reinforces two things. Number one, that what we are telling you that there is a fundamental shift which has happened in those markets and there is an underlying demand that is getting revalidated. If everyone else is looking at, the story seems to be convincing, number one. Number two, getting there, start operating, and leveraging is a little bit of a journey. We have also undergone that journey. Everyone will have to undergo that particular journey. Let's not forget that Welspun Corp is in that particular market for the last 20 years. We ventured into that market in 2004. Now for 22 years, we have been present in that particular market with direct foot on the ground for the last 14 years. These markets are good markets. They are nice markets, but then you have to evolve into those markets. I'm sure all these companies, those who have shown their intent, they will eventually do that. In the near term, while the competitive landscape will increase, but will it pose a real threat in the absolutely near term? I don't think so, but nevertheless, we are evaluating that. We will watch it carefully and whatever necessarily we need to do, we'll do that. Sure. Okay. Sir, one last question, sir. We have reported a negative current tax of INR 85 crore during the quarter. Is it because of some refund also, or what was the reason for this? Anand, this negative current tax that you see for the current quarter, it's mainly coming from the U.S. subsidiary that we have. In Q4 of this year, that's in FY 2026, we have done capitalization substantial, and in U.S., there is 100% bonus tax depreciation. What happens is that the earlier nine months, there would have been a current tax provided, but in fourth quarter it gets reversed, and you will have a deferred tax expense coming in. If you see both lines together, you will find that it gets normalized, current tax plus deferred tax. Right, sir. Thank you. Right. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to management for closing comments. Thank you, friends. Thank you for joining us today afternoon for this interactive session, being one of our Q4 and FY 2026 earning calls. I'm sure that I've tried to answer most of the questions what you would have raised. Still, having said that, if you still have any questions in your mind, any doubts, or any clarifications which you need, you can get back to Mr. Percy Birdy or to Goutam, and they will be more than accommodative in terms of answering that. Lastly, I want to say that these are very interesting times for your company. This is clearly reflective into how we have performed in FY 2026, how we have given the guidance for FY 2027, and more importantly, how we are viewing FY 2028 in our internal thought process. I think so, friends, as I said, that with the expansions what we have done, the geographical positioning what we have done, I think your company has positioned itself as truly a global leader in all these three geographies. I'm sure that the next couple of years are going to be very interesting and profitable for the organization. You have maintained your trust and confidence into us. I request that you continue to do so. You have seen the reward our shareholders have seen. I'm very sure that with the type of governance, with the type of growth, with the type of geographical expansions what we are doing, we would be one of the key beneficiaries of being re-rated. I'm sure everyone would get rewarded in the whole process. Thank you for joining this call. Look forward for interacting with you early next quarter, please. Thanks a lot. Bye. Ladies and gentlemen, on behalf of 360 ONE Capital Market Private Limited, that concludes this conference call. Thank you for joining us, and you may disconnect now. Thank you.