Credit Rating

WCL/SEC/2026 5th August 2026 BSE Ltd. National Stock Exchange of India Ltd. Listing Department, Exchange Plaza, P. J. Towers, Dalal Street, Bandra-Kurla Complex, Mumbai – 400 001. Bandra (E), Mumbai – 400 051. (Scrip Code: Equity - 532144), (Symbol: WELCORP, Series EQ) (NCD – 960491 and 973309) Dear Sirs/ Madam, Sub.: CARE Ratings Reaffirms its rating on the Company’s Long Term Bank Facilities and Non-Convertible Debentures to ‘CARE AA+; Stable’ Ref.: a. Regulation 30 read with Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 b. ISIN: INE191B01025 This is to inform that CARE Ratings has reaffirmed the rating of our Long Term Bank Facilities and Non-Convertible Debentures to “CARE AA+; Stable”. The rating on short-term facilities and commercial paper too is reaffirmed at “CARE A1+”. As per CARE, the reaffirmation in ratings assigned to the bank facilities of Welspun Corp Limited (WCL) continues to derive strength from extensive experience of its promoters and management in the steel pipes businesses, company’s long track record of operations as being one of the dominant players in India and USA welded pipes manufacturing industry, particularly large diameter line pipes. The ratings further factors WCL’s healthy capital structure and strong liquidity position, alongside healthy operating cash flows generation. The rating further draws strength from strong brand recall resulting in continued inflows of new orders across both domestic and overseas markets including the USA and other export geographies. The report highlights the following key strengths of the Company that remained as key rating drivers:  Strong business risk profile  Sustained improvement in profitability  Healthy financial risk profile with strong cash accruals  Healthy order book position, providing medium-term revenue visibility Assigning a “Stable” outlook, CARE also reflects that, WCL is likely to maintain its strong market position, which, coupled with the favourable demand scenario in the domestic, US and export market, along with the optimum capacity utilisation of the added capacity, will enable it to sustain its healthy business risk profile over the medium term. The press release issued by CARE Ratings is attached. This is for your information and records. Yours faithfully, For Welspun Corp Limited Kamal Rathi Company Secretary and Compliance Officer ACS-18182 Encl. a/a. Press Release Welspun Corp Limited August 05, 2026 Name of the Facilities/Instruments Amount (₹ crore) Rating2 Rating Action Regulator1 784.00 Long-term bank facilities RBI CARE AA+; Stable Reaffirmed (Reduced from 1,059.00) 5,984.00 Short-term bank facilities RBI CARE A1+ Reaffirmed (Enhanced from 5,709.00) 40.00 Non-convertible debentures SEBI CARE AA+; Stable Reaffirmed (Reduced from 240.00) Commercial paper RBI 600.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of the rating assigned to the bank facilities/instruments of Welspun Corp Limited (WCL) continues to derive strength from extensive experience of its promoters and management in the steel pipes businesses, company’s long track record of operations as being one of the dominant players in India and USA welded pipes manufacturing industry, particularly large diameter line pipes. The ratings further factors WCL’s healthy capital structure and strong liquidity position, alongside healthy operating cash flows generation. The rating further draws strength from strong brand recall resulting in continued inflows of new orders across both domestic and overseas markets including the USA and other export geographies. In FY26 (FY refers to the period April 01 to March 31), WCL reported total operating income (TOI) of ₹16,749 crore and PBILDT of ₹2,207 crore. The company’s PBILDT/tonne (for pipes and other steel business) improved from ₹ 11,922/tonne in FY25 to ₹14,413/tonne in FY26 supported by healthy margin contribution from the USA line pipes business. While the DI Pipes segment witnessed underperformance, the same has been largely offset by strong operational profitability in the USA line pipes segment which commanded much higher profitability than the domestic markets. Over the past few years, WCL has successfully commissioned and implemented various greenfield/brownfield capex (USA HFIW pipes, DI Pipes, TMT bars) and reconfigured some of the facilities (alloy to stainless steel) which has been positively factored in CARE Ratings Limited’s (CareEdge Ratings) analysis. The Lines Pipes segment (~67% of the installed steel products capacity), continues to be driven by the company’s U.S. manufacturing operations. The medium-term demand outlook in the oil & gas pipeline sector within USA remains strong, driven by significant investments in LNG export infrastructure and increased power infrastructure demand for AI data centres. Demand visibility over long-term is further supported by the increasing focus of major economies on strengthening energy security, expanding interstate and cross-border pipeline connectivity, and developing alternate transportation routes in Middle East amidst continuing geopolitical uncertainties (around the Strait of Hormuz). However, these strengths are partially offset by the challenging operating environment in the domestic DI pipe segment (~20% of installed steel pipe capacity), which witnessed sharp moderation in profitability during FY26 and expected to remain subdued over near-to-medium term owing to the funding slowdown under the Jal Jeevan Mission (JJM; govt scheme), resulting in pricing competition and margin compression. Nevertheless, the impact has been mitigated to an extent by WCL's diversified business profile, and sizeable long-term opportunity in the domestic water infrastructure sector, with substantial investments pending under JJM expected to support demand revival over the medium- to-long term. Consolidated orderbook stood at ₹25,750 crore as on July 27, 2026, provides strong revenue visibility over next 2 years. Increased proportion of higher margin USA Line Pipes orders in the consolidated orderbook, to be executed over FY27 and FY28, is likely to support the margin sustenance, while the optimum capacity utilization, backed by new order flows particularly in line pipes, is expected to result in continued healthy cash generation going ahead. The financial risk profile remained healthy, marked by overall gearing and total debt (TD) to gross cash accruals (GCA) at 0.39x and 1.62x, respectively, as on March 31, 2026 (and 0.36x and 1.13x, respectively, as on March 31, 2025). Net debt declined from ₹1,795 crore as on March 31, 2024, to ₹692 crore as on March 31, 2025, and further improved to a net cash position of ₹202 crore as on March 31, 2026. The continued improvement has been supported by strong internal accruals, aided by optimum 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India 2Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release capacity utilisation of the existing facilities. During Q1FY27, the company sold 4.5% stake in East Pipes Integrated Company (EPIC; associate entity in Saudi Arabia) and realised gross proceeds of ₹724 crores. These proceeds have been used towards debt repayment/pre-payment and towards meeting capex commitments. Going ahead, healthy operating profitability on a consolidated basis and incremental cash accruals from the newly commissioned facilities are expected to support the sustenance of debt protection metrics. The management has reiterated its focus on maintaining lower reliance on debt and keeping net debt/PBILDT below 1x over the near-to-long term, including during the execution of planned capacity expansion projects. Out of the earlier planned capital expenditure of ~₹5,500 crore, th [Showing first 8,000 characters — download PDF for full document]