Welspun Living flooring margin reaches 10.8% in Q2 FY27

Welspun Living Limited reported a flooring EBITDA margin of 10.8% in Q2 FY27, up from 2.1% in Q2 FY26, as segment revenue rose 19.3% to Rs 216 crore. EBITDA increased to Rs 23 crore from Rs 4 crore, while flooring manufacturing utilisation was reported at 51%.

How much did Welspun Living’s flooring profitability improve?

Welspun Living’s flooring profitability improved substantially in Q2 FY27, with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 524.5% year on year to Rs 23 crore and margin increasing 876 basis points to 10.8%. Revenue increased by Rs 35 crore from Rs 181 crore in Q2 FY26 to Rs 216 crore in Q2 FY27.

The improvement also continued from the preceding quarter. Flooring revenue increased 15.3% from Rs 188 crore in Q1 FY27, while EBITDA rose 20.0% from Rs 20 crore. The resulting margin of 10.8% was 43 basis points above the 10.4% recorded in Q1 FY27.

For H1 FY27, flooring revenue was Rs 404 crore, 7.7% above Rs 375 crore in H1 FY26. EBITDA increased to Rs 43 crore from Rs 20 crore and the margin rose to 10.6% from 5.3%, indicating that the improvement extended beyond Q2, although the half-year margin was 0.2 percentage points below the quarter’s level.

What drove Welspun Living’s flooring revenue growth?

Welspun Living reported growth in both flooring channels in Q2 FY27, with business-to-business revenue increasing 45% year on year to Rs 170 crore and branded flooring revenue rising 35% to Rs 52 crore. The channel data are based on gross sales excluding other operating income, while the segment-results table reports flooring revenue of Rs 216 crore.

Domestic flooring revenue grew 33.4% year on year in Q2 FY27, according to Welspun Living’s quarterly summary. Management attributed the margin improvement to strategic realignment, operational improvements and a sharper focus on profitable growth, but the presentation does not quantify the revenue or margin effect of each action.

The two channel figures total Rs 222 crore, compared with reported segment revenue of Rs 216 crore, reflecting different reporting bases in the presentation. Flooring business-to-business represented 7% of business-wise gross sales and branded flooring represented 2%, while the segment accounted for 7% of the company’s Q2 FY27 revenue split.

How significant is Welspun Living’s flooring business?

Welspun Living’s flooring business remained smaller than home textiles in Q2 FY27, contributing 7% of revenue compared with 93% for home textiles. Flooring generated Rs 216 crore of revenue and Rs 23 crore of EBITDA, against home-textile revenue of Rs 2,689 crore and EBITDA of Rs 323 crore.

Flooring nevertheless outpaced home textiles in revenue growth. Flooring revenue rose 19.3% year on year versus 15.8% for home textiles, and its margin expanded 876 basis points versus 546 basis points for home textiles. Flooring’s 10.8% margin remained below home textiles’ 12.0% margin in Q2 FY27.

At group level, Welspun Living reported total income of Rs 2,870 crore for Q2 FY27, up 16.9% year on year, while EBITDA rose 120% to Rs 370 crore. Group EBITDA margin was 12.9%, compared with 6.8% in Q2 FY26, placing flooring’s Rs 23 crore contribution within a broader rise in reported profitability.

Is Welspun Living using its flooring manufacturing capacity fully?

Welspun Living was not using its flooring manufacturing capacity fully in Q2 FY27, reporting 51% utilisation, quarterly output of 2.3 million square metres and effective annual capacity of 18 million square metres. The company specifies that the flooring capacity figure is effective capacity.

The 51% rate was below utilisation in three home-textile categories during Q2 FY27: bath linen at 83%, bed linen at 77%, and rugs and carpets at 74%. It exceeded the advanced-textile rates of 45% for spunlace, 35% for needle punch and 18% for wet wipes.

The presentation therefore shows that flooring margin rose to 10.8% while utilisation stood at 51%, but it does not disclose a target utilisation rate or a planned flooring-capacity expansion. It also does not quantify how changes in output of 2.3 million square metres affected the segment’s Rs 23 crore EBITDA.

What has Welspun Living said about its next priorities?

Welspun Living management said its FY27 priorities are to sustain double-digit revenue growth, maintain EBITDA margins in the low teens, improve returns on capital and generate strong cash flows. This is group-level guidance, following Q2 FY27 total income of Rs 2,870 crore and group EBITDA margin of 12.9%, rather than a standalone flooring target.

The company reported a net-cash position of Rs 2 crore in September 2026, compared with net debt of Rs 775 crore in March 2026. Cash and equivalents were Rs 1,906 crore and gross debt was Rs 1,905 crore; management attributed the balance-sheet shift to cash generation, working-capital efficiency and disciplined capital allocation.

Management said the net-cash position enhances financial flexibility and capacity to invest in strategic growth opportunities. However, the presentation gives no separate FY27 flooring revenue, EBITDA-margin or utilisation objective, so future segment disclosures will be needed to measure progress against the Q2 FY27 margin of 10.8%.

Conclusion

Welspun Living’s Q2 FY27 results show flooring revenue grew faster than home textiles, at 19.3% against 15.8%, while its EBITDA margin increased to 10.8% from 2.1% a year earlier. The segment remained 7% of revenue and its margin was 1.2 percentage points below the 12.0% reported by home textiles.

The next measure to watch is whether flooring can retain its Q2 FY27 margin while reported utilisation is 51% and output is 2.3 million square metres. Management’s disclosed FY27 plan is for double-digit group revenue growth and low-teens group EBITDA margins, but it has not disclosed a separate flooring target.