Welspun Living innovation sales reach 25% of gross sales

Welspun Living Limited generated Rs 639 crore from Global B2B Innovation in Q2FY27, up 46% year on year and equal to 25% of gross sales. Welspun Living’s branded operations contributed about 22% of gross sales and grew 32%, outpacing total income growth of 16.9% to Rs 2,870 crore.

What was Welspun Living’s revenue mix in Q2FY27?

Welspun Living’s largest channel was Global B2B Others, which generated Rs 1,213 crore, or 47% of Q2FY27 gross sales, while Global B2B Innovation generated Rs 639 crore, or 25%. Domestic B2B contributed Rs 165 crore, or 6%, and the Global Branded and Domestic Branded channels together accounted for 22%.

The presentation states that channel revenue is based on gross sales excluding other operating income. This differs from reported total income of Rs 2,870 crore in Q2FY27. On the gross-sales basis, Global Branded contributed Rs 383 crore, or 15%, and Domestic Branded contributed Rs 185 crore, or 7%.

How quickly did Welspun Living’s innovation channel grow?

Welspun Living’s Global B2B Innovation revenue grew 46% year on year to Rs 639 crore in Q2FY27, making it the second-largest reported channel by gross sales. Its 25% contribution was more than five times the 4% share of Advanced Textiles, which reported Rs 104 crore of revenue.

Innovation growth exceeded the 16.9% increase in total income and contrasted with a 1% decline in Global B2B Others, the Rs 1,213 crore channel that remained largest by revenue. The presentation reports 50 patents globally and places approximately 25% innovation revenue under its innovation and environmental, social and governance strategic priority.

Welspun Living’s stated aspiration is to become the most innovative home textile company. The presentation associates that aim with preferred-supplier relationships with major retailers, while identifying its 50 patents and current innovation-revenue contribution as the disclosed measures of progress.

How much did Welspun Living’s branded business contribute?

Welspun Living said its overall branded business grew 32% year on year in Q2FY27 and accounted for 22% of revenue. The branded total comprised Rs 383 crore from Global Branded and Rs 185 crore from Domestic Branded, together amounting to Rs 568 crore on the gross-sales measure.

The business-level presentation provides the same mix through product operations. Home Textile Branded generated Rs 516 crore, or 20% of gross sales, and increased 31% year on year. Flooring Branded generated Rs 52 crore, or 2%, and increased 35%, meaning both branded business lines contributed to the 22% aggregate share.

Welspun Living identifies branded businesses as a portfolio-diversification priority. Management’s aspiration is double-digit branded-business growth through product mix, brand expansion and category expansion, but the presentation does not provide a target branded-revenue share or a deadline.

How did Welspun Living’s segments and businesses compare?

Welspun Living remained predominantly a Home Textile business in Q2FY27, with Home Textile revenue of Rs 2,689 crore and Flooring revenue of Rs 216 crore. Home Textile represented 93% of segment revenue and grew 15.8% year on year, while Flooring represented 7% and grew faster at 19.3%.

Within gross sales, Home Textile B2B was the largest business category at Rs 1,744 crore, or 67%, with 12% year-on-year growth. Home Textile Branded was Rs 516 crore, or 20%, while Flooring B2B was Rs 170 crore, or 7%, and posted the highest growth among the listed businesses at 45%.

Advanced Textiles was the only listed business category to decline, falling 7% year on year to Rs 104 crore. The comparison indicates that the quarter’s growth was led by innovation, branded operations, Domestic B2B and Flooring B2B rather than by the largest established Global B2B Others channel.

What were Welspun Living’s earnings during the mix shift?

Welspun Living reported earnings before interest, tax, depreciation and amortisation of Rs 370 crore in Q2FY27, up 120% year on year, with a margin of 12.9%. Total income increased to Rs 2,870 crore from Rs 2,456 crore in Q2FY26, while profit after tax increased to Rs 169 crore from Rs 13 crore.

Home Textile earnings before interest, tax, depreciation and amortisation were Rs 323 crore, and its margin rose to 12.0% from 6.6% in Q2FY26, an increase of 546 basis points. Flooring earnings before interest, tax, depreciation and amortisation were Rs 23 crore, and its margin rose to 10.8% from 2.1%, an increase of 876 basis points.

Sequentially, total income was 1.5% above Rs 2,828 crore in Q1FY27 and earnings before interest, tax, depreciation and amortisation were 4.5% above Rs 354 crore. Home Textile revenue was Rs 2,689 crore compared with Rs 2,680 crore in the preceding quarter, while Flooring revenue rose 15.3% from Rs 188 crore.

What targets has Welspun Living disclosed for this strategy?

Welspun Living has disclosed an aspiration for double-digit branded-business growth and a normalised earnings before interest, tax, depreciation and amortisation margin above 15%. The reported margin was 12.7% in H1FY27 and 12.9% in Q2FY27, while branded operations accounted for about 22% of revenue.

Management lists premiumisation, cost optimisation and utilisation improvement as mechanisms for the margin objective. For diversification, it identifies product mix, brand expansion and category expansion, alongside the current 50 patents and approximately 25% innovation-revenue contribution.

The managing director and chief executive officer said FY27 priorities include sustaining double-digit revenue growth, maintaining earnings before interest, tax, depreciation and amortisation margins in the low teens, improving returns on capital and generating cash flows. These are management priorities rather than forecasts of reported outcomes.

Conclusion

Welspun Living’s Q2FY27 revenue mix showed faster expansion in innovation and branded operations than in the company’s largest established channel. Global B2B Innovation reached Rs 639 crore and 25% of gross sales, while branded operations reached about 22% and grew 32%; by comparison, Global B2B Others accounted for 47% but declined 1% year on year.

The next measures to watch are progress toward management’s double-digit branded-growth aspiration and its normalised margin target above 15%. The presentation also says the pillow business grew 2.4 times year on year and is on track for double-digit revenue growth, while the Nevada pillow facility commenced full production on June 15, 2026.