Welspun Living margin reaches 12.9% as Q2 profit rebounds

Welspun Living Limited reported a 12.9% earnings before interest, tax, depreciation and amortisation (EBITDA) margin in Q2 FY27, up 604 basis points year-on-year from 6.8%. Total income rose 16.9% to Rs 2,870 crore, while profit after tax (PAT) increased to Rs 169 crore from Rs 13 crore.

How did Welspun Living perform in Q2 FY27?

Welspun Living increased total income by 16.9% year-on-year to Rs 2,870 crore in Q2 FY27, following a 1.5% sequential increase from Rs 2,828 crore in Q1 FY27. EBITDA rose 120% to Rs 370 crore from Rs 168 crore in Q2 FY26 and was 4.5% above the Rs 354 crore recorded in Q1 FY27.

The main change was the EBITDA margin, which reached 12.9% in Q2 FY27, compared with 6.8% a year earlier and 12.5% in the preceding quarter. A basis point is one-hundredth of a percentage point, making the year-on-year increase 604 basis points and the sequential increase 37 basis points. Management attributed the revenue growth and margin expansion to disciplined execution amid an evolving global operating environment.

PAT rose to Rs 169 crore in Q2 FY27 from Rs 13 crore in Q2 FY26 and Rs 161 crore in Q1 FY27. Its margin increased to 5.9%, from 0.5% a year earlier and 5.7% in the prior quarter, representing year-on-year and sequential gains of 536 basis points and 21 basis points, respectively. The quarterly figures include an exceptional item of Rs 7.2 crore.

What drove Welspun Living’s Q2 FY27 revenue growth?

Welspun Living said growth was broad-based, with Home Textiles exports rising 18.3% year-on-year and the Domestic business growing 28.2% in Q2 FY27. Total income was Rs 414 crore higher than in Q2 FY26, while management cited its diversified customer and market base in discussing the quarterly outcome.

Home Textile was the larger disclosed segment, with revenue of Rs 2,689 crore in Q2 FY27, up 15.8% year-on-year and 0.3% sequentially. Segment EBITDA increased 112.2% to Rs 323 crore, lifting its margin to 12.0% from 6.6% in Q2 FY26 and 11.7% in Q1 FY27. Management reported that domestic Home Textile revenue grew 26.3% year-on-year.

Flooring revenue increased 19.3% year-on-year to Rs 216 crore and 15.3% sequentially from Rs 188 crore. Its EBITDA rose to Rs 23 crore from Rs 4 crore a year earlier, and its margin reached 10.8%, versus 2.1% in Q2 FY26 and 10.4% in Q1 FY27. The presentation identifies Home Textile as 93% and Flooring as 7% of Q2 FY27 segment revenue.

How did branded, innovation and segment sales change?

Welspun Living reported 32% year-on-year growth in overall branded businesses, which accounted for 22% of revenue in Q2 FY27. Global Branded revenue was Rs 383 crore, up 33%, while Domestic Branded revenue was Rs 185 crore, up 29%, according to the channel revenue breakdown based on gross sales excluding other operating income.

Home Textile branded revenue was Rs 516 crore, a 31% year-on-year increase, while Flooring branded revenue was Rs 52 crore, up 35%. By comparison, Home Textile business-to-business revenue was Rs 1,744 crore, up 12%, and Flooring business-to-business revenue was Rs 170 crore, up 45%. Advanced Textiles revenue was Rs 104 crore, down 7% year-on-year.

Innovation contributed about 25% of sales and grew 46% year-on-year in Q2 FY27, supported by 50 patents, according to the presentation. The pillow business grew 2.4 times year-on-year, and management said it was on track for double-digit revenue growth. These disclosures show that the 16.9% increase in total income occurred alongside varying growth rates across branded, business-to-business and Advanced Textiles lines.

How did Welspun Living’s costs, profit and balance sheet change?

Welspun Living’s finance cost declined 21.8% year-on-year to Rs 34 crore in Q2 FY27 from Rs 43 crore, while depreciation increased 1.8% to Rs 103 crore from Rs 101 crore. Profit before tax after exceptional items rose to Rs 226 crore from Rs 24 crore, following the increase in EBITDA to Rs 370 crore.

Cash profit increased 148% year-on-year to Rs 273 crore from Rs 110 crore and rose 7.6% from Rs 253 crore in Q1 FY27. The presentation defines cash profit as profit before depreciation and tax less current tax. Earnings per share, not annualised, were Rs 1.80 in Q2 FY27, compared with Rs 0.13 in Q2 FY26 and Rs 1.69 in Q1 FY27.

Welspun Living reported net debt of negative Rs 2 crore in September 2026, compared with net debt of Rs 775 crore in March 2026, reflecting a net-cash position. Cash and equivalents were Rs 1,906 crore in September 2026, against gross debt of Rs 1,905 crore. Management attributed the balance-sheet shift to cash generation, working-capital efficiency and disciplined capital allocation.

What is Welspun Living targeting for FY27?

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. The Q2 FY27 EBITDA margin of 12.9% followed 12.5% in Q1 FY27, while the H1 FY27 margin was 12.7%. These are management priorities rather than financial guarantees.

The presentation sets a medium-term aspiration for a normalised EBITDA margin above 15%. Management identified premiumisation, cost optimisation and utilisation improvement as the mechanisms intended to support that aspiration. It also said its integrated manufacturing capabilities and diversified customer and market base could support investment in strategic growth opportunities.

Management said it would remain disciplined in capital deployment as it responds to evolving global sourcing opportunities and operating conditions. The presentation does not provide a dated target for reaching the more-than-15% normalised margin aspiration. It does, however, set out branded-business double-digit growth as part of its portfolio-diversification aspiration, from an approximately 22% revenue contribution in Q2 FY27.

Conclusion

Welspun Living’s Q2 FY27 outcome combined 16.9% total-income growth with a much faster 120% increase in EBITDA, taking the margin from 6.8% to 12.9%. Home Textile and Flooring both delivered higher revenue and margins, while PAT rose from Rs 13 crore to Rs 169 crore and the balance sheet moved to a net-cash position in September 2026.

The next measure is whether Welspun Living sustains management’s double-digit revenue-growth and low-teens-margin priorities through FY27. Progress toward the disclosed normalised EBITDA margin aspiration above 15% will depend, according to management’s plan, on premiumisation, cost optimisation and utilisation improvement amid evolving global operating conditions.