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    Welspun Living Q1 FY27 earnings call

    WELSPUNLIV
    Textiles·13 Aug 2026
    Management Summary

    Welspun Living Limited reported a strong Q1 FY27, with significant revenue growth and margin expansion driven by healthy volume recovery and improved business mix. The company saw robust performance across home textiles exports, US pillow businesses, and domestic markets. Despite challenges from raw material inflation and a temporary disruption at its Vapi facility, management remains confident in achieving double-digit revenue growth and low-teens EBITDA margins for FY27.

    Highlights

    6

    • Consolidated revenues grew 23.5% year-on-year and 15.4% sequentially to INR 2,828 crores.

    • EBITDA margins expanded to 12.5%, improving by 140 basis points year-on-year and 170 basis points sequentially.

    • Profit after tax nearly doubled, with PAT margins improving from 3.8% to 5.7%.

    • Home textiles exports grew 28.1% year-on-year, the strongest quarter in recent years.

    • Our U.S. onshore pillow businesses grew 2.3x this quarter, with Ohio facility at 81% utilization and Nevada commencing operations.

    • India's domestic businesses grew 21.3% year-on-year, sustaining strong double-digit growth.

    Concerns

    2

    • Gross margin declined in Q1 FY27 primarily due to raw material inflation.

    • Vapi facility experienced unprecedented flooding, which will largely impact Q2 FY27, though fully insured.

    Key financials

    Single quarter

    04 metrics
    1. 01Consolidated Revenue₹2,828 Cr+23.5%YoY
    2. 02EBITDA Margin12.5%
    3. 03PAT Margin5.7%
    4. 04PAT Growth—+100%YoY

    Segment breakdown

    Home Textiles Exports
    28.1% Growth
    Innovation-led Sales
    16% Growth25% Contribution to Revenue
    US Onshore Pillow Businesses
    2.3x Growth
    Christy Branded Business
    16% Growth
    India Domestic Businesses
    21.3% Growth
    Flooring
    10.4% EBITDA Margin
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹400 crores

    new plan

    Guidance & targets

    8
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    low teens
    		High
    Profitability
    ROCE
    low teens
    		High
    Profitability
    EBITDA Margin
    15%
    		Medium
    Revenue
    US Pillow Business Revenue
    USD 60 million
    		High
    Revenue
    Domestic Retail Business Revenue
    INR 1,000 crores
    		Medium
    Capacity
    Overall Utilization Rate
    80%
    		High
    Power Consumption
    Anjar Green Power Supply
    100%
    		High
    Power Consumption
    Welspun Living Total Green Power Consumption
    79%
    		High

    What to watch in Q2 FY27

    5

    Vapi Facility Restoration

    Q2/Q3 FY27
    CurrentOperations partially resumed, Q2 largely impacted
    TargetFull restoration by Q3/Q4 FY27

    Why it matters

    Ensuring full operational capacity at Vapi is crucial for maintaining production and meeting demand in subsequent quarters.

    But however, I can tell you that quarter three, quarter four, we are going to restore it.

    Risks & concerns

    3
    RiskSeverity

    Raw Material Inflation (Cotton, Crude)

    Gross margin declined in Q1 FY27 primarily due to raw material inflation, and management expects this to be an ongoing factor to watch. — Management acknowledged

    medium

    Vapi Facility Flooding

    Unprecedented flooding at the Vapi facility will largely impact Q2 FY27, though operations partially resumed within a week and the facility is fully insured. Restoration expected by Q3/Q4. — Management acknowledged

    medium

    RoSCTL Scheme Termination

    The RoSCTL export incentive scheme is up for termination by September, and its elimination could impact export incentives, though management hopes for a positive outcome. — Analyst not addressed

    medium

    Q&A highlights

    8

    “It's primarily because of the raw materials. And if you look at it even going forward, the raw materials will be something that you'll have to watch out for. And of course the macroeconomic factors are also playing, whether it's your crude that you are seeing, and cotton I mean. So these are the two important ones that you know, we can really talk about.”

    Clarifies the primary reason for gross margin contraction and highlights ongoing raw material volatility as a key factor.

    asked by Soham Samanta

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance and Margin Expansion

    Welspun Living commenced FY27 with robust financial results, reporting consolidated revenues of INR 2,828 crores, marking a 23.5% year-on-year and 15.4% sequential growth. The company's EBITDA margins expanded significantly to 12.5%, an improvement of 140 basis points year-on-year and 170 basis points sequentially. This margin expansion is attributed to healthy volume recovery, operating leverage, and an improved business mix, leading to a near doubling of profit after tax and an increase in PAT margins from 3.8% to 5.7%.

    02

    Growth Across Key Business Segments

    The company witnessed broad-based growth, with home textiles exports growing 28.1% year-on-year, marking its strongest quarter in recent years. Innovation-led sales contributed approximately 25% of the revenue, growing 16% this quarter. The US onshore pillow businesses saw a 2.3x growth, with the Ohio facility reaching 81% utilization and Nevada commencing operations. Branded businesses like Christy grew 16%, supported by strong UK performance and expanding presence in the Middle East and US. India's domestic businesses also grew 21.3% year-on-year.

    03

    Flooring Business Turnaround and Sustainability

    The flooring segment demonstrated a significant turnaround, with EBITDA margins materially improving to 10.4%, the highest in over two years. This improvement is driven by operational discipline, structural actions, a strategic shift towards qualitative soft floorings, geographic diversification into markets like Australia and New Zealand, and effective cost controls. Management expects these margins to be sustainable going forward⏳.

    04

    Capital Expenditure and Green Energy Initiatives

    Welspun Living's board approved a INR 121 crores debottlenecking and modernization project at its Anjar facility in July, aimed at replacing older technology, improving plant utilization, and driving market demands. The total capital expenditure for FY27 is projected to be in the range of INR 400-500 crores. In a significant sustainability step, the Anjar manufacturing complex commenced receiving 100% green power supply from mid-July 2026, bringing Welspun Living's total green power consumption to 79%.

    05

    Impact of UK Free Trade Agreement and US Market Resilience

    The India-U.K. free trade agreement, effective July 15th, is expected to provide a significant growth opportunity, placing India on an equal tariff footing with Pakistan. Welspun's UK and Europe businesses already grew over 20% this quarter, with expectations of double-digit growth in the coming years. In the US market, consumer spending remains healthy, with retail sales growing 5.2% year-on-year in May, indicating strong resilience and consumption momentum.

    06

    Vapi Facility Flooding and Business Resilience

    The company faced unprecedented🌐 flooding at its Vapi facility, but immediate priority was given to employee safety, with all personnel safely evacuated. Operations partially resumed within a week, and full restoration is expected in Q3/Q4 FY27. The facility is adequately covered by insurance, and management highlighted the agility and ownership demonstrated by their teams in rerouting production and activating contingency plans, reinforcing the organization's resilience.

    This is an AI-generated summary of a publicly available earnings call transcript.