Welspun Living Shares Jump 11% on 13-Fold Q2 Profit Growth, Resilient Margins

Welspun Living’s Quarterly Rebound Puts Margin Recovery in Focus

A sharp earnings improvement, stronger operating margins and a shift to net cash helped put the home textiles maker in the spotlight.

Profit growth came with a broad improvement in operating performance

Welspun Living’s profit after tax rose to ₹169 crore in the September quarter, from ₹13 crore a year earlier. The 13-fold increase is striking, although the low year-ago base is important context when assessing the scale of the improvement. Revenue from operations grew 16.9% to ₹2,870 crore from ₹2,456 crore.

Ebitda more than doubled to ₹370 crore. Its margin expanded to 12.9% from 6.8%, while the PAT margin rose to 5.9% from 0.5%. The rise in both margins suggests that the quarter’s improvement extended beyond sales growth. For investors, the durability of that expansion will matter as much as the headline profit jump: one quarter does not establish that margins will remain at these levels.

Exports and domestic brands supplied multiple growth engines

Home textile exports increased 18.3% year on year, supported by improving demand, while the domestic business grew 28.2%. The Welspun brand advanced 37%, indicating that domestic branded sales were a notable contributor alongside the export business. Flooring revenue rose 19.3%, with its Ebitda margin at 10.8%.

The US pillow business grew 2.4 times year on year, with both manufacturing facilities operational. The company remains on track to double revenues from the business in FY27. That ambition gives investors a specific execution marker to monitor: the expansion will need to translate into sustained revenue and earnings contributions, rather than relying on a strong comparison with the previous year.

Welspun Living said Vapi floods capped revenue growth. Jefferies expects that impact to reverse in coming quarters, but the timing and scale of any recovery remain key variables. The brokerage also sees stable US tariffs, the India-UK free-trade agreement and growth in flooring and pillows as potential supports for sales. Those are expectations, not guaranteed outcomes.

Net cash strengthens the balance-sheet picture

The company reported a net-cash position, compared with net debt of ₹775 crore in March 2026. This is a meaningful change in its balance-sheet position and may provide greater flexibility as the business scales its growth areas. Investors should still track whether cash generation holds up alongside expansion and whether the improved margins persist.

Jefferies maintained a Buy rating and a ₹260 target price. It expects revenue, Ebitda and PAT to grow at respective compound annual rates of 14%, 38% and 71% over FY26-29E, citing exports, the US pillow ramp-up, domestic and branded growth, and flooring margin recovery. The brokerage also expects mid-teens margins over the medium term, while noting that scale benefits could outweigh cotton inflation. These are analyst forecasts, and depend on execution and operating conditions.

Welspun Living shares rose as much as nearly 11% intraday to ₹243, after opening at ₹223; at 11 a.m. they were up 5.7% at ₹231.55. More than 22 million shares, worth ₹520.25 crore, had traded on the NSE by then. The stock’s 75% rise in 2026 so far, against a 10.7% decline in the Nifty, adds to the need to distinguish improving business performance from expectations already reflected in the share price.

Key Highlights

• Q2 PAT rose to ₹169 crore from ₹13 crore a year earlier.
• Revenue increased 16.9% to ₹2,870 crore, while Ebitda reached ₹370 crore.
• Ebitda margin expanded to 12.9% from 6.8%.
• Domestic business grew 28.2%; home textile exports advanced 18.3%.
• The company reported net cash, versus net debt of ₹775 crore in March 2026.

Investor Note: The quarter showed a substantial recovery in profit and margins, but investors should assess whether growth across exports, pillows and flooring can be sustained and whether margin gains withstand cotton inflation and execution pressures. Jefferies’ target and forecasts are brokerage views, not assured outcomes.