Welspun Living recorded a sizeable surge on stock exchanges, gaining 11% after announcing its financial results for the second quarter of fiscal 2027. A large increase in the profitability of the firm elicited a positive response from investors, fueled by the significant increase in operational profits, widening margins, and strong growth in the various operating units. The firm’s strong quarter demonstrated the firm’s operational strength and execution skills despite operating within an ever-changing macroeconomic environment.
Net profit multi-fold expansion and revenue growth
Welspun Living has posted an outstanding consolidated profit after tax growth of 13x in the July September quarter of FY 2027, official regulatory filings mention. In the second quarter, the company’s net profit after minority interest jumped to ₹169 crore, from ₹13 crore in the same period of the previous fiscal.
Profit after tax also turned positive on a sequential basis, jumping from 161 crore in the previous first quarter. The increase in the top line was also strong for the period. During the quarter, total income rose from ₹2,456 crore in the corresponding period of fiscal year 2026 to ₹2,870 crore, a 16.9% jump.
When compared on a quarter-on-quarter basis, income increased by 1.5% against ₹2,828 crore recorded in Q1 of fiscal year 2027. The operating income stood at ₹2,838.12 crore, showing an increase of 12.3% year-over-year from ₹2,440.91 crore in the previous period.
Resilient EBITDA margin expansion and strong performance
Operational margin performance was a primary reason for strong earnings growth and the share price rally. Consolidated Earnings Before Interest, Tax, Depreciation and Amortization for Welspun Living stood at ₹370 crore in the second quarter of fiscal year 2027, rising 120% from ₹168 crore recorded a year ago.
The growth in operations helped increase the company’s EBITDA margin to 12.9% compared to 6.8% in the corresponding quarter of fiscal year 2026, rising 604 basis points and 37 basis points from 12.5% recorded in the previous quarter.
Operational strength was reflected in all segments of the portfolio. The Home Textiles segment, the mainstay of the company’s operations, accounted for ₹2,689 crore of revenue in the quarter, representing 15.8% growth on a year-on-year basis.
EBITDA in Home Textiles grew 112.2% to ₹323 crore rupees, supporting its operating margin to 12.0% from 6.6% in the previous quarter of the year. The Flooring business segment grew 19.3% year-on-year to report revenue of ₹216 crore, while its segment EBITDA hit ₹23 crore to improve operating margin by 10.8% from 2.1% in the previous year.
Branded products performance and innovations provided growth during the quarter. The overall branded businesses had grown by 32% year over year, representing a 22% share of total revenues in the second quarter, says Welspun Living. Global Branded business grew by 33% to ₹383 crore and Domestic Branded business by 29% to ₹185 crore.
The innovation-driven products sold around 25% of the current sales and grew by 46% year-on-year, and the company maintains a strong portfolio with 50 patents. The company’s momentum was stronger in its pillow business, growing by two and a half times year-on-year, and will likely achieve double-digit growth in that market in 2017.
Conclusion
Welspun Living’s stock price shot up 11% as the market recognizes the company’s stellar 2nd quarter results in fiscal 2027. The company’s Home Textiles and Flooring business was operationally strong, with consolidated profit after taxes surging by 13-fold to ₹169 crore, while EBITDA margin increased by 604 basis points to 12.9%. Welspun Living is building its operational base further and continuing to expand its value base in a sustainable manner through healthy growth across its branded portfolio and patented innovative products.
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