Welspun Living Q1 FY27 Results (NSE: WELSPUNLIV)
Signal: Margin expansion
The read
The trajectory has inflected positively after three consecutive quarters of margin contraction: Q1FY27 revenue rose 23.7% YoY, EBITDA margin expanded 140bps to 12.5% for the third straight quarter, and PAT grew 82.1% to ₹162.61 crore, led by Home Textiles; Flooring and the unexplained gross-margin compression remain the key watchpoints.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,795.45 Cr | +23.7% | +14.8% |
| Net profit | ₹162.61 Cr | +82.1% | |
| EPS | ₹1.69 | +83.7% | |
| EBIT margin | 12.5% |
P&L walk
Revenue from operations increased to ₹2,795.45 crore, +23.7% YoY and +14.8% QoQ, with disclosed EBITDA of ₹354 crore and margin expanding to 12.5%; PAT rose 82.1% to ₹162.61 crore, although gross margin compressed on the filing-derived cost structure despite raw-material intensity falling to 42.5% from 51.0%.
Segments
Home Textiles drove the recovery with revenue of ₹2,680.44 crore, +26.2% YoY, and PBIT of ₹202.70 crore, +75.2%, while Flooring revenue declined 3.1% to ₹187.54 crore and remained loss-making at ₹2.29 crore.
Key positives
- Revenue from operations reached ₹2,795.45 crore, +23.7% YoY, the strongest growth in seven quarters and a reversal from -10.8% YoY in Q1FY26.
- EBITDA grew to ₹354 crore, +82.5% YoY versus revenue growth of +23.7%, with EBITDA margin expanding 140bps YoY to 12.5% for the third consecutive quarter; employee cost declined 4.2% YoY and finance cost declined 19.1%.
- Home Textiles revenue grew 26.2% YoY to ₹2,680.44 crore and segment PBIT grew 75.2% to ₹202.70 crore, showing that the recovery is concentrated in the core business.
- Home-textile exports grew 28.1% YoY, domestic business grew 21.3% and the US pillow business grew 2.3x YoY, providing multiple demand channels.
Key concerns
- Filing-derived gross margin compressed 250bps YoY to 45.2% despite raw-material cost falling to 42.5% of revenue from 51.0%; management did not disclose the cause, so the margin recovery needs confirmation.
- Flooring revenue declined 3.1% YoY to ₹187.54 crore and the segment remained loss-making at ₹2.29 crore despite reported margin improvement to 10.4%.
- The business remains exposed to global trade developments, including US textile tariffs; the timing and quantum of tariff refunds remain subject to administrative completion.
- Vapi manufacturing operations were disrupted by heavy rains and flooding from July 23, 2026; the group is assessing the impact, although assets and materials are stated to be insured.
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