Welspun Living Ltd (WELSPUNLIV)
🎯 Key Takeaways
- Welspun Living is transitioning from a turnaround phase to a growth-oriented business with improving operational efficiency and strategic repositioning. Management is leveraging strong domestic and US market demand, particularly in home textiles and pillow segments, while advancing sustainability and innovation initiatives.
- Revenue grew 14.8% QoQ to ₹2,795 in Q1FY27.
- ⚠️ Dependence on the US pillow business, which is subject to volatile demand and competitive pricing, could pressure margins if utilization declines.
📖 The Story
Welspun Living is transitioning from a turnaround phase to a growth-oriented business with improving operational efficiency and strategic repositioning. Management is leveraging strong domestic and US market demand, particularly in home textiles and pillow segments, while advancing sustainability and innovation initiatives. The company has executed a share buyback and is divesting its captive power subsidiary to sharpen focus on core operations and capital allocation. Despite a high P/E of 64.3, recent margin expansion and double-digit revenue growth signal renewed confidence in sustainable profitability.
📰 What's Happening
In Q1FY27, Welspun Living reported consolidated revenue of ₹2,828 crores, up 23.5% YoY, with EBITDA margin expanding 140 bps to 12.5% and PAT margin rising 186 bps to 5.7%. Domestic growth was driven by 24.3% growth in home textiles and 14.3% in flooring, while the US pillow business operated at 80% utilization and is expected to double revenue to $60 million this fiscal. Innovation contributed 25% of sales, growing 16% YoY. Management expects double-digit revenue growth and low-teens EBITDA margins for FY27. A ₹1,252 crore share buyback was executed, and 51% of Welspun Captive Power Generation Limited was transferred to promoter Welspun Corp. Board-approved capital expenditure of ₹121 crore for plant modernization at Anjar was also sanctioned. The Vapi plant resumed partial operations after disruption, with full impact under review.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 2,261 | 2,441 | 2,262 | 2,435 | 2,795 |
| Operating Profit | 138 | 52 | 58 | 146 | 221 |
| OPM % | 6.1% | 2.1% | 2.6% | 6.0% | 7.9% |
| Net Profit | 89 | 15 | 3 | 106 | 163 |
| EPS | ₹0.92 | ₹0.13 | ₹0.15 | ₹1.08 | ₹1.69 |
Revenue has grown consistently over the past five quarters, rising from ₹2,261 crores in Jun 2025 to ₹2,795 crores in Jun 2026, with operating profit margin improving from 6.1% to 7.9% and net profit increasing from ₹89 crores to ₹163 crores. The sharp rise in PAT margin from 0.15% in Dec 2025 to 5.7% in Q1FY27 reflects significant operating leverage and margin recovery. This improvement aligns with management’s focus on innovation, higher-margin product mix, and operational efficiency, supporting their guidance of low-teens EBITDA margins for FY27.
🔮 Management Outlook & What's Next
Management expects double-digit revenue growth and low-teens EBITDA margins for FY27, driven by structural tailwinds, sustainability leadership, and continued innovation. The company is targeting expansion in high-growth segments such as home textiles and pillow business, with innovation contributing an increasing share of revenue. The US market is identified as a key growth lever, with plans to scale pillow revenue to $60 million. Management also emphasized resilience in operations amid global trade volatility and climate-related disruptions, while reinforcing long-term value creation through ESG and capital efficiency.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 96 | 96 | 96 | 96 |
| Reserves | 4,462 | 4,725 | 4,731 | 4,821 |
| Borrowings | 3,164 | 2,469 | 2,685 | 2,315 |
| Total Liabilities | 10,421 | 10,307 | 10,327 | 10,455 |
| Fixed Assets | 3,797 | 4,028 | 4,004 | 4,224 |
| Investments | 830 | 570 | 641 | 892 |
| Total Assets | 10,421 | 10,307 | 10,327 | 10,455 |
The balance sheet shows stable equity of ₹96 crores and growing reserves, indicating retained earnings are being reinvested. Borrowings declined slightly from ₹2,685 crores in Mar 2026 to ₹2,315 crores in Mar 2026, suggesting active deleveraging or improved cash flow management. Total assets remain stable around ₹10,400 crores. The ₹1,252 crore share buyback and transfer of 51% stake in Welspun Captive Power Generation Limited signal a strategic shift toward capital efficiency and focus on core operations, reducing subsidiary complexity and potentially improving return ratios.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +688 |
| Investing | +57 |
| Financing | -663 |
| Net Cash Flow | +82 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 66.2% | 66.2% | 66.2% | 66.4% |
| FII | 5.0% | 5.0% | 5.0% | 5.2% |
| DII | 8.6% | 10.4% | 11.2% | 11.4% |
| Public | 14.2% | 12.8% | 12.0% | 11.1% |
| # Shareholders | 2,73,918 | 2,48,962 | 2,43,222 | 2,23,860 |
Promoter holding remains stable at approximately 66.24% over the last five quarters, indicating no aggressive dilution or acquisition activity. FII ownership has modestly increased from 4.97% in Q2FY26 to 5.21% in Q1FY27, suggesting growing institutional confidence. DII holdings rose from 8.58% to 11.38% over the same period, reflecting increasing interest from domestic institutional investors. The number of public shareholders has declined slightly, but the company maintains a broad base of over 2,20,000 shareholders, supporting liquidity and shareholder diversity.
⚖️ Peer Comparison — Textiles
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| GRASIM | 2.26 L Cr | 39.5 | 9.6% | 10.8% | 2.16 |
| WELSPUNLIV | 18,531 | 64.3 | 7.4% | 5.9% | 0.51 |
| VTL | 16,529 | 19.2 | 10.7% | 8.7% | 0.13 |
| ARVIND | 15,111 | 35.1 | 14.3% | 10.6% | 0.36 |
| TRIDENT | 12,322 | 31.0 | 10.1% | 8.3% | 0.37 |
| ICIL | 9,294 | 61.6 | 9.8% | 6.4% | 0.46 |
| SWANCORP | 9,195 | 44.2 | 4.2% | 2.9% | 0.29 |
| GARFIBRES | 7,936 | 38.3 | 22.9% | 16.9% | 0.05 |
| KUSUMGAR | 6,097 | — | — | — | 0.45 |
| PDSL | 5,175 | 44.0 | 12.5% | 10.5% | 0.64 |
⚠️ Risk Factors
1. Dependence on the US pillow business, which is subject to volatile demand and competitive pricing, could pressure margins if utilization declines. 2. Exposure to global trade volatility and foreign exchange fluctuations may impact export-driven growth, particularly in home textiles. 3. Operational risks persist from past disruptions at the Vapi plant and potential climate-related impacts in Gujarat, which could affect production continuity. 4. Margin gains are partly driven by scale and innovation, but sustainability of low-teens EBITDA margins is not guaranteed if input costs rise or competitive pressures intensify.
📋 Recent Filings
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🔴 Announcement 27 August 2026Welspun Living announced partial resumption of operations at its Vapi, Gujarat plant after a disruption, noting ongoing insurance assessments and cont...
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Announcement 26 August 2026Welspun Living Limited announced its upcoming investor meetings scheduled for September 1, 2026, with no UPSI to be disclosed during these sessions. T...
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Announcement 17 August 2026Welspun Living Limited announced that its Q1 FY27 conference call transcript is now available on its investor website and via a direct PDF link, allow...
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🔴 Financial Results 13 August 2026Welspun Living reported consolidated revenue of ₹2,828 crores for Q1FY27, up 23.5% YoY, with EBITDA margin expanding to 12.5% and PAT margin rising to...
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🟡 Board Meeting 13 August 2026The Board approved unaudited consolidated Q1 FY27 results for Welspun Living Limited, reporting revenue of **₹2,867.98 crores** (**+23.5% YoY**) and n...
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🔴 Financial Results 13 August 2026Welspun Living Limited announced that the recording of its Q1 FY27 conference call is now available on its investor website, providing shareholders ac...
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Announcement 6 August 2026Welspun Living Limited announced an investor conference call on August 13, 2026 at 5:00 PM IST to discuss its first quarter of fiscal year 2027 result...
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🟡 voting results 27 July 2026Welspun Living Limited announced a postal ballot notice for an ordinary resolution to appoint Mr. Keyur Parekh as Whole-Time Director and Key Manageri...
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🟡 Board Meeting 24 July 2026Welspun Living approved transferring its 51% stake in Welspun Captive Power Generation Limited to promoter Welspun Corp for Rs 67.66 crores, targeting...
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🟡 Board Meeting 24 July 2026Welspun Living's board approved transferring its 51% stake in Welspun Captive Power Generation Limited to promoter Welspun Corp for Rs 67.66 crores, c...
🧠 Analyst's Read
Welspun Living is demonstrating a credible turnaround with accelerating revenue growth, expanding margins, and strategic capital allocation. Investors should monitor execution of US market expansion, sustainability of margin improvement, and management’s ability to maintain innovation-driven growth amid global headwinds. The company’s ESG leadership and promoter confidence through buybacks add long-term structural appeal, but valuation remains rich at a P/E of 64.3.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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