Welspun Living begins FY27 with its most robust quarter in nearly two years, driven by higher volumes, strategic market expansions, and sustainability initiatives, signalling a renewed growth phase for the company.
Welspun Living began FY27 with its strongest quarter in nearly two years, reporting a 23.5% rise in consolidated revenue to INR2,828 crore and a 12.5% EBITDA margin, the best level in three quarters. The home textiles maker said the improvement reflected higher volumes, better operating leverage and a richer product mix, while profit after tax nearly doubled, according to its earnings call materials and analysis by Arthneeti.
Management said the latest numbers support its view that the business is moving back into a growth phase after a difficult FY26. Dipali Goenka, the managing director and chief executive, said on the call that the margin improvement was driven by three factors: recovery in volumes, the unwinding of tariff-related pressure and structural cost changes made over the past year, including lower energy costs and greater automation. The company is aiming for double-digit revenue growth in FY27 and EBITDA margins in the low teens, with a medium-term goal of lifting return on capital employed to the low teens.
A key strategic opening is the India-UK free trade agreement, which took effect on 15 July. Goenka said the pact places India on a more equal footing with Pakistan in the UK home textiles market, where Pakistan holds more than half of imports. Welspun’s UK and Europe businesses grew by more than 20% in the quarter, and the company expects the agreement to support further gains as orders move through approvals and development cycles, according to the call summary published by Arthneeti.
In the United States, the onshore pillow business expanded 2.3 times, with the Ohio plant running at about 81% utilisation and the Nevada facility now operating. The company said it remains on track to double pillow revenue to USD60 million this year. Domestic business also delivered strong growth, with branded retail nearing breakeven and the company still targeting INR1,000 crore in that segment, while Livemint reported earlier that the broader domestic branded business could reach about INR1,200 crore by FY27.
Not everything moved in Welspun’s favour. Gross margin came under pressure from higher raw material costs, especially cotton and crude-linked inputs, and management said those increases would need to be passed through to customers over time. Flooding at the Vapi facility also disrupted operations, although the company said it is insured and expects a phased recovery. Another watchpoint is the RoSCTL export incentive, which is due to expire in September; Welspun is assuming a favourable outcome, but any lapse could affect margins. On the positive side, the Anjar site has switched to 100% green power, lifting the share of total consumption from renewable sources to 79%, while the company’s FY27 capital expenditure plan remains set at INR400 crore to INR500 crore, according to the earnings call analysis and summary.
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