Welspun Living shares rose over 10% after posting a significant 85% increase in net profit for the June quarter, driven by robust revenue growth, improved margins, and positive brokerages forecasts for future international expansion.
Welspun Living shares jumped 10.56% to ₹176.70 on Friday after the home textiles company posted a sharp rise in first-quarter profit and stronger revenue, prompting brokerages to stick with bullish calls on the stock. The move reflected investor optimism that the company is benefiting from firmer demand, better operating leverage and a richer product mix.
The company reported consolidated net profit of ₹161 crore for the June quarter, up 85% from ₹87 crore a year earlier, while revenue from operations climbed 24% to ₹2,795 crore. EBITDA came in at ₹354 crore and the margin improved for a third straight quarter to 12.5%, helped by healthier execution in the core home textiles business and improving efficiencies. According to the Economic Times report, home textile exports rose 28.1% year on year, with the US pillow business expanding 2.3 times and domestic sales rising 21.3%.
Brokerages said the results were better than expected. JM Financial kept a Buy rating and said consolidated EBITDA of ₹320 crore beat its estimate of ₹280 crore, with margins supported by operating leverage and a stronger product mix. Motilal Oswal Financial Services also reiterated Buy with a target price of ₹215, saying the stock still has room to rise as margins improve and growth broadens beyond the US. The brokerage expects the company to benefit from rising capacity utilisation, structural cost savings and a recovery in core margins.
Analysts also pointed to the next phase of growth, even as near-term challenges remain. Motilal Oswal said the US pillow business is on track to double revenue to about $60 million in FY27, while the UK business should keep growing at a double-digit pace, helped by the India-UK free trade agreement and existing customer relationships. It flagged flood-related disruption at the Vapi facility as a temporary drag on second-quarter performance, but said operations should normalise afterwards. Arthneeti’s analysis separately said the company is also pushing premium, innovation-led products and expanding in flooring, with domestic and overseas markets both expected to support growth.
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