Welspun Living delivered a robust Q2 FY27 performance, with consolidated revenue up 16.9% to Rs 2,869.9 crore. Net profit skyrocketed to Rs 169.66 crore compared to Rs 14.86 crore last year, as the company shifted to a net-cash position. Strong growth in US and domestic segments combined with improved margins marks a significant turnaround for the textile player.
Welspun Living Posts Strong Q2 Growth and Turnaround
Revenue: Rs 2,869.90 crore (+16.9% YoY)
Net Profit: Rs 169.66 crore (+1042% YoY)
Reader Takeaway: Exceptional profit growth and a move to net-cash status boost sentiment, though Vapi operations remain a watch point.
What just happened
Welspun Living reported a stellar second quarter for FY27, characterized by significant margin expansion and a massive jump in profitability. The company achieved an EBITDA margin of 12.9%, marking a 600 basis point improvement over the same period last year. A key highlight of the quarter is the successful transition to a net-cash position, reversing the net debt of Rs 775 crore recorded in March 2026.
Why this matters
The company’s operational efficiency has improved dramatically, with the cash conversion cycle shortening to 44 days from 82 days earlier this year. The US pillow business has emerged as a key growth driver, growing 2.4x year-on-year, while the domestic business registered a robust 28.2% growth rate. This diversification and operational tightening signal a period of stronger capital allocation for the business.
The backstory
In July 2026, the company faced operational disruptions at its Vapi facility due to flooding. Management has since managed the restoration process, recognizing an exceptional expense of Rs 7.16 crore after factoring in insurance recoveries. Efforts to restore full capacity at this plant are expected to conclude within the current fiscal year.
Risks to watch
Investors should monitor the finalization of insurance settlements regarding the Vapi site and potential volatility from global trade developments. Exposure to US tariff policies and geopolitical instability in West Asia continues to be a factor, though management is actively pursuing tariff refund claims to mitigate impact.
What to track next
Management has guided for sustained double-digit revenue growth and maintaining EBITDA margins in the "low teens." Shareholders should watch for the completion of the Vapi plant restoration and the company's ability to maintain its newly achieved net-cash status against potential market fluctuations.