Welspun Living Ltd
(BOM:514162)
₹
214.65
+2.65 (+1.25%)
Market Cap: 202.08 Bil
Enterprise Value: 215.67 Bil
PE Ratio: 74.02
PB Ratio: 4.17
GF Score: 77/100 
Q1 2027 Welspun Living Ltd Earnings Call Transcript
Aug 13, 2026 / 11:30AM GMT
Release Date Price:
₹159.8
(-3.24%)
Key Points
Positve
- Consolidated revenue grew 23.5% YoY to INR2,828 crore, the strongest quarter in seven quarters, with Q1 revenue 9% above the pre-tariff baseline of Q1 FY25.
- EBITDA margin expanded to 12.5%, up 140 bps YoY and 170 bps sequentially, marking the third consecutive quarter of margin improvement, driven by volume recovery, operating leverage, and better business mix.
- The India-UK Free Trade Agreement, effective July 15, positions Welspun Living Ltd (BOM:514162) to gain market share in the UK, where Pakistan holds over 50% of home textile imports; UK and Europe businesses grew 20%+ this quarter.
- US onshore pillow businesses grew 2.3x, with Ohio facility at 81% utilization and Nevada facility commencing operations, supporting the target to double revenue to USD60 million this year.
- Flooring business EBITDA margins improved to 10.4%, the highest in over two years, driven by a strategic shift to soft flooring, geographic diversification, and cost controls, with management confirming sustainability.
- Domestic businesses grew 21.3% YoY, with both B2B and B2C growing in strong double digits, and the company is near breakeven in domestic retail, targeting INR1,000 crore.
- Innovation-led sales grew 16% and contributed ~25% of revenue, supported by a portfolio of 50 patents, reinforcing the company's competitive moat.
- The company is on track to achieve double-digit revenue growth and EBITDA margins in the low teens for FY27, with a target to improve ROCE to low teens.
- Anjar facility now receives 100% green power, bringing 79% of total power consumption to green energy, enhancing sustainability credentials.
- The company has long-term partnerships with freight carriers, ensuring customer dispatches are not impacted despite rising market rates.
Negative
- Gross margin declined in Q1 due to raw material inflation, particularly cotton and crude, which management expects to continue and will need to be watched.
- The unprecedented flooding at the Vapi facility disrupted operations, with partial resumption within a week but full restoration expected in phases; Q2 will be impacted, though the company is fully insured.
- Bed linen volumes were down in Q1, and overall home textile volume growth was modest, with growth partly driven by realization and goods-in-transit factors.
- The company faces uncertainty regarding the RoSCTL export incentive, which is due to expire by September; management's base case assumes a positive outcome, but any lapse could impact margins.
- Tariff refunds are progressing but remain subject to administrative processes, with timing and quantum uncertain.
- The company's guidance for low-teens EBITDA margins is below its normalized target of 15%, and bridging the gap will be gradual over the next two years.
- Freight costs have increased due to the West Asia conflict, and while the company has long-term partnerships, it may face cost pressures.
- The company's non-US revenue mix is still heavily reliant on the US, and diversification efforts are ongoing but will take time to reach the 50% target.
- The company is facing raw material cost inflation, and while it plans to pass on costs to customers, negotiations are ongoing and may not fully offset the impact.
- The company's domestic retail business is only near breakeven, and achieving profitability will require continued growth and cost discipline.
Operator
Ladies and gentlemen, good day, and welcome to the Welspun Living Q1 FY27 earnings conference call hosted by 360 ONE Capital Market. All participant lines will be in listen-only mode. Please note that this conference is being recorded.
I now hand the conference over to Ms. Aradhana Jain from 360 ONE Capital Market.
Aradhana Jain
360 One Capital Market Pvt Ltd - Analyst
Thank you, Yusuf. Good evening, everyone. On behalf of 360 ONE Capital, I welcome all participants and the management of Welspun Living to the Q1 FY27 conference call.
Without much ado, I hand over the call to Ms. Bharti Agarwal, Head of Investor Relations, Welspun Living, to introduce the management. Over to you, Bharti.
Bharti Agarwal
Welspun Living Ltd - Head of Investor Relations
Thank you, Aradhana, and good evening, everyone. On behalf of Welspun Living Limited, I would like to welcome you all to the first quarter FY27 earnings call.
On this forum today, we have Ms. Dipali Goenka, Managing Director and CEO; Mr.
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