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Informist, Thursday, Aug. 13, 2026

 

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--Welspun Living: Q1 EBITDA margin helped by healthy volume recovery
--CONTEXT:  Comments by Welspun Living's mgmt in post-earnings investor call
--Welspun Living: B2B, B2C both drove domestic business revenue growth Q1
--Welspun Living: Better pdt mix, operating leverage aided Q1 EBITDA margin
--Welspun Living: FY27 capex guidance at INR 4 bln-INR 5 bln
--Welspun Living:Q1 gross margin affected by high raw material, crude prices
--Welspun Living: Expect around 80% utilisation across all verticals in FY27
--Welspun Living: See upside in UK business post India-UK FTA
--Welspun Living: Q2 output to be impacted by flood-hit Vapi unit operations
--Welspun Living: See flood-hit Vapi unit's full restoration in Oct-Mar
--Welspun Living:Aspire to raise market share in UK, in talks with retailers
--Welspun Living: Consumption momentum continues to be resilient in US
--Welspun Living: FY27 capex to include automation, debottlenecking works
--Welspun Living: No market share loss in US last one year due to tariffs
--Welspun Living: To pass on input cost inflation, in talks with customers

 

By Rajesh Gajra and Adhithya Aji

 

MUMBAI – The factory of home textiles manufacturer Welspun Living Ltd. at Vapi in Gujarat, where operations were disrupted since Jul. 23 because of the impact of flooding amid heavy rains in the region, is getting restored in phases, Dipali Goenka, managing director and chief executive officer, said in a post-earnings conference call with investors and analysts Thursday. The restoration will be fully done by the second half of the financial year 2026-27 (Apr-Mar), she said. However, production at the factory in the September quarter will be hit by the impact from the flooding "onslaught", she added.

 

The situation at the factory is unlikely to affect Welspun Living's revenue growth guidance for FY27, according to the company. Without specifying any indicative range, the company said it expects "double-digit" revenue growth in FY27. For the June quarter, Welspun Living Thursday reported consolidated revenue from operations of INR 27.95 billion, up 24% on year and 15% on quarter.

 

The company's revenues are predominantly from home textiles. In the June quarter, the revenue from the home textiles business was INR 26.80 billion, up 26% on year and 16% on quarter, while the revenue from the flooring business was only INR 1.88 billion, down 3.1% on year and 0.7% sequentially.

 

While the company did not provide a geographical break-up for its June quarter revenue, it specified in its post-earnings investor presentation that non-US revenues accounted for 41% of the total revenue, indicating a 59% revenue exposure to the US market. To diversify across geographies, the company is aiming for non-US revenue share of around 50%. The US market will still be the biggest, Goenka said. Consumption momentum has remained resilient in that country, she said.

 

There has also not been any loss of market share for the company in the US due to tariffs and tariff-related uncertainties in the past one year, Goenka said. Given the company's long-term strategic partnerships with retailer clients in the US, "we actually work together in the tough times", she said.

 

But the UK market seems promising for Welspun Living, particularly after the recent India-UK free trade agreement, which eases exports to the UK from India for many businesses, including home textiles. The company said it sees a business upside from the UK market and is in talks with retailers in the country. Goenka said that in the UK home textiles market, Pakistan's share is around 50% and "this is the market share we will definitely take."

 

In the domestic businesses from its India operations, revenues grew 21% on year, "sustaining the trajectory from Q4 (March quarter of FY26)", the company said. Both the domestic channels of business-to-business and business-to-consumer grew in "strong double digits" in the June quarter, the company said.

 

Welspun Living's earnings before interest, tax, depreciation, and amortisation margin expanded to 12.5% for the June quarter from 11.1% in the year-ago quarter. The company said in the investor call that the margin expansion came on the back of "healthy volume recovery", strong operating leverage, and better product mix. The company is aspiring for around 15?ITDA margin for FY27.

 

To an analyst's question on why the gross margin declined in the June quarter, Goenka said it was primarily because of raw material cost inflation and higher crude oil prices. "... Even going forward the raw materials will be something that you have to watch out for and of course the macroeconomic factors are also playing, whether it's your crude that you're seeing and cotton (prices)," she said. The company said it has been, and continues to be, in talks with customers to incorporate cost inflation pass-through in their contracts.

 

Goenka said the company expects around 80% utilisation across all verticals in FY27. The company's capital expenditure target for FY27 is INR 4 billion-INR 5 billion, which will be incurred for automation modernisation and debottlenecking works, the company said.

 

The company announced its June quarter earnings Thursday. Its consolidated net profit for the quarter jumped up 84% on year to INR 1.61 billion. Shares of Welspun Living ended at INR 159.83, down 3.3% from Wednesday, on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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