Shares of Welspun Living Ltd. experienced a notable uptick, soaring 8% from their intraday low on Friday, following the announcement of better-than-expected September quarter results. The textile manufacturer reported a substantial profit after tax, including minority interests and exceptional items, of Rs 169 crore for the quarter, a significant increase compared to Rs 23 crore in the same period last year.
Total income for the quarter grew 16.9% year-over-year, reaching Rs 2,870 crore from Rs 2,456 crore. The company also saw its Ebitda margin expand by 604 basis points year-over-year, settling at 12.9%.
Strategic Priorities and Financial Strength
Managing Director & CEO, Dipali Goenka, highlighted key achievements, stating that Welspun Living has reached a significant milestone by strengthening its balance sheet and transitioning to a net-cash position. This reflects a consistent focus on cash generation, working capital efficiency, and disciplined capital allocation, which enhances financial flexibility and investment capacity for strategic growth opportunities.
"Building on a strong start to FY27, we delivered another quarter of robust performance, with revenues growing 16.9 per cent YoY and Ebitda margins expanding to 12.9 per cent. Our broad-based growth reflects the resilience of our business model and our ability to deliver profitable growth through disciplined execution amid an evolving global operating environment," Goenka commented.
Broad-Based Growth Across Segments
Goenka elaborated on the company's performance, noting that growth was broad-based across all business segments. Home Textiles exports demonstrated an impressive 18.3% year-over-year growth, while the domestic business delivered an even stronger 28.2% year-over-year growth.
The company's Flooring business also showed significant improvement, with margins enhancing to 10.8%. This improvement is attributed to strategic realignment, operational efficiencies, and a sharper focus on profitable expansion within the segment.
Future Outlook and Market Opportunities
As Welspun Living progresses through the current fiscal year (FY27), its core priorities include sustaining double-digit revenue growth, maintaining Ebitda margins in the low teens, improving returns on capital, and generating robust cash flows.
The company believes it is well-positioned to capitalize on evolving global sourcing opportunities and structural industry tailwinds. This confidence stems from its integrated manufacturing capabilities, a diversified customer and market base, and a stronger balance sheet. Welspun Living aims for disciplined capital deployment and long-term value creation for its stakeholders.