Welspun Living Q2 PAT Jumps 13-Fold to $17.8 Million on Margin Push

Welspun Living Ltd posted a 13-fold year-on-year increase in profit after tax to Rs 169 crore (US $17.8 million) for Q2 FY27, on revenue that rose 16.9% to Rs 2,870 crore (US $302.4 million). The Mumbai-headquartered home textile major reported EBITDA of Rs 370 crore (US $39 million), with the EBITDA margin expanding 600 basis points to 12.9% against the corresponding quarter last year.

The quarter marks a balance-sheet turning point. Welspun moved from net debt of Rs 775 crore (US $81.7 million) in March 2026 to a net-cash position. Its cash conversion cycle shortened to 44 days from 82 days. Return on capital employed rose to 12.7%.

What drove the segment numbers?

Home textile exports, the core revenue engine for vendor-facing teams, grew 18.3% during the quarter. The domestic business grew faster still, at 28.2%. The company's Welspun brand in India registered 37% year-on-year growth.

The US pillow business expanded 2.4 times, with both American manufacturing facilities operational. Management reiterated that the unit remains on track to double revenue in FY27 — an intention stated by the company rather than a result yet booked.

The flooring business recorded 19.3% revenue growth, and its EBITDA margin improved to 10.8%, making it a measured contributor to group profitability rather than a drag.

What did the CEO say?

"We delivered 16.9% revenue growth, expanded EBITDA margins to 12.9% and achieved a net-cash position, supported by a significant improvement in cash conversion," said Dipali Goenka, Managing Director and CEO of Welspun Group.

The statement ties the results to working-capital discipline and margin management, not one-off gains. Buyers weighing Welspun as a supply partner will note the swing to net cash, which reduces financing pressure across order books and capacity investments.

Where do operations stand?

Restoration of the company's Vapi operations is progressing, with full restoration expected during the year. Welspun did not quantify the remaining capacity gap at the Gujarat site, so sourcing teams should treat the timeline as guidance rather than a completed recovery.

On sustainability, the company confirmed its Anjar facility has transitioned to 100% green power. For brands with Scope 3 targets and supplier energy requirements, the shift at one of Welspun's flagship plants strengthens its compliance profile.

What comes next?

Welspun said it aims to sustain double-digit growth, maintain EBITDA margins in the low teens, improve capital returns and generate stronger cash flows. Those are stated targets, distinct from the confirmed Q2 results.

For sourcing executives, the combination of a net-cash balance sheet, a 44-day cash conversion cycle and expanding US pillow capacity signals a supplier positioning itself to compete on scale, speed and financing stability through FY27.