Welspun Living Achieves Net Cash Position As Growth And Margins Strengthen

Welspun Living reported a 16.9% year-on-year increase in revenue to Rs 2,870 crore in the second quarter of FY2027, driven by growth across home textile exports, its US pillow business, domestic sales and flooring. Revenue increased 1.5% sequentially, while improved profitability and working capital management helped the company achieve a net cash position.

EBITDA stood at Rs 370 crore, with the EBITDA margin expanding to 12.9%, up 600 basis points year-on-year and 40 basis points over the preceding quarter. Profit after tax rose thirteenfold year-on-year to Rs 169 crore.

The company’s balance sheet strengthened considerably during the period, moving to a net cash position from net debt of Rs 775 crore in March 2026. Its cash conversion cycle shortened to 44 days from 82 days in March, while return on capital employed improved to 12.7%, reflecting better capital utilisation.

Home textile exports grew 18.3% year-on-year, supported by improving demand. The US pillow business expanded 2.4 times compared with the corresponding quarter last year. With both manufacturing facilities operational, the business remains on track to double revenue in FY2027, strengthening Welspun’s manufacturing presence close to its US customers.

The domestic business delivered 28.2% year-on-year growth, while the Welspun brand grew 37%, reflecting continued consumer traction in India. Flooring revenue increased 19.3%, with the segment’s EBITDA margin improving to 10.8%.

Commenting on the performance, Dipali Goenka, Managing Director & CEO, said the quarter demonstrated continued progress in profitable growth, operating discipline and capital efficiency. She highlighted sourcing diversification, supply chain resilience, product innovation and speed-to-market as key factors shaping the global home textiles industry.

According to Goenka, India’s growing competitiveness in global sourcing and expanding trade access offer opportunities for the company. Welspun intends to build on its manufacturing scale, customer relationships and product capabilities to capture these shifts.

Restoration of operations at Vapi is progressing, with full restoration expected during the financial year. The company identified this as a near-term operational priority. On sustainability, its Anjar facility now operates on 100% green power.

Welspun also continued to invest in its consumer brands. SPACES unveiled its Autumn-Winter 2026 collection at the World Trade Centre in Thane, featuring expressive prints, quilted coverlets, hand-painted pieces and decorative threadwork. The company’s ‘Itna Drama Kyun?’ campaign, featuring Vidya Balan, highlighted its QuikDry towels and bedsheets.

Looking ahead, Welspun aims to sustain double-digit growth, maintain EBITDA margins in the low teens, improve return on capital and generate strong cash flows. Investments will remain selective, focusing on capabilities, innovation, brands and sustainability.Top of Form