Welspun Living Jumps Up to 11% as Q2 Profit Rises 13-Fold and the Company Turns Net-Cash

Shares of Welspun Living climbed as much as 11% on Monday, touching an intraday high of Rs 243 on the NSE, after the home textiles exporter reported a roughly 13-fold jump in September-quarter profit and said it had paid down all of its net debt. The stock opened about 1% higher at Rs 223 and was still up close to 6% at Rs 231.55 by 11 am, with more than 2.2 crore shares, worth about Rs 520 crore, changing hands on the exchange by late morning.

It was the second straight session of gains for a stock that has already risen around 75% in 2026, at a time when the Nifty is down more than 10% for the year.

What the numbers show

Consolidated net profit for the July-September quarter of FY27 came in at about Rs 169.7 crore, compared with under Rs 15 crore a year earlier. Revenue rose roughly 16-17% to around Rs 2,840-2,870 crore, depending on whether other operating income is included.

The bigger story is margins. EBITDA more than doubled to about Rs 370 crore, and the EBITDA margin widened by roughly 600 basis points to 12.9%, from 6.8% a year ago. Lower interest costs after debt repayment added to the effect, which is why profit grew so much faster than sales.

Growth came from almost every part of the business:

• Home textile exports rose 18.3% year on year.
• The US pillow business grew 2.4 times, with both of its manufacturing facilities now running, and the company says it remains on track to double that revenue in FY27.
• The domestic business grew 28.2%, led by a 37% jump in the Welspun brand.
• Flooring revenue rose 19.3%, with its EBITDA margin improving to 10.8%.

From net debt to net cash

The balance sheet has changed sharply in six months. Welspun Living had net debt of about Rs 775 crore at the end of March 2026 and reported a net-cash position by the end of September. Its cash conversion cycle, the time it takes to turn inventory and receivables back into cash, fell to about 44 days from 82, which points to tighter control of working capital rather than a one-off cash inflow.

The flood and the outlook

The quarter was not clean. Flooding at the company's Vapi facility disrupted operations and resulted in an exceptional charge of a little over Rs 7 crore, even after an insurance recovery of about Rs 125 crore. Jefferies said the floods held back revenue growth this quarter, but expects the impact to reverse in the coming quarters.

The brokerage kept its Buy rating with a Rs 260 target, citing stable US tariffs, the India-UK free trade agreement and the scale-up of its flooring and pillow businesses. It forecasts revenue, EBITDA and profit to grow at annual rates of about 14%, 38% and 71% respectively between FY26 and FY29. Axis Securities also has a Buy call, with a Rs 240 target.

Management expects US sales to grow at a mid-to-high single-digit pace, and sales to the UK, the EU and New Zealand to grow about 20%, helped by new trade agreements and buyers moving their sourcing away from other countries.

What to watch

The 13-fold profit jump looks dramatic partly because the year-ago quarter was very weak, so the comparison flatters the result. The margin gain matters more, and whether it lasts is the key question. Cotton is Welspun's main raw material, and a sharp rise in its price could eat into the extra margin before scale benefits catch up. Even after the improvement, net profit is still under 6% of revenue, so a few points of cost inflation would make a visible difference.

The company also depends heavily on the US for exports, so any change in American tariffs or consumer demand would hit it directly. After a 75% rally this year, investors are already paying for continued margin gains. The next two quarters will show whether the Vapi recovery and the trade deals can deliver them.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.