Welspun Living Q1: consolidated PAT surges 82% YoY to ₹163 Cr as margins hit 12.5%
PAT +82.11% YoY · revenue +23.66% · margins expanding
₹2,795.45 Cr
+23.66% YoY
₹162.61 Cr
+82.11% YoY
5.75%
+1.9pp YoY
₹1.69
Welspun Living's consolidated (primary basis) revenue from operations rose 23.7% YoY and 14.8% QoQ to ₹2,795 Cr (total income ₹2,828 Cr, +23.5% YoY per the company's own calc), while net profit for the period jumped 82% YoY and 53% QoQ to ₹163 Cr — owners' share ₹161 Cr, matching management's own '1.8x YoY' framing. Neither this quarter nor the year-ago quarter carried exceptional items, so the growth is clean and comparable; no raw-vs-adjusted split is needed. Growth was broad-based: home-textile exports +28.1% YoY (one of the strongest export quarters in years), domestic brands +21.3% YoY, and the US pillow business grew 2.3x YoY. By segment, Home Textiles PBIDT rose 40.8% YoY to ₹314.3 Cr on revenue of ₹2,680 Cr (+26.2% YoY), while Flooring PBIDT grew 20.5% YoY to ₹19.5 Cr even as Flooring revenue slipped 3.1% YoY to ₹187.5 Cr — margin discipline (management cites 10.4% flooring margin) offset softer export volumes there.
Q1 FY-2027 vs prior quarters
Margins expanded for a third straight quarter: consolidated EBITDA (management's metric, profit before interest/depreciation/associate-share/tax) was ₹354 Cr at a 12.5% margin, up 170 bps sequentially and 140 bps YoY from 10.8%/11.1%. On a net basis, consolidated PAT margin (PAT/total income) rose to 5.75% from 4.33% in Q4FY26 and 3.90% a year ago. The margin bridge: material and other-expense lines grew slower than revenue even as Other Expenses absorbed a ₹16.07 Cr exchange loss this quarter versus a ₹5.06 Cr exchange gain in the year-ago quarter — a modest headwind the company still grew through. Finance costs fell YoY (₹34.4 Cr vs ₹42.5 Cr) on lower debt.
The stock went into the print at ₹160.25, down 3.7% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.
Management guides for a strong recovery in FY27 with double-digit revenue growth and EBITDA margins advancing into the teens, driven by volume normalization and benefits from emerging Free Trade Agreements (FTAs). This growth will be supported by a capex of INR 400-500 crores focused on modernization, while maintaining
— This quarter: beat
On guidance, management's Q4FY26 concall had called for 'double-digit revenue growth' and margins 'advancing into the teens' in FY27; this quarter's 23.5-23.7% YoY revenue growth comfortably clears that bar, and the 12.5% EBITDA margin — up for a third consecutive quarter — is progressing toward, though not yet inside, the guided teens. We found no analyst consensus estimates specific to Welspun Living's Q1FY27 print (the closest matches surfaced were for Welspun Corp, a separate group entity, and a stale Simply Wall St piece covering Welspun Living's FY26 annual results from May 2026), so vsStreet is marked unknown rather than inferred. During the quarter the company completed a ₹252 Cr tender-offer buyback (1.44 Cr shares at ₹175/share, settled June 11), which reduced paid-up capital by ₹1.44 Cr and contributed to basic EPS climbing to ₹1.69 from ₹0.92 YoY alongside the profit growth. Two events fall just after the quarter close and do not affect these numbers: the Board approved selling a 51% stake in Welspun Captive Power Generation Ltd for ₹67.66 Cr (completed July 31, moving WCPGL from subsidiary to associate from Q2FY27), and the Vapi, Gujarat plant has been flood-disrupted since July 23 (assets insured, impact still being assessed).
W1
WCPGL deconsolidation from Q2FY27 (51% stake sold for ₹67.66 Cr, completed July 31) — watch its effect on segment revenue/asset base next quarter
W2
Vapi plant flood disruption since July 23, 2026 — company says impact still being assessed and assets are insured; watch for a quantified hit in Q2 results
W3
EBITDA margin trajectory: 12.5% this quarter (+170 bps QoQ, +140 bps YoY) against management's guidance of margins 'advancing into the teens' in FY27
Native (non-scanned) filing, fully legible; no exceptional items in either the current or year-ago quarter (Labour Code impact of ₹18.97 Cr sits only in the FY26 annual column), so raw YoY equals adjusted YoY. Consolidated 'Net Profit for the Period' (row 9) is ₹162.61 Cr; owners' share is ₹160.73 Cr, which management's press release rounds to '₹161 Cr'. Standalone PAT includes a ₹55.27 Cr intercompany dividend from a subsidiary (Note 5) that eliminates on consolidation, explaining why standalone PAT growth (+105% YoY) runs well ahead of consolidated (+82% YoY).
Nevada Growth vs Vapi Disruption: First Look at the FY27 Volume Story
Welspun Living reports Q1 earnings on August 13 with mixed crosscurrents: Nevada pillow plant now fully operational targeting $60M FY27 revenue, but July floods disrupted the India manufacturing base. Expectations point to mid-teen EBITDA margin hold and mid-to-high single-digit revenue growth as the quarter absorbs temporary production headwinds.
The Setup: Welspun Living steps into Q1 FY27 with offsetting tailwinds and headwinds. On the upside, the Nevada pillow manufacturing plant reached full commercial production on June 16, 2026, and is engineered to contribute ~₹480 Cr (~$60M) in revenue for FY27—a 7% boost to group operations via proximity manufacturing for the North American market. On the downside, heavy rains flooded the Vapi, Gujarat manufacturing facility on July 23, creating a temporary production outage just as the quarter was closing. Street consensus (₹170 target, up from bear ₹115) anticipates double-digit revenue growth for the full year with EBITDA progressing into the mid-to-high teens by year-end, but Q1 will likely miss full-year run-rates given the disruption window.
What to Watch: The Earnings Grid
~₹220–240 Cr
vs ₹230 Cr+ implied by FY27 double-digit guide; Q1 likely 5–8% YoY growth given Vapi outage window
~15–16%
on-plan trajectory; Nevada ramp + India price realization offset by near-term cost of disruption recovery
₹20–25 Cr
modest swing from any one-time disruption cost or recovery accrual; FY26 full-year divisional dynamics post-divestment
Data TBA
key watch: Vapi recovery pace and Nevada ramp contribution in Q1 vs full-year trajectory
A Strong Q1 would see revenue near the ₹240 Cr+ mark (8%+ YoY) with Vapi recovery beginning earlier than feared, Nevada contributing volume without margin dilution, and gross margins holding above 40% despite freight and raw-material headwinds. A Weak Q1 would show revenue at or below ₹215 Cr (essentially flat to down YoY), a margin dip into 14–15% due to unabsorbed overhead post-flood, and guidance commentary that push Q1 margin recovery toward Q2–Q3.
On Track? FY27 Guidance Posture
Management laid out double-digit revenue growth for FY27 with EBITDA in the mid-to-high teens by year-end. To deliver that, the company needs Q2–Q4 to grow at 12–15% on a cumulative basis. Q1's likely 5–8% growth implies the company is still on trajectory for full-year targets, provided Vapi ramps back to normal by early Q2 and Nevada scales smoothly. Watch management guidance updates on recovery timeline and capex completion; any pushout of the Nevada yield curve or Vapi restart cost would chip away at FY27 EBITDA hopes.
What the Street Says
Since Last Quarter: The Filing Scan
1 · Nevada Plant Full Operational (Jun 16, 2026)
Pillow unit commenced full commercial production. Target: $60M revenue in FY27 (₹480 Cr equiv.), adding ~7% to group operations. This is a multi-year capex payoff and signals management confidence in North American demand; watch gross margin on this product vs company average.
2 · Vapi Plant Flood Disruption (Jul 23, 2026)
Heavy rains caused production outage at the Gujarat facility. No quantified production loss yet disclosed as of this preview date; management guidance on recovery timeline will be critical on the earnings call. Key to estimate: how many days of lost output, any customer penalty, and restart capex.
3 · Power Unit Divestment (Jul 24–31, 2026)
Board approved and completed transfer of 51% stake in Welspun Captive Power Generation Limited to promoter group company Welspun Corp at ₹67.65 Cr. This is routine portfolio consolidation; unlikely to impact Q1 P&L materially, but removes a legacy business line from consolidated results going forward.
4 · ₹252 Cr Buyback at ₹175 (May 2026)
Promoters tendered 0.88% of shares; buyback shows management conviction in valuation vs ₹164 current price. No change to ownership structure; promoter stake remains 66.24%. Standard shareholder return.
The Close: Q1 Setup in One Sentence
Welspun Living enters Q1 earnings as a two-story play—Nevada scaling as expected and validating the US capex thesis, but Vapi floods likely soften Q1 topline and margins vs full-year trajectory, so the real test is management's candor on disruption recovery and confidence in double-digit FY27 growth realisability.
Three things to watch on result day: (1) Volume commentary—any quantified impact from Vapi outage and expected recovery timeline; (2) Nevada contribution—revenue, volumes, and gross margin signature in the first full quarter; (3) FY27 guidance—any revision to double-digit growth or mid-to-high-teens EBITDA targets, and capex/cash flow implications of the power-unit divestment.