Welspun Living reported a sharp recovery in its September-quarter earnings, with consolidated net profit rising to ₹169.66 crore in Q2 FY27, compared with ₹14.86 crore in the corresponding quarter last year.

The home textiles manufacturer announced its results on October 30, 2026. The performance reflected stronger sales, improved operating profitability and a significant recovery from the relatively weak earnings base of Q2 FY26.

Revenue from operations increased 16.3% year-on-year to ₹2,838.12 crore from ₹2,440.91 crore. Total income, including other income, grew 16.9% to ₹2,869.90 crore from ₹2,455.66 crore.

Sequentially, revenue from operations increased 1.5% from ₹2,795.45 crore in Q1 FY27. Net profit rose 4.3% quarter-on-quarter from ₹162.61 crore, indicating that the earnings recovery continued into the September quarter.

The company reported EBITDA of approximately ₹370 crore, representing growth of 120% from ₹168 crore a year earlier. The improvement was substantially faster than revenue growth, reflecting a recovery in operating profitability.

EBITDA margin expanded to 12.9% from 6.8% in Q2 FY26, an improvement of approximately 604 basis points. Compared with the June quarter, the margin improved from 12.5%, suggesting continued operational progress.

Profit before tax increased to ₹225.82 crore from ₹23.82 crore a year earlier. The significant improvement demonstrates the combined effect of stronger operating earnings and a comparatively depressed base period.

Profit after tax margin improved to approximately 5.9% from 0.5% in the previous year. Basic earnings per share increased to ₹1.80 from ₹0.13, reflecting the substantial improvement in reported profitability.

Home textiles remained the company’s largest business, generating segment revenue of approximately ₹2,689 crore, up 15.8% year-on-year. Segment EBITDA increased to ₹323 crore, with margins improving to 12.0%.

Export performance was particularly important during the quarter. Home textile exports grew 18.3% year-on-year, supported by customer demand and the company’s diversified international distribution network.

The United States remained a significant market for Welspun Living. Its US pillow business expanded approximately 2.4 times year-on-year, with both manufacturing facilities operational during the quarter.

Management indicated that the US pillow business remained on track to double its revenue during FY27. Continued capacity utilisation and customer demand will influence how much of this growth translates into sustainable profitability.

The domestic business also delivered strong performance, recording 28.2% year-on-year growth. The Welspun consumer brand grew approximately 37%, highlighting the increasing contribution of the company’s India-focused operations.

Overall branded revenue increased 32% year-on-year and accounted for approximately 22% of revenue. The growing branded portfolio provides an additional business channel alongside large international retail and institutional customers.

The flooring division reported revenue of approximately ₹216 crore, representing 19.3% annual growth. Its EBITDA margin improved to 10.8% from 2.1%, reflecting operational improvements and a stronger focus on profitable business.

Innovation-related revenue also strengthened, with the company’s global business-to-business innovation portfolio growing approximately 46%. Management highlighted product development and differentiated offerings as important components of its strategy.

Beyond the income statement, Welspun Living achieved a net-cash balance-sheet position, compared with net debt of ₹775 crore in March 2026. This marked a significant improvement in the company’s financial flexibility.

Working-capital efficiency improved as the cash conversion cycle declined to 44 days from 82 days in March. Operating cash flow for the first half of FY27 reached approximately ₹1,101 crore, compared with ₹366 crore a year earlier.

The quarter also included an exceptional charge of approximately ₹7.16 crore associated with flooding at the company’s Vapi facility. The charge covered damage and restoration-related costs after accounting for insurance considerations.

Management indicated that restoration activities at Vapi were progressing, with full restoration expected during the financial year. Investors will need to distinguish temporary disruption-related expenses from the underlying profitability of ongoing operations.

Managing Director and CEO Dipali Goenka outlined priorities including sustained double-digit revenue growth, EBITDA margins in the low teens, improved returns on capital and stronger cash generation. These remain management objectives rather than assured outcomes.

Welspun Living enters the second half of FY27 with stronger earnings, improved margins and a healthier balance sheet. Export demand, US trade policies, raw-material costs, currency movements and execution across its textile and flooring businesses will remain important factors in evaluating the durability of this recovery.