WELSPUNLIV Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,795 Cr
verified against source
Revenue YoY
23.5%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Welspun Living delivered its strongest quarter in seven quarters with Q1 FY27 consolidated revenue of 2,828 crores, up 23.5% YoY and 15.4% sequentially. EBITDA margins expanded 140bps YoY to 12.5%, marking the third consecutive quarter of margin improvement from the 6.8% trough, driven by volume recovery, operating leverage, improving business mix, and cost optimization initiatives. PAT margins nearly doubled to 5.7% from 3.8%. Home textiles exports grew 28.1% YoY, with UK/Europe delivering 20%+ growth. The US onshore pillow business grew 2.3x and is on track to reach $60 million. The company guided for double-digit revenue growth and low-teens EBITDA margins for FY27. Key risks include raw material inflation (cotton, crude), geopolitical headwinds from the West Asia conflict, potential ROSL expiration by September, and Q2 impact from the Anjar facility flooding. The India-UK FTA effective July 15 presents a significant structural opportunity as India gains equal tariff footing with Pakistan in the UK market.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets double-digit revenue growth for full year FY27, building on Q1's 23.5% YoY performance.
- Company guides for EBITDA margins in the low-teens for FY27, progressively moving toward the medium-term target of 15% as margin expansion is structural and sustained.
- Capital expenditure guidance of 400-500 crores for FY27, primarily for automation, modernization, and debottlenecking. Includes 121 crores approved for Anjar facility upgrade.
- On track to double US onshore pillow revenue to $60 million in FY27 with Nevada facility ramping up and Ohio at 81% utilization.
Risks flagged
- Cotton prices and crude oil derivatives have increased sharply in recent months. Management acknowledged raw material inflation as a watch-out for the next couple of quarters, though they stated costs are being passed through to customers.
- Unprecedented flooding at the Anjar facility caused partial disruption. Operations partially resumed within a week but Q2 will be impacted while Q3-Q4 restoration continues. The company is fully insured.
- Analyst raised concerns about ROSL (RoSTL) expiring by September 2026 and its potential impact on export incentives. Management stated they will wait and hope for extension/positive outcome but acknowledged uncertainty.
- While current tariff is at 10%, management declined to specify a level of confidence for tariff management. Competitors have stated they can manage up to 18-20% tariff. BTA talks with US are ongoing with uncertain outcomes.
Key quotes
- We have the strongest quarter in seven quarters with consolidated revenues growing 23.5% year-on-year. Margin expansion is now in its third consecutive quarter from 6.8% at the trough to 12.5% today. And it is structural not circumstantial.
- The India UK free trade agreement effective 15th July puts India on an equal tariff footing with Pakistan which today holds over 50% of UK home textile imports. We are not starting from scratch here.
- We remain focused on improving not just growth but the quality of growth by strengthening cash generation, enhancing operational productivity, maintaining disciplined capital allocation and delivering sustainable improvement in return ratios.
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