Welspun Living Ltd (WELSPUNLIV) Q1 FY27 Results Analysis: PAT Surges 84%, Margin Expands 156 bps

Welspun Living Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,795.45 Cr (+23.66% YoY) and PAT growth of +83.59% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 23.66% YoY and PAT surged 83.59% YoY, with EBITDA margin expanding 156 bps to 11.53%. Key positives include strong Home Textiles growth, margin progression for three consecutive quarters, and debt reduction. Minor concerns include an exchange loss and inventory build. The company is on track for double-digit annual growth guidance.

Key Investment Insights

Key Positives

• Revenue grew 23.66% YoY to Rs.2,795.45 Cr.
• PAT (owners) grew 83.59% YoY to Rs.160.73 Cr.
• P&L EBITDA margin expanded 156 bps YoY to 11.53%.
• Home Textiles segment revenue grew 26.23% YoY with EBITDA margin of 11.73%.
• Flooring segment EBITDA margin improved to 10.40% from 8.37% a year ago.
• Finance costs declined 19.06% YoY due to net debt reduction to Rs.775 Cr.
• EPS (basic) grew 83.70% YoY to Rs.1.69.

Risk Factors

• Exchange loss of Rs.16.07 Cr negatively impacted Other Expenses.
• Inventory build of Rs.130.28 Cr increased working capital requirements.
• Flooring segment PBT remained negative at Rs.(2.29) Cr despite margin recovery.