Welspun Living is a global leader in home textiles — terry towels, bedsheets and flooring — with a growing domestic consumer business and US onshore pillow manufacturing. The Q2 print will speak to how much the Vapi facility flooding disrupted a quarter that was otherwise set up favourably, and whether the margin expansion streak that took EBITDA margin from 6.8% to 12.5% over three quarters can hold.
| Results date | October 30, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,828 Cr |
| Previous quarter PAT | Rs. 161 Cr |
| Previous quarter EBITDA margin | 12.5% |
| Market cap | Rs. 19,832.24 Cr |
| CMP | Rs. 209.92 |
Welspun Living Ltd's board meets on October 30, 2026 to consider the audited financial results for Q2 FY 2026-2027.
The quarter's central question is the Vapi facility, disrupted by flooding since July 23, 2026 — management has said Q2 will be impacted, with restoration expected in phases through Q3–Q4 and the company fully insured, while a potential insurance claim of about Rs. 1,000 Cr has been reported. The year-ago base is weak (Q2 FY26 revenue Rs. 2,456 Cr, down 16.4% YoY, with a 6.8% EBITDA margin), so YoY comparisons stay favourable, but sequential momentum from Q1's Rs. 2,828 Cr is likely to interrupt on the outage. On costs, cotton spot rose to about Rs. 70,300/candy by end-August before easing to Rs. 64,500–65,500 on new-crop arrivals, and the company had cotton inventory secured through October — so the Q2 pass-through is partial, with the Q3 restock the bigger cost question. The tariff backdrop settled favourably, with India at a 10% Section 301 rate from July 24, 2026 versus 12.5% for China, Vietnam and Turkey, and US retail sales ran +5.5% YoY over July–September. Management reiterated FY27 double-digit revenue growth and low-teens EBITDA margins on the Q1 call despite the flood, and the call is expected to cover the Vapi quantification, the margin bridge from 12.5% toward the 15%+ normalized aspiration, and the net-debt path to zero from Rs. 775 Cr.
Performance vs previously stated guidance: Management reiterated its FY27 targets on the Q1 call despite the Vapi flood; Q2 is the first print against that reaffirmation.
Vapi restoration and insurance claim: The flood is the single biggest swing factor for the quarter.
Margin bridge and input costs: Three consecutive quarters of margin expansion (6.8% to 12.5%) face a test this quarter.
Strategic execution updates: Several named projects have pending milestones.
Operating metrics showing prior weakness: A few KPIs remain below target even as the overall business recovered.
Management did not confirm an 18% margin when asked, focusing instead on maintaining 15–16% for home textiles while citing cotton inflation. The company's stated normalized EBITDA aspiration is 15%+, against 12.5% in Q1 FY27.
On the Q1 FY27 call, the CEO cited volume recovery, tariff share unwinding converting into operating leverage on a largely fixed cost base, and improving business mix. Structural cost actions on energy, automation and throughput were also named as margin drivers.
Management guided FY27 capex at Rs. 400–500 Cr, largely toward modernization, automation and debottlenecking, including Rs. 121 Cr at the Anjar facility. CFO Manish Bansal confirmed the Rs. 700 Cr Phase 2 plan is on track, with no additional capacity planned and a review after 2 years.
Management reiterated double-digit FY27 revenue growth on the Q1 FY27 call despite the Vapi flood, with Q1 revenue up 23.5% YoY. The Q2 print will show the trajectory against the flood disruption, with restoration guided for Q3–Q4.