Welspun Living reported a 24% increase in revenue for the year. The home textile segment grew 26% year‑over‑year, while flooring sales rose by 7%. This growth was driven by higher volumes across both product lines.
Gross profit margin fell by 246 basis points to 45.2% because of higher raw material costs. On the other hand, EBITDA margin improved by 151 basis points to 11.5% thanks to volume recovery, a better product mix, and cost‑saving measures.
Analysts expect the company to keep double‑digit revenue growth, mainly from the home textile segment. EBITDA margin is projected to reach about 13% as the business mix improves and flooring margins recover.
Operations at the Vapi plant were damaged by floods. The plant is being restored in phases, which will hurt 2QFY27 earnings. A recovery is expected in the second half of FY27.
The rating remains BUY and earnings estimates have been increased. The target price is set at INR 215, valuing the stock at 12 times FY28 expected EV/EBITDA.
Key risks include concentration of customers and geography, and fluctuations in commodity prices.