Welspun Living Ltd: Q1 FY27 Earnings and Strategic Outlook

$WELSPUNLIV Executive Summary Welspun Living delivered a robust financial performance for the first quarter of FY27, prompting a highly positive market reaction. Shares surged over 10% in Friday's early trade to achieve a fresh 52-week high of ₹177.30, backed by exceptional trading volumes exceeding 18 times the 10-day average. The growth was primarily driven by strong momentum in the home textile business, yielding substantial top-line and bottom-line expansion. Q1 FY27 Financial Highlights The company demonstrated remarkable operational efficiency and revenue generation capabilities in the June quarter: Consolidated Revenue: Increased by 23.7% year-over-year to ₹2,795.4 crore, up from ₹2,260.5 crore. Net Profit: Surged nearly 84% year-over-year to ₹160.7 crore, compared to ₹87.55 crore in the year-ago period. EBITDA: Rose 42.4% year-over-year to ₹321.1 crore. EBITDA Margin: Expanded by 200 basis points to 12%, up from 10% in the corresponding period last year. Strategic Guidance and FY27 Outlook Management has reiterated its resilient forward-looking outlook for FY27, prioritizing sustained growth and capital efficiency: Core Growth Metrics: Projecting double-digit revenue growth for the full year, with EBITDA margins sustaining in the low teens (12%–13%). Capital Efficiency: Return on Capital Employed (ROCE) is expected to improve to the low teens. Operational Utilization: Targeting approximately 80% capacity utilization across core segments, including towels, sheets, and rugs. Segment Targets: US onshore pillow revenue is on track to double to $60 million. Domestic retail revenue (Welspun and Spaces brands) is targeted at ₹1,000 crore. Global branded business revenue is projected to reach $100 million. Capital Expenditure: Estimated at ₹400 crore to ₹500 crore, strategically allocated towards automation, modernization, and debottlenecking.