Welspun Living shares surge 10% after strong Q1 results, resilient guidance

The shares of Welspun Living surged over 10% in the early trade on Friday, August 14, after the company reported strong numbers in its Q1 results on Thursday.

Welspun Shares Surge

In the first quarter of FY27, the company reported a consolidated net profit ₹160.7 crore in the quarter ended June 30. This marked a surge of over 80% in bottom-line numbers, as the profit figure jumped from the previous year's ₹87.5 crore. Revenue also rose, increasing 23.7% to ₹2,795.4 crore from ₹2,260.5 crore.

When we look at the operational profitability, the Earnings before interest, taxes, depreciation and amortisation, or EBITDA, rose a major 42.4% to ₹321.1 crore from ₹225.4 crore. Furthermore, EBITDA margin expanded to 12% from 10%.

Welspun Living Guidance

Not just results, the company also maintained positive commentary as the Mumbai-based company maintained FY2027 targets of Double-digit revenue growth for the full year, EBITDA margins in the low teens, or roughly 12% to 13%, ROCE to improve to the low teens, and capacity utilisation of about 80% across towels, sheets and rugs.

In the conference call, the company said that its US onshore pillow revenue is on track to double to $60 million in FY2027. In addition, Welspun's domestic retail revenue for Welspun and Spaces is targeting ₹1,000 crore.

The company's global branded businesses are targeting about $100 million in revenue. The company expects its FY2027 capital spending to be ₹400 crore to ₹500 crore, mainly for automation, modernisation and de-bottlenecking.

The shares have surged over 10%. The stock it touched a fresh 52-week high of ₹177.3. In today's trade so far, the stock has seen a trade of 3 crore shares, which amounts to over 18x of its 10-day average.

Shares have gained 8.0% over the past month and 55% in the past year of trade. The stock has closed in the green in 5 out of the last 10 trading sessions. The current price stands at ₹176.70 per share.

Also Read: Welspun Living Q1 profit jumps 84% as home textile business drives growth