Welspun Living shares surged nearly 11% to an intraday high of ₹243 on Monday following exceptional Q2FY27 results. According to reports from CNBC TV18, the stock opened at an intraday low of ₹221.40 and subsequently rallied to the peak, gaining 10.9% to hit the intraday high of ₹243 apiece. As of the latest trading session, shares have risen about 73.8% this year, significantly outperforming the broader market. The stock has demonstrated remarkable momentum, spurting 75% while the Nifty declined 10.7% in 2026.
As reported by CNBC TV18, Welspun Living reported a 13-fold year-on-year increase in profit after tax (PAT) to ₹169 crore in Q2FY27, compared with ₹13 crore in the corresponding quarter of the previous financial year. The company's PAT margin expanded by 563 basis points to 11.9% in the quarter under review, compared with 0.5% in Q2FY26. Revenue from operations grew 16.3% year-on-year to ₹2,838 crore, with EBITDA surging 120.5% to ₹338 crore. The company's return on capital employed reached 12.7%, meeting its FY27 low-teens target and the mid-term target is set at 14-15%. Gross margin expanded 113 basis points year-on-year to 45.1%, contributing to the overall margin improvement.
According to CNBC TV18, home textiles segment's revenue increased 15.8% to ₹2,689 crore, while EBITDA was up 112.2% at ₹323.2 crore from last year. The segment's EBITDA margin expanded to 12% from 6.6% in the year-ago period. The flooring segment's revenue rose 19.2% to ₹216.2 crore and EBITDA surged 515.8% to ₹23.4 crore, with margin expanding sharply to 10.8% from 2.1% in the year-ago period. The US pillow business grew 2.4 times year-on-year in Q2 with both manufacturing facilities operational and remains on track to double revenues in FY27. Motilal Oswal expects the flooring business to continue steady growth, while the home textile segment is anticipated to benefit from volume recovery.
As reported by CNBC TV18, Welspun Living reiterated its double-digit revenue growth target, with a medium-term EBITDA margin aspiration of over 15%. The company's cash conversion cycle has halved to 44 days, helping the company turn net cash positive from ₹775 crore net debt in March 2026. Despite an estimated ₹100 to ₹150 crore revenue impact from Vapi floods, the stock surged on the back of strong margin recovery. Motilal Oswal expects EBITDA margin to expand to 13.2% by FY28, driven by improving business mix and margin stabilization in the flooring business. JM Financial maintained its 'Buy' rating on Welspun Living stock with a revised target price of ₹275, while Nuvama Institutional Equities raised its target price to ₹256 from ₹209.
Motilal Oswal has recommended a 'Buy' rating on Welspun Living with a target price of ₹260, valuing the stock at 15x FY28E EV/EBITDA in its research report dated October 31, 2026. The brokerage expects the company to continue delivering double-digit revenue growth, fueled by volume recovery in the home textile segment, followed by steady growth in the flooring business. Key risks identified include customer and geographical concentrations, and commodity price movements, as noted in the investment note. The recommendation reflects confidence in the company's margin expansion trajectory and business mix improvements across both key segments.
