Welspun Living shares surged 8% on Thursday, hitting a new high of ₹245 amid heavy trading volumes. According to reports from Business Standard, the stock's performance significantly outpaced the broader market, with the company's 112% appreciation in the past six months contrasting sharply with the Sensex's 1% decline during the same period. At 12:05 PM, the stock was trading 3.5% higher at ₹235.55, substantially outperforming the benchmark index's 0.20% decline. The average trading volume more than doubled with 16.12 million shares changing hands across NSE and BSE platforms, as the stock surpassed its previous high of ₹233.15 touched on September 23, 2026.
The Government of India extended the duty refund scheme, RoDTEP, for exporters by three months until December 31, 2026. As reported by Business Standard, the government is also considering increasing allocations under RoDTEP and RoSCTL, with the combined outlay potentially reaching ₹2 trillion over five years. The Budget allocation for RoDTEP stood at ₹10,000 crore in the Union Budget 2026-27. Under the textile sector, RoDTEP is applicable on products such as Home Textile and Yarn, with the extension providing sentimentally positive support to textile companies amid global uncertainty, according to ICICI Securities.
Jefferies maintains a 'Buy' rating on Welspun Living with a target price of ₹260 per share. According to analysts at Jefferies, RoSCTL has been extended until December 2026, providing continued support to India's textile exporters as the country targets textile exports of $100 billion by 2030 versus $37 billion currently. The brokerage noted that export incentives contribute 7% of revenue and 70% of EBITDA for Home Textile exporters. With 87% of revenue derived from bed and bath linen, which are eligible for RoSCTL benefits of 8.2% of export value, Welspun is positioned as a key beneficiary of the scheme. Until free trade agreements translate into meaningful tariff benefits and market share gains, RoSCTL remains vital to preserving export competitiveness.
As reported by Jefferies, duty drawback and rebate benefits contribute 7-8% of export product revenue and account for 5-6 percentage points of EBITDA margin. The analysis reveals that excluding these benefits, EBITDA margins would have been materially lower at 3-8% versus reported margins of 8-14% over FY24-26. This underscores the significant role of RoSCTL in supporting Welspun's revenue realization, profitability, and export competitiveness. The scheme provides RoSCTL benefits of 8.2% of export value for Welspun's core bed and bath linen products, making it a critical factor in the company's financial performance and ability to maintain its competitive position in the global textile market.
