Welspun Living shares surge 11% after strong Q2; reiterates double-digit revenue growth target

Shares of Welspun Living climbed nearly 11% on Monday, November 2, after the company reported strong earnings in the second quarter.

Its revenue increased 16.3% to ₹2,838 crore, while its EBITDA surged 120.5% to ₹338 crore.

Its EBITDA margin expanded by 563 basis points to 11.9% and was aided by revenue growth outpacing operating costs.

The company's profit after tax jumped 13 times to ₹169 crore from ₹13 crore last year, despite a ₹7.2 crore exceptional charge related to the Vapi plant disruption.

The stock surged on Monday on the back of strong margin recovery despite an estimated ₹100 to ₹150 crore revenue impact from Vapi floods.

Its return on capital employed reached 12.7%, meeting its FY27 low-teens target and the mid-term target is set at 14-15%.

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.

The company also reiterated its double-digit revenue growth target, with a medium-term EBITDA margin aspiration of over 15%.



Its home textiles segment's revenue increased 15.8% to ₹2,689 crore, while its 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.

Its flooring segment's revenue rose 19.2% to ₹216.2 crore and EBITDA surged 515.8% to ₹23.4 crore. Its margin expanded sharply as well to 10.8% from 2.1% in the year-ago period.

Shares of Welspun Living gained 10.9% to hit an intraday high of ₹243 apiece on Monday, nearing its 52-week high of ₹245.5.

The stock was trading 4.6% up at ₹229.12 apiece at 11.40 am on Monday. It has surged 73.8% this year, so far.

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