Welspun Living Swings to Net Cash as Q2 Profit Jumps Thirteen-Fold

what happened

According to Moody's, Welspun Living has moved from net debt of Rs 775 crore in March 2026 to a net cash position. Its cash conversion cycle nearly halved, falling to 44 days from 82, which the company attributes to better working capital management in the September quarter of FY27.

Consolidated net profit for the second quarter came in at Rs 169.66 crore, up from Rs 14.86 crore a year earlier. Revenue from operations rose 16.3 per cent to Rs 2,838.12 crore. Ebitda climbed to Rs 338 crore from Rs 153.3 crore, and the Ebitda margin widened to 11.9 per cent from 6.3 per cent. Domestic sales grew 28.2 per cent, home textiles exports rose 18.3 per cent, the Welspun brand gained 37 per cent and flooring expanded 19.3 per cent.

The company also booked an exceptional charge of Rs 7.16 crore after heavy rain and flooding disrupted its Vapi plant in Gujarat from 23 July. It received an on-account insurance payment of Rs 125 crore during the quarter. Chief executive Dipali Goenka said the group aims to sustain double-digit growth and keep margins in the low teens, with restoring Vapi operations a near-term priority.

why it matters

For the broader market this is a company-level story, but it signals stronger cash generation and lower leverage, which matter to investors in Indian textile names. Whether margins hold and how fast the Vapi plant returns to full output remain open questions for the outlook.

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