Welspun Living is positioning its manufacturing capabilities across home textiles, advanced textiles, flooring, and its US pillow business to benefit from the multi-year shift in global sourcing towards India. Moreover, the company expects the India-UK FTA and the India-EU FTA to create significant export opportunities across key international markets.
The company reported a 23.5 percent year-on-year increase in revenue during Q1 FY27, while its profit after tax (PAT) surged 83.6 per cent. Looking ahead, Welspun Living aims to achieve around 15 percent revenue growth and maintain an EBITDA margin of 12-13 percent in FY27.
“We are looking at a growth of around 15 percent and also kind of an EBITDA of lower mid-teens, around 12 percent to 13 percent,” Dipali Goenka, MD and CEO, Welspun Living, said.
With a global top line of approximately $1.2 billion, Welspun manufactures nearly one million units every day across towels, sheets, rugs, bedding, flooring, and advanced textiles. Furthermore, the company continues to maintain significant manufacturing capacity headroom across several product categories.
Welspun’s bath linen business has a capacity of 96,400 MT and operated at 83 percent utilization in Q1 FY27, producing 20,048 MT during the quarter. Similarly, its bed linen business has a capacity of 108 million metres, with production reaching 16.1 million metres and capacity utilisation standing at 60 percent.
The company’s rugs and carpets segment has a capacity of 12 million square metres. During Q1 FY27, Welspun produced 2.2 million square metres and recorded 74 percent capacity utilization.
Meanwhile, Welspun’s advanced textiles business also has considerable capacity available for future growth. Its spunlace facilities have a capacity of 27,729 MT and operated at 48 percent utilization, while its needle punch capacity of 3,026 MT recorded 36 percent utilization. Additionally, its wet wipes business, which has a capacity of 100 million packs, operated at 18 percent utilization.
The flooring business has an effective capacity of 18 million square metres and produced 1.8 million square metres during Q1 FY27, with utilization standing at 40 percent. Similarly, Welspun’s US pillow platform, which operates facilities in Ohio and Nevada, has an effective capacity of 10.1 million pieces. The platform produced 1.4 million pieces during the quarter and operated at 55 percent utilization.
Notably, the Nevada facility fully commenced production on June 15, 2026.
Welspun has also secured board approval for capital expenditure of around Rs 400-500 crore in FY27, primarily to remove production bottlenecks. At the same time, the company continues to evaluate additional expansion opportunities.
“Right now, we are investing around Rs 400-500 crore, which has been approved by the board, to de-bottleneck. As we go forward, and as the opportunities evolve, we have already been contemplating the expansion,” she asserted.
Furthermore, the company believes India’s manufacturing ecosystem can emerge as a major beneficiary of the global China+1 strategy. “It is India’s time to grow and take the opportunity ahead,” Goenka said, highlighting India’s cotton availability, infrastructure, MSME ecosystem, and young workforce.
The India-UK FTA and the concluded India-EU FTA are also expected to strengthen Welspun’s export prospects, particularly in markets where the company already maintains an established presence. For instance, the UK represents an approximately $5 billion home textile market, according to Goenka.
“The FTA will give us a great impetus,” she said.
Meanwhile, the US remains Welspun Living’s largest market and contributes the biggest share of its global business. Over the longer term, the company expects approximately 60 percent of its business to come from the US, while the remaining 40 percent will come from the UK, Europe, India, and other markets. However, Welspun expects the overall market opportunity to continue expanding.
The company is also focusing on premiumisation and product mix improvements to protect and strengthen its margins.
“It’s going to be a mix of cost controls… and also getting into premiumisation of goods,” Goenka said.
Additionally, India is emerging as another important growth engine for Welspun Living. The company’s domestic retail business is growing at around 20 percent, and it currently operates across more than 500 districts. Welspun expects its domestic retail revenue to reach Rs 1,000 crore in the near term.
Globally, Christy, Welspun’s direct-to-consumer brand, is growing at around 25 percent and has established a presence across the UK, the US, and the Middle East.
Looking further ahead, Welspun Living has set a long-term target of achieving Rs 15,000 crore in revenue by 2029 while aiming to maintain a 15 percent EBITDA margin.
