Welspun Living (WELSPUNLIV) Q2 24/25 earnings summary

Executive summary

• Achieved record consolidated quarterly revenue of ₹29,360 mn (INR 2,936 crore) in Q2 FY25, up 16% YoY and 13% QoQ, driven by strong export demand, high capacity utilization, and resilient performance despite Red Sea disruptions.

• EBITDA reached ₹4,206 mn (INR 421 crore), up 7.5% YoY and 7% QoQ, with sustainable margins despite logistics challenges and higher freight costs.

• PAT for Q2 FY25 was ₹2,010 mn (INR 201 crore), up 2.2% YoY; EPS for Q2 stood at ₹2.10, up 3% YoY.

• Domestic consumer and emerging businesses, including global brands, advanced textiles, and flooring, grew 22% YoY, with flooring posting record quarterly revenue and global brands up over 50% YoY.

• Recognized for ESG leadership, awarded EcoVadis Silver and multiple workplace and manufacturing excellence awards, ranking in the top 15% globally.

Financial highlights

• H1 FY25 revenue at ₹55,245 mn (INR 5,524 crore), up 16.2% YoY; H1 EBITDA at ₹8,140 mn (INR 814 crore), up 11% YoY.

• Q2 EBITDA margin at 14.3%; H1 EBITDA margin at 14.7%.

• Net debt increased to ₹18,323 mn (INR 1,832 crore) due to capex, share buyback, and working capital needs; expected to reduce to near zero by FY28.

• EPS for H1 FY25 at ₹4.03, up 9% YoY.

• Forex realization for Q2 averaged 84.29 INR/USD, up from 83.35 last year.

Outlook and guidance

• Maintaining FY25 guidance of 10-12% revenue growth and 15-16.5% EBITDA margin.

• Major expansion at Anjar with ₹1,050 crore capex, to be completed in two phases by FY27, targeting new towel and bedsheet capacity.

• At full capacity, expansion expected to add revenue potential of approximately ₹1,150 crore.

• Company targets 100% renewable energy by 2030, with a new JV for 4.6MW solar at Telangana facility.

• Cautiously optimistic for H2 FY25 amid ongoing geopolitical and logistics risks.