70 in Friday’s trading session after the home-textile major reported a strong Q1FY27 performance, marked by robust revenue growth, a sharp rise in profit and improving operating margins. Brokerage firm Motilal Oswal Financial Services reiterated its ‘Buy’ rating on the stock with a target price of Rs 215, indicating further upside from current levels.

The company’s consolidated profit for the June quarter jumped 85% year-on-year (YoY) to Rs 161 crore, compared with Rs 87 crore in the corresponding quarter last year. Revenue from operations rose 24% YoY to Rs 2,795 crore, from Rs 2,261 crore a year earlier.

Operating performance also remained encouraging. 5%, up 140 basis points YoY and 170 basis points sequentially.

Home textiles lead growthWelspun Living’s core home-textile business remained the key growth engine. 1% YoY, supported by improving demand across key markets.

3 times year-on-year in Q1 and remains on track to double revenue in FY27. 3% YoY, aided by deeper household penetration of the company’s brands.

Global brands continued to perform well, contributing around 12% of overall revenue, with Christy maintaining double-digit growth. 4%, despite softer exports, reflecting tighter operational discipline.

Innovation-led products accounted for approximately 25% of the business, highlighting the company’s growing focus on differentiated offerings. JM Financial maintains BUYJM Financial remains bullish on Welspun Living, maintaining its ‘Buy’ rating after the company delivered a stronger-than-expected Q1FY27 performance.

The brokerage noted that consolidated EBITDA came in at Rs 320 crore, ahead of its estimate of Rs 280 crore, supported by better operating leverage and an improved product mix. Looking ahead, JM Financial expects capacity utilisation across segments to remain above 80% in FY27, supporting further operating leverage.

The brokerage highlighted the US pillow business, which is on track to double revenue to around $60 million, while the UK business is expected to sustain double-digit growth, aided by the India-UK FTA and strong customer relationships. While elevated raw-material costs could keep gross margins range-bound in the near term, JM Financial expects the impact of the Vapi floods to be largely limited to Q2FY27, with operations normalising there after.

It sees improving utilisation, structural cost efficiencies, greater diversification beyond the US and a recovery in core margins as key catalysts for earnings growth. Motilal Oswal sees further upsideBrokerage firm Motilal Oswal Financial Services has reiterated its ‘Buy’ rating on Welspun Living with a target price of Rs 215, implying further upside from current levels.