Welspun Living’s June Quarter Profit Down by 52.8%

Mumbai, July 30, 2025: Welspun Living Limited (NSE: WELSPUNLIV) posted a subdued performance for the first quarter of FY26, with net profit plunging 52.8% YoY to ₹876 million. The decline came amid global market uncertainties, weaker exports, and operating deleverage. However, the domestic business showed resilience, clocking 9.5% YoY growth.

Following the announcement, the shares of the company fell by 2.52% or ₹3.43% and closed at ₹132.83.

Key Financial Highlights (Standalone)

For the first quarter of fiscal year 2026 (Q1 FY26), Welspun Living reported a Total Income of ₹22,895 million. This represents an 11.6% year-on-year (YoY) decline from ₹25,885 million in Q1 FY25, and a 13.5% sequential (QoQ) drop from ₹26,482 million in Q4 FY25. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Q1 FY26 stood at ₹2,543 million, a significant 35.4% YoY decrease from ₹3,935 million in Q1 FY25, and a 20.0% QoQ decrease from ₹3,181 million.

Consequently, the EBITDA Margin reduced by 409 basis points (bps) to 11.1% from 15.2% YoY, and by 90 bps from 12.0% QoQ. Profit After Tax (PAT) plummeted by 52.8% YoY to ₹876 million from ₹1,855 million, and by 33.6% QoQ from ₹1,318 million. The PAT Margin also declined by 334 bps to 3.8% YoY from 7.2%, and by 115 bps from 5.0% QoQ. Earnings Per Share (EPS) for Q1 FY26 was ₹0.92, a 52.3% YoY drop from ₹1.93, and a 34.3% QoQ decline from ₹1.40. Furthermore, the company’s Net Debt decreased by 10.3% YoY to ₹14,010 million from ₹15,620 million, and by 12.6% QoQ from ₹16,025 million.

Segment-Wise Performance

In Q1 FY26, the Home Textile segment generated revenue of ₹21,235 million, experiencing an 11.1% year-on-year decline, with an EBITDA of ₹2,232 million and an EBITDA Margin of 10.5%. The Flooring segment reported revenue of ₹1,935 million, marking a 15.1% year-on-year decrease, with an EBITDA of ₹162 million and an EBITDA Margin of 8.4%. Home Textile constituted the majority of the revenue contribution at 91.6%, while Flooring accounted for 8.4%.

Operational Highlights

The domestic consumer business demonstrated resilience, growing by 9.5% year-on-year, driven by a robust 26% YoY growth in domestic flooring and a 2.5% rise in domestic home textiles. However, home textile exports declined by 11.8% year-on-year, and advanced textiles also saw an 11.6% year-on-year decrease. The flooring segment generated a revenue of ₹1,935 million with an 8.4% EBITDA margin. In terms of utilisation rates, bath linen operated at 88%, bed linen at 67%, and rugs & carpets at 81%.

Balance Sheet Position

Management Commentary

“Q1FY26 witnessed a muted start amidst tariff headwinds, leading to market uncertainty and cautious retailer buying patterns. While revenue declined 11.6% YoY, our domestic business showed resilience, growing 9.5% YoY,” said Dipali Goenka, Managing Director & CEO, Welspun Living Ltd.

“We remain focused on cost optimisation, operational agility, and leveraging emerging opportunities to drive sustainable growth.”

Strategic Outlook

Welspun continues to actively invest in ESG-driven transformation initiatives, with a long-term goal of achieving 100% renewable energy usage and sustainable cotton by 2030. In June 2025, the company commissioned new solar plants in Vapi and Hyderabad. Furthermore, it enhanced its positive impact by extending its sustainable farming programme to over 27,800 farmers.

Insights For Investors

• Sharp Profit Decline: Net profit dropped 52.8% YoY to ₹876 million due to weaker exports, global demand softness, and operating deleverage, despite stable domestic demand.
• Margin Pressure Evident: EBITDA margin contracted by 409 bps YoY to 11.1%, reflecting higher costs and weaker operational leverage from reduced sales volumes.
• Domestic Business Shows Strength: Domestic revenue grew 9.5% YoY, led by strong 26% growth in domestic flooring, offsetting some of the weakness in exports.
• Exports and Segment Weakness: Home textile exports declined 11.8% YoY, while the flooring segment also saw a 15.1% drop in revenue, impacting overall topline performance.
• Healthy Balance Sheet: Net debt reduced 10.3% YoY, and net worth rose to ₹50,042 million, indicating improved financial discipline and capacity to weather near-term volatility.

About the Company

Welspun Living Limited, a part of the $3.6 billion Welspun Group, is a prominent home textiles manufacturer in India, holding a global leadership position in towels and bath rugs. Listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), the company boasts a strong international presence across more than 60 countries, serving distinguished clients such as Walmart, Amazon, IKEA, and John Lewis. Welspun Living remains committed to driving innovation, sustainability, and delivering branded solutions across its diverse portfolio, which includes home textiles, flooring, and advanced textiles.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/3dbd8ada-02bf-445b-801f-4c1ac001ec98.pdf

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