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Key Points

Welspun Living's Q1 FY26 net profit plunged 52% to Rs 89.3 crore due to weaker exports and margins. Revenue dropped 11% YoY, though domestic sales showed resilience with 9.5% growth. The company reduced net debt to Rs 1,401 crore from Rs 1,562 crore in June 2024. Shares closed 3.45% lower on BSE at Rs 131.40.

Key Points: Welspun Living Q1 Profit Drops 52% to Rs 89.3 Crore

  • Q1 net profit falls 52% YoY to Rs 89.3 crore
  • Revenue declines 11% to Rs 2,261 crore
  • Domestic consumer business grows 9.5%
  • Net debt reduces to Rs 1,401 crore
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Welspun Living's Q1 net profit drops 52 pc to Rs 89.3 crore

Welspun Living reports 52% YoY profit decline to Rs 89.3 crore in Q1 FY26 due to weak exports and shrinking margins.

"Operating profit dropped 34% to Rs 226 crore with margins slipping to 10% from 13.45%. – Company Filing"

Mumbai, July 30

Home textiles manufacturer Welspun Living Limited on Wednesday reported a sharp 52 per cent year-on-year (YoY) decline in net profit for the quarter ended June 30 (Q1 FY26).

The company posted a profit of Rs 89.3 crore, down from Rs 186 crore in the same period previous year, as lower exports and weaker margins weighed on earnings.

Revenue from operations fell 11 per cent to Rs 2,261 crore from Rs 2,536 crore a year earlier.

Operating profit (EBITDA) dropped 34 per cent to Rs 226 crore from Rs 341 crore in the corresponding quarter previous year, with margins slipping to 10 per cent from 13.45 per cent.

Welspun’s home textile exports business saw an 11.8 per cent decline in revenue, recording an EBITDA margin of 12.6 per cent.

The advanced textile segment also fell 11.6 per cent YoY. In contrast, the domestic consumer business posted a 9.5 per cent growth, supported by a 2.5 per cent rise in domestic home textiles and a strong 26 per cent jump in domestic flooring sales.

The company’s overall flooring business generated Rs 193.5 crore in revenue, with an EBITDA of Rs 16.2 crore and a margin of 8.4 per cent.

Net debt reduced to Rs 1,401 crore from Rs 1,562 crore in June 2024, according to its stock exchange filing.

On the Bombay Stock Exchange (BSE), Welspun Living’s shares closed at Rs 131.40, down Rs 4.70 or 3.45 per cent from the previous close.

Welspun Living Limited is a home textile company, making and supplying products like towels, bed sheets and rugs.

It is part of the $ 2.7 billion Welspun Group and serves both businesses (B2B) and direct customers (B2C).

Along with traditional home textiles, the company also provides flooring solutions and advanced textiles, and has a presence in e-commerce, hospitality, and wellness industries.

- IANS

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Reader Comments

S
Sarah B
The 26% jump in domestic flooring sales is impressive! Shows Indian consumers are investing more in home improvement. Maybe Welspun should focus more on this segment given the export challenges.
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Arjun K
As a shareholder, I'm worried about the margin compression. Management needs to explain their strategy to improve profitability. Reducing debt is good but 52% profit drop is too steep yaar!
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Priya S
My family has been using Welspun bedsheets for years. Quality is excellent but prices have increased recently. Maybe that's affecting sales? Hope they balance quality and affordability.
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Vikram M
Global recession fears are impacting all export-oriented businesses. Not just Welspun - check other textile companies' results. Domestic market is our savior now. #VocalForLocal
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Kavya N
The numbers are disappointing but at least they've reduced debt. Long-term investors should wait for turnaround. Welspun has good brand recall in India. Their e-commerce push might help 🤞
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Michael C
As someone who follows textile industry closely, I think Welspun needs to diversify beyond US/EU markets. Why not explore Africa or Latin America? Too much dependence on traditional markets is risky.

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