Welspun Living (WELSPUNLIV) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw a 9.9% year-on-year revenue decline due to persistent U.S. tariff headwinds, muted discretionary demand, and cautious retailer buying, but sequential EBITDA margin improved to 7.7% on cost actions and operational discipline.

• Domestic business grew 4.7% year-on-year, driven by brand strength and momentum in flooring and institutional channels.

• Landmark FTAs with the U.S., EU, UK, Japan, and Australia have structurally improved India's global market access and tariff competitiveness, positioning for multi-year growth.

• The company is leveraging innovation, sustainability, and established global relationships to position for long-term growth as global sourcing normalizes.

• Achieved No. 1 global ranking in S&P Global Corporate Sustainability Assessment for textiles, apparel, and luxury goods in 2025.

Financial highlights

• Q3 FY26 consolidated revenue was ₹2,277 crore, down 9.9% year-on-year; EBITDA was ₹175 crore, margin 7.7%, and PAT after minorities was ₹0.2 crore, down 99.9% year-on-year.

• Free cash flow improved to ₹395 crore from ₹112 crore in FY25, driven by tighter working capital discipline.

• Net debt reduced to ₹1,332 crore as of December 2025, down by ₹238 crore from September 2025.

• CapEx for the quarter was ₹139 crore, focused on efficiency and ongoing projects.

• 9MFY26 total income was ₹7,017 crore, down 12.8% year-on-year; EBITDA margin at 8.5%.

Outlook and guidance

• Gradual recovery in volumes expected as India's tariff competitiveness improves; margin normalization anticipated to begin in Q1 FY27, with upside building quarter-on-quarter.

• Management expects improved demand visibility and long-term opportunities from India's new FTAs with the U.S., EU, and UK.

• US government’s reduction of textile tariffs from 50% to 25% post-period end is expected to ease export pressures.