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Welspun Living Ltd
NSE: WELSPUNLIV BSE: 514162 INE192B01031 Consumer Discretionary Consumer 🔎 Screen
NIFTY 500 Smallcap 250
₹13,913 Cr
Market Cap
61.4
P/E
38.00
PEG
6.3%
ROCE
4.5%
ROE
0.47
D/E
8.3%
OPM
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📈 Price History
Ratio Health
Excellent
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Average
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By Category
Shareholding
About

Welspun Living Limited, part of the US$ 2.7 billion Welspun Group, is one of the largest home textile manufacturers in the world. The Company offers a wide spectrum of Home & Technical textile products and Flooring solutions. The Company has established itself as a thought leader within the home textile industry over the years and continue to focus on the enablers viz. Innovation, Branding and Sustainability to consolidate its leadership position. It manufactures a wide range of home textile products ranging from towels, bath robes to sheets, tob and basic& fashion bedding. It also entered into the business of carpets flooring solutions recently.

✓ Strengths

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! Concerns 5
  • Stock is trading at 2.83 times its book value
  • The company has delivered a poor sales growth of 5.07% over past five years.
  • Company has a low return on equity of 11.1% over last 3 years.
  • Dividend payout has been low at 2.89% of profits over last 3 years
  • Promoter holding has decreased over last 3 years: -4.12%
Key Ratios Snapshot
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Mixed quarter: sequential growth and cost actions drove strong QoQ margin recovery (EBITDA margin +313 bps to 10.8%), but YoY revenue declined 7.4% and full-year FY26 revenue fell 11.5% amid external headwinds quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹2,451 Cr
down 7.4% YoY, up 7.7% QoQ
EBITDA Margin
10.8%
up 313 bps QoQ, down 121 bps YoY
PAT
₹104 Cr
down 21.3% YoY, up from ₹0.2 Cr in Q3
Net Debt
₹775 Cr
down 52% from ₹1,603 Cr in Mar'25; Net Debt/Equity 0.16x
What Went Right
  • EBITDA margin improved 313 bps QoQ to 10.8% on cost actions and mix improvement
  • Net debt reduced 52% to ₹775 Cr from ₹1,603 Cr, supported by free cash flow of ₹956 Cr in FY26
  • Domestic business grew 29.2% YoY in Q4 and achieved EBITDA breakeven
  • Branded domestic offline revenue up 37% YoY, domestic branded offline up 19% YoY
  • Cash profit increased 2.3% YoY to ₹216 Cr in Q4
What to Watch
  • Full-year FY26 revenue fell 11.5% to ₹9,468 Cr, and EBITDA margin dropped to 9.1% from 13.6% in FY25
  • Q4 PAT declined 21.3% YoY to ₹104 Cr, and full-year PAT plunged to ₹204 Cr from ₹639 Cr (down 68%)
  • Flooring EBITDA margin halved YoY to 3.2% (Q4), and full-year margin fell to 3.9% from 8.3%
  • Home textile EBITDA margin in Q4 was 10.5% vs 11.5% YoY, and full-year margin was 8.7% vs 13.1%
  • Capacity utilization remains low in advanced textiles (Needle Punch 35%, Wet Wipes 18%) and Pillow (34%)
Management Guidance
  • Medium-term aspiration: Total Revenue of ₹15,000 Cr, EBITDA margins recovering to 15%+, Net Debt/Equity < ₹1,000 Cr
  • Normalized target: 15%+ EBITDA margin
  • Non-US share target: 50%+ (currently 41%), branded businesses: double-digit growth
Investor Lens
The Q4 sequential recovery is encouraging, but the full-year FY26 results highlight structural pressure across segments. Revenue fell 11.5% and EBITDA margin compressed to 9.1%, far from the 15% target. Net debt reduction to ₹775 Cr and domestic growth (+29%) are bright spots, but core home textiles and flooring margins remain weak. The India tariff advantage and FTA momentum are favourable, but execution on utilization and margin recovery is critical. Key watch items: home textile margin improvement towards 15%, flooring turnaround, sustainable cotton and ESG progress, and whether branded revenue can sustain double-digit growth. The thesis of a diversified, sustainability-led home solutions company remains intact, but near-term earnings visibility is low given macro headwinds and margin gap.
From investor presentation · AI-generated analysis · Not investment advice
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📉 WEAK Revenue down 8% YoY, profit falls 20%; margins compress to 10%.
Revenue
Revenue was ₹2,435 Cr, down 8.0% YoY from ₹2,647 Cr, but up 7.6% QoQ from ₹2,263 Cr. The sequential recovery is positive, but the YoY decline signals underlying demand weakness.
Profitability
Net Profit fell 20.3% YoY to ₹106 Cr from ₹133 Cr, with EPS dropping to ₹1.08 from ₹1.37. The huge QoQ jump of 3433% is entirely due to a very low base and does not reflect a turnaround.
Margins
Operating Profit Margin (OPM) declined to 10% from 12% YoY, despite a sequential improvement from 7% in Q3. Margin compression indicates higher input or operating costs relative to revenue.
Cash Flow
Cash flow data is not available for this quarter. The quality of earnings cannot be assessed from CFO metrics.
Balance Sheet
Total borrowings stand at ₹2,315 Cr against reserves of ₹4,821 Cr, giving a Debt/Equity ratio of 0.56. Total assets are ₹10,455 Cr, suggesting a moderately leveraged balance sheet.
Key Risks
Revenue contraction of 8% YoY and margin compression from 12% to 10% are primary concerns. A PE of 55.9x on declining earnings raises valuation risk. The business faces demand headwinds in the consumer discretionary space.
Outlook
The sequential improvement in revenue and margins offers some hope, but sustained YoY declines need to reverse for a durable turnaround. The company must address margin pressures and revive top-line growth in a challenging demand environment.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
a) Home Textiles
2,175
EBIT 160
2,320
EBIT 244
b) Flooring
172
EBIT 3
189
EBIT 6
Total 2,347 2,508

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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