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Welspun Living (514162) investor relations material

Welspun Living Q1 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 25/26 earnings summary30 Jul, 2025

Executive summary

  • Q1 FY26 revenue declined 11.6% year-over-year to ₹2,289 crore, impacted by global trade headwinds, tariff uncertainties, and cautious retailer behavior, while domestic business grew 9.5% with strength in consumer and flooring segments.

  • EBITDA margin dropped to 11.1%, down 409 basis points YoY, reflecting operating deleverage and export softness.

  • Strategic focus remains on product and geographic diversification, operational efficiency, cost optimization, and leveraging emerging opportunities for sustainable growth.

  • Investments in US capacity expansion, especially the $13 million Nevada pillow facility, and continued ESG initiatives targeting 100% renewable energy and sustainable cotton by 2030.

  • Board approved $13 million capex for the Nevada pillow plant, expected to add $50 million in annual revenue at full capacity and operational by January 2026.

Financial highlights

  • Consolidated revenue for Q1 FY26 was ₹2,289 crore, down from ₹2,588 crore YoY; EBITDA was ₹254 crore, a 35.4% decline YoY; PAT after minorities was ₹88 crore, down 52.8% YoY; EPS at ₹0.92, down 52.3%.

  • Net debt reduced to ₹1,401 crore from ₹1,562 crore a year ago; gross debt at ₹23,599 million, cash and equivalents at ₹9,588 million.

  • CapEx incurred was ₹83 crore in Q1; additional $13 million (₹112 crore) approved for US expansion.

  • PAT margin fell to 3.8% from 7.2% YoY.

  • Average exchange realization for USD was 85.09 vs. 84.05 last year.

Outlook and guidance

  • Near-term outlook remains cautious due to ongoing market uncertainty, tariff headwinds, and trade policy uncertainties, with continued pressure on top and bottom lines.

  • Focus on prudent cost management, operational agility, and customer alignment to navigate headwinds.

  • Net debt target for FY26 is ₹1,300–1,400 crore, with a goal of zero net debt by FY28.

  • Management remains optimistic about long-term growth, citing the India-UK FTA and new capacities ramping up.

  • ESG initiatives and sustainability targets remain central to long-term strategy.

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Q2 25/2627 Oct, 2025
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