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Welspun Living (514162) investor relations material
Welspun Living Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 FY26 revenue declined 16.4% year-on-year to ₹2,456 crore, mainly due to global tariff headwinds, especially a 50% U.S. tariff, and weak retailer offtake, though revenue improved 7.3% sequentially.
EBITDA margin dropped to 6.8% from 14.3% YoY, with EBITDA down 60% YoY, reflecting tariff-led volume pressure, adverse mix, and operating deleverage.
Profit after tax after minority interest was ₹13 crore, down 93.5% year-on-year, with PAT margin at 0.5% versus 6.8% last year.
Domestic business declined 3.7% YoY, but domestic flooring grew 14.3% YoY.
Strategic focus remains on innovation, brand-led growth, sustainability, and new leadership appointments to drive financial discipline and growth.
Financial highlights
Q2 FY26 total income: ₹2,456 crore (down 16.4% YoY); EBITDA: ₹168 crore (margin 6.8%, down from 14.3% YoY); PAT after minorities: ₹13 crore (down 93.5% YoY); EPS: ₹0.13.
Net debt reduced to ₹1,570 crore as of Sep 30, 2025, from ₹1,832 crore a year earlier.
Free cash flow improved to ₹158 crore from ₹112 crore in March 2025.
H1 FY26 total income: ₹4,740 crore (down 14.2% YoY); EBITDA: ₹254 crore (margin 5.4%); PAT: ₹88 crore (down 85.2% YoY).
Capex for the quarter was ₹87 crore, focused on efficiency and renewable energy projects.
Outlook and guidance
Near-term pressures from tariffs and muted U.S. consumer sentiment are expected to persist, impacting both top and bottom lines.
Margin recovery is anticipated once tariff issues are resolved, with a return to normal margins expected in the medium term.
Management remains focused on cost discipline, operational efficiency, and leveraging innovation and diversification for future growth.
Domestic consumption is expected to pick up post-GST stabilization, with a 20% growth target and ₹1,000 crore revenue in the next two years.
Q3 is expected to be similar to Q2 in terms of top-line, with a possible 10% variance.
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