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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.
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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