Welspun Living (WELSPUNLIV) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue declined 16.4% year-on-year to ₹2,456 crore, mainly due to persistent global tariff headwinds, especially a 50% U.S. tariff on Indian exports, 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.

• Strategic focus remained on cost control, operational efficiency, innovation, brand-led growth, and regional diversification, with ongoing investments in new categories, geographies, and ESG progress.

• Several key management changes were approved, including the appointment of Manish Bansal as CFO effective January 2026 and other senior leadership transitions.

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.

• Dividend of ₹162.46 crore paid in H1 FY26; buyback of equity shares including transaction cost in H1 FY26.

• 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 expected to persist through H2 FY26, but management expects these to be transitional.

• Margin recovery anticipated as tariff situation normalizes and cost measures take effect.

• Domestic consumption expected to strengthen post-GST stabilization, with India positioned as a key growth market.

• Q3 expected to be similar to Q2 in terms of top-line, with potential for 10% lower revenue due to seasonality.

• Focus remains on cost discipline, customer relationships, innovation, and leveraging diversification for future growth.