Welspun Living (WELSPUNLIV) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw a 9.9% YoY revenue decline due to US tariff headwinds, muted discretionary demand, and cautious retailer buying, but sequential EBITDA margin improved to 7.7% on cost actions and operational discipline.

• Domestic business grew 4.7% YoY, driven by brand strength and flooring momentum.

• Landmark FTAs with the US, EU, UK, Japan, and Australia have structurally improved India's market access and tariff competitiveness, setting up a multi-year growth runway.

• The company is leveraging innovation, sustainability, and cost discipline, achieving No. 1 global ranking in S&P Global Corporate Sustainability Assessment 2025.

• Net profit after minorities for Q3 FY26 was ₹0.2 crore, a sharp decline from ₹121 crore in Q3 FY25.

Financial highlights

• Q3 FY26 consolidated revenue was ₹2,277 crore (down 9.9% YoY); EBITDA was ₹175 crore (down 45.2% YoY); EBITDA margin was 7.7% (down 493 bps YoY, up 80 bps sequentially).

• Profit after tax before exceptional items stood at INR 21.5 crore; PAT after minorities was ₹0.2 crore.

• Free cash flow improved to INR 395 crore from INR 112 crore in FY25; cash conversion cycle at 88 days.

• Net debt reduced to ₹1,332 crore as of December 2025, down by ₹238 crore from September 2025.

• Capex for Q3 FY26 was ₹139 crore.

Outlook and guidance

• Gradual margin recovery is expected from Q1 FY27 as tariff benefits and FTAs take effect, with Q4 FY26 still impacted by transition.

• Management expects improved demand visibility and long-term opportunities as new trade agreements enhance India's competitiveness.

• Domestic business is targeting 20-25% growth in the next financial year, driven by GST reforms and brand strength.