Welspun Living (WELSPUNLIV) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 saw sequential revenue growth of 7.7% and EBITDA margin improvement to 10.8%, driven by cost actions, improved mix, and business momentum.

• Net debt reduced by 52% year-on-year to ₹775 crore, supported by strong free cash flow generation.

• FY26 revenues declined 11.5% year-on-year due to external disruptions, tariff volatility, and demand softness, but ended with strong cash flows.

• Strategic focus on cost discipline, geographic diversification, branded business growth, and non-U.S. share expansion to 41%.

• Domestic business delivered 29.2% YoY growth in Q4, achieving EBITDA breakeven.

Financial highlights

• Q4 FY26 revenue grew 7.7% sequentially to ₹2,451 crore; EBITDA margin rose 313 bps to 10.8%.

• FY26 consolidated revenue was ₹9,468 crore, down 11.5% year-on-year.

• Full year EBITDA margin at 9.1%, down from 13.6% last year.

• Free cash flow for FY26 was ₹956 crore, up 8.5x year-on-year.

• Net debt at March 31, 2026: ₹775 crore, down from ₹1,602 crore YoY.

Outlook and guidance

• FY27 targets double-digit revenue growth and EBITDA margins advancing into the teens.

• CapEx for FY27 expected in the range of ₹400-500 crore, focused on modernization and automation.

• Nevada pillow facility expected to double revenue to $60 million in FY27.

• Domestic business expected to grow 26-30% in FY27.

• Medium-term targets: total revenue aspiration of ₹15,000 crore, EBITDA margin recovery to 15%+, and net debt/equity below ₹1,000 crore.