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 sharper execution, cost actions, and improved mix, despite external disruptions and demand softness.

• FY26 revenues declined 11.5% YoY due to tariff volatility, geopolitical tensions, and demand softness, but ended with strong cash flows and net debt reduced by 52%.

• Strategic focus on branded business, geographic diversification, innovation, and ESG leadership supported resilience and future growth.

• Domestic business delivered 29.2% YoY growth in Q4, achieving EBITDA breakeven and supporting overall performance.

• Management remains focused on recovery, long-term value, and leveraging new trade agreements.

Financial highlights

• Q4 FY26 revenue grew 7.7% sequentially to ₹2,451 crore; EBITDA margin improved to 10.8% from 7.7% in Q3.

• FY26 consolidated revenue was ₹9,468 crore, down 11.5% YoY; full-year EBITDA margin at 9.1% vs. 13.6% last year.

• Free cash flow for FY26 was ₹956 crore, up 8.5x YoY; net debt reduced by 52% to ₹775 crore.

• Q4 FY26 PAT after minorities was ₹104 crore; FY26 PAT was ₹204 crore, down 68% YoY.

• Board approved a buyback of up to 1.44 crore shares at ₹175/share (₹252 crore) and recommended a dividend of ₹0.10/share for FY26.

Outlook and guidance

• FY27 targets double-digit revenue growth and EBITDA margins advancing into the teens, with a focus on modernization and automation.

• CapEx guidance for FY27 is ₹400–500 crore.

• Management aspires for non-US revenue share above 50% and continued balance sheet strengthening, aiming for net debt zero.