Welspun Living Limited experienced a challenging third quarter for FY26, with total income declining 9.9% YoY to ₹22,766 million, primarily due to US tariff headwinds. Despite revenue pressures, sustained cost discipline supported an expanding sequential EBITDA margin of 7.7%. The company emphasized its strong positioning to capitalize on India’s improving tariff competitiveness resulting from recent India-US and India-EU trade agreements, leveraging its strategic focus on Branding, Innovation, and Sustainability.
Q3 FY26 Performance Overview
Welspun Living Limited (WLL) reported that the third quarter of the Financial Year 2026 (Q3 FY26, ended December 31, 2025) remained challenging. Total Income for the quarter stood at ₹22,766 million, marking a 9.9% decline YoY. In contrast, the EBITDA margin expanded sequentially to 7.7%, up from 6.8% in Q2 FY26, driven by sustained cost actions and operational discipline.
Despite the overall decline, the Domestic business showed resilience, growing 4.7% YoY, supported by strong brand performance and momentum in the flooring and institutional segments.
Key Financial Highlights (Q3 FY26 vs. Q3 FY25)
The following table summarizes the consolidated performance for the quarter:
- Total Income: ₹22,766 million (down 9.9% YoY)
- EBITDA: ₹1,747 million (down 45.2% YoY)
- EBITDA Margin: 7.7% (down 493 bps YoY)
- PAT (After Minority Interest): ₹2 million (down 99.9% YoY)
- Net Debt: Reduced to ₹13,321 million from ₹16,584 million in December 2024.
Business Segment Deep Dive
Home Textile Business
The Home Textile segment revenue declined by 4.7% YoY in Q3 FY26 to ₹21,752 million. The EBITDA margin for this segment settled at 7.3%, a reduction of 521 bps YoY. Within this, Home Textile Exports declined 8.9% YoY with an EBITDA margin of 8.5%.
Flooring Business
The Flooring segment saw a significant YoY revenue decline of 20.3% to ₹1,719 million. The segment EBITDA margin was compressed to 1.7% (down 613 bps YoY). However, Domestic Flooring showed strong growth of 14.0% YoY.
Domestic Consumer Business Growth Drivers
Domestic growth was led by:
- Domestic Home Textile: Grew by 1.6% YoY.
- Domestic Flooring: Grew by 14.0% YoY.
Strategic Advantage: Shifting Trade Winds
Management highlighted that recent trade agreements between India and the US, and India and the EU (concluded in January 2026), mark a structural shift. This significantly improves India’s tariff competitiveness against key sourcing peers.
Key initiatives enhancing this position include:
- India’s announced reciprocal tariff advantage of 18% compared to competitors like Vietnam (20%) and China (27.5% duties before recent adjustments).
- The company is strongly positioned to capture the next upcycle using its scale, capabilities, and established customer relationships.
Operational and ESG Excellence
Welspun Living continues to leverage its strategy based on Branding, Innovation, and Sustainability. The company reaffirmed its commitment to disciplined execution focusing on cost control and cash generation.
Operational highlights underscore commitment to sustainability:
- The company maintained its position as a certified woman-owned business, featuring 28% women in its workforce of over 24,000 employees.
- The S&P Global ESG Score reached 90/100 for 2026, positioning the company as Global Rank 1 and India Rank 1 in its sector.
Balance Sheet Strength
The balance sheet remains robust:
- Net Worth improved to ₹48,434 million as of December 31, 2025.
- Net Debt reduction was achieved through focused cash flow management.
- The Net Debt/Equity ratio for 9M FY26 stood at a favorable 0.28.
Shareholding Snapshot (December 2025)
The shareholding pattern reflects a strong Promoter Group holding of 66.2%. Institutional shareholders, including FPIs and Mutual Funds, collectively account for approximately 9.4% of the ownership, with the Public holding at 18.0%.
Source: BSE
