India's Welspun Living reports income fall amid weak demand in Q3 FY26

Consolidated EBITDA for the quarter fell 45.2 per cent YoY to ₹175 crore (~$1.93 million), with EBITDA margin contracting to 7.7 per cent from 12.6 per cent a year earlier, a decline of 493 basis points. On a sequential basis, margin improved by 83 basis points from 6.8 per cent in Q2 FY26.

Profit after tax (PAT) after minority interest for Q3 stood at ₹0.2 crore (~$2,206), sharply lower than ₹121 crore in Q3 FY25 and ₹13 crore in Q2 FY26. The Home Textile segment reported revenue of ₹2,175 crore in Q3 FY26, down 4.7 per cent YoY but up 6.3 per cent sequentially. Segment EBITDA stood at ₹160 crore, down 44.2 per cent YoY, with margin contracting to 7.3 per cent from 12.5 per cent, Welspun Living said in a press release.

The Flooring business remained under pressure. Q3 FY26 revenue fell 20.3 per cent YoY to ₹172 crore and 5.2 per cent sequentially. EBITDA dropped to ₹3 crore from ₹17 crore in Q3 FY25, with margin narrowing to 1.7 per cent from 7.8 per cent.

Profit before tax (PBT) for Q3 FY26 was ₹14.46 crore, compared to ₹158.38 crore in Q3 FY25. The quarter included an exceptional charge of ₹18.97 crore relating to the statutory impact of the new Labour Code. Net profit for the quarter stood at ₹2.57 crore, while total comprehensive income was ₹17.04 crore.

Basic earnings per share (EPS) after exceptional items stood at ₹0.01, compared to ₹1.27 in the corresponding quarter last fiscal.

WLL reported continued deleveraging, with net debt at ₹1,332 crore as of December 2025, down ₹326 crore from ₹1,658 crore a year earlier and ₹238 crore lower than ₹1,570 crore in September 2025. The company incurred capital expenditure of ₹139 crore during Q3 FY26.

The company said its global brands accounted for around 12 per cent of total revenues in Q3 FY26. The ‘Welspun’ brand continued to deepen household penetration and remains one of the most widely distributed home textile brands in India.

Innovation contributed approximately 22 per cent of the business in Q3 FY26.

For the nine months (9M) period, total income declined 12.8 per cent YoY to ₹7,017 crore. For 9M FY26, EBITDA dropped 47.3 per cent YoY to ₹597 crore, with margin at 8.5 per cent compared to 14.1 per cent in the corresponding period in last fiscal. PAT declined 80.2 per cent YoY to ₹101 crore. Home textiles revenue declined 10.3 per cent YoY to ₹6,620 crore, while EBITDA fell 47 per cent to ₹535 crore. Margin stood at 8.1 per cent versus 13.7 per cent a year ago. Flooring revenue declined 21.2 per cent YoY to ₹547 crore, while EBITDA fell 61.8 per cent to ₹23 crore.

“At Welspun Living, our deep, long-standing relationships with global customers has helped us retain the business in the challenging environment. The Government of India’s proactive support and advancement of landmark FTAs with the US, EU and UK are reshaping India’s global trade position and opening meaningful long-term opportunities for textile sector,” said BK Goenka, chairman, Welspun Group.

“It is a matter of great pride for us to be ranked no 1 globally in the 2025 S&P Global Corporate Sustainability Assessment for textile and apparel. Sustainability remains a core differentiator particularly for EU and we are well poised to take advantage of the structural outlook for Indian manufacturing. With strong customer partnerships and trade tailwinds, we are confident of accelerating growth in the years ahead,” added Goenka.

Fibre2Fashion News Desk (SG)