Welspun Living Ltd. (WLL), a global leader in home textiles, announced its financial results for the second quarter of fiscal year 2026, revealing the impact of ongoing global trade dynamics on its performance.

Financial Highlights

• Q2 FY26 revenue stood at ₹2,456.00 crore, down 16.4% year-over-year (YoY)
• EBITDA for the quarter was ₹168.00 crore, with a margin of 6.8%
• Net profit after minorities declined to ₹13.00 crore, compared to ₹201.00 crore in Q2 FY25

Segment Performance

Key Developments

• The Welspun brand continues to strengthen its leadership position in the domestic market
• Global brands contributed approximately 13% of total revenues in Q2 FY26
• Emerging businesses accounted for about 30% of the company's business
• Net debt reduced to ₹1,570.00 crore from ₹1,832.00 crore in the previous year

Management Commentary

B.K. Goenka, Chairman of Welspun Group, stated, "The global tariff situation continues to weigh on export performance, but we remain confident this is a passing phase. While near-term pressures are evident, we believe these disruptions are transitional and will ultimately accelerate the shift in global sourcing where India stands to emerge stronger."

Goenka emphasized the company's focus on controllable factors, including cost discipline, deepening customer relationships, and scaling innovation. He expressed optimism about Welspun Living's position to capture opportunities as markets stabilize, citing India's strong macro momentum, rising consumption, and recent GST rationalization as creating a powerful backdrop for medium-term growth.

Outlook

The company is navigating through a challenging period marked by tariff headwinds, particularly in the US market. However, management remains optimistic about the medium-term outlook, pointing to progress on key trade agreements, including the India-UK FTA, which may open new avenues for expanding global reach and competitiveness.

Welspun Living continues to focus on strengthening its balance sheet, driving efficiency, and maintaining cost discipline. The company's strategy includes scaling up emerging businesses and leveraging its strong domestic foundation to weather the current market conditions.

As global trade dynamics evolve, Welspun Living's performance in the coming quarters will likely depend on its ability to adapt to changing market conditions and capitalize on potential opportunities arising from shifts in global sourcing patterns.

About Welspun Living Ltd

Welspun Living Ltd, part of the $3.6 billion Welspun Group, is a global leader in home textiles with a distribution network spanning more than 60 countries. The company is driven by a differentiation strategy based on branding, innovation, and sustainability.

Note: All financial figures are in Indian Rupees (₹).

Welspun Living , a major player in the Indian textile industry, remains optimistic about its growth prospects despite the recent imposition of US tariffs on Indian exports. CEO Dipali Goenka, speaking at the SBI Banking and Economics Conclave in Mumbai, expressed confidence that the new tariffs would not hinder the company's growth trajectory.

US Tariffs and Welspun's Position

The United States implemented a 50% tariff on various Indian exports, including textiles, effective August 27. However, Goenka emphasized that India continues to be the largest exporter of cotton textiles to the US market. She highlighted Welspun Living's strategic partnerships with top US retailers as a key factor in maintaining the company's strong position.

Robust Financial Performance

Welspun Living's recent financial results underscore the company's resilience in the face of global challenges. The company reported impressive growth for the quarter ended September 30:

Production Capacity and Future Plans

Welspun Living boasts a significant production capacity, manufacturing one million towels daily. Despite the challenging global economic environment, the company plans to maintain its factory operations, demonstrating its commitment to growth and market leadership.

Market Implications

The company's ability to navigate the new tariff landscape while maintaining strong financial performance could have positive implications for the Indian textile sector. Welspun Living's strategic partnerships and substantial production capacity may provide it with a competitive edge in the US market, even in the face of increased tariffs.

As global trade dynamics continue to evolve, Welspun Living's performance and strategies will be closely watched by industry observers and investors alike. The company's resilience in the face of trade headwinds could serve as a model for other Indian exporters grappling with similar challenges.