Welspun Living Reports Q3FY26 Results with Revenue Decline and Margin Pressure
Welspun Living Limited reported Q3FY26 results showing revenue decline of 9.9% YoY to ₹2,277 crores with EBITDA margin compressed to 7.7% from 12.6% in the previous year. The home textiles segment declined 4.7% to ₹2,175 crores while flooring segment fell 20.3% to ₹172 crores. Despite operational challenges, the company strengthened its balance sheet by reducing net debt to ₹1,332 crores from ₹1,658 crores last year. Management remains optimistic about future growth prospects supported by trade tailwinds and strong customer relationships.
*this image is generated using AI for illustrative purposes only.
Welspun Living Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, revealing a challenging operating environment with revenue decline and margin compression. The global home textiles leader, part of the $3.6 billion Welspun Group, reported mixed performance as it navigates evolving trade dynamics and market pressures.
Financial Performance Overview
The company's consolidated financial results showed revenue pressures across both business segments during the third quarter.
| Metric | Q3FY26 | Q3FY25 | YoY Change | 9MFY26 | 9MFY25 | YoY Change |
|---|---|---|---|---|---|---|
| Total Income | ₹2,277 cr | ₹2,528 cr | -9.9% | ₹7,017 cr | ₹8,049 cr | -12.8% |
| EBITDA | ₹175 cr | ₹319 cr | -45.2% | ₹597 cr | ₹1,133 cr | -47.3% |
| EBITDA Margin | 7.7% | 12.6% | -493 bps | 8.5% | 14.1% | -556 bps |
| PAT after Minorities | ₹0.2 cr | ₹121 cr | -99.9% | ₹101 cr | ₹507 cr | -80.2% |
The significant decline in profitability reflects the impact of challenging market conditions and operational headwinds faced by the textile industry.
Segment-wise Performance Analysis
Both business segments experienced revenue declines, though the impact varied significantly between the home textiles and flooring divisions.
Home Textiles Segment
| Parameter | Q3FY26 | Q3FY25 | YoY Change | 9MFY26 | 9MFY25 | YoY Change |
|---|---|---|---|---|---|---|
| Revenue | ₹2,175 cr | ₹2,282 cr | -4.7% | ₹6,620 cr | ₹7,382 cr | -10.3% |
| EBITDA | ₹160 cr | ₹286 cr | -44.2% | ₹535 cr | ₹1,009 cr | -47.0% |
| EBITDA Margin | 7.3% | 12.5% | -521 bps | 8.1% | 13.7% | -559 bps |
The home textiles business, which represents the company's core operations, showed relatively better resilience with a 4.7% revenue decline compared to the overall company performance.
Flooring Segment
| Parameter | Q3FY26 | Q3FY25 | YoY Change | 9MFY26 | 9MFY25 | YoY Change |
|---|---|---|---|---|---|---|
| Revenue | ₹172 cr | ₹216 cr | -20.3% | ₹547 cr | ₹693 cr | -21.2% |
| EBITDA | ₹3 cr | ₹17 cr | -82.8% | ₹23 cr | ₹60 cr | -61.8% |
| EBITDA Margin | 1.7% | 7.8% | -613 bps | 4.2% | 8.6% | -446 bps |
The flooring segment faced more severe challenges with a 20.3% revenue decline and significant margin compression.
Balance Sheet Strengthening
Despite operational challenges, Welspun Living made progress in strengthening its financial position through debt reduction initiatives.
| Debt Metrics | Current | Previous Year | Improvement |
|---|---|---|---|
| Net Debt | ₹1,332 cr | ₹1,658 cr | ₹326 cr reduction |
| vs Sep'25 | ₹1,332 cr | ₹1,570 cr | ₹238 cr reduction |
The company's focus on debt reduction demonstrates disciplined capital management amid challenging market conditions.
Strategic Initiatives and Market Position
Welspun Living continued to leverage its strategic advantages during the quarter. The company's global brands maintained a robust ~12% share of total revenues in Q3FY26, while innovation contributed approximately 22% of business. The Welspun brand continued strengthening its leadership position in the domestic market, penetrating deeper into households as the most widely distributed home textile brand in India.
Chairman B.K. Goenka highlighted the company's resilience through deep customer relationships and emphasized the potential benefits from India's advancing trade agreements with the US, EU, and UK. The company also achieved significant recognition, being ranked No. 1 globally in the 2025 S&P Global Corporate Sustainability Assessment for textile and apparel with a score of 90/100.
Outlook and Trade Developments
The company noted exposure to global trade dynamics, including US tariffs on textile products. Subsequent to the quarter end, the US government reduced tariffs from 50% to 25%, which is expected to ease overall export conditions. Management expressed confidence in accelerating growth in the years ahead, supported by strong customer partnerships and favorable trade developments.
Historical Stock Returns for Welspun Living
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.70% | -1.42% | +15.31% | +25.56% | +15.39% | +108.48% |
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