Welspun Living Limited has received analyst coverage from Avendus Spark, with the brokerage firm initiating a 'Reduce' rating on the textile company's stock. The research house has established a price target of ₹135.00 per share for Welspun Living.

Analyst Rating Details

The following table summarizes the key details of Avendus Spark's coverage initiation:

Rating Implications

A 'Reduce' rating typically indicates that the analyst expects the stock to underperform compared to the broader market or its sector peers. This suggests that Avendus Spark has a cautious outlook on Welspun Living's performance in the near term.

About the Coverage

The initiation of coverage by Avendus Spark represents the brokerage's first formal research opinion on Welspun Living. The ₹135.00 price target provides investors with the analyst's assessment of the stock's fair value based on their research and valuation methodology.

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 (₹).