WELSPUNLIV - Welspun Living

📊 NSE: WELSPUNLIV 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 15:16

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, total revenue was INR 2,456 Cr, a decline of 16.4% YoY. The Textile segment revenue stood at INR 2,322 Cr, down 14.4% YoY, while the Flooring segment saw a sharper decline of 27.4% YoY to INR 181 Cr.

Geographic Revenue Split

The company has a heavy export focus with USA & Canada contributing 61% of revenue, UK & EU at 18%, India at 13%, and the Rest of the World (ROW) at 8%.

Profitability Margins

For H1 FY26, the consolidated Net Profit Margin was 7.03% and the Operating Margin was 8.15%. However, Q2 FY26 saw margin pressure with EBITDA margin dropping to 6.8% compared to higher historical levels.

EBITDA Margin

Consolidated EBITDA for Q2 FY26 was INR 168 Cr at a 6.8% margin. The Flooring segment EBITDA margin specifically plummeted from 8.8% to 2.1% YoY, a 674 bps drop, due to lower volumes and high base effects.

Capital Expenditure

While specific future INR Cr figures for total CapEx are not detailed, the company is investing in renewable power projects expected to be operational by H1 FY27 to reduce operational costs.

Credit Rating & Borrowing

The company maintains a strong credit profile with CARE AA; Stable for long-term facilities and CARE A1+ for short-term facilities and Commercial Paper (INR 300 Cr).

⚙️ Operational Drivers

Raw Materials

Key raw materials include cotton and yarn (primary for textiles) and polymers/chemicals for flooring, though specific cost percentages per material are not disclosed.

Import Sources

Sourcing is primarily from India (Gujarat and Telangana regions) for textile operations, with global supply chains supporting international facilities in Ohio, USA.

Capacity Expansion

The company operates major facilities in Anjar and Vapi (Gujarat), Hyderabad, and Ohio. It is expanding its renewable energy capacity to save 100-150 bps in power costs by FY27.

Raw Material Costs

Raw material price volatility is cited as a key risk. The company is driving efficiency and cost discipline to mitigate the 16.4% revenue decline in Q2 FY26.

Manufacturing Efficiency

The company is focusing on 'Resilient | Repurposed | Future Ready' strategies to maintain efficiency despite a high base in the previous year.

Logistics & Distribution

Distribution is global, reaching top retailers; however, logistics costs as a specific % of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by a medium-term aspiration to reach INR 15,000 Cr revenue. Strategies include scaling up brands, regional expansion, and category expansion in Flooring and Advanced Textiles. The company aims for 15-16% EBITDA margins and 15-18% ROCE through disciplined capital allocation.

Products & Services

Home textile products (towels, bedsheets, rugs), flooring solutions (tiles, carpets), and advanced textiles.

Brand Portfolio

Welspun, Sintex (Group brand), and Christy.

New Products/Services

Expansion into Flooring and Advanced Textiles is expected to be a major growth driver, aiming to improve overall business risk profiles.

Market Expansion

Targeting growth in the domestic Indian market (currently 13% of revenue) and expanding the global footprint beyond the current 60+ countries.

Market Share & Ranking

Largest exporter of home textile products from India; Top 4 globally in ESG (DJSI ranking).

Strategic Alliances

Strategic partnerships with top global retailers (Fortune 100 companies) and a 100% independent audit committee for governance.

🌍 External Factors

Industry Trends

The industry is shifting from volume-based to value-based growth. Welspun is positioning itself through sustainability (DJSI Top 4) and innovation (47 patents) to capture this shift.

Competitive Landscape

Competes with other global textile hubs (China, Pakistan, Vietnam) and domestic Indian players in the home textile and flooring segments.

Competitive Moat

Moat is built on 'Branding, Innovation, and Sustainability.' This is sustained by deep relationships with global retailers and a vertically integrated manufacturing setup that provides cost leadership.