WELSPUNLIV Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,435 Cr
verified against source
Revenue YoY
-11.5%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Welspun Living navigated a challenging FY26 marked by US tariff volatility and geopolitical disruptions, delivering FY26 consolidated revenue of ₹9,468 crore (down 11.5% YoY) with EBITDA margins at 9.1% versus 13.6% prior year. Q4 marked a decisive inflection point with sequential revenue growth of 7.7% and EBITDA margins improving 313bps to 10.8%. The company generated strong pre-cash flows of ₹956 crore (up 8.5x YoY) and reduced net debt by 52% to ₹775 crore, demonstrating operational resilience. Management targets double-digit revenue growth and teen EBITDA margins for FY27, supported by FTA tailwinds (UK by June 2026, EU by January 2027), US pillow business doubling to $60 million, and India domestic momentum (29.2% YoY growth in Q4). Key risks include raw material inflation (cotton +10%, MMF +20%, crude +40%), ongoing tariff uncertainty, and weak global flooring demand. The company's 15,000 crore revenue aspirational target remains intact with a three-year horizon.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets double-digit top-line growth for FY27, driven by volume recovery, FTA benefits, and continued momentum in India domestic and US pillow businesses.
- Targeting EBITDA margins in the 'teens' for FY27, implying meaningful recovery from FY26's 9.1%, supported by operating leverage, mix improvement, and cost optimization.
- Ohio facility at 60% utilization to ramp further; Nevada facility (4.5 million pieces capacity) to contribute alongside, with natural fiber fillings adding category upside.
- Capital expenditure guidance of ₹400-500 crore focused on modernization, automation, and debottlenecking operations, down from ₹472 crore in FY26.
Risks flagged
- Raw material costs rising sharply: cotton +10%, man-made fibers +20%, crude +40%. Management expects to share cost increases with customers via price negotiations (50/50 basis) but margin guidance may face pressure if realization lags.
- Current 10% tariff applicable until July 2026; potential rise to 15-18% post-Section 122 expiry with Section 301 investigation on India still pending. Any tariff pass-through negotiations with customers remain ongoing.
- Flooring segment saw steepest decline (25.1% YoY) due to West Asia logistics disruption and US tariff headwinds. Soft flooring and domestic flooring showing recovery but hard flooring rationalization ongoing; margin parity with core home textile business remains elusive.
- Advanced textiles revenue declined 20% YoY to ₹452 crore primarily due to volume pressure and slower export offtake. Strategic shift to value-added niches (hygiene, specialty wipes, protective apparel) may take time to offset volume weakness.
Key quotes
- We chose to protect what matters most, our people, our customer relationships, our capacity, and our brand equity through a difficult cycle. That was the right choice, and the early green shoots in Q4 FI26 validate that view.
- We didn't lose any market share first of all. We retained each and every customer. So that is something that is there.
- In ideal world next year [FY27], debt-free company, net debt zero company, unless we plan any additional capex or any special requirement but otherwise if all goes well, we will be net debt zero company next.
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