Welspun Living Reports 20% Drop in Q4 FY26 Net Profit Amid Global Challenges
Welspun Living Q4 FY26 results: Net profit down 20% at ₹106 cr
Business Standard
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Welspun Living Ltd reported a 20% decline in consolidated net profit to ₹106.16 crore for Q4 FY26, influenced by US tariff disruptions and conflicts in West Asia. The company plans a ₹252 crore share buyback and aims for double-digit growth in FY27, citing improved domestic performance.
- 01Consolidated revenue from operations fell to ₹2,435.43 crore in Q4 FY26 from ₹2,645.9 crore a year earlier.
- 02Total expenses decreased to ₹2,326 crore, down from ₹2,479.83 crore in the same quarter last year.
- 03For FY26, the consolidated net profit dropped to ₹212.89 crore, down from ₹644 crore in FY25.
- 04The domestic business saw a 29.2% growth in Q4 FY26, indicating a recovery despite external challenges.
- 05Welspun's free cash flow increased 8.5 times to ₹956 crore, and net debt was reduced by over 50%.
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Welspun Living Ltd reported a 20% decline in consolidated net profit to ₹106.16 crore for the fourth quarter of FY26, down from ₹132.8 crore in the same period last year. The decrease was attributed to disruptions from US tariffs and conflicts in West Asia, which impacted the home textiles sector. Consolidated revenue from operations also fell to ₹2,435.43 crore, compared to ₹2,645.9 crore in Q4 FY25. Total expenses decreased to ₹2,326 crore, reflecting cost management efforts. For the entire fiscal year, the company’s net profit was ₹212.89 crore, a significant drop from ₹644 crore in FY25, with total revenue for FY26 at ₹9,399.11 crore, down from ₹10,545 crore the previous year. Despite these challenges, Welspun Group Chairman BK Goenka expressed optimism, noting a 29.2% growth in domestic business during Q4 and a 50% reduction in net debt. The board has approved a ₹252 crore share buyback plan and aims for double-digit growth in FY27, supported by a strong balance sheet and resilient operations.
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The decline in profit and revenue may affect employee job security and investor confidence, while the share buyback could provide a boost to shareholder value.
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