Welspun Living Ltd
Welspun Living Ltd
Consumer DiscretionaryKey Fundamentals
SmallcapTextile ProductsTextilesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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42 extracted metrics + investor summaries across FY05–FY26.
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Technical Indicators
Key Insights
Weaknesses
5- Stock is trading at 3.28 times its book value
- The company has delivered a poor sales growth of 5.07% over past five years.
- Company has a low return on equity of 11.1% over last 3 years.
- Dividend payout has been low at 2.89% of profits over last 3 years
- Promoter holding has decreased over last 3 years: -4.14%
Growth Rate
AI Analysis — Bull vs Bear
Welspun Living Ltd is a ₹15,756 crore market-cap home textiles company that achieved consolidated FY25 revenue of ₹10,697 crore (up 8.9% YoY) but trades at a P/E of 74.4x with TTM profit declining 66% and EBITDA margins compressing to 13.6% in FY25 from 15.4% in FY24. Promoter holding stands at ~66.2%, down 4.14% over three years, while the stock has appreciated 44% in the past year despite weakening fundamentals.
- Consolidated FY25 revenue crossed ₹10,000 crore milestone at ₹10,697 crore, growing 8.9% YoY demonstrating top-line scale
- Q1 FY25 revenue grew 17% YoY to ₹2,588 crore and Q2 FY25 revenue hit a record ₹2,936 crore (up 16% YoY), showing strong demand momentum in the first half
- Management has articulated a long-term target of ₹15,000 crore revenue and 15-16% EBITDA margins by FY27, providing a clear growth roadmap
- Emerging businesses (branded portfolio, flooring) now contribute ~30% of revenue, reducing dependence on commodity export textiles
- Domestic flooring segment grew 26% YoY in Q1 FY26, demonstrating diversification traction in non-core verticals
- Stock has delivered 44% returns in the last 1 year and 13% CAGR over 3 years, reflecting market confidence in the business transformation
- Promoter holding remains relatively high at ~66.2%, indicating significant skin in the game by the founding family
- TTM net profit has declined 66% and 5-year compounded profit CAGR is negative at -17%, indicating persistent earnings weakness
- P/E ratio of 74.4x is extremely elevated for a textiles company with negative profit growth, leaving little margin of safety
- EBITDA margin compressed from 15.4% in FY24 to 13.6% in FY25, with Q3 FY25 margin dropping to 12.6% and Q1 FY26 further falling to 11.1%
- TTM sales growth is negative at -11%, reversing the momentum seen in the first half of FY25
- Core home textiles exports declined 11.8% YoY in Q1 FY26 to ₹1,885 crore with margin compression from 16.9% to 12.6%
- Promoter holding has decreased by 4.14% over the last 3 years, signaling potential dilution of promoter confidence
- Dividend payout is just 2.89% of profits over 3 years with a dividend yield of only 0.06%, offering negligible income return to shareholders
- 5-year compounded sales growth of just 5% and 10-year ROE averaging only 13% suggest the business has historically been a sub-par compounder
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1FY27 profit surges 83% YoY Aug 17
Net profit rose 83% to ₹160.73 crore on 23.5% revenue growth to ₹2,795.45 crore. EBITDA margin expanded to 12.5% driven by strong home textile exports and operational efficiency.
- ₹121 Cr Anjar facility capex Jul 24
Board approved ₹121 crore capital expenditure for Anjar facility modernization, signaling continued investment in manufacturing capacity.
- Sells 51% stake in power unit Aug 3
Completed transfer of 51% stake in Welspun Captive Power Generation Limited to Welspun Corp Limited for ₹67.65 crore, restructuring its corporate hierarchy.
- Q1FY27 earnings call on Aug 13 Aug 6
Management including MD & CEO Dipali Goenka and CFO Manish Bansal hosted earnings call on August 13, 2026 to discuss Q1FY27 results.
- Keyur Parekh appointed as WTD Jul 27
Postal ballot issued for appointment of Keyur Parekh as Whole-time Director for five years effective June 1, 2026. E-voting runs July 28 to August 26, 2026.
TL;DR: Welspun Living delivered a strong Q1FY27 with 83% profit growth and healthy margin expansion, backed by robust home textile exports. The company is investing ₹121 crore in facility modernization while streamlining its corporate structure through the power unit divestment. No material headwinds are visible in recent news flow. The trend is clearly improving with earnings momentum and capex signaling confidence in demand outlook.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,184 | 2,509 | 2,411 | 2,575 | 2,536 | 2,873 | 2,490 | 2,646 | 2,261 | 2,441 | 2,262 | 2,435 | 2,795 |
| Expenses | 1,874 | 2,151 | 2,072 | 2,217 | 2,195 | 2,515 | 2,209 | 2,330 | 2,035 | 2,288 | 2,102 | 2,186 | 2,474 |
| Operating Profit | 310 | 358 | 339 | 359 | 342 | 358 | 280 | 316 | 225 | 153 | 160 | 249 | 321 |
| OPM % | 14% | 14% | 14% | 14% | 13% | 12% | 11% | 12% | 10% | 6% | 7% | 10% | 11% |
| Other Income | 31 | 33 | 43 | 42 | 52 | 63 | 38 | 2 | 29 | 15 | -5 | 16 | 34 |
| Interest | 26 | 34 | 42 | 52 | 43 | 55 | 62 | 57 | 42 | 43 | 39 | 37 | 34 |
| Depreciation | 99 | 98 | 100 | 96 | 97 | 86 | 98 | 93 | 88 | 101 | 102 | 103 | 100 |
| PBT | 216 | 259 | 240 | 252 | 253 | 280 | 158 | 168 | 124 | 24 | 14 | 125 | 220 |
| Tax % | 25% | 23% | 25% | 48% | 27% | 28% | 22% | 21% | 28% | 38% | 82% | 15% | 26% |
| Net Profit | 163 | 200 | 179 | 131 | 186 | 202 | 123 | 133 | 89 | 15 | 3 | 106 | 163 |
| EPS in Rs | 1.66 | 2.02 | 1.82 | 1.5 | 1.91 | 2.1 | 1.26 | 1.37 | 0.91 | 0.14 | 0 | 1.08 | 1.68 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 5,264 | 5,924 | 6,638 | 6,050 | 6,527 | 6,741 | 7,340 | 9,311 | 8,094 | 9,679 | 10,545 | 9,399 | 9,934 |
| Expenses | 3,987 | 4,325 | 5,054 | 4,926 | 5,458 | 5,526 | 5,988 | 7,950 | 7,341 | 8,310 | 9,246 | 8,606 | 9,050 |
| Operating Profit | 1,278 | 1,599 | 1,584 | 1,124 | 1,068 | 1,215 | 1,352 | 1,362 | 753 | 1,369 | 1,299 | 793 | 884 |
| OPM % | 24% | 27% | 24% | 19% | 16% | 18% | 18% | 15% | 9% | 14% | 12% | 8% | 9% |
| Other Income | 91 | 84 | -384 | 81 | -187 | 139 | 68 | 63 | 121 | 146 | 152 | 50 | 60 |
| Interest | 283 | 237 | 158 | 141 | 159 | 178 | 198 | 131 | 130 | 153 | 217 | 161 | 153 |
| Depreciation | 333 | 372 | 505 | 504 | 436 | 481 | 454 | 420 | 442 | 394 | 373 | 394 | 407 |
| PBT | 753 | 1,074 | 536 | 560 | 287 | 694 | 769 | 873 | 302 | 967 | 860 | 287 | 384 |
| Tax % | 28% | 30% | 32% | 29% | 21% | 24% | 28% | 30% | 33% | 30% | 25% | 26% | — |
| Net Profit | 544 | 749 | 362 | 398 | 226 | 524 | 551 | 607 | 203 | 673 | 644 | 213 | 286 |
| EPS in Rs | 5.37 | 7.33 | 3.56 | 3.83 | 2.09 | 5.05 | 5.37 | 5.98 | 1.98 | 7.01 | 6.66 | 2.13 | 2.9 |
| Div. Payout % | 20% | 18% | 18% | 17% | 14% | 20% | 3% | 2% | 5% | 1% | 3% | 5% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 99 | 99 | 97 | 96 | 96 |
| Reserves | 1,331 | 1,870 | 2,297 | 2,505 | 2,679 | 2,872 | 3,544 | 3,873 | 3,989 | 4,419 | 4,725 | 4,821 |
| Borrowings | 3,085 | 3,248 | 3,311 | 3,281 | 3,310 | 3,521 | 2,940 | 3,304 | 2,462 | 2,632 | 2,762 | 2,315 |
| Other Liabilities | 1,178 | 1,258 | 1,550 | 1,301 | 1,593 | 1,701 | 1,981 | 2,036 | 1,978 | 2,337 | 2,684 | 3,223 |
| Total Liabilities | 5,695 | 6,476 | 7,258 | 7,187 | 7,682 | 8,194 | 8,566 | 9,312 | 8,527 | 9,485 | 10,267 | 10,455 |
| Fixed Assets | 2,627 | 3,348 | 3,689 | 3,460 | 3,306 | 3,933 | 3,814 | 4,005 | 3,918 | 3,813 | 4,022 | 4,471 |
| CWIP | 156 | 183 | 56 | 83 | 489 | 58 | 173 | 166 | 46 | 49 | 380 | 258 |
| Investments | 142 | 29 | 126 | 128 | 127 | 244 | 111 | 698 | 642 | 916 | 570 | 892 |
| Other Assets | 2,770 | 2,916 | 3,387 | 3,516 | 3,761 | 3,959 | 4,467 | 4,443 | 3,922 | 4,707 | 5,295 | 4,834 |
| Total Assets | 5,695 | 6,476 | 7,258 | 7,187 | 7,682 | 8,194 | 8,566 | 9,312 | 8,527 | 9,485 | 10,267 | 10,455 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 939 | 1,328 | 832 | 545 | 807 | 777 | 954 | 587 | 756 | 533 | 688 | 1,175 |
| Investing | -606 | -801 | -715 | -300 | -540 | -458 | -97 | -600 | 244 | -210 | 58 | -348 |
| Financing | -325 | -620 | -99 | -250 | -232 | -269 | -762 | -55 | -1,086 | -269 | -663 | -975 |
| Net Cash Flow | 8 | -93 | 18 | -5 | 35 | 51 | 94 | -68 | -86 | 55 | 83 | -148 |
| Free Cash Flow | 362 | 273 | 135 | 214 | 74 | 287 | 533 | 81 | 511 | 274 | -7 | 726 |
| CFO/OP | 87 | 98 | 59 | 60 | 87 | 77 | 78 | 55 | 112 | 47 | 66 | 160 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 31 | 52 | 53 | 56 | 60 | 59 | 59 | 39 | 43 | 47 | 57 | 51 |
| Inventory Days | 158 | 152 | 168 | 172 | 158 | 184 | 180 | 151 | 168 | 158 | 150 | 157 |
| Days Payable | 99 | 91 | 98 | 85 | 83 | 108 | 111 | 71 | 74 | 69 | 77 | 99 |
| Cash Conversion Cycle | 90 | 113 | 122 | 143 | 135 | 135 | 128 | 119 | 137 | 136 | 130 | 108 |
| Working Capital Days | -12 | 14 | 39 | 47 | 26 | 8 | 29 | 14 | 42 | 40 | 47 | 68 |
| ROCE % | 24% | 27% | 21% | 12% | 11% | 13% | 15% | 14% | 6% | 16% | 14% | 6% |
Documents
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Company Information
Welspun Living Limited, part of the US$ 2.7 billion Welspun Group, is one of the largest home textile manufacturers in the world. The Company offers a wide spectrum of Home & Technical textile products and Flooring solutions. The Company has established itself as a thought leader within the home textile industry over the years and continue to focus on the enablers viz. Innovation, Branding and Sustainability to consolidate its leadership position. [1] It manufactures a wide range of home textile products ranging from towels, bath robes to sheets, tob and basic& fashion bedding. It also entered into the business of carpets flooring solutions recently. [2]