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Informist, Tuesday, Nov. 11, 2025

 

By Adhithya Aji

 

MUMBAI - Welspun Living Ltd. is expected to report a high double-digit on-year fall in its net profit for the September quarter primarily due to the impact of US tariffs and a decline in revenue from major segments, according to the brokerages tracking the company.

 

The textile company is expected to report a consolidated net profit of INR 385 million for the September quarter, down nearly 81% on year and down 56% sequentially, according to an average of estimates from four brokerages. The highest estimate for net profit is INR 610 million from Sharekhan Ltd. and the lowest estimate is INR 194 million from Systematix Shares and Stocks (India) Ltd.

 

The company's net sales for the reporting quarter are expected to be INR 24 billion, down over 16% on year but up over 6% sequentially, according to an average of estimates from four brokerages. The highest estimate for revenue is INR 24.54 billion from Nuvama Wealth Management Ltd. and the lowest is INR 23.35 billion from JM Financial Institutional Securities Pvt. Ltd.

 

The home textile maker's revenue is expected to fall 15% on year, driven by a fall in sales in revenue from segments such as home textiles and flooring, said Systematix. This is due to the impact of higher US tariffs and lower production volumes, according to the brokerage. In the trailing quarter, revenue from the home textiles segment, which contributed nearly 94% to its top line, was INR 21.23 billion and revenue from the flooring segment was INR 1.94 billion, which was 8.5% of total revenue.   

 

In 2024-25 (Apr-Mar), the company derived 61% of its revenue from the US, while India accounted for just 13%, according to the company's annual report. The US had imposed 50% tariffs on imports from India and this has the company's sales. Nuvama expects the revenue to decline nearly 15% on year due to impact of the tariff and a higher base.

 

The Gujarat-based textile company manufactures home textiles such as towels, bedsheets, and bathrobes and advanced textiles such as spun lace, needle punch, and wet wipes. In the flooring segment, the company makes click and lock tiles, carpet tiles, broadloom carpets, and artificial grass. The company caters mainly to the hospitality industry.

 

The company is expected to post an earnings before interest, tax, depreciation, and amortistaion of INR 1.47 billion in the reporting quarter, according to an average of three estimates. The highest estimate for the metric is INR 1.71 billion from JM Financial Institutional Securities and the lowest is INR 1.34 billion from Systematix Shares and Stocks (India).

 

The EBITDA of the company is likely to fall 62% on year due to an increase in overhead costs and partial absorption of impact from the US tariff, Nuvama said. The EBITDA margin is expected to contract by 690 basis points on year, the brokerage said.

 

Of the eight brokerage reports available on the company with Informist, seven have a 'buy' or equivalent rating and one has a 'hold' rating. The average target price by brokerages with a 'buy' call is INR 180.

 

Tuesday, shares of Welspun Living ended nearly 2% higher at INR 134.83 on the National Stock Exchange. The stock is up nearly 2% since the announcement of its June quarter earnings on Jul. 30.

 

Following are the Jul-Sept earnings estimates for Welspun Living, in INR million, from four brokerages in descending order of the estimate of net profit: 

 

Brokearges	Net Sales	Net Profit	EBITDA
Sharekhan Ltd.	23,720	610
JM Financial Institutional Securities Pvt. Ltd.	23,347	495	1,713
Nuvama Wealth Management Ltd.	24,542	241	1,358
Systematix Shares and Stocks (India) Ltd.	24,421	194	1,343
Average	24,007.50	385	1,471.33

 

 

 

 

 

 

 

 

 

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Edited by Deepshikha Bhardwaj

 

 

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