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Informist, Monday, Feb. 9, 2026

By Shumaila Firoz  

MUMBAI – Welspun Living Ltd.'s consolidated net profit for the December quarter is expected to see a sharp on-year fall due to low demand and high tariffs, according to brokerages tracking the company. The company's revenue is expected to fall in low double-digits on year.

The home textile manufacturer's net profit for the December quarter is expected to be between INR 1 million and INR 30 million, according to the estimates of three brokerages. Low revenue growth along with the impact of absorbing tariff related costs is likely to weigh on the bottom line, according to brokerages. The company's consolidated net profit for the September quarter had plunged nearly 94% on year as the company's exports were hit by US tariffs.

The highest estimate for the December quarter net profit is INR 30 million from Mirae Asset Sharekhan Ltd. which represents a fall of 97% on year. The lowest estimate is INR 1 million from Nuvama Wealth Management Ltd. which represents an on-year fall of over 99% in the bottom line.

The company's net sales are expected at INR 22.17 billion for the December quarter, down nearly 11% on year, according to the average of estimates from three brokerages. Sequentially, the top line is expected to fall over 9%. The sequential and on-year decline in top line reflects continued pressure on the textile sector, particularly on exports which have been badly hit by trade barriers, brokerages said in their earnings report.

The highest estimate for net sales is INR 22.82 billion from Nuvama, while the lowest estimate is INR 21.76 billion from JM Financial Institutional Securities Pvt. Ltd. The company's earnings before interest, tax, depreciation, and amortisation are estimated between INR 1.28 billion and INR 1.32 billion, according to two brokerages.

The near-term challenges for the textile companies are expected to persist as higher tariffs lead to higher discounts instead of customer retention, JM Financial said. Welspun Living might suffer top-line contraction to the tune of low-double digits with margins being range-bound sequentially due to its higher reliance on US exports, according to the brokerage.

The company's net profit and EBIDTA are expected to remain under pressure due to slower revenue growth, higher overhead cost, and tariff uncertainty, according to Nuvama, "Lower growth combined with increase in overheads and tariff hit absorption shall lead to de-growth at EBIDTA and PAT level by -53/-100% respectively," Nuvama said.

Monday, shares of Welspun Living ended at INR 145.11 on the National Stock Exchange, up over 3%. The company's stock is now up over 4% since the company announced its September quarter earnings.

Of the four brokerage reports on the company available with Informist, three have a 'buy' or equivalent recommendation on the stock, with an average target price of INR 176. This is over 21% higher than the current market price. One brokerage has a 'hold' or equivalent recommendation on the stock with an average target price of INR 135.

Following are the December quarter earnings estimates for Welspun Living Ltd. from three brokerages in the descending order of the estimate of net profit in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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