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Informist, Thursday, May 14, 2026

 

By Taniva Singha Roy

 

MUMBAI – Welspun Living Ltd.'s consolidated net profit for the March quarter is expected to plunge sharply on year, hit by sustained weak demand in the home textiles and flooring segments and by the uncertainty plaguing the proposed bilateral trade agreement with the US, according to brokerages tracking the company. Its revenue for the quarter is seen falling in the high single digit on year.

 

The home textile manufacturer's net profit for the March quarter is expected to decline 67% on year to INR 435 million, according to an average of estimates from three brokerages. Sequentially, however, it is expected to rise by 126%. Welspun Living's net profit for the quarter is expected to be between INR 392 million and INR 474 million, according to the estimates. The highest estimate for the net profit is INR 474 million from Equirus Securities Pvt. Ltd. while the lowest is INR 392 million from Batlivala & Karani Securities India Pvt. Ltd.

 

For the December quarter, the company had, on a consolidated basis, reported a net profit of INR 2.1 million, down sharply from INR 1.21 billion for the year-ago period. The fall nearly wiped out the company's profit.

 

The company's net sales are seen falling nearly 9% on year for the March quarter to INR 24.17 billion, according to the average of estimates. On a quarterly basis, revenue is seen rising nearly 7%. Welspun Living's net sales are expected to be between INR 23.99 billion and INR 24.30 billion, according to the estimates. The highest estimate for net sales is INR 24.30 billion from Nuvama Wealth Management Ltd. and the lowest is INR 23.99 billion from Equirus Securities. 

 

For the December quarter, the revenue from operations had declined over 9% on year to INR 22.62 billion while the other income had plunged more than 62% to INR 144.4 million.

 

According to estimates from two brokerages, the company's earnings before interest, tax, depreciation, and amortisation are expected to fall nearly 43% during the reporting quarter. The company's EBITDA is estimated between INR 1.78 billion and INR 1.86 billion. "We expect nearly 9% yoy (year-on-year) top line decline due to weak realisations and volumes," Equirus Securities said. "Tariff-related uncertainties and partial cost absorption are likely to significantly impact profitability. EBITDA is expected to decline around 41% yoy leading to a margin compression of nearly 418 basis points yoy to almost 7.8%."

 

B&K Securities expects a sequential improvement in performance supported by the reduction in US tariffs on imports from India to 10% from 50% during the quarter and tailwinds from rupee depreciation. "EBITDA margins are likely to expand sequentially by over 100 bps, supported by ongoing cost rationalisation initiatives, along with the aforementioned macro tailwinds," the brokerage said.

 

Nuvama Wealth Management Ltd. expects Welspun to report revenue contraction of 8% on year, primarily driven by tariff impact for January and February. "Post the tariff there is a pickup in volume-led growth in the month of March," the broking firm said. "Contraction in top-line combined with increase in overheads and tariff hit absorption shall lead to degrowth at EBITDA 44% yoy," Nuvama said. The company had reported consolidated EBITDA of INR 1.75 billion for the December quarter, registering a fall of over 45% on year. Its EBITDA margin contracted 493 basis points on year to 7.7%.

 

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. The fourth has a "hold" recommendation with an average target price of INR 147.

 

Key metrics for the quarter under review will include volume recovery, debt levels, and India–US trade developments, along with developments on the free trade agreements with the UK and the European Union, according to brokerages. Thursday, shares of Welspun Living closed 0.3% higher from Wednesday at INR 134.23 on the National Stock Exchange. The company will detail its March quarter earnings Friday.

 

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

 

Brokerage	Net Sales	Net Profit	EBIDTA
Equirus Securities Pvt. Ltd.	23,997	474	1,861
Nuvama Wealth Management Ltd.	24,303	439	1,780
Batlivala & Karani Securities India Pvt. Ltd.	24,223	392	--
Average	24,303	439	1,780

 

End

 

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

 

Edited by Rajeev Pai

 

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