Welspun Living’s Q4 income declines YoY; Dividend of 10p dividend/share announced

Mumbai: Home textile major Welspun Living Limited (formerly Welspun India) has announced weak Q4 financial results, with its total income declining to ₹24,512 crore in Q4FY26 from ₹24,482 crore recorded in the same period last year. This 7.4% decline also came with a corresponding 21.3% decline in Profit After Tax (PAT) after including exceptional items.  The company’s EBITDA margins have also declined by 121 basis points during the same period. 

This sluggish performance has come due to ongoing inventory adjustments from global retail partners, even as inflationary pressures have discouraged discretionary spends in North America and Europe. 

Margin Pressures, Softened demand

The company’s flagship home apparels segment has faced margin pressures, mostly from fluctuating global cotton prices and higher freight costs. To strengthen its operational efficiencies, the company is acquiring a captive renewable power unit from CleanMax Dhyuthi Private Limited (CDPL) for its Vapi facility in Gujarat. 

For its flooring division, the company has witnessed steady demand domestically, even as retail export shipments have softened. 

Capital Allocation Pivot: The ₹252 Crore Buyback Matrix

The company is looking to utilize its robust balance sheet reserves to buyback 1.4 crore equity shares worth ₹252 crores. This aims to help the company boost its  Earnings Per Share (EPS) metrics.

Despite the challenging financials, Welspun has also announced a ₹0.10 dividend per equity share of face value ₹1 for FY26.

“Q4FY26 marked a phase of improving momentum, with revenues growing 7.7% sequentially and EBITDA margins strengthening to 10.8%, reflecting the impact of sustained cost actions, mix improvement, and operating discipline. Our balance sheet also strengthened significantly, with net debt reducing to ₹775 crores supported by strong free cash flow generation. 

Our Domestic Consumer business continues to scale strongly, delivering 29.2% YoY growth in Q4 and achieving EBITDA breakeven, further strengthening our diversified growth profile. While FY26 revenues were impacted by external headwinds, our focus on disciplined execution, sustainability leadership, and strategic positioning ensures we are well placed to drive recovery, gain share, and deliver long-term value,” Ms. Dipali Goenka, Managing Director & CEO, Welspun Living Limited said in a press release.

Q4 Financial Performance Highlights