Welspun Living
Welspun Living
Consumer DiscretionaryKey Fundamentals
SmallcapTextile ProductsTextilesTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Weaknesses
5- Stock is trading at 4.05 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 commands a market cap of ₹19,816 Cr with a P/E of 69.5x, reflecting rich valuations against a backdrop of declining near-term profitability (TTM profit down 49%) and modest long-term sales CAGR of 5% over 10 years. The stock has rallied 68% over the past year despite weakening fundamentals, while ROE has dropped sharply from a 3-year average of 11% to just 4% in the last year.
- Strong 1-year stock CAGR of 68%, significantly outperforming broader market indices, indicating positive market sentiment and momentum
- Long-term stock CAGR of 14% over 10 years demonstrates sustained wealth creation for long-horizon investors
- 3-year compounded sales growth of 5% shows the company has maintained a stable revenue base despite textile sector headwinds
- 10-year ROE average of 13% suggests the business has historically generated reasonable returns on shareholder equity over full cycles
- Market cap of ₹19,816 Cr positions Welspun Living as one of the larger players in the Indian home textiles space, offering scale advantages in global supply chains
- 5-year ROE average of 11% remains in line with the 3-year average of 11%, indicating consistency in medium-term return generation despite recent dip
- 3-year compounded profit growth of 4% remains positive, showing the company has managed incremental profitability gains over that horizon despite TTM weakness
- P/E ratio of 69.5x is significantly elevated for a textiles company with negative TTM profit growth of -49%, suggesting the stock is priced for a recovery not yet visible in earnings
- TTM sales growth of -3% indicates revenue contraction, a reversal from the modest 5% compounded growth seen over 3 and 5 years
- TTM compounded profit decline of 49% signals a sharp deterioration in profitability and potential margin compression
- Last year ROE collapsed to just 4%, a steep drop from the 3-year average of 11% and 10-year average of 13%, raising concerns about capital efficiency
- P/B ratio of 4.04x is elevated for a capital-intensive textiles business, with limited margin of safety if earnings do not recover
- Promoter holding has decreased by 4.14% over the last 3 years, which may signal reduced insider confidence
- Dividend payout of just 2.89% of profits over 3 years with a dividend yield of only 0.05% offers negligible income return to shareholders
- 10-year compounded profit CAGR of -11% and 5-year profit CAGR of -17% indicate a structurally challenged earnings trajectory over longer periods
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- CleanMax stake acquisition cancelled Aug 31
Welspun Living scrapped its proposed 26% equity stake acquisition in Clean Max Dhyuthi Private Limited, valued at ₹760 lakh, due to power availability concerns. This signals potential challenges in securing captive/renewable energy supply.
- Q1FY27 profit surges 83% YoY Aug 17
Net profit jumped 83% YoY to ₹160.73 crore in Q1FY27, with revenue up 23.5% to ₹2,795.45 crore and EBITDA margin expanding to 12.5%, driven by strong home textile exports and operational efficiency.
- Keyur Parekh appointed as WTD Aug 28
Shareholders approved Keyur Parekh as Whole-time Director via postal ballot with 99.90% support, reflecting strong promoter and institutional confidence in the leadership appointment.
- FY26 BRSR filed with assurance Sep 2
Welspun Living submitted its FY26 Business Responsibility and Sustainability Report with reasonable assurance from BDO India, covering ESG metrics.
- 41st AGM set for Sep 24 Sep 2
The company scheduled its 41st AGM for September 24, 2026, via video conferencing. The FY26 Annual Report has been dispatched electronically to shareholders.
- Investor meetings scheduled Sep 1 Aug 26
Analyst and institutional investor meetings were scheduled for September 1, 2026, in Mumbai. The company confirmed no unpublished price-sensitive information would be shared.
TL;DR: Welspun Living delivered a strong Q1FY27 with 83% profit growth and healthy margin expansion, underpinned by robust home textile exports. The cancelled CleanMax acquisition raises minor questions around energy sourcing strategy but is a small-ticket item at ₹760 lakh. Leadership continuity looks solid with near-unanimous shareholder backing for the new WTD. The earnings momentum is clearly positive, and sustained export strength could keep the trend favourable heading into Q2FY27.
Quarterly Results
| Particulars | 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 | 1.7 |
Profit & Loss
| Particulars | 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 | 8,605 | 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 | 794 | 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 | 49 | 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 | 2.92 |
| Div. Payout % | 20% | 18% | 18% | 17% | 14% | 20% | 3% | 2% | 5% | 1% | 3% | 5% | — |
Balance Sheet
| Particulars | 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 | 3,160 |
| Total Liabilities | 5,695 | 6,476 | 7,258 | 7,187 | 7,682 | 8,194 | 8,566 | 9,312 | 8,527 | 9,485 | 10,267 | 10,392 |
| Fixed Assets | 2,627 | 3,348 | 3,689 | 3,460 | 3,306 | 3,933 | 3,814 | 4,005 | 3,918 | 3,813 | 4,022 | 4,460 |
| CWIP | 156 | 183 | 56 | 83 | 489 | 58 | 173 | 166 | 46 | 49 | 380 | 269 |
| 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 | 4,771 |
| Total Assets | 5,695 | 6,476 | 7,258 | 7,187 | 7,682 | 8,194 | 8,566 | 9,312 | 8,527 | 9,485 | 10,267 | 10,392 |
Cash Flow
| Particulars | 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 | -345 |
| 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 | -146 |
| 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
| Particulars | 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 | 168 |
| Days Payable | 99 | 91 | 98 | 85 | 83 | 108 | 111 | 71 | 74 | 69 | 77 | 107 |
| Cash Conversion Cycle | 90 | 113 | 122 | 143 | 135 | 135 | 128 | 119 | 137 | 136 | 130 | 113 |
| Working Capital Days | -12 | 14 | 39 | 47 | 26 | 8 | 29 | 14 | 42 | 40 | 47 | 34 |
| ROCE % | 24% | 27% | 21% | 12% | 11% | 13% | 15% | 14% | 6% | 16% | 14% | 6% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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42 extracted metrics + investor summaries across FY05–FY26.
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]
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