Indian textile maker Welspun's profit nearly wiped out on US tariff-led slowdown

Tesco

12/02/2026 09:16

Feb 12 (Reuters) - Indian textile maker Welspun Living WLSP.NS, which exports to global retailers including Walmart WMT.N and Tesco TSCO.L, posted a slump in its quarterly profit on Thursday, as a U.S. tariff-triggered slowdown in exports squeezed its margins.

Welspun's consolidated net profit came in at 2.1 million rupees ($23,178.81) for the three-month period ended December 31, sharply down from 1.21 billion rupees in the year-ago period.

Results included a one-time charge of 189.7 million rupees linked to India's new labour codes, implemented last November as part of the government's efforts to simplify regulations and encourage investment.

Revenue from operations fell 9% to 22.62 billion rupees, while its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin narrowed by 493 basis points to 7.7%.

KEY CONTEXT

Indian textile exporters including Welspun and Trident TRIE.NS reeled under the impact of steep U.S. tariffs for several months, with some seeking new buyers in Europe and offering discounts to U.S. customers to stay afloat.

These companies are now expecting better quarters as U.S. President Donald Trump announced a trade deal with India, slashing tariffs on Indian goods, just days after New Delhi struck a separate trade agreement with the European Union.

Welspun Living, which supplies to many U.S. retailers including Costco Wholesale COST.O and Target TGT.N, derives more than 60% of its revenue from the United States and roughly 18% from the UK and Europe.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Welspun Living Ltd
WLSP.NS
22.29
10.91
16.12
157.62
Buy
9
0.92
1.21
Arvind Ltd
ARVN.BO
18.87
9.92
10.46
27.41
Strong Buy
6
0.79
1.04
KPR Mill Ltd
KPRM.NS
28.90
18.68
11.86
17.38
Buy
6
0.85
0.55
Vardhman Textiles Ltd
VART.BO
14.91
9.47
6.99
12.59
Hold
5
1.09
1.04

 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 90.6000 Indian rupees

Welspun Q3 stock performance https://tmsnrt.rs/45X5bZy

 (Reporting by Praveen Paramasivam in Chennai; Editing by Sherry Jacob-Phillips)

 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))