Welspun Living slides 3% as analysts flag US tariffs as near-term overhang

Welspun Living shares fell 3 per cent after it reported a 93 per cent drop in second-quarter profit, with analysts remaining cautious in the near term

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Shares of Welspun Living Ltd. slipped over 3 per cent on Thursday after the company reported a 93 per cent drop in second-quarter profit, with analysts citing US tariffs as a key near-term overhang.

 

The home textiles company's stock fell as much as 3.02 per cent during the day to ₹135.1 per share, the biggest intraday fall since October 31 this year. The stock pared losses to trade 2.5 per cent lower at ₹135.8 apiece, compared to a 0.39 per cent advance in Nifty 50 as of 1:27 PM. 

 

Shares of the company snapped a four-day decline and currently trade at 1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 13.5 per cent this year, compared to a 9.2 per cent advance in the benchmark Nifty 50. Welspun Living has a total market capitalisation of ₹13,001.31 crore. 

Welspun Living Q2 results 

Welspun Living posted a 93 per cent decline in consolidated net profit at ₹14.86 crore in the second quarter ended September 30, against a net profit of ₹202.4 crore in the same quarter last fiscal. 

 

Revenue from operations in the second quarter stood at ₹2,440.91 crore as against ₹2,873.09 crore in the corresponding period last fiscal. Textile business revenue was at ₹2,322 crore, down 14.4 per cent, while the flooring segment revenue was at ₹181 crore, a drop of 27.4 per cent.

 

"The global tariff situation continues to weigh on export performance, but we remain confident this is a passing phase," Welspun Group Chairman, BK Goenka, said. "We believe these disruptions are transitional and will ultimately accelerate the shift in global sourcing where India stands to emerge stronger."

Analysts on Welspun Living earnings

JM Financial: Tariffs remain an overhang in the near term, though the long-term growth story remains intact. Ebitda declined about 57 per cent year-on-year, impacted by tariff-related pressures and a 12 per cent sequential rise in other expenses. Margins stayed under pressure due to the lower volume offtake amid continued tariff uncertainty.

 

Key concall takeaways included lower shipments in the second quarter and weaker realisations, as discounts were extended to retailers. The full impact of tariffs is expected to be felt in the coming quarters.

 

Antique Stock Broking: Revenue and Ebitda margin are expected to decline further in the third quarter of FY26, weighed down by weak consumer sentiment in the US and the impact of higher tariffs. The company is implementing cost optimisation measures and diversifying its customer base.

 

However, elevated US tariffs remain a key concern, as the US contributes around 60 per cent of total revenue. Antique has cut its FY26, FY27, and FY28 earnings estimates by 31 per cent, 5 per cent, and 4 per cent, respectively, while maintaining a 'Hold' rating with a revised target price of ₹126 (earlier ₹132).