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

Reuters

Thu, 12 February 2026 at 6:51 pm GMT+9 2 min read

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Feb 12 (Reuters) - Indian textile maker Welspun Living, which exports to global retailers including Walmart and Tesco, 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 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 and Target, derives more than 60% ​of its revenue from the United States ​and roughly 18% from the ​UK and Europe.

PEER COMPARISON

Valuation Estimates (next 12 Analysts’ sentiment

(next 12 months)

months)

RIC PE EV/EBI Revenue Profit Mean # of Stock to Div

TDA growth (%) growth rating* analyst price yield

(%) s target** (%)

Welspun ‌Living WLSP.NS 22.29 10.91 16.12 157.62 Buy 9 0.92 1.21

Ltd

Arvind Ltd ARVN.BO 18.87 9.92 10.46 27.41 Strong 6 0.79 1.04

Buy

KPR Mill Ltd KPRM.NS 28.90 18.68 11.86 17.38 Buy 6 0.85 0.55

Vardhman VART.BO 14.91 9.47 6.99 12.59 Hold 5 1.09 1.04

Textiles Ltd

• 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

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

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