Welspun Living Q4 results: Net profit dips 21% YoY; from dividend to buyback, everything investors should know

Welspun Living reported a 21% decline in consolidated net profit at ₹104 crore on Friday, May 15, for the fourth quarter of the financial year 2025-26 (Q4 FY26) as compared to ₹132 crore in the same period last year.

The textile products firm’s revenue from operations also slipped 7% year-on-year (YoY) to ₹2,435 crore in the January-March period from ₹2,626 crore in the year-ago period.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 16% annually to ₹249 crore as against ₹296 crore in Q4 FY25. Its operating profit margin contracted to 10.21% in contrast to 11.27% on a yearly basis.

Dividend details

Welspun Living’s board of directors at its meeting held on Friday has recommended a dividend of ₹0.10 per equity share (face value ₹1 each), representing 10% for the financial year 2025–26. The dividend is subject to shareholders’ approval at the upcoming annual general meeting (AGM).

The dividend will be paid to shareholders holding equity shares of the company as of the record date, which has been fixed as July 10, 2026.

Buyback plans

Apart from earnings and dividend recommendations, the board of Welspun Living has approved a buyback of up to 1.44 crore fully paid-up equity shares of face value ₹1 each at a price of ₹175 per share, for an aggregate amount not exceeding ₹252 crore.

In a regulatory filing, the company further said that the buyback represents 6.52% and 5.65% of the total paid-up equity share capital and free reserves based on the latest audited standalone and consolidated financial statements as of March 31, 2026, respectively.

The buyback will be undertaken through the tender offer route on a proportionate basis from shareholders as of the record date, in accordance with applicable regulations. “The public announcement setting out the process, timelines and other statutory details will be released in due course in accordance with the Buyback Regulations,” Welspun Living said.

The firm has fixed May 22, 2026, as the record date to determine the eligibility of shareholders for participation in the buyback of equity shares.

CleanMax Dhyuthi acquisition

Welspun Living said that its board has approved the acquisition of 48,599 equity shares of ₹10 each in CleanMax Dhyuthi Private Limited (CDPL), representing a 26% stake in the company. The shares will be acquired at a consideration of ₹760 lakh.

The acquisition will be made from Welspun Corp. Limited, a promoter group company, and is subject to approval by the Board of Welspun Corp. Limited.

“The acquisition of a stake in CDPL is intended to enhance the supply of renewable energy to the company's Vapi factory in Gujarat. CDPL operates a renewable energy project in Gujarat that will serve as a group captive unit for supplying renewable energy to the facility,” the company added.

Management commentary

“FY26 tested the entire home textiles industry — US tariff disruptions, West Asia conflict, and cautious global demand created a challenging backdrop throughout the year. We navigated this with discipline and emerged meaningfully stronger,” said B.K. Goenka, Chairman, Welspun Group.

Goenka said that the company exited the year with net debt reduced by over 50%, while free cash flow increased 8.5 times to ₹956 crore and the domestic business grew 29.2% in Q4. He added that the sequential recovery in Q4, with revenues rising 7.7% and margins at 10.8%, indicates that the trough is behind the company.

“We enter FY27 with confidence — targeting double-digit growth, backed by structural tailwinds, a strong balance sheet, and a business that has proven its resilience,” he added.

Following the earnings, Welspun Living shares were trading at ₹138.80 apiece on the National Stock Exchange, gaining 3.4%.