Welspun Living Profit PLUMMETS 93% Amidst US Tariffs! Is This a Buying Opportunity?

Consumer Products

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Updated on 13 Nov 2025, 08:27 am

Welspun Living Ltd. shares dipped over 3% following a sharp 93% fall in second-quarter net profit to ₹14.86 crore from ₹202.4 crore year-on-year. Revenue also declined, with the textile segment down 14.4% and flooring down 27.4%. The company's Chairman, B.K. Goenka, cited global tariffs as a 'passing phase' that could eventually benefit India's sourcing position.

Analysts, however, see immediate challenges. JM Financial highlighted that tariffs are a significant near-term 'overhang,' impacting EBITDA and margins due to lower volumes and higher expenses. Antique Stock Broking expects further declines in Q3, worsened by weak US consumer sentiment and tariffs, which impact the 60% of revenue from the US. They've cut earnings estimates for upcoming fiscal years and maintained a 'Hold' rating.

Impact: This news creates significant negative sentiment for Welspun Living's stock due to concerns over export markets and profit margins. Investors will closely watch how the company navigates these tariff-related headwinds and US market slowdowns. Rating: 7/10

Difficult terms: Consolidated net profit: Total profit of a company and its subsidiaries after all expenses. Revenue from operations: Income from the company's main business activities. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of operating performance. Tariffs: Taxes on imported/exported goods. Overhang: A negative factor or uncertainty expected to suppress a security's price.