The company expects gradual margin improvement beginning Q1FY27 as revised tariff structures and FTA benefits begin reflecting in order inflows
Supported by trade tailwinds, diversified geography, brand equity and innovation capabilities, the long-term growth trajectory of Wellspun Living remains intact, as per a report by Axis Direct. Margin recovery is expected to follow as operating leverage improves and demand normalises.
Factoring in medium-term growth prospects and structural benefits from free trade agreements, Axis Direct has have revised the financial year 2026 estimates downward while largely retaining FY27 to FY28 projections. The company continues to strengthen its presence in key international markets such as the United Kingdom, European Union (EU) and Japan, while retaining its leadership in the United States. Concurrently, it is pursuing growth opportunities in the domestic segment.
The report added that the company expects gradual margin improvement beginning Q1FY27 as revised tariff structures and FTA benefits begin reflecting in order inflows. Over the medium-to-long term, management remains confident of accelerating growth through disciplined cost management, improved product mix, strong cash flow generation and selective investments in capacity and capabilities.
“Management remains focused on strengthening customer relationships and safeguarding market share, prioritising long-term partnerships over shortterm margin expansion. This approach enabled Welspun to sustain its US market share despite a broader decline in industry exports to the region,” the report pointed out.
Given Welspun’s established scale, integrated capabilities and deep customer engagement, the report added that the company is strategically positioned to capitalise on the next demand upcycle.
“We maintain our buy rating on the stock, considering the attractive valuations and long-term growth prospects,” Axis Direct highlighted. The company reported revenue of Rs 2,262 crore, down 9 per cent on a year-on-year (YoY) basis. Net profit came in at Rs 3 crore, down 98 per cent YoY as it was adversely impacted by a one-time exceptional expense of Rs 19 crore related to the implementation of new labour regulations.
