Welspun Q3FY26 profit nearly wiped out due to US tariff slowdown | Company Results

Indian textile maker Welspun Living, which exports to global retailers such as Walmart and Tesco, reported a decline in quarterly profit on Thursday as an export slowdown triggered by US tariffs squeezed its margins.

Welspun’s consolidated net profit stood at 2.1 million rupees ($23,178.81) for the three months ended December 31; This figure showed a sharp decrease compared to 1.21 billion rupees in the same period of the previous year.

The results included a one-time charge of 189.7 million rupees due to India’s new labor laws, which were introduced last November as part of the government’s efforts to simplify regulations and encourage investment.

While revenue from operations decreased by 9 percent to 22.62 billion rupees, earnings before interest, taxes, depreciation and amortization (EBITDA) margin narrowed by 493 basis points to 7.7 percent.

KEY CONTEXT

Indian textile exporters, including Welspun and Trident, were hit by high US tariffs for several months; some are seeking new buyers in Europe and offering discounts to U.S. customers to keep them afloat.

These companies are now looking forward to better quarters as US President Donald Trump announced that he signed a trade deal with India and reduced tariffs on Indian goods, just days after New Delhi signed a separate trade agreement with the European Union.

Welspun Living, which supplies many U.S. retailers including Costco Wholesale and Target, generates more than 60 percent of its revenue from the U.S. and about 18 percent from the U.K. and Europe.