Textiles major Welspun Living announced a ₹252 crore share buyback through the tender route at a buyback price of ₹175 per share, implying a premium of more than 30% over the previous closing price. According to reports from The Economic Times, the company's board of directors has approved the proposal to buy back 144 lakh fully paid-up shares with a face value of Re 1 each for an aggregate amount not exceeding ₹252 crore. This represents 6.52% of the company's total paid-up equity share capital and 5.65% of the free reserves. The record date for the buyback has been fixed for May 22, 2026, with DAM Capital Advisors appointed as the manager for the second time, following their role in the company's previous buyback in August 2024.
The board has formed a buyback committee to oversee the corporate action and has appointed DAM Capital Advisors as the manager of the buyback. As reported by The Economic Times, this marks the company's second major buyback initiative, following a ₹278 crore share buyback via the tender route conducted in August 2024, with the buyback price fixed at ₹220 per share. Share buyback refers to a corporate action where a company repurchases its own shares from existing shareholders, mostly at a premium to the market price. Under the 2024 Finance Act amendment, buyback proceeds received by shareholders are taxable as dividend income, not as capital gains, applying to all tender-route buybacks post-October 1, 2024.
The textile company's financial results for Q4 FY26 showed mixed performance with declines across key metrics. According to reports from The Economic Times, revenue from operations declined around 7.4% YoY to ₹2,451 crore in Q4 FY26 from ₹2,646 crore in the same quarter last year, though it showed 7.7% sequential growth from Q3 FY26. EBITDA fell around 17% YoY to ₹265 crore, while EBITDA margin contracted to 10.8% during the quarter under review. Net profit declined more than 21% to ₹104 crore in Q4 FY26, as against ₹132 crore in the corresponding quarter of the previous financial year. Despite the weak quarterly earnings, the domestic consumer business emerged as a bright spot with 29.2% year-on-year growth in Q4 FY26, while innovation-led products contributed nearly 22% of full-year FY26 revenues.
The company's full-year FY26 performance revealed significant challenges with declining profitability across all key metrics. According to reports from The Economic Times, total income declined 11.5% to ₹9,468 crore in FY26 from ₹10,698 crore in FY25. Consolidated EBITDA dropped 40.6% to ₹862 crore, while net profit after minorities collapsed to ₹204 crore from ₹639 crore in FY25, representing a 68% decline in a single year. Home textiles revenue fell 9.1% to ₹8,940 crore, and the flooring business was particularly affected with revenue down 17.3% to ₹736 crore. However, the company's balance sheet showed improvement with net debt reduced 52% to ₹775 crore as of March 31, 2026, from ₹1,602 crore a year ago, aided by working capital optimisation and lower borrowings.
In the longer term, the stock has demonstrated strong performance with a jump of 50% in three years and 38% in five years, as reported by The Economic Times. The company maintains a market capitalisation of ₹13,200 crore. Following the buyback announcement, Welspun Living shares gained roughly 3% to trade near ₹138 on NSE, with the stock having already added 4% over the prior week and 12% over the prior month. The stock is up around 6% in 2026 year-to-date. The board has also recommended a dividend of Re 0.10 per equity share for FY26, subject to shareholder approval at the annual general meeting, which was not widely highlighted in early reports.
