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Business Upturn
5 hours ago
- Business
- Business Upturn
Why Are Pearl Global shares down 8% today? Explained
By Aditya Bhagchandani Published on July 31, 2025, 09:56 IST Shares of Pearl Global Industries Ltd plunged over 8% to ₹1,506.70 on Wednesday, July 31, amid broader pressure on Indian textile and apparel exporters following U.S. President Donald Trump's announcement of a 25% tariff on Indian goods. The announcement also includes a penalty clause for countries purchasing oil and military goods from Russia, which specifically named India. Pearl Global, along with other textile players like Gokaldas Exports, Welspun Living, and Indo Count Industries, saw sharp declines in morning trade. The slide is driven by concerns over India's significant reliance on U.S. markets for apparel exports. Here's what's driving the fall: Trump's 25% tariff on Indian exports begins August 1 . on Indian exports begins . Penalties for defense and energy purchases from Russia may be added. for defense and energy purchases from Russia may be added. Pearl Global derives over 50% of its revenue from the U.S. , making it highly vulnerable. , making it highly vulnerable. Peer companies like Gokaldas (70% U.S. exposure) and Welspun (65%) also saw steep cuts. like Gokaldas (70% U.S. exposure) and Welspun (65%) also saw steep cuts. Vietnam has already agreed to a 20% tariff deal with the U.S., and Bangladesh faces a 35% duty, leaving Indian players at a competitive disadvantage. What the management said: Pearl Global's management recently stated in an interview that the company plans to expand capacity in Vietnam by 25–30% to meet a surge in U.S.-bound orders and diversify risk amid growing trade volatility. Despite the expansion strategy, the announcement from the U.S. caught markets off guard, triggering a selloff across textile stocks with high U.S. exposure. Analysts warn that cost pass-throughs and margin compression could follow if tariffs are fully implemented without exemptions. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Hans India
21 hours ago
- Business
- Hans India
Welspun Living's Q1 net profit drops 52 pc to Rs 89.3 crore
Mumbai: Home textiles manufacturer Welspun Living Limited on Wednesday reported a sharp 52 per cent year-on-year (YoY) decline in net profit for the quarter ended June 30 (Q1 FY26). The company posted a profit of Rs 89.3 crore, down from Rs 186 crore in the same period previous year, as lower exports and weaker margins weighed on earnings. Revenue from operations fell 11 per cent to Rs 2,261 crore from Rs 2,536 crore a year earlier. Operating profit (EBITDA) dropped 34 per cent to Rs 226 crore from Rs 341 crore in the corresponding quarter previous year, with margins slipping to 10 per cent from 13.45 per cent. Welspun's home textile exports business saw an 11.8 per cent decline in revenue, recording an EBITDA margin of 12.6 per cent. The advanced textile segment also fell 11.6 per cent YoY. In contrast, the domestic consumer business posted a 9.5 per cent growth, supported by a 2.5 per cent rise in domestic home textiles and a strong 26 per cent jump in domestic flooring sales. The company's overall flooring business generated Rs 193.5 crore in revenue, with an EBITDA of Rs 16.2 crore and a margin of 8.4 per cent. Net debt reduced to Rs 1,401 crore from Rs 1,562 crore in June 2024, according to its stock exchange filing. On the Bombay Stock Exchange (BSE), Welspun Living's shares closed at Rs 131.40, down Rs 4.70 or 3.45 per cent from the previous close. Welspun Living Limited is a home textile company, making and supplying products like towels, bed sheets and rugs. It is part of the $ 2.7 billion Welspun Group and serves both businesses (B2B) and direct customers (B2C). Along with traditional home textiles, the company also provides flooring solutions and advanced textiles, and has a presence in e-commerce, hospitality, and wellness industries.
Business Upturn
a day ago
- Business
- Business Upturn
Welspun Living Q1 Results: Revenue falls 11.6% YoY to Rs 2,289 crore, net profit down 52.8% YoY
By Aman Shukla Published on July 30, 2025, 15:12 IST Welspun Living Ltd reported its financial results for the first quarter of FY26, showing a dip in consolidated revenue to ₹2,289 crore, down 11.6% year-on-year. EBITDA stood at ₹254 crore, reflecting a decline of 35.4% from the same period last year. The EBITDA margin also contracted to 11.1%, compared to 15.2% in Q1FY25. Profit after tax dropped sharply by 52.8% YoY to ₹88 crore. The company's Home Textile segment, its core revenue contributor, saw a 11.1% drop in revenue to ₹2,123 crore. EBITDA for the segment came in at ₹223 crore, with a margin of 10.5%. The Flooring segment revenue fell 15.1% YoY to ₹194 crore, with EBITDA at ₹16 crore. Despite the overall decline, Welspun's domestic consumer business grew 9.5% YoY. The company also reported progress on its financial discipline, with net debt reduced to ₹1,401 crore and an improved cash conversion cycle of 88 days. In a strategic move, the Board has approved an investment of US$13 million to set up a Pillow and TOB (Top of Bed) facility in Nevada, USA, strengthening its global manufacturing footprint. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Business Upturn
a day ago
- Business
- Business Upturn
Welspun Living to set up pillow manufacturing unit in Nevada, USA with $13 million investment
Welspun Living has announced a major international expansion move, with plans to invest USD 13 million in setting up a new pillow manufacturing unit in Nevada, USA. The decision was approved by the company's Board of Directors and will be executed through its subsidiary, Welspun USA Inc. This new plant is expected to have an annual production capacity of 10.8 million pillows and is scheduled to be operational by January 2026. At full capacity, the plant is projected to add approximately USD 50 million in annual revenue to Welspun's books. The project will be funded through a mix of financing—70% via term loans and the remaining 30% through internal accruals. This move marks another step in Welspun's strategy to strengthen its footprint in the home textile market in the U.S. and expand its offerings in the premium bedding segment. Welspun Living Q1 Results Welspun Living released its financial results for the first quarter of FY26, reporting a significant decline across key metrics. The company posted a net profit of ₹89.3 crore, down 52% from ₹186 crore in the same quarter last year. Revenue also dipped 11% year-on-year to ₹2,261 crore from ₹2,536 crore. EBITDA for the quarter came in at ₹226 crore, registering a sharp 34% drop compared to ₹341 crore in Q1 FY25. As a result, EBITDA margins narrowed to 10% from 13.45% a year ago. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Fashion Network
23-07-2025
- Business
- Fashion Network
Indian textile and apparel giants set to benefit from India-UK free trade deal
Home › News › Industry Download Print As Britain and India gear up to formally sign a free trade agreement on Thursday, numerous Indian textile, apparel, and footwear giants such as Raymond and Welspun are expected to benefit from favourable rates. Bata India is one of the businesses expected to benefit from the India-UK trade deal - Bata- Facebook Indian exports such as textiles, footwear, gems and jewellery, furniture, and sports goods among other items likely to have zero duties, down from current levels of 4% to 16% in the UK. The trade pact is expected to increase the UK's GDP by 4.8 billion pounds annually in the long term, according to British government estimates, with consumers getting access to cheaper garments and footwear items from India. Indian textile and apparel manufacturers such as Welspun India, Arvind Ltd, Raymond, Vardhman are likely to benefit from duty-free access for exports to the UK. Footwear manufacturers such as Bata India and Relaxo could also benefit, according to industry analysts. According to the Indian commerce ministry, the UK will also provide assured access for temporary stay to Indian business visitors and contractual service providers. UK businesses will in turn receive access to India's public procurement and India are set to formally sign a free trade agreement on Thursday during Prime Minister Narendra Modi's UK visit, following three years of negotiations. The deal then needs approvals from the British parliament and India's federal cabinet, likely to come to fruition within a year. The UK will offer duty-free access to 99% of Indian items, according to the Indian commerce ministry, covering nearly 100% of trade value. with Reuters © Thomson Reuters 2025 All rights reserved. Tags : Fashion Ready-to-wear Footwear Textile Industry
