Textile stocks don’t usually get this kind of attention from foreign brokerages, but something’s changing. Trade deals are cutting tariffs, global buyers are rethinking where they source from, and one Indian company seems set to benefit more than most. Here’s why the story is getting louder.
Welspun Living Ltd. shares closed at Rs. 214.35, up Rs. 2.35 or 1.11% from the previous close Rs. 212, with a market cap of Rs. 20,250.77 crore and a P/E of 70.76.
Why the trade story matters now
Global brands have been trying to cut their reliance on China for years, and that shift is finally opening real doors for Indian exporters. Jefferies believes this isn’t just a passing trend, it’s a structural change that could keep playing out for years.
The numbers make the case well. The global textile and apparel market is worth over $900 billion, and India’s export share sits at just around $37 billion. That’s roughly 4 percent of the global pie. Honestly, when the gap is that wide, even a small shift in sourcing can mean a big jump for Indian players.
The India-UK free trade deal, which kicked in from July 2026, has already cut duties of 4 to 12 percent on Indian textile goods down to almost nothing. And if a similar deal with the European Union comes through from 2027, that opens up a market worth close to $220 billion, one that currently charges similar tariffs on Indian goods. So there’s more than one trigger here, not just one.
Welspun’s numbers tell a turnaround story
Jefferies upgraded Welspun Living from Hold to Buy and raised its target price quite sharply, from ₹125 to ₹260. That’s roughly 21 percent upside from current levels, which is a big call by brokerage standards.
What’s driving this confidence isn’t just the trade tailwinds, it’s the company’s own numbers. Jefferies expects revenue to grow at a compound rate of 14 percent between FY26 and FY29. EBITDA is projected to grow much faster, at 38 percent a year, while profit could rise around 71 percent annually over the same stretch. That’s a wide gap between revenue growth and profit growth, which usually points to margin recovery doing most of the heavy lifting.
And that’s exactly what’s expected. EBITDA margin is seen climbing from 8.4 percent in FY26 to almost 15 percent by FY29. Return on capital employed could nearly triple too, moving from 6 percent to about 19 percent. So this isn’t a story about selling more, it’s about making a lot more money on what’s already being sold.
Welspun’s position in global supply chains also helps its case. The company is one of the largest home-textile suppliers in the world, making everything from bed linen and towels to rugs and flooring. It works closely with retail giants like Walmart, Target and Costco, relationships that matter a lot when global buyers are rethinking their supply chains.
There’s also room to grow in the UK and Europe, where Indian suppliers still hold a modest share of home-textile imports. If duties keep falling, Welspun could compete more easily with rivals from Pakistan, Bangladesh and Vietnam, especially on price and delivery timelines.
Bottom Line
What stands out here isn’t just the tariff relief or the trade deal, it’s how much of the growth is expected to come from margins rather than just sales. A company going from an 8 percent EBITDA margin to near 15 percent in three years is a meaningful shift, not a small tweak. Add in the low base India still has in global exports, and there’s a case for this being more than a one-time re-rating. Whether it plays out that way depends on execution, but the setup, for now, looks fairly convincing.
About the Company
Welspun Living is one of the world’s largest home-textile manufacturers, with products spanning bed linen, towels, rugs, carpets, flooring and advanced textiles. It has an integrated manufacturing setup and long-standing ties with major global retail brands, positioning it as a key player in the export-led growth story for Indian textiles.