Welspun Living Limited (NSE: WELSPUNLIV) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Dipali Goenka — Chief Executive Officer, Managing Director
Sanjay Gupta — Chief Financial Officer
Analysts:
Unidentified Participant
Ashutosh Somani — Analyst
Prerna Jhunjhunwala — Analyst
Deepali Kumari — Analyst
Param Vora — Analyst
Kunal Shah — Analyst
Roshan Nair — Analyst
Bhavin Chheda — Analyst
Tanish — Analyst
Lakshmi Narayanan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Wellsman Living Limited Q1 FY26 earnings conference call hosted by JM Financial Institutional securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this call is being recorded with this. I now hand the conference over to Mr. Ashutosh Somani. Thank you.
And over to you sir.
Ashutosh Somani — Analyst
Thanks operator and welcome everyone to the call. I will first thank wellspun Living for giving JM Financial the opportunity to host today’s call without much ado. I will hand over the call to Mr. Salil Bawa, head Investor Relations Wealthy Group to introduce the management. Over to you, Shalin. Thank you Ashutosh and good evening to all of you. On behalf of Wellstone Living Limited, I welcome all of you to the company’s Q1 FY2026 earnings call. Along with me, we have with us today Ms. Deepali Goenka, Managing Director and CEO, Wellston Living, Mr. Sanjay Gupta, Chief Financial Officer.
We hope you have had a chance to review the investor presentation that was filed with Exchanges today. The presentation is also available on our website. During today’s discussion, we may be making references to this presentation. We’ll request you to kindly review the State harbor statement in our presentation. As usual, we will start the forum with opening remarks by the leadership team. Post that we will open the floor for any questions once the call gets over. Should you have any further queries, please feel free to connect with any one of us. With that, I would now like to hand over the floor to Mr.
Deepali Goelka, managing director and CEO of Wellspring Living. Over to you, ma’. Am.
Dipali Goenka — Chief Executive Officer, Managing Director
Thank you, Samil. Good evening everyone and thank you for joining us today for Wellspan Living’s Course Quarter 1 FY26 earning call. We continue to navigate a world shaped by shifting global trade dynamics, evolving consumer sentiment and persistent tariff uncertainties. Resilience and adaptability remain central to our strategy as we manage near term challenges while preparing for emerging opportunities. The implementation of reciprocal tariffs between US and India has created unpredictability in trade flows, impacting retailer and overall market sentiment and order patterns. While this poses short term pressures, we believe it will drive structural realignment in global sourcing over the medium to long term.
We continue to engage closely with our customers to navigate this transition smoothly. The U S India Bilateral Trade Agreement remains under discussion and we remain hopeful that a constructive policy resolution will restore clarity and stability in trade relations. Meanwhile, the India UK Free Trade Landmark Agreement is expected to provide a strong impetus to India’s textile exports, further strengthening our market position. With tariff barriers eliminated in home textiles from 12% earlier, Indian textile and apparel exports are well positioned to scale significantly in the UK market. Strategic product diversification, particularly in the underrepresented segments, can help maximize the benefits under this agreement for decisions around India.
EU interim FTA finalization is also a step in the positive direction for India Highlights of the Quarter gone by the first quarter of FY26 was marked by uncertain global trade flow. Consolidated revenue declined 11.6% buy on Y to 2,289 crores and EBITDA margin at 11.1%. This was primarily driven by softness in export business as reciprocal tariff implementation and uncertainty around time timeliness created an overhang in the market. Both retailers and suppliers including US adopted a cautious stance impacting volumes with retailers in entry levels witnessing gradual corrections. Core Exports A core home textile export revenue declined 11.8% y and y to 1,885 crore.
As uncertainty around trade policy continues, consumers could remain cautious, increasingly selective in their discretionary spending. Recently, the US data indicates retail sales fell for the second straight month in May while inflation accelerated to 2.7% in June, highest level since February, driven partly by tariff inducted cost increases. Further weighing on consumer demand, India continues to be the leading supplier of Terry Towers and bedsheets to the United States, holding a dominant market share of 45% and 59% respectively. As for TEQSA data for the 12 months ending May 2025, innovation continues to be at the heart of our strategy, contributing 27% to the revenues this quarter.
High potential segments such as pillows, utility and fashion bedding remain focus areas. Our Ohio size pillow plant continues to ramp up efficiently with capacity utilization reaching to 47% positioning us strongly to capitalize on emerging growth opportunities within the broader sleep ecosystem. We are witnessing strong momentum with increased traction among retailers and greater shelf presence strengthening our visibility and competitive positioning in the category and expect to nearly double our pillow business in this year as against USC 15 million in the previous year. We are further strengthening our pillow manufacturing capacity in US with setting up of a new pillow plant at Nevada to supply to customers in the West Coast.
The Board has approved today an investment of 13 million 112 crore to set up a pillow and TOB facility at Nevada with an annual capacity of 10.8 million pillows in two shift operations. The plant is expected to be operational in quarter four and would contribute additional pillow revenues of over US$60 million at full capacity utilization. We are also actively pursuing geographic diversification and expand our presence in other key regions including the UK, EU, GCC, ANZ, Japan. Our revenue share from the market outside of US has gone up to 40% as global trade realigns. We remain optimistic about reinforcing our core leadership while scaling emerging categories through integrated portfolio play and scalable manufacturing.
Emerging Businesses Our emerging businesses including domestic consumer, global brands, advanced textiles and flooring continue to contribute 30% to overall revenue. Branded businesses account for 18% of our total revenue, underscoring a strategic focus on building strong brands. Licensed global brands like Martha Stewart and Disney Home continue to strengthen our shelf presence with key retailers and open up new avenues. Christie continued to build on its premium positioning growing in UK and US markets alongside deepening offline presence. Implementation of India UK FTA further strengthens opportunity with our own and licensed brands to deepen penetration and expand distribution network alongside foraying into category expansion.
I will now take you through the emerging business segments in more detail. Domestic Retail in line with our anticipation of a rebound in consumption, we witnessed visible green shoots in retail activity during the quarter. Our domestic consumer business grew about 10% buy on Y to 134 crores reflecting improving consumer sentiment according to the RBI. Private consumption remains healthy with a gradual rise in discretionary spending. Rural demand is steady while urban demand is improving, supported by expectations of an above normal southwest monsoon and sustained buoyancy in services activity. Additionally, CPI inflation moderated to a nearly six year low of 3.2% is in April 2025, led by a continued decline in food inflation which should further support consumption trends.
We remain focused on strengthening our leadership position in the Indian market by leveraging our global expertise to offer differentiated products and superior brand experiences. The organized home textiles market is expected to outpace overall market growth at a 9.3%. CAGR Brand Wealthman continues to play across affordable and aspirational segments, driving the shift from unorganized to organized retail and grew at a strong 15% in Q1 FY26. Our B2C business performance has been improving over the past 2 to 3 quarters, growing robust 16% by on Y further strengthening our brand play. During the quarter we added three new Popo stores taking the total count of Evos to 48.
On domestic flooring front we witnessed a robust performance growing 26% by and by in Q1FY26. On the back of strong growth in. Residential and hospitality segments, the business is inching towards EBITDA breakeven. We have deepened extraction with existing dealers and added new partnerships into top tier global accounts. As India’s housing market expands supported by higher gdp, urbanization and a presence of premium offerings, demand for innovative and quality flooring solutions is expected to accelerate. Flooring Overall flooring segment clocked a revenue of 194 crores 15% degrowth by and by in Q1 FY26 challenges in the global flooring business were further accelerated as tariffs overhang led to order holds and subdued demand. However, strategically we remain focused on deepening our presence in US Home improvement and and OM channels, forging strategic partnerships across Middle east and ANC and leveraging the UK FTA to drive regional diversification and long term growth in advanced textile business.
Our revenues declined by 11.6% y and y to 117 crores in Q1 FY26 impacted by a broader slowdown in US customer offtake and tariff related headwinds. We view this as a temporary blip amidst global trade uncertainties and remain confident in the long term growth potential for this business supported by strong customer partnerships, leveraging innovation capabilities with a focused strategy to shifting towards offering value added differentiated products and global markets, ESG remains a strategic differentiator for us. Our journey towards 100% renewable energy and 100% sustainable cotton by 2030 continues with commissioning of an 18 megawatt solar plant at BAPI and a 4 megawatt plant at Hyderabad this quarter.
Additionally, we are targeting 47 megawatts of round the clock green power by year end. Looking ahead, we expect Quarter two to remain challenging with sustained pressure on both top line and bottom line. Given the continued uncertainty around tariffs and trade policies, we are closely monitoring the evolving landscape. Our priorities remain on prudent cost management, operational agility and deeper customer alignment to navigate these headwinds effectively. At the same time we’re strengthening the foundation for future growth with this. I would now like to hand over to Sanjay to take you through the detailed financial performance for the quarter.
Sanjay Gupta — Chief Financial Officer
Thank you Deepal and greetings everyone. I will take you through a brief overview of our financial performance of quarter one financial 26 before we open the floor for questions. During quarter one financial year 2016 we reported consolidated quarterly revenue of 2,289 crore down by 11.6% year on year. Our EBITDA margin for quarter one of financial year 26 was at 11.1% down by 409 basis points year on year. Our margin compression is primarily driven by operating deleverage arising from lower volumes. In response, we have adopted a conservative stance intensifying our cost optimization initiative across businesses to ensure continued operational efficiency without compromising on our serviceability and quality.
Profit after tax after minority interest for the quarter is at 88 crore rupees down 52.8% year on year. Consequently, our consolidated EPS for quarter one stood at 0.92 per share down 52.3% year on year. On the foreign front, our average exchange realization for the US dollar during quarter one was 85.09 compared to 84.05 in the corresponding quarter last year. We have focused on strengthening our balance sheet. Net Debt stood at 1,401 crore versus 1603 crore last quarter lower by 202 crore and versus 1562 crore last year. Same quarter lower by 161 crore. Our cash conversion cycle has improved reflecting better working capital management.
During the quarter we have incurred a capex of 83 crore rupees out of 200 crores added earlier in the quarter four towards various capital expenditures. The board had further approved a capex of US$13 Million which is about 112 crore rupees towards setting up a pillow and POV facility at Nevada USA for the year. Segmental Results Quarter one financial year 26 core business home textile revenue stood at 1,885 crores down by 11.8% year on year and an EBITDA at 12.6% compared to 16.9% last year. During quarter one transition 2022 revenues from flooring business was 194 crore down by 15% and INTA is at Rupees 16 crore which is 8.4% as compared to 9.2% last year.
However, our domestic consumer business has shown resilience with 9.5% year on year. With this I will now leave the floor open for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use hand sips while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Prerna Dhoonjunwala from Elara Securities. Please go ahead.
Prerna Jhunjhunwala
Thank you for the opportunity. First question I just wanted to understand the demand scenario in the US like how the inventory position of the retailers is how you know, fresh they are to source from their dominant partners and what is the kind of tariff sharing expectations they have given that the you know, tariff rates are actually very high against expectation after a deal also for various countries.
Dipali Goenka
So. Hi Prerna, thank you for your question. So definitely there has been a decline in the volume and the retailers this time are correcting the inventories as well. So that is one thing that they’re doing.
Secondly, everybody has been very cautious. For example this time the top line also due to because you know, couple of promotions actually got held on by the customers as well. So that’s why so inventory correction is happening. And the other thing is how you know we are looking at the tariff situation is what everybody is evaluating. Now the second question that you asked about how the tariff and the whole tariff is high and how are they, how is it going to be shared or how it’s going to be taken forward? I think let me just tell you that the retail prices in America haven’t gone up for the past 20 to 30 years.
And now obviously if there’s any kind of a steep thing that happens it will be between the consumer, it will be passed on to the consumer, then the retailer and of course there’s a partnership that works on so there could be that kind of a conversation. So however this is not going to be anything that can be taken by the vendor alone. It will be a shared kind of shared between all the three kind of verticals here. I hope I’ve answered your question here and if you talk about the volumes going forward it will depend see now also the tariff announcement uncertainty is an overhang.
You know, it is just hanging uncertain. You know there’s an uncertainty here. While having said that that USA we continue to focus on uk, Europe and rest of the world where our business grew by, you know, our share is around 40%. So that’s where we also focusing and seeing how we can increase our share there as well. Because that clearly will now establish an opportunity for India as well as ourselves.
Prerna Jhunjhunwala
Okay, and how do we see the margins then? Because this quarter we’ve done around 10% of EBITDA margins. And given that there is an expectation that vendors will continue to you know, see share the impact of tariff.
Do we see normalization of margins even by the end of this year or we continue to, you know, remain at lower margins for some time till there is reduction in tariff rates. I’ll tell you one thing the concerns Are there in the terms of the uncertainty of the tariff.
Dipali Goenka
Okay, let me just put it and table it. And the top line definitely will be impacted in because now the customers are going to evaluate, you know, what they have to buy. Very, very, you know, they will be very, they’ll take very conservative calls there so that you will see them.
And so that top line will also impact the EBITDA indirectly, directly, because that definitely will be an impact. So however, I can also tell you this is a blip momentarily and in the year as we go forward, we will see that come back again and we are working towards that. So while the tariff situation is getting resolved, we are also working on a cost, we are working on the other measures, other things so that, that gets corrected till then and these numbers are going to come back. See, I can just tell you one thing. Westpal is not here for today or tomorrow.
They are here for the next hundred years and we are building a legacy of it.
Prerna Jhunjhunwala
I completely agree, ma’, am, but just wanted to, I mean my question was generally related to near term performance. I mean how long would it be? My second question on with respect to profitability, which I asked you, what are the challenges in, you know, servicing newer markets now? Because we have predominantly focused on us in the past, now that we are focusing on newer markets, whether these markets can, you know, compensate for the growth that we are seeing challenge in the US over a period of years time or it will still be impacting our volume despite focus on newer markets.
I mean, I’m just trying to understand how much growth and margins that we can really see over the year.
Dipali Goenka
Sure. So prena, very, very good question indeed. So first of all, let me tell you one thing. So even when you’re Talking about the U.S. tariffs, okay, one thing, let me be clear here. India is in a good position apart from all the other competitors that India has and the peers that India has. Right. So whatever will happen, India will be at a better position. So the business opportunity still remains for India. So let me clarify that from the terms of USA and India right now.
When you’re talking about other geographies, other geographies that we’re talking about, the opportunities are very good and for us, we already started a penetration in UK and Europe and that’s where, you know, we are seeing more and more opportunities. And Japan, Japan again is emerging as a, so it is a reemerging economy, let me tell you that. So again that’s a very important country that we are focusing on. And of course there’ll be ANC and also the gcc. So while USA is the biggest market of consumption, let me be very clear, let me not make any qualms about that.
However, this is again a very interesting geography for us. So while right now we are struggling with the tariffs for USA where still I maintain that India will be in a good position but we are continuing to make forays into this part of. The world as well.
Prerna Jhunjhunwala
Okay, and what will be the revenue share of us in our emerging business or I mean advanced material and other businesses?
Dipali Goenka
We don’t disclose anything but I’ll tell you one thing, Advanced Excel of course America is a good market, so is Europe and UK and rest of the world as well. Yes, this time we got a little blip from the top line in the advanced exile as well. And also flooring owing to the concerns about the whole tariff offtakes as well. So yes, that’s an overhang on the tariffs as well. Yeah.
Prerna Jhunjhunwala
Okay, understood ma’. Am. I’ll come back to the question too for any further questions. Thank you. And all the best in the challenging situation.
Dipali Goenka
Thank you Brenda. Thank you so much.
operator
Thank you. The next question comes from the line of Deepali Kumari from Arihant Capital. Please go ahead.
Deepali Kumari
Thank you for the opportunity. I just have few questions like the. Company has lowered its net debt compared. To the previous year. So what is the internal range mark OR target for FY26. So we anticipate any additional.
Sanjay Gupta
Hi deali. So we have given a direction for our net head which will be in the range of about 1300 to 1400 crore financial of 26. We have done quite well in first quarter itself and we have reached 1400 crores. So definitely we would try to top our guidance.
Deepali Kumari
Okay, okay. And like one more like your wet. Wise segments have done good from last quarter but it is only 24% of. Capacity utilization even though you have hundred million of tax capacity. So is it due to weak demand sizing issue or problem in distribution?
Dipali Goenka
No, nothing of that sort. Deepali, the thing here is that you know with the US you know where we had an opportunity where that’s the reason the business actually people were just anticipating and they’re holding on for the tariff. So that’s where we are looking at it. Otherwise the opportunities are not only in the wet wipes for makeup wipes but baby wipes to the medical wipes, dry wipes. And so there are a lot of opportunities that we’re exploring. A lot of innovation is being done here as well. So let me just give you kind of A comfort there that this is a category that we’ve seen to grow.
Yeah.
Deepali Kumari
Okay, so there is no Any seasonal impact.
Dipali Goenka
No, no, the seasonal impact is not there. This is a tariff impact.
Deepali Kumari
Like your flooring business. At what level it will be breakeven.
Sanjay Gupta
Flooring business is already, we are already at about 8 and a 8 to 8 and a half percent EBITDA margin. So it is already breakeven as happened two years back.
Deepali Kumari
Okay, so this new facility, I’m asking.
Sanjay Gupta
Right, sorry, I didn’t get.
Deepali Kumari
Talked about at what level that will be recommendation.
Dipali Goenka
So there’s no newer facility that we’re investing in the party.
Sanjay Gupta
I think in the pillow that we are investing not in flooring.
Deepali Kumari
Yeah, flooring. Okay, that’s it for myself. Thank you. Thank you.
operator
Thank you. Before we move to the next question, a reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Param Vora from Tiritra Asset Managers. Please go ahead.
Param Vora
Hello. Thank you for taking my question. So what I wanted to ask was that with the overall revenue declining but the domestic flooring showing a strong growth of 26% year on year basis, can we expect the flooring business to become a larger revenue contributor in the upcoming quarters?
Dipali Goenka
So I think the domestic flooring will be. Is a great opportunity in India as we see hospitality institutions coming up and the residential opportunity also continues to grow. And so while saying that India will definitely be a good opportunity, but we also will be focusing on the global markets here.
Param Vora
Okay, thank you.
operator
Thank you. The next question comes from the line of Kunal Shah from Jetties. Please go ahead.
Kunal Shah
Hi. Am I audible?
Dipali Goenka
Yes.
operator
Yes, sir.
Kunal Shah
Yeah. Hi. Thank you for the opportunity. So my question is in the last 15, 20 days you’ve seen countries sign trade deal, right? And at least for some countries, I know we don’t compete with many of them start to emerge. So just from a customer standpoint, have. There been any change in conversations on how things will pan out in the company? I know actual orders and volumes and all those may take time. But any change in conversation or direction in the last month or so as these trade deals are starting to flow in.
Dipali Goenka
So. Hi, Kunal. So for us, as India and the other countries trade deals you’re talking about. So want to clarify like UK and the other countries, I just wanted to clarify that.
Kunal Shah
No, I mean US signing treaties with which is something like Indonesia or Vietnam. I know we don’t compete with them, but just from a customer conversation standpoint, no change or any, any Anticipation that they have at their end on what’s the next step from their side and.
Dipali Goenka
Nothing of that sort. Kunal, let me also be, let me also clarify. See, Indonesia’s operations are very minimal and I think that focuses on minerals, that side. Vietnam focuses on other categories more than home textiles. So that again is a perspective that. Let me just clarify as well. So India continues to be a very strong sourcing arm and definitely we will see how the tariffs pan out. But India will continue to be a very strong sourcing country for them.
Kunal Shah
Understood. So it would be fair to say, let’s say half of the issue is also the category itself being weak and the rest of the destocking, the category weakness is also evident in the branded piece which has also declined for you. That would be a fair understanding.
Dipali Goenka
Yes, yes, Kunal, because see, I’ll tell you one thing, they are looking at their stocks, they’re looking at that as an evaluation. Then the tariff overhang is one thing. And the other thing also as you go forward is again, the economy might also be something that we will see a little slower.
Kunal Shah
Understood? Understood. Understood. That’s clear. And the second bit is on the UK side, Any, any early interest that you are seeing which you can, you know, Sash, in the next one year or so, I mean any, any large customers that you’re looking like, I can understand, you can’t share the name, but any, any incremental interest that can help bring those revenues out in the next.
Dipali Goenka
Year or two, the answer is yes, absolutely. Those conversations have started and very positive feedback for sure.
Kunal Shah
Understood. Yeah, that’s all from it. Thank you.
Dipali Goenka
Thank you, Kunal. Thank you so much. Thank you.
operator
Thank you. The next question comes from the line of Roshan from BNK securities. Please go ahead.
Roshan Nair
Yeah, good evening. Thanks a lot for the opportunity. I just wanted to understand when is the new fellow facility likely to be operational?
Dipali Goenka
It’ll start by quarter four of this year in Nevada.
Roshan Nair
Yeah. Okay. Understand. And by when do you expect to reach the optimum utilization level?
Dipali Goenka
See, it takes at least six months to eight months to reach the optimum. Yeah. The second year will be the optimum optimization that you will start seeing because it takes that much time to scale up as well. Right. Because every, every capacity can do around 10 million, 10 to 12 million units of pillows.
Roshan Nair
Right, Understood. And given what is your outlook on the festive season in the international markets? Because probably From CO Quarter 2 your exports starts happening for the festive season. So what is the outlook over there? How are the buyers behaving or what is the overall mood? Maybe if you can help me understand that.
Dipali Goenka
So this year, this year it will see every year quarter two, comparatively, comparatively to the quarter one is a little better. So that is the trend we will also witness now to that extent of what it will be in the terms of kind of a better off than the previous year. That is not something I will be able to say. But yes, it will be better than this year as well.
Roshan Nair
This quarter as well. Understood. Thank you. Thank you so much.
Dipali Goenka
Thank you.
operator
Thank you. Before we proceed with the next question, a reminder to all participants, you may press stars and one to ask a question. The next question comes from the line of Bhavin Shehra from INAM Holdings. Please go ahead.
Bhavin Chheda
Yeah, good evening. I wanted to understand from the presentation what do you mean by effective capacity versus installed capacity in pillow?
Sanjay Gupta
You mean pillow also and flooring also?
Bhavin Chheda
Because we keep on showing two numbers.
Sanjay Gupta
Yeah, for flooring we have, we have built the capacity for 24 million meters, but we have operational 18 million. So there are some balancing equipments which we will have to set up at a very low capex which will enhance the capacity as it might be needed for the pillow as well. You know, the home capacities for the two shift operations. And also there are some automations which are still to come in and so as they become operational we will start reporting those.
Currently it is only signal shift operation and there are another 20 to 30% automation still.
Bhavin Chheda
So since we have also announced the new facility in below, I am assuming this, you will be ramping up first to the install level or there would remain a bottleneck to ram this up.
Dipali Goenka
No, no, no, that will, you know, see, let me just explain the whole way that the pillow, pillow works and the pillow plants work in America. See, since it is logistically very, you know, it’s very heavy and cumbersome. So it is very, it is focused on that same zone. So now when we are in Ohio, it focuses on the east coast and that’s where the distribution will happen with the DCs of the various retailers. Right. And when the west coast comes in, it’s focused on the retailers on the west coast like the hospitality and the other major retailers as well.
So that, that’s the way it works and that suffices that zone as well. So that’s the way we work on actually. So that’s the way the pillow works in America.
Bhavin Chheda
Sure, ma’. Am. So I should understand. So this pillow facility though we are saying install 13.5 and effective 4.7 million pieces there would Be some automation and maybe double shift capacity are mentioned.
Dipali Goenka
Yeah.
Bhavin Chheda
To mention that each line normally is capable of doing 10 million pillows. So as and when the demand situation improves in east coast of USA this would be reaching volumes of closer to 10 million pieces, right?
Sanjay Gupta
Yes, yes. Facilities. Yes, yes. Already we have seen, you know from 30% to now 47% this quarter. Seven is of 4.7. Basically. I point million is two, two and a half million run rate.
Bhavin Chheda
But what this facility can do so maybe three years time. Basically once this tariff uncertainty gets over and the capacity gets ramp up, the ramp up is not very difficult in kind of facilities.
So maybe two couple of years. This would be a 10 million output. Right.
Dipali Goenka
In two years max. But I think we already, I mean by the end of this year and exit we’ll be at 70% of our capacity. 70%.
Sanjay Gupta
4.7 or 4.7 will increase. So we will start second shifts of operation as well. And so you will see a deep clogging of the effective capacity and also achieving higher capacity utilization of that. Yeah. So you know we, we are effectively filed for a double of last year’s turnover in pillow. So 15 to 30 million and hence capacity utilization will ramp up very fast.
Bhavin Chheda
Okay, my second question if I think you shared that non US market was close to 40% of sales, right? It is non US non India or that includes India.
Sanjay Gupta
It includes India as well because it’s.
Bhavin Chheda
Rest of the world. Okay. And if you can share some growth in those markets, particularly UK eu, if we can get some trends there.
Dipali Goenka
So I think we can just give you a consolidated perspective right now. And I think this will continue to increase as a share and as the tariff, you know, opportunity open, the agreements open up for India like UK we already know that we are seeing opportunity EU conversations already happening and retailers are very, very positive about that as an opportunity. Japan again is a great opportunity. So. Yes. And also Australia is done, but New Zealand is again right around the corner. By the end of the year. So yes, those are the things that we will see. So I can just give you that. Perspective at the moment.
Bhavin Chheda
Okay, thank you.
Dipali Goenka
Thank you.
operator
Thank you. The next question comes from the line of Tanish from Antique Stockbroking. Please go ahead.
Tanish
Thanks for the opportunity. Can you share the US and UK and EU revenues in terms of total revenue for this quarter?
Sanjay Gupta
So we don’t share those revenues. So we are just. We can share the US and non US share of the business and that is all we can share at the moment. Okay.
operator
Thank you. The next question comes from the line of Lakshmi Narayan from Ksima Wealth Private limited. Please go ahead.
Unidentified Participant
Yes, actually in previous concord you have given net debt target would be around zero by FY28. That symbols good. Yes, correct. So we are trying for a zero net debt by financial year 28 which is three years. Yeah, yeah. Okay. So my next question is on numbers. Basically could you give me the split of advanced excellence under the home texture segment? Is it possible how much revenue contributed? 117 crore revenue for this quotation. 117 crore for this quarter. Okay, okay. FY25 also impossible for you to give last year. You can get in touch with Saleed.
We will provide you the number. I don’t have it. Okay sir. Thank you. So that’s all from my.
operator
Yeah, thank you. The next follow up question comes from the line of Kunal Shah from Jeffries. Please go ahead.
Kunal Shah
Hi. Thank you for the opportunity. So in this B2B business that 14, 15% decline in revenues possible to share a split of what that would be for let’s say US customers and non US customers. How much would that decline before us and decline or maybe some growth for.
Dipali Goenka
Non US Kunal, I think I can just tell you that the overhang of tariff is the reason for what you saw in the decline. And I think that’s what I can just give you an answer on. Because the certain promotions were in the anticipation and that actually got little postponed or little, you know. So that’s the reason. I can just say that the tariff overhang was the reason here and I think it’s primarily United States but fair.
Kunal Shah
To say that the non US business would have grown y or. Yeah, yeah. Understood, understood. And second thing is with you know, demand in the US generally being weak, are you seeing increased competition both in the US and let’s say outside the US as well as you know, partners like you would want to get volumes from other markets to compensate for the weakness in the US Is there some sense on that part?
Dipali Goenka
We already are working with uk, Europe and rest of the world, Kunal and I think that’s been a great opportunity for us. We continue to explore that for the long time as well. And now it actually will start seeing lot of more push in positive in the positive trend. So that’s where it is. But also Kunal, let me tell you that India still is in a decent position with the tariff situation as well. Because if you look at the other peers as well. So I can just say that we’ll wait and watch but India’s position will not die.
You to that extent.
Kunal Shah
Understood, understood, understood. Yeah, yeah, that, that’s clear. Thank you. Thank you for the opportunity.
Dipali Goenka
Thank you.
operator
Thank you. The next question comes from the line of Najunjunwala from Elara securities. Please go ahead.
Prerna Jhunjhunwala
Thank you for the opportunity. Just wanted some color on the product wise demand. If you can share like Fed vs Bath how the demand is and any color which can, you know, help us understand where the demand can really improve going forward. Maybe what is premium, you know, from where the demand is shaping up in current scenario. So I’ll tell you one thing right now, I can just say that you know, towers actually degree this time but we will see that again come up and ramp up again sheets, you know. So the Tabul had a mega drop which we will see again come back next quarter and the other seeds was also down and the Russ were also down.
But I think in the coming time we see them gaining the share and not only ramping up for America, but the other countries will also start ramping up in the terms of the demand. Let me just give you perspective here. And in the towers also you will see the beach season coming in. So there’ll be a ramp up of the Jacquard and the fashion towers as well. So yes, that’s where it is. And our branded global revenue combined online and offline would not have declined much. Is it decent to assume that branded piece is still seeing good demand or is it more client acquisition and value segment or premium segment doing better in the branded segment.
I mean just trying to understand, you know, branded is largely constant for us on a YY basis. So overall branded portfolio is at 18% of the operating revenues right now. So I mean they are. Yeah, yeah, yeah. So they are around 18% of our top.
Sanjay Gupta
Yeah. And you’re right Prerna. So overall branded portfolio has grown in single digit in the quarter and has not been.
Prerna Jhunjhunwala
Yeah. So I just trying to understand whether you know that will that scenario continues and what is driving this branded segment versus the decline in B2B because at the end of the day, I mean I don’t understand. I mean just trying to understand how if we can further shape up this branded business faster given we have much control on that. So here actually prenda because you know these are all brands like creative collabs and the others. There are specific programs that come in and which we launch and that actually does well in these times and more.
So Christie is continuing to grow as well. So yes, that’s where we are seeing a contribution of the branded share not getting diluted.
Dipali Goenka
Comparatively globally and as we had from last quarter as well. And we are informing this quarter as well. So there is a visible soft action by the retailers because overhang of the and hence though the demand at the customer end has not gone down to that extent, the buying has and hence you see to be a lower volume rather in in the branded segment. It is meaningful.
Prerna Jhunjhunwala
Understood. So this is really helpful. Thank you and all the best. Thank you. Thank you. Thank you.
operator
Thank you. Ladies and gentlemen. We’ll take this as the last question for today. I would now like to hand the conference over to Ms. Depali Goenka for closing comments.
Dipali Goenka
Thank you. So as we close Q1 and look ahead, it is clear that FY26 has begun amidst significant external headwinds. The implementation of reciprocal tariffs has added layers of complexity to an already dynamic global trade environment. While near term volatility is inevitable, we see this period as one that will separate the resilience from the rest. We are actively engaging with our customers and stakeholders who navigate these uncertainties. At the same time, we remain focused on what is within our control, driving operational efficiency, optimizing costs and staying close to market shifts to respond with agility. The India UK Free Trade Agreement, once fully implemented, holds strong promise.
Expanding our reach and competitiveness in the UK market and similarly progress in the US India Bilateral Trade Agreements remains an important milestone and we are waiting outcome to gain more predictability in trade flow. We remain deeply committed to to creating sustainable value for our stakeholders through prudent action, disciplined execution and trusted partnerships across the market. Thank you all for your continued confidence in wealth and living. We look forward to updating you as we move ahead. And for any further queries, please feel free to connect with our investor relations team.
operator
Thank you on behalf of JM Financial Institutional securities limited that concludes this conference. Thank you all for joining us and you may now disconnect your lines.