Welspun Living Limited (NSE: WELSPUNLIV) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Bharti Agarwal — Investor Relations
Dipali Goenka — Managing Director & Chief Executive Officer
Manish Bansal — Chief Financial Officer
Analysts:
Ashutosh Somani — Analyst
Prerna Jhunjhunwala — Analyst
Shraddha Agarwal — Analyst
Bhavin Chheda — Analyst
Sunny Visha — Analyst
Aradhana Jain — Analyst
Ritesh Gandhi — Analyst
Vishal Mehta — Analyst
Rohit Ohri — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to the Wellspun Living Q3 FY26 earnings conference call hosted by GM Financial. 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 the conference call, please signal an operator by pressing star and then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashutosh Somani from GM Financial. Thank you. And over to you sir.
Ashutosh Somani — Analyst
Thanks operator and welcome everyone to the call. I will first thank wealthspun Living for giving DM Financial the opportunity to host today’s call without much ado. I’ll hand over the call to Ms. Bharti Agarwal, Lead Investor Relations Wealth Fund Living to introduce the management. Over to you, Bhartsi.
Bharti Agarwal — Investor Relations
Thank you Ashutosh and good evening everyone. On behalf of WellSpan Living Ltd. I would like to welcome you all to the company’s third quarter FY2026 earnings conference call. Joining me on the call today are Ms. Deepali Goenka, Managing Director and CEO, and Mr. Manish Bansal, Chief Financial Officer. We hope you have had the opportunity to review the earnings presentation which has been filed with the stock exchanges today and is also available on our website. During the course of today’s discussion, we may make references from this presentation. As usual, we will begin with opening remarks from the management, following which we will open the floor for a Q and A session.
Should you have any additional questions after the call, please feel free to reach out to us. With that, I would now like to hand over the call to Ms. Deepali Goenka. Over to you, Ma’. Am.
Dipali Goenka — Managing Director & Chief Executive Officer
Good evening everyone and thank you for joining us today for Wellspring Living’s Q3FY26 earnings call. Q3FY26 unfolded in an operating environment that remained challenging and largely unchanged. Persistent US Tariff headwinds, muted discretionary demand and cautious retailer buying continued to weigh on demand, visibility and volumes across export markets. However, as we close the quarter, the global trade landscape for India has shifted decisively and this marks a structured inflection for Indian manufacturing and exports.
Over the last few months, India has concluded a series of landmark trade agreements, including the India US Trade Agreement, the India EU Pre Trade Agreement and the India UK FTA alongside early agreements with markets such as Japan and Australia. Together, these FTA significantly expand India’s market access across the world’s largest consumption pools, materially improve tariff competitiveness and reinforce India’s position as a preferred long term sourcing destination for global retailers. This shift is not about an immediate demand rebound over the next quarter or two. Rather it meaningfully improves visibility, competitiveness and confidence for global customers planning their sourcing strategies over the next several years.
The India U S Trade Agreement removes a key overhang. The rollback of punitive tariffs including the removal of the Russian oil linked levy and a favorable reciprocal tariff framework, potentially around 18% restores India’s competitiveness versus the peer sourcing nations. Europe in particular represents a major structural opportunity. The EU is the world’s second largest economy and a USD $260 billion annual importer of textiles and apparel, while India’s current Exports are only USD 7 billion, highlighting significant headroom for Wellspring living. This is not a new market. We already have established relationships and an operating presence. The India EU FTA materially improves our competitiveness, strengthens market access and enhances long term demand visibility in a large high value sustainability focused region, creating a multi year growth Runway across home textiles, flooring and advanced textiles.
From a portfolio perspective, the combination of India US India EU and India UK agreements reduces concentration risk and supports a more balanced growth profile. With nearly 40% of a business already outside the US we are well positioned to participate in this next phase of global sourcing normalization. As we move ahead, our strategy remains unchanged. Stay close to customers, exercise cost discipline, invest in innovation and sustainability and emerge stronger. Turning to performance highlights for the quarter. Against this backdrop, Consolidated revenue declined 9.9% year on year while EBITDA margin improved sequentially to 7.7%, expanded 80bps quarter on quarter driven by sustained cost actions.
Despite elevated tariff pressures and adverse mix, our core home textile exports declined 8.9% y on y reflecting the residual impact of tariff related disruptions, cautious retail behaviour and muted discretionary demand in the U.S. our largest market. While recent data indicates a modest broad based improvement in US consumer sentiments in store holiday season sales for home products it declined 3% and overall confidence remains 20% lower than last year’s levels. That said, with India’s tariff competitiveness now improving across product categories, we believe the foundation is firmly in place for a gradual recovery in volumes with India and scale partners like Vespun and well positioned to gain share.
As sourcing normalizes, we continue to expand our presence in higher value categories such as utility, bedding, fashion and pillows underpinned by strong innovation capabilities. Our Jacquard facility further reinforces our leadership and premium Terry towers globally. Our onshore Ohio pillow facility is ramping up well with revenues already 2x, y and y and we remain on track to double pillow business this fiscal year alongside preparations for the Nevada expansion. Christie, our luxury heritage brand, sustained strong momentum in Q3 with 31% Y&Y revenue growth driven by continued UK strength, ongoing Middle east market entry and strengthening US performance performance was further supported by UK repeat customer growth of 64% Y&Y, strong US marketplace performance and rising demand across core and premium bedding.
Our domestic consumer business recorded 185 crores. It grew 4.7% y and y. Our B2C home textile segment delivered 6.4% growth this quarter on the back of strong performance in general trade and modern trade over a festive base last year. Our wellspurn and Spaces brand is well positioned to capture India’s next phase of consumption led growth. In addition, India is expanding religious tourism and pilgrimage infrastructure is creating incremental demand for institutional home textiles, adding a steady growth avenue. Our domestic flooring business continues to perform well, it grew 14% Y&Y driven by housing, hospitality and institutional demand.
Our global flooring business declined 29.2% y and y amid tariff headwinds. However, we see significant potential in soft floorings. Our area rugs delivered a strong double digit growth this quarter and upcoming FTAs are expected to further enhance our competitiveness in global markets. Across product categories, our advanced Excel business declined 20.9% y and y to 104 crores, impacted by softer global demand. With upcoming FTAs, the medium term outlook for this business remains highly promising across all geographies. At wellspun, Living, innovation and sustainability are deeply integrated into how we design products, run operations and build long term competitiveness.
Backed by an IP portfolio of over 48 patents, our innovation led offerings enable premium positioning and agility with innovation accounting for 20% of revenues. Proprietary platforms like Hygrocortn, Gxpillow and Weltrack continue to drive value across categories, reinforcing our leadership in innovation led growth this quarter our sustainability moat received strong external validation. Vespel Living ranks number one globally in textile, apparel and luxury goods category with a score of 90 in 2025 S&P. Global Corporate Sustainability Assessment Together our innovation depth and sustainability leadership create a powerful defensible moat, strengthening customer trust, enabling premiumization and positioning us to emerge stronger as markets normalize.
As we look ahead, India’s expanding FTA network and global sourcing realignments open up a significant multi year growth opportunity. Our focused efforts on cost optimization, faster time to market and operational excellence continues with unwavering rigor placing us in a stronger position with each step. We are ready not just to meet this moment but to rise with it. With that I will now hand over to Manish to take you through the financial performance for the quarter. Over to you Manish.
Manish Bansal — Chief Financial Officer
Thank you Deepali and good evening everyone. I will briefly walk you through our financial performance for Q3FY26. During the quarter we reported consolidated revenue of 2,277 crore down 9.9% year on year reflecting continued pressure on volume amid a challenging external environment. That said, the most important financial takeaway this quarter is resilience of our operating model despite elevated tariffs, mix pressure and muted demand. EBITDA margin expanded sequentially by 80bps 27.7% demonstrating the tangible impact of sustainable cost action operating discipline across the business while margins are lower on a year on year basis. It is important to note that this sequential improvement has been achieved in one of the most challenging operating environments underscoring the structural work done on overhead rationalization, sourcing optimization and plant productivity.
These actions are helping offset tariff led pressure and adverse mix even as we continue to benefit from favorable forex realization. Profit after tax before exceptional item for the quarter is at 21.5 crore. That said, this quarter demonstrate our ability to generate cash even in a drop down cycle through working capital discipline. Our free cash flow improved meaningfully to 395 crores compared to 112 crore in FY25. This reflects tighter working capital discipline across business. As a result, cash conversion cycle improved to 88 days versus last fiscally demonstrating stronger operating control despite the volatile demand environment. Our net Debt stood at 1332 crore in December 25 versus 1570 crore as on 30th September 2025 lower by 238 crore.
We are progressing on cost rationalization, procurement optimization and plant productivity improvements supported by automation and digitalization initiatives. These actions are helping us improve resilience and predict profitability even as external pressures persist, capital allocation remain disciplined. Our CapEx continue to be directed towards productivity enhancement, sustainability initiatives and selective growth opportunities aligned with our long term competitiveness rather than volume led expansion. Capex during this quarter was 139 crores primarily towards efficiency enhancement and our ongoing transmission line projects. Going forward our focus remains on driving cost efficiencies, improving mix, strengthening cash flows and accelerating diversification across market and category.
With this I will now leave the floor open for the question and answers.
Questions and Answers:
operator
Thank you, thank you Very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles again. To register for a question, please press star and then one. Our first question comes from the line of Prerna Junjunwala from Pilara Securities. Please go ahead.
Prerna Jhunjhunwala
Thank you for the opportunity and congratulations on numbers in this difficult time. My first question is to understand the global tariff scenario. Now, the U.S. tariff scenario, what is the current scenario and is the thing about cotton, US cotton being used so you know, tariffs will be zero materialized or how do you see it coming in?
Dipali Goenka
So. Hi Prerna. So first of all, as you know about our US tariffs, we saw the 25% punitive tariff go. 18% should be done in the near future. And when you even talk about now looking at India with the 18%, it will become the most competitive. I know there are conversations about Bangladesh that are coming into fore and let me put that on the table and address that as well here the conversations are the same that are going to be applicable for India as well, which are right now happening and it’s a little ambiguous, but we’ll hear in the next near term.
So definitely for us, with us where we are at 18%, we will also be as competitive as their peers. When you talk about US cotton, the interesting thing is it’s not zero percent because when you talk about towels, 50% is your cotton content, right? And when you talk about sheets, it’s around 30 to 35%. So it is according to that that you look at the kind of, you know, the cotton that is grown in USA getting that benefit and an upside. However, as we go forward, more and more clarity will come in the reciprocal tariff of United States of America.
And as we speak we already know that UK FDA is done last year and we will see that coming in the next two quarters and the Europe FTA being done, which earlier actually the FTAs in these kind of were cost arbitrage, but now we are talking about growth as a kind of opportunity and we’ll see that coming in the next year.
Prerna Jhunjhunwala
Understood, ma’. Am. At 18%. Even if we assume that the cotton thing is not happening at 18%, how will be the sharing of tariffs be between the customers and our going forward and can we assume return to normal margins from Q1 because Q4 is almost half done from Q1 can we assume return to near normal margins for you?
Dipali Goenka
So I’ll tell you one thing, Prerna, one thing, let me be clear. When we talk about these FTAs and 18% and the others, there is a partnership that you have with the retailers. Right. Even in these toughest times, we actually worked on sharing a little burden. Right. So there’ll be that opportunity that will come in and quarter four. Anyway, I’ve already spoken about see February has already gone by. There’s still a lot of conversations. So the year will go by. So quarter four still will be in that kind of a thing. But as we go forward in quarter one, we will see a continuous upside coming in.
And so I just want to make it very clear when these kind of implications happen, there’s a lot of conversations that will happen between the customers because these partnerships are more than over two decades and we are the most competitive. So this will be same applicable to all the countries as well.
Prerna Jhunjhunwala
Okay, so understood. So it will still take some time. For normal margins to kick in. Even in FY27 is how we should.
Dipali Goenka
Look at will gradually pan out in quarter one. And as we go forward, Prena, it takes time because the orders come in. You know how this whole pans out. See we already sitting in February, quarter four is nearly over and the quarter one just pans out. Right. So it’ll take time but yes, it will happen as a gradual upside. Quarter on quarter.
Prerna Jhunjhunwala
Yeah, okay, understood, ma’. Am. Ma’, Am. On domestic business, how the demand scenario now and what kind of uptick we are see in the domestic market.
Dipali Goenka
So you know, with the GST reforms we see a huge opportunity here and for the next year, the next financial year, we’ll definitely see kind of a growth that we are targeting that over 20, 25% and that is something that we have absolutely geared up for our brand spaces and wellspun in India.
Prerna Jhunjhunwala
Understood, Understood. I’ll come back to the question queue ma’ am for further questions. Thank you and all the best.
Dipali Goenka
Thank you, Brenda. Thank you.
Prerna Jhunjhunwala
Thank you.
operator
Thank you. Your next question comes from the line of Shraddha Agarwal from Asian Market Securities. Please go ahead India.
Shraddha Agarwal
Hi, congratulations to the team on a good quarter. Deepali, two questions. First is now that India has signed, I mean tariff is 18% plus you signed FTA with UK and EU. So how should we look at our CAPEX plans going ahead which we had stalled for the time being given there was so much uncertainty.
Dipali Goenka
So hi Shraddha, the thing is that you know, we already have invested in towels if you know about a Jacquard facility and you know we already working on a fashion, fashion bedding and also the pillows. So I think it’s completely geared up in terms of capacity utilization. So the focus, the focus this time is going to be to sweat our assets because the opportunity is humongous because not only with just 18% on India, on the tariff in US with the UK, Europe, now Japan, Australia, the row Japan. The other opportunities that we see here are going to open up more doors for all the categories that we do.
That is our bath, bedding, flooring and advanced textile as well.
Shraddha Agarwal
That said, I was more talking about the 700 crore capex that we had outlined earlier. The phase two which was to be split between 26 and 27 in terms of capacity into spinning and bath and bed all coming through. So I’m talking about that capex plan. Where do we stand on that now?
Manish Bansal
So hi Shaddam Anish here. So yes we are on track on our capex whatever which was agreed. But we are not planning additional capacity for taking care of any future business. That whatever planned capacity or capex we have done it will be enough to take care of future demand. And maybe after two years we will review how it looks like with the.
Dipali Goenka
Kind of capacity that we have for Jacquards and you know, we have become one of the largest capacities in the world for towels.
Shraddha Agarwal
Right. So we are on track to do that spinning capacity expansion of 40 tons per day as well as 3,600 tons per annum capacity on the Terry side.
Dipali Goenka
That’s pretty on track. That’s already on track and already started. Yeah.
Shraddha Agarwal
Okay. And secondly on the flooring business, ma’, am, I mean we have been facing some pressure on that portfolio for some time now and in between there was a decision that we might look to, you know, rationalize our hard flooring subsegment. So any decision that has been taken or how should we look at the flooring portfolio going ahead?
Dipali Goenka
Shraddha, let me tell you, I haven’t been more positive about this business than ever. I can tell you that. Really very categorically with the kind of opportunity that we are seeing now with Europe, UK and rest of the world, our soft flooring business has a massive uptake and we will see that gradually pan out. And you know, with a year or two here, there, our top line will also come through and our margins will also get, you know, will turn around. And this is something which we are seeing coming in the very near future as well.
Shraddha Agarwal
Right, so we continue with both the sections in flooring, both the sub segments, hard flooring and soft flooring.
Dipali Goenka
So we will be basically the thrust will be more on the soft flooring and hard flooring will pan out gradually.
Shraddha Agarwal
Yeah, right, sure. This is helpful. Thank you, thank you.
operator
Thank you. Your next question comes from the line of Bhavin Cheddar from Enam Holdings. Please go ahead.
Bhavin Chheda
Yeah, congrats to the entire team. Really good results in environment we are in. Just to carry on the question of the flooring first if you can update because after the tariff there had been US business got impacted in flooring. So what was the tariff for India on flooring versus competition where we lost market share and after the current trade, what is the tariff scenario of flooring? And ma’, am, you spoke about the opportunity in Europe also for flooring. So how does the competitive positioning in the flooring space change post recent tariff announcement? If you can update more on that.
Dipali Goenka
Yeah, yes, sure. So now when you, when you talk about flooring, we are competing with China, we are competing with Vietnam, we are competing with Turkey and Egypt. So if you’re talking about these countries, they were very, very competitive. And now with this opportunity that we have, we definitely have an upside. And so that actually gives us an opportunity not only in US but in UK and EU also there’s an opportunity. The other interesting thing, and you must be knowing it absolutely, that GCC again is on track for having the FTA there too. So that is very interesting.
Australia, we already have an opportunity. Australia and New Zealand. So these are other countries that we will see an upside coming in and the focus is we’ll see a massive upside on soft flooring, which is the bigger part of the flooring portfolio.
Bhavin Chheda
Secondly, on the advanced textile utilization has seen a fall as compared to even quarter two. So any specific reason where the demand slowdown happened?
Dipali Goenka
So the demand slowdown definitely happened. See now with this kind of tariff implication that we had, we had become completely unviable for countries like United States of America, even for Europe and other, other countries as well. Having said that, now we see an opportunity opening up again and these opportunities will not only come in for spunlifts, which is just commodity, but needlepunch where we created innovative products and also in wet wipes and the other dry wipes and the other categories that we are working on. So there again is an opportunity to grow this category by 20% and with strong double digit margin as well, nearing 20.
Bhavin Chheda
The last one on how much was the US cotton in your overall cotton mix in the quarter and nine months?
Dipali Goenka
So this actually started post the third quarter. In the second quarter we started seeing a US Cotton in the second quarter. And it actually depends on the programs and the program mix that we do, honestly. So and specifically basically in a bath category, we have seen that coming in as an upswing and mainly also in the second and then in the third quarter.
Bhavin Chheda
Please share the percentage number. How much? Maybe 20, 30% that.
Dipali Goenka
I just cannot share that actually. Yeah, okay, no problem, no problem.
Bhavin Chheda
Thanks a lot.
Dipali Goenka
Thank you.
operator
Thank you. Your next question comes from the line of Sunny Vishe from Access Securities. Please go ahead.
Sunny Visha
Thanks for taking my question. I just want to understand, depending on the last call that we had and the guidance that you had given, we were expecting the trend or the rather the decline to be similar to earlier quarter. But as a matter of fact it has come, it has been not that bad. So I just want to understand what went better than expectation because I think we were expecting a double digit declining in revenues. So what went well or better than expected and does that mean that we may do even better in Q4? So I think the tariff impact is not there.
I mean the positive impact of tariff is not there till we are able to recoup some growth. So I just want to understand what changes now.
Manish Bansal
Hi, Sunee Manish here. So thank you for your question. So yes, you’re right, you know it is the results are better than expectation and there are a couple of reasons for this. And you know, as during last call we have mentioned very categorically that we are going to work on various field in terms of managing our cost cost optimization, improve our plan efficiencies, etc. And that has actually given us some results in terms of performance results and we are able to, you know, absorb the cost or hit of the tariff in these activities. And there are, you know, some forex gain also there and that has actually helped us to mitigate some of other tariff impacts.
So that’s the reason we actually able to deliver better numbers.
Sunny Visha
Okay. So even on the revenue growth terms I think we are doing better than expected. Especially I think domestic business has started showing signs of good sustainable growth. So do you think that we can expect further traction in domestic and overall revenue growth? Where do you expect to end for the full year now?
Manish Bansal
So yes, you’re right. We are expecting growth in domestic business and that is a continuous focus area for us and we will continue to do that and probably we will be able to share the updates in some time.
Sunny Visha
Okay, great. I’ll wait for that. And congratulations on your great. Thank you.
operator
Thank you. The next question comes from the line of Ashutosh Somani, please go ahead.
Ashutosh Somani
Yeah, thanks for taking my question. Deepali. While you have stated that a lot of clarity is yet to emerge on how the US cotton benefits will flow through for Bangladesh. Just want to understand some two parts of this equation. One is what does the US cotton usage do to the unit economics of our product? Okay. And secondly, how high can the usage be in percentage terms in a product category? What is the highest number you can think of? The context of this question is that the number doing the rounds for Bangladesh is 70%. So 70% usage of cotton, US cotton in a product makes them eligible for zero tariff. So in that context, just wanted to understand two things from you. One is, is it even viable to have unit economics in your favor after using 70% US cotton sitting in Bangladesh or India? And the second is can we actually go as high as 70% in any of the product categories?
Dipali Goenka
So go ahead Ashutosh. Sorry, no thanks.
Ashutosh Somani
I said you can continue.
Dipali Goenka
Yeah, so first of all let me tell you like for our towels, we know that it can’t go beyond 50% in sheets, it can’t go beyond 30 to 35%. Similarly it’s applicable to all the categories. So maybe apparel could be maybe 10% here and there more that is the unit economics that we can talk about. However, even in the elements that you know about Bangladesh deal, let me also clarify. There’s going to be a quota about the goods that are going to be exported out of this cotton because Bangladesh doesn’t grow any cotton. They anyway import cotton.
Right. So they’ll be importing more U.S. cotton. But that is going to be again having a quota. Then the other, the rest of it will have that 19% and similar deal is what the government has been talking here for India as well. So that also I just want to table so people can say 70 to 80%. As I know very well right now for my products, this is where the cotton consumption remains.
Ashutosh Somani
Sure Deepali, this is very helpful. The other question is are we from the outside it looks like it’s a great time to be in textiles. With the addressable market size increasing manifold from a three, five year perspective, UK FTA will be ratified at some point in time. EU FTA maybe after six, eight months of UK and then you have the, you know, these issues with US has been resolved and new markets Oceania Middle East. So are we like now Comfortable from a five year perspective to report high double digit revenue growth getting here in India.
Dipali Goenka
So while this all looks very good and we are actually geared up to do what it takes to achieve the numbers of growth and even margins. But Ashutosh, it will all now be, if I look at it, US will happen next year, only UK will happen the next couple of quarters. We will definitely see that upside happening. But there would be other elements that we should be even looking at in terms of this dynamic environment. But Ashutosh, just to give you a perspective, we are feeling very positive about the kind of upswing we’ll have in this business.
Ashutosh Somani
Very helpful, Deepani. Thank you.
Dipali Goenka
Thank you, Ashutosh. Thank you.
operator
Thank you. Your next question comes from the line of Aradna Jain from BNK Securities. Please go ahead.
Aradhana Jain
Hi. Thank you for the opportunity. Wanted to understand given that now the US market seems more favorable to us. So from EU perspective, what are the growth drivers that we feel that EU can bring to us? Because the reason I’m asking is that if I consider the FTA before that the, the tariffs were, the rate was around 9, 10%. Right. So the incremental benefit that we get, and please correct me if I’m wrong, is from the aspect of that 90% going away. But my understanding is that from home textile perspective, US is much larger market and for us that remains.
So from EU perspective, what exactly now change beside the rate changing? So is the market more favorable for home textiles, like from a macro perspective? Wanted to get your thoughts on the home textile space in the EU market and how are we going to tackle it? Is there going to be a different strategy for the EU market and what kind of growth can we expect from that market? Not maybe in the near term, but over a period of time? Yeah, that’s my. Thank you.
Dipali Goenka
Thank you. That’s a very interesting question and very, very valid as well. So, so as I spoke in my opening remarks that EU is the world’s second largest economy and it is at around USD. It imports around 260 plus billion dollars of textile and apparel and India’s only current export is $7 billion. So the important aspect is that the other countries, like you can imagine, Pakistan, Bangladesh, have kind of an upside on this. While as wellspun, we already are present in 27 countries and across all the categories, this will give us a mega, mega boost in the terms of being competitive with the countries like this.
The important thing you spoke about being the largest market, the US of course is the largest market, Europe being the second largest. It is a fragmented market. But having said that, the opportunities are definitely huge. And for us, there are certain retailers we’ve seen that were doing very well. And these were all mass retailers who have a span of around 2,000 stores and they’re opening a store every day. And the opportunity here, even with our Disney presence that we have, we have not only penetrated in the West Europe, but also in the East Europe. So with us, the base is set along with is not just the retail presence.
We also have a hospitality presence now in UK and Europe. And this is going to continue to grow for us at Wellspun too.
Aradhana Jain
And in terms of growth, how much growth do we expect this new market to. Not new market, but the EU market to bring to us within the next two to three years time?
Dipali Goenka
So let me tell you, in our portfolio right now, America used to be around 70%. Now it is around 65%. Our portfolio will grow as a pie. Where we are right now at 40% with Europe and rest of the world. This will again increase another 10% of the pie. So we want to continue to grow this market. This is what I can say as of now, today.
Aradhana Jain
Understood. My second question is on the FTA with Bangladesh now there are lot of apprehensions, talks around whether the reduction in the rate that has happened in Bangladesh from 20 to 19, while it is obviously favorable for them, but the additional clause of, you know, the clause that they might be also eligible for 0% for selective cases. Do you, from your perspective, do you really think that’s going to be a value add for them, given that there are talks that if you import from us, your logistic costs and a lot of other working capital requirement increases.
So from that perspective, how. How do you look at this deal that has come through from a zero percent tariff? Because you also said that we are, we could also be eligible for that, right? Yeah. So, yeah. So if we, if tomorrow we are eligible, will it really help us to, you know, get to that 0%? And from cost perspective, is it viable or not? What I want to.
Dipali Goenka
First of all, first of all, let me clarify one thing on this deal that is happening with Bangladesh and it’s still going on as a conversation where the quotas are there. So there’ll be a certain quota that will be on on the country and then the rest will be on 19%. And similar thing has been work out, worked out for India that is continuing. There’s a conversation happening there too. So we will have to see how this pans out for Bangladesh getting in US Cotton to make Bangladesh doesn’t grow any cotton anyway. It was importing from India, now they’ll import it from United States of America.
So anyway, that was one thing that they were already doing. So that was the cost they were anyway incurring. But it is also the quota that is going to be a very interesting opportunity where they are looking at. But the rest will be at 19% only. Now if you look at Bangladesh, it is better upside for apparel and I mean their inflations have also caught on with them as a country. So we’ll see how this pans out going forward. But let me be very. And I think we should be confident as a country where with this 18% we are far more competitive not only in the terms of the tariff but in the terms of being a stable democracy with cotton having that next door but a strong infrastructure and a backend with MSMEs as well.
So I think as a country, India, we should be very confident about this opportunity that we have.
Aradhana Jain
And in terms of raw materials, how much percentage of our raw materials would be cotton and the rest of say MMF fiber For us see mostly for.
Dipali Goenka
Our home textiles it is 100% cotton. And for our flooring that’s where we have the man made fiber. So that it just is that much. And along with advanced textile where you have others like Viscose as well. So that actually makes around in a portfolio around 10 to 15% of inputs of MSME.
Aradhana Jain
And is it fair to assume that most of the cotton we are procuring from India itself?
Dipali Goenka
So 70% of our cotton comes in from India and the rest comes in from the different parts of the world.
Aradhana Jain
Yeah, understood. Thank you so much and all the best.
Dipali Goenka
Thank you, Rajan. Thank you.
operator
Thank you. The next follow up question comes from the line of Prerna Junjunwala from Elara Securities. Please go ahead.
Prerna Jhunjhunwala
Hi, thank you for the opportunity again for uk. Since the FTE is nearby, have we started conversations with our UK clients for enhancing orders? How are things moving on the UK side?
Dipali Goenka
So Prerna, if I may say here that we have already been present in all these countries and with all the major retailers and now the opportunity is to scale that up. We already our presence is there, our offices are there. We also have our warehousing in uk. Our teams are sitting there actually seeding the market on a regular basis. Now it is only going to scale up. The opportunities here is like how we have in United States of America. Now here we are going to do, you know, there is an opportunity to do business plans together.
Look at kind of an opportunity growth here Prerna. So that’s going to be another next level where we go to take it.
Prerna Jhunjhunwala
Okay So I mean what is the kind of market in the UK in terms of price points that we’re seeing and the order sizes that we are seeing? It’s going to be materially different than what is us right now. Right. So just trying to get some understanding on how we can see the scale up in UK as Europe is still far.
Dipali Goenka
I’ll tell you one thing, UK will have an opportunity in the terms of quality more than quantity and like there are certain retailers like John Lewis and the others where you will have far more premium luxury products and the others others will be the opportunity in the terms of yes value and there also it is pretty substantial in the terms of a towel category. The other opportunity that we have is in the terms of bedding and sheets where because we couldn’t compete with these countries like Pakistan, that will also open a door for us because we’ll be competitive there too.
Prenup.
Prerna Jhunjhunwala
Okay. Okay, understood ma’. Am. Thank you and all the best.
Dipali Goenka
Thank you. Thank you.
operator
Thank you. A reminder to all the participants, if you wish to register for a question, please press star and then one. Our next question comes from the line of Ritesh Gandhi from Discover Capital. Please go ahead.
Ritesh Gandhi
Hi ma’, am, just had a question with regards to again on this UFTA just wanted to understand how large is the EU market compared to the US market. Sheets and towers. What is our market share in the eu? And effectively speaking is is the primary reason why our existing market share is low because of the duties keeping a higher and so is that the actual opportunity? Just want to understand the scale of it, you know.
Dipali Goenka
No, as I said earlier that us, you know like if I talk about Europe which is the second, you know we have, you know I said it in the opening remarks Ritesh, that $260 billion the import of textile and apparel and now that becomes India’s opportunity because India was just doing $7 billion of business with Europe and EU. So this is a huge opportunity though Delta is huge. So that actually helps us to compete and sets that platform for us to the stage is now set to scale that up.
Ritesh Gandhi
Got it. And the other question I had for you was with regards to, you know, you indicated that it would take take a few quarters. I understand that obviously the Q4 is almost over but with regards to, I mean wouldn’t it be almost instant where Q1 onwards. I mean support which we would have been providing for 25% or oil status would go away and therefore the growth revenues in the margin should again be on the previous trajectory.
Dipali Goenka
Yeah. I’ll tell you one thing, the thing is it takes time to scale up now, right. Because with the 50% tariff there’s a lot of supply chain, the whole system. Right. There’s a lot of and that’s what it will take for us to scale up for the retailers as well. So now from quarter four, that’s the reason I said it’s going to be a scale up from here and it is definitely a gradual process because the supply chain in textiles is a longer one comparatively.
Ritesh Gandhi
And just to understand are the inventory levels at the retailer level at the moment reasonably low given I would assume that ordering would have been slower given that the tariffs which are there and hope of a resolution or is that not the case?
Dipali Goenka
So the I’ll tell you one thing, a lot of it has been taken care of because it has been December has been quarter three of ours is their end of year right. Financial already they have taken care of their the books are closed. So now January onwards starts their new year. So that’s where they have all their reconciliations done and they move forward.
Ritesh Gandhi
No, but I’m asking, I are the overall, I mean levels at the retailer end reasonably low and thin and therefore there’d be some amount of restocking opportunity as well or that’s not, that’s not the case.
Dipali Goenka
So that actually is having that that needs to be seen because retailers like who are clubs and mass retailers, the inventories would have got over because they already have passed the Black Friday and the sales, the sales have happened though it was relatively lower but I think they would have been there in the terms of, you know, reducing the inventories by 60 to 70%. The rest is in there which is on a roll anyway. Ritesh.
operator
Right. And lastly, sorry to interrupt. Thank you so much. Our next question comes from the line of Vishal Mehta from IIFL Capital. Please go ahead.
Vishal Mehta
Yeah, thanks for taking my question and congratulations on a resilient performance I would say. So my first question is I just wanted to understand the tariff related impact, you know, in this quarter. While you know, it’s difficult to probably quantify on the volume loss but if you could quantify, you know, a discount related impact that you’ve had in this quarter and does it impact, you know, both revenues or you just probably take that hit in the cost and you know it’s seen only in margin. So just a clarification there would be helpful.
Dipali Goenka
So you Cannot quantify this. First of all, let me just put that to you. The important thing is revenue and margins are related because imagine when you are increasing, most of the retailers increase the retail prices, right. And as a result you would see a kind of inflation setting in. You will see that kind of an impact in the terms of buying. So, so that actually becomes kind of a setback that you would have seen. And yes, the impact has been there, but quantifying it is a little difficult because everything is in your pipeline, it’s on the roll, in the terms of your goods in transit, to the kind of dispatches and to the other things as well.
But yes, it has been a massive impact as well. I just want to say that.
Vishal Mehta
No, ma’, am, just the discounting related impact, even that is difficult to quantify. As in the discounts that you’ve given.
Dipali Goenka
To customers, it is 25 plus 25. Right. So we were definitely most uncompetitive compared to all the countries. Right. So because of our strategic partnerships, we could see how we could work together through these challenging times. So we like in the terms of the oil tariffs, how could we take that burden and the reciprocal, how could we, they could work through. So that’s the way we move that forward.
Vishal Mehta
Okay, fair. The next question probably was, you know, on your home textile branded piece, you know, I see in your presentation that the business has broadly, you know, stayed flat or a minor decline. But in your comments you mentioned that Christie grew Well, you know, 30 odd percent plus growth that you’ve seen in Christie brand. So does this imply your other brand brands kind of declined and you know, what led to that and what’s the outlook on your other brands? If you could probably give some sense around that?
Dipali Goenka
Absolutely. Vishal, now let me give you a perspective here. So when we spoke about when you saw your brand sales there, you see even a licensed brand sales, right. So that’s where you saw kind of a decline. But when I see about our own brands, that is Christie Spaces and Wellspun, we have seen an uptake. So Christie has had a massive uptake of around 30, 31%. Even our domestic businesses and spaces in Westburn have seen an upside which will continue to grow.
Vishal Mehta
Okay, okay, fair. And lastly on Advanced textiles, Ma’, am, last question. You know, in Advanced Textile we have another peer in the industry, you know, who’s probably growing his advanced textile business well and has not seen kind of a tariff pressure. But we’ve continued to see pressure in this segment. But going forward more. So are we looking to add More products in this segment. How are we seeing this particular segment of ours going forward?
Dipali Goenka
Let me first clarify a few things. When you talk about advanced textile, there’s a very different kind of. There’s building materials that come in which will not get impacted for us. There are materials where we are doing our spunless, which is commodity. The others are your wet wipes, needle punch, where we are making far more innovative products. So we were not competitive compared to the countries where it was imported from, whether it was Europe, UK and primarily United States of America, I would say. But now with the opening up of all the FTAs, this becomes a huge opportunity for us, even in USA in the terms of wet wise, with the major retailers that we’re talking to, or even in UK and Europe in the terms of innovative products that we’re working with, or rest of the world as well.
So let me just put that in. It’s a huge opportunity for us in the advanced textiles where we will see that growth of double digit and also very strong margins as well.
Vishal Mehta
Sure. Thank you. Thanks. All the best.
Dipali Goenka
Thank you. Thank you so much.
operator
Thank you. Your next question comes from the line of Rohit Ohri from Progressive Shares. Please go ahead.
Rohit Ohri
Hi Deepali. Two questions from my side. First one being when you mentioned that our procurement for cotton has a split of 70, 30. My question is that what percentage is imported from us? May it be Supima Pima or maybe Egyptian cotton? What is the percentage that we take from us?
Dipali Goenka
See, Egyptian comes in from Egypt and the upland cotton or cotton grown in USA comes in from United States of America. And as I said that 60 to 70, 70% comes in from India because India is the primary grower of cotton. 30% is the cotton which will have that strong mix of US cotton and also the Egyptian cotton and other cottons as well, and organic and Australian too.
Rohit Ohri
Okay. Okay. My second question, in terms of the traditional sales mix which we had, which was 60%, maybe America, 40 UK and if we split it further, it becomes 20 UK and then Europe is having 13%. Sorry. And the rest of the world also has. And with the focus coming on Anz and Japan, do you think that the mix or the pie will shift? Because in one of the interviews also at Davos, you also did mention about artificial intelligence, which could be applied for fetching better productivity gains or maybe reducing the inventory levels or improving the workforce.
So do you think that the pie will shift or it will remain more or less the same?
Dipali Goenka
So I’ll tell you one thing, pie will grow Rohit the pie is definitely going to grow. So right now we will see that opportunity upswing coming in. The pie is definitely going to grow in the terms of share of the country. Earlier it was primarily see we had a disadvantage of the UK Europe impact in the terms of duty free element. But now that has opened up and other FTAs are opening up now. You know, the Chile coming in, the Peru coming in, the Canada coming in, you know, GCC opening up, Australia, New Zealand has already happened.
Japan is again a very interesting country where we will see again an upside. So this pie will grow. So you can automatically see that across all the categories that we do is where you will see an opportunity. And when you talk about AI and the workforce, you already know that excel is a very labor intensive industry. Right? To get efficiency, to get productivity, AI will be a very interesting element that we are actually exploring and continue to implement in smaller way and continue to grow that because it’s going to be a very big element going forward to keep us competitive here.
Rohit Ohri
Any number you’d like to put in terms of the spends that you made probably towards the industry, 4.0 and AI.
Dipali Goenka
Going forward, the investments will happen as we go forward and these actually become a part of the OPEX cost, you know, so we’ll continue to grow here and we have to get competitive guys. I mean I’m very clear about it. This is something our throughput, our cost, everything will have to get competitive going forward.
Rohit Ohri
Okay, makes sense. Deepali, thank you for answering my question. Thanks a lot.
Dipali Goenka
Thank you.
operator
Thank you ladies and gentlemen. We will take that as a last question for today. I would now like to hand the conference over to the management for closing comments.
Dipali Goenka
Thank you. As we close quarter 3 FY26, the external environment is beginning to turn more constructive. The recent trade agreements meaningfully enhance our export competitiveness in our core and emerging product portfolio across all global markets. At the same time, India becomes a very important opportunity for our domestic brands supported by improving affordability and speed steady consumer demand. The investments we have made over the past few years in capacity, capabilities and brands position us well to capitalize on emerging opportunities. Thank you for your continued trust and support. We look forward to engaging with you again next quarter.
operator
Thank you on behalf of GM Financial. That concludes this conference. Thank you for joining us and you may now disconnect your lines.