Welspun Living Ltd Gains 0.61%: Technical Momentum and Earnings Pressure Shape Week

Feb 9: Strong Start with 3.38% Gain on Elevated Volume

Welspun Living Ltd began the week on a positive note, closing at Rs.145.10, up Rs.4.75 or 3.38% from the previous Friday’s close of Rs.140.35. This gain was supported by a robust trading volume of 423,543 shares, signalling renewed investor interest. The broader market also advanced, with the Sensex rising 1.04% to 37,113.23, but Welspun Living outperformed the benchmark by over two percentage points. The strong opening set an optimistic tone ahead of the company’s quarterly results.

Feb 10: Sharp 5.72% Decline Following Profit Warning

The momentum reversed sharply on 10 February as the stock plunged 5.72% to Rs.136.80, the week’s low, on increased volume of 448,046 shares. This decline coincided with the market digesting the company’s Q3 FY26 earnings announcement, which revealed a near-total collapse in profitability. The Sensex, however, continued to inch higher by 0.25%, highlighting the stock-specific nature of the sell-off. The steep drop reflected investor concerns over the company’s deteriorating margins and earnings outlook.

Feb 11-12: Recovery Attempts Amidst Profit Plunge Disclosure

On 11 February, Welspun Living rebounded by 2.41% to Rs.140.10 on lighter volume of 165,055 shares, as investors cautiously absorbed the impact of the earnings report. The Sensex gained a modest 0.13% that day. The following day, 12 February, the stock advanced further by 1.86% to Rs.142.70 on volume of 396,992 shares, despite the Sensex retreating 0.56%. This resilience came after the company disclosed a staggering 99.83% plunge in quarterly profit, with Profit Before Tax excluding other income falling 80.5% to Rs.18.99 crores and net profit plunging 95.9% to Rs.3.58 crores compared to the previous four-quarter average. The results underscored mounting margin pressures and structural challenges in the garments and apparels sector.

Feb 13: Technical Upgrade Spurs 1.05% Correction and Bullish Momentum

On the final trading day of the week, Welspun Living’s stock closed at Rs.141.20, down 1.05% from the prior close, on volume of 306,516 shares. Despite the slight dip, the day was marked by a significant upgrade in the company’s technical outlook. MarketsMOJO raised the rating from Sell to Hold, citing improved technical indicators such as bullish daily moving averages, weekly MACD, and On-Balance Volume trends. The Mojo Score rose to 54.0, reflecting a more balanced risk-reward profile despite ongoing financial headwinds. The stock’s technical momentum shifted from mildly bullish to bullish, supported by strong monthly gains and positive volume-price confirmation, signalling potential near-term stability.

Key Takeaways: Balancing Financial Struggles with Technical Strength

Welspun Living Ltd’s week was characterised by a sharp contrast between disappointing financial results and improving technical momentum. The near-total collapse in Q3 profits highlights significant margin pressures and structural challenges within the garments and apparels sector, signalling caution for investors focused on fundamentals. Operating profit growth remains negative, and return on capital employed is modest, underscoring ongoing efficiency issues.

Conversely, the stock’s price action and technical indicators suggest a stabilising trend. The upgrade to a Hold rating by MarketsMOJO, driven by bullish daily moving averages, weekly MACD, and On-Balance Volume, reflects a more balanced outlook. The stock’s outperformance relative to the Sensex over the week (+0.61% vs -0.54%) and over longer timeframes further supports this view. Institutional investor interest has also increased, adding a layer of confidence despite the earnings challenges.

Investors should weigh these mixed signals carefully. While the technical momentum offers near-term support, the persistent earnings decline and sector headwinds warrant vigilance. The stock’s valuation remains fair, trading at a discount to peers, which may provide some downside protection.

Conclusion: A Week of Mixed Signals with Technical Momentum Gaining Ground

Welspun Living Ltd’s performance during the week ending 13 February 2026 encapsulates the challenges and opportunities facing the company. The severe profit decline reported in Q3 FY26 underscores ongoing operational difficulties and margin pressures, which remain a concern for fundamental investors. However, the stock’s ability to outperform the Sensex and the upgrade to a Hold rating based on improved technical indicators suggest that the market is beginning to price in a potential stabilisation.

The shift to bullish technical momentum, supported by daily moving averages, weekly MACD, and volume trends, provides a foundation for cautious optimism in the near term. Yet, some monthly indicators remain mixed, advising prudence for longer-term investors. The company’s fair valuation and rising institutional interest add further nuance to the outlook.

Overall, Welspun Living Ltd’s week reflects a transitional phase where technical strength is emerging despite persistent financial headwinds. Investors should monitor upcoming earnings updates and sector developments closely to assess whether this momentum can be sustained.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →