Gokaldas Exports has demonstrated operational resilience in Q3, FY26, reporting a consolidated total income of Rs 998 crore. While the top line remained steady Y-o-Y, the quarter represented a critical test as the company absorbed the first full impact of the 50 per cent reciprocal US tariffs imposed in late 2025. Despite this significant headwind, the firm’s domestic India operations outperformed the broader market, delivering an 8 per cent revenue growth even as national apparel exports remained largely stagnant. This domestic strength helped offset a 26 per cent decline in consolidated EBITDA, which settled at Rs 96 crore with a narrowed margin of 9.7 per cent.
Managing Africa disruptions and trade renewals
The company’s African business faced a volatile quarter characterized by supply-chain delays and persistent uncertainty surrounding the African Growth and Opportunity Act (AGOA). However, management highlighted a sequential recovery in the region, with a robust order pipeline linked to the potential renewal of AGOA trade preferences. Our productivity gains and diligent cost management have been instrumental in absorbing the US tariff rebates, noted Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director. The strategic focus is now shifting toward the newly ratified India-EU Free Trade Agreement, which provides a hedge against US market volatility and is expected to drive EU revenue share from 16 per cent to 20 per cent within the next year.
Capitalizing on budgetary support and amalgamations
To strengthen its vertical integration, Gokaldas has approved an amalgamation scheme with BRFL Textiles (BTPL), aiming to enhance fabric processing capabilities. This move aligns with the Union Budget 2026–27, which introduced customs duty cuts on critical inputs and capital support for machinery modernization. These fiscal measures are designed to reduce working-capital stress and support the industry’s transition into high-value, sustainable apparel. With a current market capitalization of approximately Rs 40.33 billion and a strong order book, Gokaldas is positioning its diversified manufacturing base across India and Kenya to capture emerging opportunities in non-US markets.
Global apparel manufacturing leadership
Gokaldas Exports is a premier Indian garment producer, operating over 30 units with an annual capacity of 87 million pieces. Serving 50+ countries, it specializes in high-fashion outerwear and activewear. The firm is currently expanding its African footprint and integrating fabric processing to achieve a $100 billion sectoral export vision.
