Gokaldas Exports grows income despite tariffs, targets market diversification

Gokaldas Exports Limited achieved a total income of INR1,003 crores in Q2 FY'26, a 7% increase from the previous year. India operations saw robust 14% year-on-year growth, outperforming a 2% decline in Indian apparel exports, driven by organic growth and expanded capacities. Africa operations, however, declined 24% year-on-year due to lower volumes and uncertainty around the AGOA rollover, which expired on September 30, 2025. The company's EBITDA remained flat at INR84 crores, impacted by tariffs, though cost controls and productivity gains provided some offset.

The company estimates the tariff impact on India business for Q2 FY'26 to be between INR12 crores to INR15 crores. They anticipate that if the U.S. penal tariff of 50% persists through Q3, the impact could be higher. Gokaldas Exports is actively negotiating tariff burden sharing with customers, bearing up to 15% in some cases, with the rest absorbed by brands and the supply chain. The company aims to reduce its dependence on the U.S. market, targeting a shift from 70% to under 60% of its business, anticipating growth from U.K. and Europe.

Capex for H1 FY'26 stood at INR110 crores, with INR75 crores allocated for new capacity additions in Bhopal, Bangalore, and Jharkhand, and INR20 crores for Kenya. The company projects an additional INR40 crores capex for H2 FY'26. New facilities are in a ramp-up phase, expected to take about a year to reach full production capacity.