Gokaldas Exports shares fell nearly 4.92% in Monday's trading session following the company's announcement of a 71% year-on-year decline in profit after tax (PAT) for Q3FY26. According to reports from The Hindu BusinessLine, the sharp decline was primarily attributed to significant impact from US tariffs during the quarter.
Vice-Chairman and Managing Director Sivaramakrishnan Ganapati addressed investors after the results, explaining that the company's performance was significantly impacted by steep US tariffs. As reported by The Hindu BusinessLine, the company estimated an impact of around ₹40 crore during the quarter, with US-based brands increasingly hesitant to build inventory at higher tariff levels and factoring in weaker consumer demand for 2026.
While US operations faced challenges, the company noted contrasting performance in other regions. According to The Hindu BusinessLine, imports from the EU and the UK recorded higher growth in the January–November 2025 period compared to the same period last year. However, the company's Africa operations were impacted in Q3 by the expiry of the African Growth and Opportunity Act (AGOA), which led to a dip in orders and revenues from the region. The Africa business reported subdued performance during the quarter due to supply-chain disruptions and lower capacity utilisation, which impacted volumes.
Looking ahead, Ganapati provided cautious optimism about the company's prospects. As reported by The Hindu BusinessLine, the company expects margin improvement in its Africa business from Q4 onwards, supported by a stronger order book and higher reciprocal tariffs of up to 20% on Asian countries compared to 10% on African exports. The company's India business (standalone) reported high single digit revenue growth of 7% YoY, highlighting robust customer relationships amidst the higher US tariffs environment. Management highlighted that the order book remains robust for the India business in Q4FY26 followed by Q1 and Q2FY27, signalling gradual recovery in revenues.
Regarding Bangladesh operations, Ganapati indicated the company continues to utilize subcontracting relationships while maintaining a wait-and-watch approach. According to The Hindu BusinessLine, any direct investment in Bangladesh would be considered only after greater clarity emerges on the macroeconomic situation, with an election expected in February that will influence future decisions. The company has an average target price of ₹1,065 from 3 brokers, with ICICI Direct maintaining a target of ₹930.
