Gokaldas Exports Ltd. reported a consolidated net profit of ₹15 crore for Q3FY26, marking an 81% sequential jump from ₹8 crore in Q2FY26, as reported by The Economic Times. However, on a year-on-year basis, the company's profit declined 71% from ₹50 crore in Q3FY25, largely due to the impact of a 50% US tariff imposed last year. The company's consolidated total income for the quarter stood at ₹998 crore, largely flat compared with ₹1,001 crore reported in the corresponding quarter last year. Sequentially, income declined marginally by 1% from ₹1,003 crore in Q2FY26, according to The Economic Times.
The company's EBITDA came in at ₹96 crore in Q3FY26, down 18% year-on-year, while EBITDA margins compressed to 9.7% from 11.7% a year ago. However, on a quarter-on-quarter basis, EBITDA rose 15% with margins expanding by 133 basis points, aided by productivity improvements and cost management initiatives. As reported by The Economic Times, management attributed the muted growth and margin pressure to the expected impact of US tariffs. Despite the overall challenges, India operations delivered 8% year-on-year growth, even as apparel exports from India remained flat. The company cited a stronger order book from Africa, which is improving the overall outlook for future quarters.
Speaking to The Economic Times, Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, noted that "Our India operation delivered a growth of 8% YoY, even after absorbing the first full impact of US tariffs in this quarter, whereas apparel export from India remained flat." The signing of the India-EU FTA is viewed as a positive development for the Indian textile and apparel sector. According to the management, capex plans for the EU will be stepped up once the deal fructifies in 2027, with exports to the region expected to rise to 19-20% of revenue within a year. The management also reiterated that the US and EU remain key markets for Indian textile exporters.
Gokaldas Exports shares ended 2.23% higher on Friday at ₹554.05, as reported by CNBC TV18. However, the stock has tumbled over 24% so far in 2026, reflecting investor concerns about the challenging operating environment. Despite facing headwinds on EBITDA margins, the company expects overall margins to remain in the high single-digit range. While there is no impact on the order book so far, the company continues to navigate the challenging tariff environment affecting the textile sector. The sequential profit rebound underscores early signs of recovery as productivity gains, cost controls, stable revenue, and improving margins supported quarter-on-quarter performance across India and Africa outlook.
