Textile stocks experienced significant gains, with a Bloomberg-compiled equal-weight gauge of eight textile exporters climbing more than 30% this year, compared to an 8% decline in the benchmark NSE Nifty 50 Index. According to The Economic Times, the proposed UK and EU free trade agreements (FTAs) are expected to improve the competitiveness of Indian textile exports, driving investor optimism. SP Apparels (SPAL) and Arvind rallying up to 13% and hitting respective 52-week highs on the BSE, while Indo Count Industries gained 5% to ₹445.90, also hitting a fresh 52-week high. The BSE Sensex remained relatively flat at 0.05% gain at 76,763 during the same period.
SPAL surged 60% this year, with the stock price zooming 49% in the past 11 trading days since June 12. As reported by Business Standard, the garments and apparels company serves as the preferred vendor for knitted garments for infants and children to reputed international brands. The company's current order book for all divisions is approximately ₹600 crore, with management indicating that the temporary disruption phase is behind them and seeing normalization in customer engagement. SPAL is increasing focus on the US market with ongoing discussions with 3-4 large customers, targeting higher order sizes and better realizations.
Arvind has surged 74% this year, significantly outperforming the broader market. According to The Economic Times, the stock has rallied 22% in the past 12 trading days, demonstrating strong momentum. The company continues to work towards its ₹2,000 crore top-line ambitions, with management expecting the core government export business to sustain an adjusted EBITDA margin in the range of 17%-18% as business normalizes and operating leverage improves. Arvind counts global retailers including Gap Inc. among its clients, positioning it well for the current sourcing shift away from China.
Indo Count Industries has soared 54% this year, with the management believing FY27 will be a defining year for the company, targeting volumes in the range of 105-110 million meters compared to 94 million meters achieved in FY26. As reported by Business Standard, the company is targeting an EBITDA margin of around 13%, driven by disciplined execution, improving demand conditions, and normalization of US trade environment. The company supplies bed linen to Walmart Inc and Target Corp., with management expecting demand visibility to improve gradually as tariff overhang eases, supported by the proposed US trade agreement and other FTAs.
Global brands are moving their sourcing away from China and a few Asian peers, creating significant opportunities for Indian textile exporters. According to The Economic Times, India accounts for only about 4% of the global trade in textiles and apparel, with the government aiming to expand the textile market to $350 billion by 2030, from an estimated $194 billion in fiscal year 2026. India is set to implement its trade accord with the UK this month, is concluding one with the European Union, and is moving closer to a deal with the US, fueling optimism that these agreements will boost exports. Major Indian textile exporters are well-positioned to capture disproportionate market share as global retailers improve order visibility and brands consolidate toward large compliant suppliers.
