Gokaldas Expects Margin Recovery After US Tariff Cut
Indian textile exporter Gokaldas Exports expects its profit margins to improve from fiscal 2027 after lower U.S. tariffs under the India-US trade deal begin to take effect.
The company earns about 75% of its revenue from the U.S. and supplies major retailers like Walmart, Gap, and JCPenney. It expects quarterly core margins to rise to early double digits, up from 9.7% in the third quarter of FY26. However, the company said the benefits may come only after the second quarter of FY27.
Margins were hit earlier because Gokaldas had to offer discounts and absorb part of the higher U.S. tariff costs to maintain customer relationships.
India’s $38 billion textile export sector had been struggling with steep U.S. tariffs of 50%, which were higher than those imposed on competitors like Bangladesh and Vietnam. Under the recent trade deal, tariffs on Indian goods have been reduced to 18%.
Managing Director Sivaramakrishnan Ganapathi said the new rate is an improvement and will help the business move forward. However, he noted that uncertainty remains after the Supreme Court of the United States rejected tariff measures introduced by Donald Trump.
Gokaldas produces about 90 million garments annually and reported revenue of ?38.64 billion in FY25, mainly from exports to the U.S., Canada, the UK and France.
If you are a fresher in the Business.
Join our Startup Export Training .
For more details.
Visit www.ucorpexim.in or Contact 7598 404848
If you have basic about the Export Business.
Join our Advanced Realtime Export Training.
For more details.
Visit www.ucorpareto.com or Contact 7598 424848
#export #exporter #exportimport #exports #importexport #exportproduct #exportbusiness #exportbag #exportquality #exportindia #exporting #exportimportdata #eximedia #indiaexport #indiaexports #indiaexporters #indiaexportimport #indiabusiness #ucorpexim #exporttraining#exportstraining #exportertraining #exporterstraining #importtraining #importstraining #importertraining #importerstraining #ucorp
share News