Gokaldas Exports Sees Margin Recovery After India–US Trade Deal

Indian apparel manufacturer Gokaldas Exports expects its operating margins to recover in fiscal 2027 following lower U.S. tariffs under the recent India–U.S. trade agreement. Managing Director Sivaramakrishnan Ganapathi said the company anticipates quarterly core profit margins to rise to early double digits, compared with 9.7% reported in the third quarter of fiscal 2026. However, the company indicated that the benefits are likely to materialise only after the second quarter of fiscal 2027.

The Bengaluru-based exporter, which generates nearly 75% of its standalone revenue from the U.S., supplies global retailers including Walmart, Gap, and JCPenney. Margins had come under pressure after higher U.S. tariffs forced the company to offer discounts and absorb part of the additional costs to maintain long-term client relationships. India’s textile exporters had faced steeper tariff rates compared with competitors such as Bangladesh and Vietnam.

Following the new trade deal, U.S. tariffs on Indian textile exports have been reduced to 18% from 50%, providing relief to the $38 billion sector. Ganapathi said the agreement offers improved visibility and allows business momentum to resume, though some uncertainty remains after the U.S. Supreme Court struck down tariff measures introduced by Donald Trump. Gokaldas, which produces about 90 million garments annually, reported revenue of ₹38.64 billion in fiscal 2025, with exports to the U.S., Canada, the UK, and France forming the bulk of its sales.