Gokaldas Exports Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, following the board meeting held on January 31, 2026. The company reported challenging consolidated performance with significant decline in profitability and operational metrics despite maintaining revenue levels.

Board Meeting Outcome

The Board of Directors meeting commenced at 7:30 PM and concluded at 8:45 PM on January 31, 2026. The board considered and approved the unaudited standalone and consolidated financial results pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Consolidated Financial Performance

The company's consolidated financial results showed challenging performance with significant decline in profitability and operational efficiency. The consolidated net profit dropped to ₹14.61 crores compared to ₹50.34 crores in the previous year, while revenue declined marginally to ₹978.65 crores from ₹987.77 crores.

For the nine months period, consolidated revenue from operations increased to ₹2,918.79 crores compared to ₹2,848.90 crores in the previous year, representing a growth of 2.45%.

Standalone Financial Results

The standalone performance showed better resilience with revenue growth, though profitability remained under pressure across key operational metrics.

Investor Presentation Release

Following the results announcement, Gokaldas Exports has made its Q3FY26 investor presentation available on the company website. The presentation was released on February 02, 2026, under Regulation 30 compliance and can be accessed through the company's official website at www.gokaldasexports.com .

Operational Metrics Analysis

The significant decline in EBITDA margin from 10.52% to 7.86% indicates operational challenges and cost pressures. The company's cost structure showed variations with material costs at ₹514.25 crores for consolidated operations and ₹330.33 crores for standalone operations during Q3 FY26. Employee benefits expense stood at ₹349.57 crores on consolidated basis and ₹232.30 crores on standalone basis.

Regulatory Compliance

The financial results have been prepared in accordance with Indian Accounting Standards (Ind-AS) and were subjected to limited review by statutory auditors MSKA & Associates LLP. The results were reviewed by the Audit Committee and approved by the Board of Directors on January 31, 2026. The investor presentation release was signed by Company Secretary & Compliance Officer Gourish Hegde on February 02, 2026.

Gokaldas Exports experienced its most significant single-day decline since April 2020, with shares plummeting 13% during intraday trading on January 8. The apparel manufacturer and exporter, which specializes in designing, manufacturing, and exporting garments for men, women, and children, saw its stock price fall to a low of ₹597.00 from the previous closing price of ₹684.10.

Stock Performance Analysis

The dramatic decline has pushed the stock to trade more than 50% below its all-time high, representing a substantial correction from peak levels. The company's market capitalization stood at ₹4,478.62 crores on Thursday.

Key Factors Behind the Decline

US Trade Policy Uncertainty

The ongoing uncertainty around trade agreements with the US has created significant visibility issues for exporters. Indian exports currently face a steep 50% tariff to the US, making products less competitive and raising concerns over margins, demand sustainability, and long-term profitability. The situation was further complicated by US President Donald Trump's approval of a bipartisan sanctions bill proposing a 500% tariff on countries continuing to do business with Russia, including India.

Critical Order-Booking Window

January represents a crucial period for locking bulk US orders for the summer and autumn seasons. Any disruption or delay during this critical window risks weaker revenue performance for the remainder of the year, adding pressure to export-oriented companies.

Heavy US Market Dependence

Companies like Gokaldas Exports derive 50-70% of their revenue from the US market, creating significant vulnerability to policy and demand shocks. This concentration increases exposure to geopolitical and trade policy changes.

Trading Activity and Technical Indicators

The stock witnessed exceptional trading activity with over 40 lakh shares traded compared to the 20-day average of 1.5 lakh shares, indicating panic selling or institutional exits rather than routine profit-booking.

Financial Performance

The company's recent financial results show mixed performance, with revenue growth offset by declining profitability.

Investment and Capacity Expansion

Despite market challenges, the company continues its investment program with ₹110 crores spent in H1 FY26 and a full-year estimate of ₹150 crores, reflecting continued focus on capacity expansion and modernization efforts. Established in 1979, Gokaldas Exports operates manufacturing facilities across India with an annual production capacity of millions of pieces and maintains a significant focus on sustainability and ethical practices.