Gokaldas Exports Reports Q2 Net Profit of Rs 808 Lakhs, Revenue Up 6% YoY

Gokaldas Exports Limited , a leading apparel manufacturer and exporter, has announced its financial results for the second quarter ended September 30, 2025. The company reported a net profit of Rs 808.36 lakhs, marking a significant decrease from the previous quarter's Rs 4,147.34 lakhs. However, the company's revenue from operations showed a positive trend, increasing by 6% year-over-year to Rs 98,435.36 lakhs.

Financial Highlights

Particulars (in Rs. lakhs)	Q2 FY26	Q1 FY26	Q2 FY25	YoY Change
Revenue from Operations	98,435.36	95,578.61	92,900.48	6%
Total Income	100,331.60	97,716.52	94,181.63	6.5%
EBITDA	8,357.83	11,867.21	8,236.30	1.5%
Net Profit	808.36	4,147.34	2,816.11	-71.3%
EPS (Basic) in Rs.	1.10	5.73	3.94	-72.1%

Despite the challenging market conditions, Gokaldas Exports managed to grow its revenue by 6% compared to the same quarter last year. The company's total income for Q2 FY26 stood at Rs 100,331.60 lakhs, up from Rs 94,181.63 lakhs in Q2 FY25.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY26 was Rs 8,357.83 lakhs, showing a marginal increase of 1.5% from Rs 8,236.30 lakhs in Q2 FY25. However, the EBITDA margin decreased to 8.3% in Q2 FY26 from 8.7% in Q2 FY25.

Challenges and Impacts

The significant decrease in net profit can be attributed to several factors:

Increased raw material costs: The cost of materials consumed rose to Rs 46,373.02 lakhs in Q2 FY26, up from Rs 47,915.41 lakhs in Q2 FY25.
Higher employee benefit expenses: These increased to Rs 32,593.15 lakhs from Rs 28,576.21 lakhs year-over-year.
Finance costs: These rose to Rs 2,226.20 lakhs from Rs 1,798.40 lakhs in the same quarter last year.

Strategic Developments

During the quarter, Gokaldas Exports made strategic moves to strengthen its position:

The company acquired additional equity shares in BRFL Textiles Private Limited for Rs 1,631.96 lakhs, increasing its total equity interest to 19%.
The Board of Directors approved a scheme of amalgamation of BRFL Textiles with Gokaldas Exports, subject to regulatory approvals.

Management Commentary

Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, commented on the results: "Our performance in Q2 was modest, impacted by low volume in our Africa business due to the AGOA rollover uncertainty, while India operations remained robust. The EBITDA margins remained flat YoY due to operating deleverage at our Africa business, US tariff impact, and startup costs owing to the new business/units. Despite the tariff overhang, the Company sees a strong order book buildup in the quarters ahead for both India and its Africa business, based on a possible reinstatement of AGOA."

Outlook

While the company faces short-term challenges, management remains optimistic about future growth prospects. The strong order book and potential reinstatement of AGOA (African Growth and Opportunity Act) could positively impact the company's performance in the coming quarters.

Investors and stakeholders will be watching closely to see how Gokaldas Exports navigates these challenges and capitalizes on emerging opportunities in the global apparel market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.99%	-1.10%	+6.90%	-3.63%	-2.20%	+1,096.77%

Gokaldas Exports Limited, a leading apparel manufacturer and exporter, has announced its financial results for the second quarter. The company reported a mixed performance, with revenue growth accompanied by a decline in profitability.

Revenue Growth

Gokaldas Exports reported consolidated total income of Rs. 1,003.00 crores in Q2, representing a 7% year-on-year growth. This growth comes against the backdrop of a 2% decline in Indian apparel exports, highlighting the company's resilience in a challenging market environment.

Operational Highlights

The company's performance was impacted by various factors:

India Operations: The domestic business registered a strong growth of 14% year-on-year, outperforming the overall Indian apparel export market.
Africa Operations: The company's Africa business saw a 23% year-on-year decline, primarily due to lower volumes resulting from delayed order placements amid uncertainty surrounding the African Growth and Opportunity Act (AGOA) rollover.
US Tariff Impact: Gokaldas Exports shared a considerable portion of the US tariff burden with its key customers, which affected its margins.

Financial Performance

Metric	Value	Year-on-Year Change
EBITDA	Rs. 84.00 crores	Flat
EBITDA Margin	8.3%	Down from 8.7%
Profit After Tax (PAT)	Rs. 8.00 crores	Down 71%

Management Commentary

Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, commented on the results: "Our performance was impacted by low volume in Africa business due to AGOA rollover uncertainty, US tariff impact, and startup costs from new business units."

Future Outlook

Despite the current challenges, the company remains optimistic about future prospects:

Strong order book buildup expected in coming quarters for both India and Africa operations.
Potential reinstatement of AGOA could provide growth opportunities for the African business.

Gokaldas Exports continues to focus on its core business of manufacturing and exporting apparel, leveraging its diverse geographical presence and strong customer relationships to navigate current market uncertainties and capitalize on future growth opportunities.