Goldman Sachs has raised concerns about the impact of crude-linked raw material inflation on the apparel sector, warning of significant margin pressure across key industry players. The investment bank's analysis highlights how rising costs of essential materials are creating headwinds for apparel companies' profitability.

Key Materials Driving Inflation

The inflation pressure is primarily stemming from three critical raw materials used extensively in apparel manufacturing:

• Polyester: A synthetic fiber widely used in clothing production
• EVA (Ethylene Vinyl Acetate): Commonly used in footwear and accessories
• PU (Polyurethane): Essential for synthetic leather and shoe manufacturing

These materials are directly linked to crude oil prices, making apparel companies vulnerable to energy market volatility.

Most Exposed Companies

Goldman Sachs has identified three companies as particularly vulnerable to this inflationary pressure:

Financial Impact and Outlook

The investment bank anticipates several negative consequences from the ongoing raw material inflation:

Near-term Challenges

• Gross margin pressure across the apparel sector
• Immediate impact on profitability metrics
• Potential squeeze on operating margins

Demand-side Risks

If inflation remains elevated, Goldman Sachs warns of potential demand risks as companies may be forced to pass on higher costs to consumers, potentially affecting sales volumes.

Target Price Revisions

In response to these concerns, Goldman Sachs has revised its 12-month target prices downward across its apparel sector coverage:

The varying degree of target price cuts reflects the different levels of exposure each company has to crude-linked raw material inflation, with the most vulnerable companies likely facing the higher end of the revision range.

E-Land Apparel Limited announced the outcome of its board meeting held on March 12, 2026, regarding the approval of postal ballot proceedings under SEBI Listing Regulations. The meeting, which commenced at 3.00 P.M. and concluded at 4.00 P.M., addressed key governance matters requiring shareholder approval.

Board Meeting Decisions

The board of directors considered and approved several important items during the meeting:

Postal Ballot Process

The company has initiated the postal ballot process in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board appointed M/s Makarand M. Joshi & Co., Practicing Company Secretaries, as scrutinizer to ensure the postal ballot process is conducted in a fair and transparent manner.

Shareholder Communication

E-Land Apparel Limited will communicate comprehensive details to shareholders in due course, including:

• Postal Ballot Notice with complete information
• Remote e-voting schedule and procedures
• Cut-off date for eligible voting members
• Necessary instructions for participating in the voting process

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of the SEBI Listing Regulations, demonstrating the company's commitment to maintaining transparency and regulatory compliance. The formal communication was addressed to the General Manager, Listing Department, BSE Limited, with the company's scrip code 532820.

Managing Director Dongju Kim, with DIN 08060629, signed the official communication on behalf of the board. The company maintains its registered office at 16/2B, Sri Vinayaka Industrial Estate, Singasandra Near Dakshin Honda Showroom, Hosur Road, Bangalore, Karnataka 560068.