Gokaldas Exports (GOKEX) Q1 25/26 earnings summary

Executive summary

• Achieved 53% YoY PAT growth to ₹41 crore in Q1 FY26, with operating margin up 3.36% YoY and EBITDA margin at 12.1%, driven by productivity gains and cost management, despite tariff-related customer discounts and moderate 4% total income growth.

• Total income excluding acquisitions grew 20% YoY, outperforming Indian apparel export growth of 9%.

• Strategic investment in BTPL enhances vertical integration, supporting faster and more cost-efficient deliveries.

• U.S. and U.K. retail markets showed volume-led growth (5% and 6% respectively), but tariff uncertainties impacted order bookings and customer behavior.

• Board approved shifting the registered office from Karnataka to Maharashtra, pending shareholder approval.

Financial highlights

• Q1 FY26 total income: ₹977 crore (4% YoY growth); revenue from operations: ₹956 crore (3% YoY growth); PAT: ₹41 crore (53% YoY growth); EBITDA margin improved to 12.1% (up 336 bps YoY).

• Acquired entities contributed ₹282 crore revenue at 11% EBITDA margin; improved operating performance YoY.

• Gross margin improved by 500 bps, mainly due to product mix and cost control.

• One-time capital incentive of ₹9 crore received, with future annual incentives expected at ₹4 crore.

• Basic EPS (consolidated) for Q1 FY26 was ₹5.73, up from ₹3.92 in Q1 FY25.

Outlook and guidance

• Q2 expected to be seasonally lean but with order book secured; margin pressure to persist due to tariff-related discounts.

• Tariff impact likely to extend into H2 FY26, with 2–2.5% revenue impact; normalization expected from FY27 as tariffs are absorbed by the market.

• Capacity expansions in India and Africa to add ₹500 crore annual revenue by Q3 FY27; further CapEx on hold pending tariff clarity.

• Ongoing capacity expansions in Madhya Pradesh, Karnataka, and Jharkhand to be completed in Q3 FY26.

• India-UK FTA and potential EU trade deal expected to boost export opportunities.