Gokaldas Exports (GOKEX) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw consolidated income grow 21% YoY, driven by strong India (16% YoY) and Africa (44-45% YoY) business performance, outperforming a 12% YoY decline in Indian apparel exports.

• Africa business benefited from AGOA renewal and higher volumes, while India growth was led by higher realizations and product mix.

• Operating leverage and disciplined cost management offset inflationary pressures, higher wages, and logistics costs.

• The BTPL merger is on track for Q3, with capacity ramp-up and positive margin contribution expected post-merger.

• Favorable tariff and trade developments, including US Section 301 tariffs and India-UK FTA, are expected to support future growth.

Financial highlights

• Total income for Q1FY27 was ₹1,180 crore, up 21% YoY; revenue from operations reached ₹1,154 crore, up 21% YoY.

• Consolidated EBITDA grew 17% YoY to ₹139 crore; EBITDA margin was 11.8%, down 35 bps YoY.

• Profit before tax increased 11% YoY to ₹63 crore; profit after tax rose 7% YoY to ₹44 crore.

• India contributed ₹941 crore in income (16% YoY growth), Africa ₹239 crore (44-45% YoY growth).

• BTPL reported turnover of INR 170 crores with negative EBITDA (7-8%), but improvement is expected in coming quarters.

Outlook and guidance

• Management expects revenue growth in line with or better than mid-teens guidance, with Q2 revenue profile similar to Q1.

• Africa revenue visibility at $112-115 million for FY27, with a push towards $120 million; India and Africa capacity utilization remains high.

• EBITDA margins expected to be higher than 10%, supported by product mix, rupee depreciation, and BTPL integration.

• CapEx plans include adding 2,000-3,000 machines by end of year, with new facilities in Jharkhand and Karnataka to add INR 350 crores revenue potential by FY29.

• Ongoing customer portfolio expansion and operational excellence are expected to capitalize on improving market conditions.