Gokaldas Exports (GOKEX) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 total income reached INR 1,003 crores, up 7% YoY, with India operations growing 14% despite a 2% decline in national apparel exports; Africa operations declined 23–24% YoY due to AGOA uncertainty.

• EBITDA for Q2 FY26 was INR 84 crores, flat YoY, as US tariff impacts were offset by cost control and productivity gains.

• H1 FY26 total income was INR 1,980 crores, up 5% YoY, with Indian business up 16% YoY and Africa business down due to volume declines.

• Strategic investments in BTPL fabric processing and new facilities enhance vertical integration and delivery efficiency.

• Board approved unaudited financial results for Q2 and H1 FY26, reviewed by statutory auditors.

Financial highlights

• Q2 consolidated volumes were 12.97 million pieces at an average realization of INR 700; H1 consolidated volumes were 25.58 million at INR 697.

• Q2 FY26 EBITDA margin was 8.3%, down 41 bps YoY, mainly due to Africa's revenue decline and operational deleverage.

• Q2 FY26 PBT dropped 47% YoY to INR 19 crores, mainly from higher finance and depreciation costs linked to new capex and Ind AS lease accounting.

• H1 FY26 EBITDA margin improved by 145 bps YoY to 10.2%, with EBITDA up 23% YoY to INR 202 crores.

• Consolidated H1 FY26 revenue was INR 194,014 lakhs, with net profit at INR 4,956 lakhs, down YoY.

Outlook and guidance

• Strong order book for India (INR 900+ crores) and Africa (INR 240–250 crores) to be executed over the next six months.

• Africa revenue for H2 expected to exceed $50 million, with new customers and favorable tariff regime supporting growth.

• US reciprocal tariffs expected to significantly impact margins in H2 FY26; positive US-India trade deal could mitigate this.

• Revenue in H2 is projected to surpass H1 despite tariff-related top-line reductions.

• Board approved a scheme of amalgamation with BRFL Textiles Private Limited, pending regulatory approvals.