Gokaldas Exports share price climbs 18% today, 40% in 2 sessions — Is the rally in textile stocks just getting started?

Textile stock Gokaldas Exports surged over 18% on Wednesday, February 4, continuing its sharp upward move after a 20% surge in the previous session. The strong rally came as the textile sector emerged as one of the biggest beneficiaries of the India–US trade deal announced on Monday evening. Gokaldas Exports share price has skyrocketed over 40% in just two sessions.

India and the United States have agreed to a trade arrangement under which reciprocal tariffs on Indian goods will be reduced to 18% from 25%. In addition, the extra 25% duty on imports of Russian crude oil will be removed. US President Donald Trump said the agreement would be effective immediately.

The development has significantly improved sentiment for textile companies, most of which derive between 50% and 70% of their total revenue from the US market.

Adding to the positive outlook is the Union Budget announcement on setting up Mega Textile Parks.

Finance Minister Nirmala Sitharaman, in her Budget 2026–27 speech on Sunday, said Mega Textile Parks would be developed in challenge mode with a focus on integrated infrastructure and value addition. The initiative forms part of a broader five-pronged policy framework aimed at boosting India’s employment-intensive textile industry.

The proposed parks are expected to attract fresh investment, enhance compliance and traceability, and create integrated hubs that support scale, quality control, and exports.

Textile stocks gain traction

Gokaldas Exports shares rose as much as 18.5% intraday to hit a high of ₹827. With a 20% jump in the previous session, the stock has surged around 43% in just two trading days.

Other textile stocks also saw strong moves after confirmation of the India–US trade deal, though intraday performance on Wednesday was mixed. Kitex Garments jumped 14%, while Adhinath Textiles was locked in the upper circuit. Trident gained over 3.5%, KPR Mills traded largely flat, Welspun Living declined more than 6%, Vardhman Textiles slipped over 3%, and Indo Count Industries fell more than 2%.

Gokaldas Exports Q3 Results

In its Q3 FY26 results, Gokaldas Exports reported a sharp decline in profitability. Consolidated net profit fell 70.97% year-on-year to ₹14.61 crore, compared with ₹50.34 crore in Q3 FY25. Revenue from operations declined marginally by 0.92% YoY to ₹978.65 crore during the quarter.

The company said its India operations continued to show resilience, delivering 8% YoY growth despite facing the first full-quarter impact of US tariffs. However, uncertainty around the African Growth and Opportunity Act (AGOA) and supply chain disruptions weighed on its African business during the period.

EBITDA declined 18% YoY to ₹96 crore, while the EBITDA margin contracted by 202 basis points YoY to 9.7% in Q3 FY26. The company attributed the margin pressure mainly to the impact of US tariff rebates. It noted that productivity improvements, a strong order book, and tighter cost management helped absorb part of the impact.

Is the rally in textile stocks just getting started?

Market experts believe the trade deal could provide a meaningful tailwind for Indian textile exporters, particularly those with high exposure to the US market.

Anil Rego, Founder and Fund Manager at Right Horizons PMS, said the agreement could materially improve competitiveness for Indian exporters. “For textiles, the impact is particularly significant given that the US is one of the largest end markets for Indian apparel and home textiles. Reduced tariffs enhance price competitiveness against peers such as China and Bangladesh, potentially leading to order diversion in India’s favour. Higher volumes, better capacity utilisation, and operating leverage could gradually translate into margin recovery and more stable earnings for exporters,” he said.

However, experts caution that gains may not be uniform across the sector. Harshal Dasani, Business Head at INVAsset PMS, said the biggest beneficiaries are likely to be companies with strong execution, value-added offerings, and substantial US exposure. He expects export-focused apparel manufacturers to see faster order normalisation as US buyers diversify sourcing away from higher-tariff regions.

Dasani identified Gokaldas Exports, Indo Count Industries, Welspun Living, Pearl Global Industries, and KPR Mills as potential beneficiaries of the shift. “Gokaldas Exports stands out as a direct play on US apparel demand, while Pearl Global Industries offers leverage to garment exports with improving scale. In home textiles, Indo Count Industries and Welspun Living are well-positioned given their long-standing US retailer relationships and ability to absorb volume growth,” he said.

At the same time, he believes the opportunity is selective, noting that commodity-heavy yarn manufacturers may see limited upside as pricing gains tend to be competed away.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.