Vardhman Textiles, Gokaldas Exports to KPR Mill: Textile stocks jump up to 6% after cotton import duty exemption

Vardhman Textiles, Gokaldas Exports, KPR Mill, Trident and other textile stocks jumped over 6% in early trade on Monday after the government exempted all customs duties on cotton imports for five months till October 30, 2026.

Among textile stocks, Vardhman Textiles share price jumped over 6%, followed by Pearl Global Industries, Raymond Lifestyle and Trident shares rallying over 5%.

Gokaldas Exports, KPR Mill and Welspun Living shares gained over 4% each, while Alok Industries share price surged over 3%.

In a notification issued on Saturday, the finance ministry said the import duty exemption will be effective from June 1, 2026.

The temporary duty exemption will help increase the availability of cotton for the Indian textile sector, and reduce input costs for the textile and apparel companies.

Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market, the ministry said.

According to Saurabh Jain, Head of Fundamental Research, SMC Global Securities said that the government’s decision to suspend the 11% cotton import duty is a significant advantage for the textile industry, as cotton is the largest raw material expense for spinning mills, fabric producers and apparel exporters.

“This action is expected to reduce input costs, increase cotton availability, and strengthen profit margins throughout the textile value chain,” Jain said.

As per the Finance Ministry’s notification, the exemption applies to both customs duty and the Agricultural Infrastructure and Development Cess, aimed at reducing raw material costs for manufacturers.

Jain noted that India is expected to import approximately 600,000 bales of contamination-free cotton during the exemption period, which will help the exporters in obtaining higher-quality raw materials considering strong global demand.

Textile stocks to benefit

KPR Mill share price is expected to increase further given its vertically integrated structure and strong profitability, followed by Vardhman Textiles, which is among India’s largest yarn manufacturers and is expected to gain directly from reduced cotton prices, said Jain.

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