Indian textile exporter Gokaldas expects margin lift after US trade deal
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Indian textile maker Gokaldas Exports , a supplier to Walmart, sees pressure on its core earnings margins easing in fiscal 2027 as lower U.S. tariffs under India's trade deal begin to provide relief, its top executive told Reuters on Tuesday. The company, which derives about 75% of its standalone revenue from the U.S. and counts Walmart, Gap, and JCPenney among its clients, expects quarterly core profit margins to improve to the early double digits from 9.7% in the third quarter of fiscal 2026.However, Gokaldas did not specify an exact timeline, saying the benefits would materialise sometime after the second quarter of fiscal 2027. The company's margins took a hit since the tariffs were imposed, as it offered discounts and absorbed part of the additional costs tied to the higher U.S. tariffs to preserve client relationships.India's $38 billion textile export sector has been struggling with elevated U.S. tariffs that were significantly steeper than those ...