Gokaldas Exports posts 71% YoY fall in Q2 PAT; clocks EBIDTA of Rs 84 crore

Revenue from operations rose by 7% year-over-year (YoY) to Rs 984 crore during the quarter. The company stated that India operations registered a strong performance with a YoY growth of 14% in the backdrop of 2% degrowth in Indian apparel exports. The revenue from Africa operations declined by 23% YoY, primarily due to AGOA related uncertainty.

While EBIDTA improved by 1% YoY to Rs 84 crore, EBIDTA margin declined by 41 basis points YoY to 8.3% in Q2 FY26.

The drop in EBIDTA margin was mainly due to operating deleverage at the Africa business, US tariff impact, and startup costs owing to the new business/units. However, the India operations abated this impact partly, supported by productivity gains and better cost management efforts.

Profit before tax in Q2 FY26 stood at Rs 19 crore, down by 47 % from Rs 36 crore recorded in Q2 FY25.

The fall in pre-tax profit was on account of higher finance and depreciation costs. This is on account of new capex in factories which are in a ramp up stage and yet to yield returns and higher charges on account of Ind AS treatment of capitalized leased assets.

Offering outlook for FY26, the company?s management commented: In the near term, we intend to navigate US tariff challenges by focusing on cost optimisation and better productivity gains across the group.

Gokaldas Exports is an apparel manufacturer, designing, manufacturing, and exporting a diverse range of apparel products for all seasons. The company exports to a number of the world's most prestigious fashion brands and retailers in more than 50 countries.

The scrip rose 0.84% to currently trade at Rs 879.75 on the BSE.

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