Shares of textile companies including garments & apparels were in focus, rallied up to 17 per cent on the BSE in Friday’s intra-day trade.
Among individual stocks, Sangam India stock has surged 17 per cent to ₹464.40 on the BSE in intra-day trade. Kitex Garments rallied 11 per cent to ₹199.25; followed by Gokaldas Exports 9 per cent to ₹799.40 and Indo Count Industries 7 per cent to ₹281.35.
According to reports, India and the UK have set themselves a target to double trade by 2030. India’s textile export to the UK is around $2bn (6 per cent share in UK’s textile export). Government expects textile to be one of the key beneficiaries of the India-UK trade deal.
This apart, September 2025 US retail data indicates, clothing and accessories registering resilient performance in the US despite higher prices for shoes, jeans and outwears on YoY basis due to tariff imposition on various countries. Clothing and accessories witnessed 7.5 per cent growth while general merchandise witnessed 5.5 per cent growth in the month of September 2025.
According to ICICI Securities, India’s textile export to the UK can go up by $2-3bn over the next five years. This will help textile companies to diversify in new markets and grab more opportunities in the coming years. The US retail sales (clothing & accessories) numbers show resilience despite higher product prices.
The brokerage firm believes UKFTA deals will create large opportunities for textile companies in the coming years. The US data indicates that the order booking will remain resilient while the impact will be more on the profitability of the textile companies as the companies would be absorbing part of tariff imposition of 50 per cent on Indian exports.
Hence Q2FY26 EBIDTA margins would be in stress. However, if India-US are able to sign trade-deal in the coming months, the brokerage firm said it might see margins gradually improving from Q3FY26. “Overall positive scenario building up for textile companies where benefits would come in FY27 and FY28. We continue to like KPR Mill, Gokaldas Exports and Indo Count industries in the textile space,” ICICI Securities said in a note.
Meanwhile, the US accounts for 70 per cent of Indo Count Industries’ sales, with the balance 30 per cent derived from the UK, Europe, and other regions. In Q1FY26, the company reported sales of ₹959 crore.
Given that Q2 sales have historically been stronger and are likely to be supported by pre-buying from the US retailers in anticipation of higher tariffs, CareEdge Ratings expects the company’s performance in H1FY26 to remain resilient, with the tariff-led impact likely to be more pronounced in H2FY26.
Despite these challenges, Indo Count achieved a 3 per cent sequential improvement in Q1FY26 operating margins, supported by cost-efficiency initiatives. However, margins remain below prior-year levels, owing to an unfavourable product mix, lower volumes and incubation costs of new businesses, the rating agency said.
CareEdge Ratings has revised outlook to “Stable” from “Positive”, which factored in uncertainty in operating performance, particularly from H2FY26, owing to steep tariffs imposed by the US, which could adversely impact volume off-take and realisations for the company.
CareEdge Ratings expects the company’s branded segment and new business lines to drive incremental revenues and margin improvement, supporting its existing business risk profile. Indo Count’s financial risk profile is also expected to remain comfortable over the medium term, aided by scheduled debt repayments and steady cash flows from the scaling up of its US operations.