GOKEX - Gokaldas Exports

📊 NSE: GOKEX 🏢 Textiles - Products 📅 Last Updated: 12/13/2025 22:29

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 62.4% to INR 3,864.24 Cr in FY25. Acquired entities contributed ~34% of group revenue, while like-for-like pre-acquisition revenue grew 19%. In Q2 FY26, India operations grew 14% YoY, while Africa operations declined 23% YoY.

Geographic Revenue Split

The US retail clothing market is a primary driver, showing strong volume growth in H1 FY25. Africa operations (Kenya/Atraco) contributed significantly but faced a 23% volume decline in Q2 FY26 due to AGOA rollover uncertainty.

Profitability Margins

FY25 PAT margin was 4.0%, a drop of 139 bps from 5.4% in FY24. H1 FY26 PAT was INR 8 Cr, down 71% YoY from INR 28 Cr, primarily due to US tariff impacts of INR 39 Cr and higher finance costs.

EBITDA Margin

FY25 EBITDA margin was 10.8%, down 97 bps YoY. H1 FY26 adjusted EBITDA margin (excluding US tariff impact) was 12.2%, compared to 12.1% in H1 FY25.

Capital Expenditure

INR 110 Cr was spent in H1 FY26, with an additional INR 40 Cr planned for H2 FY26. The company raised INR 600 Cr via QIP in April 2024 to fund strategic initiatives and acquisitions.

Credit Rating & Borrowing

CRISIL Ratings maintains a strong liquidity profile with over INR 465 Cr in liquid assets as of June 2025. Bank limit utilization was ~23% of the INR 416 Cr limit.

⚙️ Operational Drivers

Raw Materials

Apparel fabrics and accessories (imported raw materials) represent a significant portion of costs, though specific percentage splits are not disclosed.

Import Sources

Raw materials are imported globally; specific countries are not disclosed, but currency exposure includes USD and EUR.

Capacity Expansion

Current expansion focused on the Madhya Pradesh unit and newly acquired entities. H1 FY26 capex of INR 110 Cr was dedicated to capacity increases to maintain business momentum.

Raw Material Costs

Raw material costs are susceptible to currency volatility. FY25 margins were weighed down by a sharp appreciation of the Kenyan Shilling against the USD.

Manufacturing Efficiency

ROCE stood at 12% in H1 FY26, down from 14% in FY25. Efficiency is driven by 'execution excellence' and operational productivity in the India entity.

Logistics & Distribution

Airfreight costs in FY25 included INR 8.6 Cr in Atraco and INR 11.7 Cr in GEX, impacting EBITDA margins.

📈 Strategic Growth

Expected Growth Rate

19%

Growth Strategy

Growth will be achieved through the integration of acquired entities (Atraco) to gain operating leverage, expansion in UK and European markets in anticipation of Free Trade Agreements (FTA), and continued capacity expansion in India.

Products & Services

Apparel manufacturing services for global retailers, including shirts, trousers, and seasonal clothing for the US and EU markets.

Brand Portfolio

Gokaldas Exports (GEX), Atraco (acquired entity).

Market Expansion

Targeting growth in the UK and Europe, with active discussions ongoing with new customers in anticipation of an FTA.

Market Share & Ranking

Positioned as a leader in the global apparel manufacturing industry from India.

🌍 External Factors

Industry Trends

The industry is evolving with shifts toward regional trade agreements (FTAs). GEX is positioning itself to benefit from the India-UK FTA while navigating a fragmented market with low entry barriers.

Competitive Landscape

Highly fragmented market with competition from large integrated players and innumerable smaller entities in the textile export business.

Competitive Moat

Moat is built on execution excellence, a strong order book, and scale. Sustainability depends on successful integration of acquisitions and maintaining cost leadership despite wage inflation.

Macro Economic Sensitivity

Highly sensitive to US retail clothing sales volumes and global economic trends affecting consumer discretionary spend.

Consumer Behavior

Demand is driven by seasonal retail cycles in the US and Europe; delayed order placements were noted due to macro uncertainties.

Geopolitical Risks

Trade barriers such as US tariffs (50% rate mentioned as nearly impossible for business) and legislative changes like the AGOA rollover impact international market access.