Why Gokaldas Exports Share price is Rising

#1 India-US Trade Pact

Shares of Gokaldas Exports surged over 20% during intraday trade on 3 February 2026, following the announcement of a trade agreement between India and the United States. The deal was confirmed late Monday night by former US President Donald Trump and Prime Minister Narendra Modi through their respective social media platforms.

Under the agreement, Indian exports to the US will now attract an 18% tariff. This is lower than competing garment-exporting hubs such as Vietnam and Bangladesh, which face tariffs of around 20% each.

This relative tariff advantage has improved the outlook for Indian apparel exporters.

According to Gokaldas Exports' Q2 FY26 earnings conference call, the US market contributes nearly 70% of the company's total revenue, making the trade agreement a key positive trigger. Textile stocks had earlier come under pressure due to uncertainty around reciprocal tariffs and trade deals with other countries, given their heavy exposure to the US market.

Further strengthening sentiment, Gokaldas Exports' Vice Chairman and Managing Director, Sivaramakrishnan Ganapathi, said in an interaction with CNBC-TV18 on 27 January 2026 that the company's US order book pipeline remains strong through the first quarter of FY27, with fresh orders also flowing in for the second quarter.

#2 Union Budget 2026 Push

Adding to the positive momentum, shares of Gokaldas Exports jumped around 6% following the Union Budget 2026 announcement.

In her Budget speech, Finance Minister Nirmala Sitharaman proposed the setting up of mega textile parks aimed at enhancing value addition in technical textiles.

The Budget also outlined an integrated textile programme with five sub-components, bringing multiple existing schemes under a single framework to improve efficiency and coordination. These measures further contributed to the rally in the stock.

#3 India-Europe Free Trade Agreement

Further optimism stemmed from the signing of a long-awaited free trade agreement between India and the European Union after negotiations spanning more than a decade.

Once operational, the FTA will eliminate import tariffs on Indian textiles and apparel exports to the EU, offering significant relief to exporters currently facing duties of 10-12%.

This move improves India's competitiveness against peers such as Bangladesh, Turkey, Vietnam, and Pakistan, which already enjoy zero-tariff access.

With Europe contributing around 13-14% of Gokaldas Exports' revenue, the agreement is expected to be a meaningful positive for the company, adding to the optimism around its shares.

What Next?

Going forward, according to Gokaldas Exports' Q2 FY26 earnings conference call, the company plans to focus on diversifying more into the UK and Europe.

Further, it also plans to focus on calibrated capacity expansion and modernisation to support incremental order flows.

Of the total capex incurred, a significant portion has been directed towards setting up new manufacturing facilities in India, including Bhopal Unit-2 in Madhya Pradesh, a new plant in Bengaluru, and an additional unit in Jharkhand, alongside capacity expansion in Kenya to cater to rising export demand.

The company is also prioritising the completion of ongoing projects in the second half of the year.

Looking ahead to FY27 and FY28, capex plans will remain judicious and flexible, with further investments contingent on improved visibility around tariffs, macro conditions, and emerging opportunities in markets such as the UK and Europe.

How shares of Gokaldas Exports have performed recently

Over past five days, Gokaldas Exports share price has jumped over 26%.

The stock touched its 52-week high of Rs 1,060 on 16 May 2025 and its 52-week low of Rs 531.6 on 27 January 2025.

About Gokaldas Exports

Founded in 1979, Gokaldas Exports Limited has emerged as a key player in India's apparel manufacturing industry.

It is known for producing high-quality garments for leading global fashion brands and retailers across more than 50 countries.

With over four decades of experience, the company offers end-to-end capabilities spanning design and development to cutting, sewing, printing, washing, and finishing, all integrated within state-of-the-art facilities supported by advanced machinery.

You can also compare Gokaldas Exports with its peers on our website:

Gokaldas Exports vs Pearl Global

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...