Textile stocks rebound; Gokaldas, Vardhman, KPR Mill, Arvind soar up to 10%

Textiles stocks movement today

 

Shares of textile companies were back into limelight, surging up to 10 per cent on the BSE in Friday’s intra-day trade amid heavy volumes in an otherwise weak market. These stocks have recovered by up to 13 per cent from their respective intra-day’s low.

 

Among individual stocks, Gokaldas Exports was locked in the 10 per cent upper circuit at ₹895.55 at 01:09 PM. The market price of the garments & apparels company has bounced back 13 per cent from its intra-day low of ₹760. Thus far in the month of February 2026, Gokaldas Exports stock price has zoomed 56 per cent from a level of ₹550.60.

 

The market price of KPR Mill has soared 10 per cent to ₹988 in intra-day deals. It has rebounded by 13 per cent from its intra-day low of ₹871.90. 

 

Share price of Vardhman Textiles was up 8 per cent to ₹523.15, bouncing back 10 per cent from its intra-day low of ₹474.75 on the BSE. So far in the current month, the stock has rallied 21 per cent.

 

Arvind, Kitex Garments, Himatsingka Seide, Kewal Kiran Clothing, Nitin Spinners and Pearl Global Industries were up 3 per cent to 9 per cent. In comparison, the BSE Sensex was down 0.88 per cent to 82,946. 

 

Why are textile stocks trading higher in a weak market on Friday?

 

Commerce Minister Piyush Goyal has indicated India may secure zero-duty textile access to the US, matching a tax relief granted to Bangladesh that has put Indian exporters under pressure.

 

A deal is expected to be signed by the end of March. According to four industry sources, Goyal told industry leaders in a meeting at Vanijya Bhawan in New Delhi on Wednesday evening that India is exploring with the US a similar arrangement given to Bangladesh, the Business Standard reported.

 

Piyush Goyal said this clause might not be in the interim trade deal framework, released by the countries last week; it would feature in the final agreement to be released in the coming weeks. Bangladesh recently entered into a trade deal with theUS reducing its tariff rate by 1 per cent to 19 per cent. Also, it was able to clock a competitive advantage over other textile exporters (including India) by availing zero tariffs on exports of apparels manufactured by using US cotton and yarn.

 

ICICI Securities in a note said that they don’t expect the non-tariff trade concession received by Bangladesh on apparels manufactured using cotton/yarn imported from the US to have any material impact on the Indian textile manufacturers.

 

Industry experts believe that shift in Bangladesh sourcing will take some time as the country will have to reengineer its supply chain and bear higher cost. It will have to invest in new spinning and fabric processing capacity to meet the US quality standards and Indian cotton can reach Bangladesh in less than a week while the US cotton will take over a month to reach Bangladesh.  

 

Hence, textile companies from Bangladesh will try to assess the benefits (in terms of margin/RoI attractiveness) the companies will gain by importing cotton/yarn from the US and exporting the final apparel product with Zero tariffs. This is sentimentally positive for Indian textile companies, the brokerage firm said.

 

Meanwhile, the US–India trade deal is particularly positive for export-oriented sectors with meaningful exposure to the US market. Sectors including textiles stand to benefit from improved market access, tariff rationalisation and greater supply-chain certainty. Over time, higher order inflows, better capacity utilisation and improved earnings visibility could support sustained growth and valuation re-rating for these sectors, Axis Securities said.

 

In the long-term, the recently announced India-European Union (EU) free trade agreement (FTA) will open access to a significant market, placing Indian exporters at par with key competing countries like Bangladesh, Vietnam and a 12 per cent duty advantage with China. This, along with India-UK FTA would accelerate sourcing from India, Gokaldas Exports said in the Q3 earnings conference call.

 

Pearl Global Industries said that the company’s India operations are expected to gain significant momentum following the reduction of the US tariffs to 18 per cent. This trade agreement removes the burden of the additional 25 per cent duty, thereby enhancing profitability and supporting sustained top-line growth. The removal of US tariffs marks a significant advantage for both India and Pearl Global. With the penalty now eliminated, that discount pressure disappears—directly boosting profitability from February onwards, the company said.  ==========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.