India's Textile Exporters Finally Get US Relief: 6 Stocks Where Tariff Pain Turns to Gain

India's Textile Exporters Finally Get US Relief: 6 Stocks Where Tariff Pain Turns to Gain

The India-US interim trade agreement, with a US delegation set to visit New Delhi from June 1-4 for the next round of negotiations, has the Indian textile industry cheering. And with good reason: the sector has endured over a year of punitive US tariffs that peaked at 50% after August 2025, crushing export margins and freezing order books.

We searched through corporate filings of India's largest textile exporters to understand exactly how deep the tariff damage runs — and which companies are best positioned now that relief is arriving.

The tariff damage was real and quantifiable

The numbers in company filings tell a stark story. Per Sangam India's FY26 investor presentation, Indian textile exports faced a 25% additional US tariff starting July 2025, lifting effective rates to 31-34%. After August 2025, duties surged to 50%, "severely impacting India's pricing advantage and export momentum."

Pearl Global Industries quantified the hit precisely in its Q3 FY26 earnings: the company absorbed Rs 14 crore in direct tariff costs in a single quarter, dragging its EBITDA margin down to 9.3%. Management noted that excluding tariff costs, margins would have been approximately 10.7% — a 140 basis point gap that went straight from the company's pocket to US customs.

S.P. Apparels' management was equally blunt in their Q3 FY26 earnings call: the company deliberately accepted fewer orders during the tariff uncertainty period, directly impacting both top line and margins. With the 25% tariff now lifted, management expects order placement and shipments to recover from Q2 FY27 onwards.

Six stocks with the most to gain

Indo Count Industries (ICIL) is perhaps the most direct beneficiary. India's largest home textile exporter recorded its highest-ever annual EBITDA of Rs 603 crore in FY24 on revenue of Rs 3,601 crore, per its Q4 FY24 earnings transcript. The company recently acquired Fluvitex USA and Modern Home Textiles USA, with these acquisitions already contributing approximately Rs 100 crore in Q3 FY25 alone. In its June 2025 earnings transcript, management stated that the trade agreement "is expected to significantly boost India's textile exports, with some projections indicating a potential doubling by 2030." In the latest FY26 earnings call, management confirmed: "Tariff uncertainty has meaningfully eased. India is moving towards a more competitive position relative to other exporting countries." Welspun Living (WELSPUNLIV) carries the heaviest US exposure in the sector. Per its FY23 annual report, North America accounts for a striking 61% of total revenue, with the UK and Europe adding another 15%. Its FY25 annual report notes EBITDA margins of 13.6%, with emerging businesses now contributing approximately 30% of revenue. As India's largest home textile manufacturer, any tariff reduction on the US side flows almost directly to Welspun's bottom line. Gokaldas Exports (GOKEX) is India's largest apparel exporter by volume. In its FY24 earnings transcript, the company reported consolidated export revenue growth of 33% (excluding acquired entities) against the industry average of 13.5%, with consolidated EBITDA growing 48%. However, management warned in FY25 that US tariff uncertainty was causing "business uncertainty" as "US brands may stay cautious during this period." The interim deal directly addresses this hesitancy. Pearl Global Industries (PGIL) operates garment manufacturing across India, Bangladesh, and Guatemala. Per its FY25 investor presentation, the company achieved adjusted EBITDA of Rs 114 crore with margins expanding 13.4% year-on-year despite tariff headwinds. With 9-month FY26 PAT of Rs 55 crore (up 72.6% YoY per its Q3 FY26 earnings transcript), Pearl Global was already growing through the tariff pain. Removing the Rs 14 crore quarterly tariff drag could meaningfully accelerate margin recovery. GHCL Textiles (GHCLTEXTIL) has been on a rapid growth trajectory. Per its FY26 investor presentation, Q4 FY26 revenue reached Rs 375 crore (up 31.6% YoY from Rs 285 crore), while EBITDA surged to Rs 52 crore at a 14% margin — up from Rs 32 crore at 11% in Q4 FY25. The company doubled its revenue from Rs 600 crore in FY21 to Rs 1,200 crore in FY25, with Rs 1,000 crore in committed capex including new spindles, knitting machines, and rooftop solar. This expansion positions GHCL to capture incremental US demand as tariffs ease. S.P. Apparels (SPAL) reported 9-month FY26 revenue growth of 27.3% YoY with EBITDA growing 29.7%, per its Q3 FY26 investor presentation. The company had deliberately pulled back from US order bookings during the tariff uncertainty. Management's expectation that shipments will resume from Q2 FY27 makes this a near-term re-rating candidate as the order pipeline refills.

What retail investors should do

The India-US interim trade deal isn't signed yet — a delegation visit isn't a done deal. But what's changed is the direction: after 10 months of tariff escalation (from 25% in July 2025 to 50% after August 2025), the trajectory is now clearly toward reduction. Companies like Indo Count and Welspun Living with deep US revenue dependence offer the most direct exposure, while Pearl Global and S.P. Apparels offer margin recovery plays where quantifiable tariff costs are set to reverse. Watch for the June 1-4 negotiation outcomes, and pay attention to which companies report order book recovery in their Q4 FY26 and Q1 FY27 earnings calls.

Data sourced from company filings on NSE via Xaro.