Trump's 12.5% Tariff Bomb: 5 Indian Exporters With the Most US Revenue at Stake
The US trade team arrived in Delhi this week, but brought an unwelcome gift: an additional 12.5% duty on Indian goods, on top of existing tariffs. Markets reacted violently — the Sensex crashed nearly 890 points — and the think tank GTRI has already pushed back, calling the levy unjustified. Separately, pharma exports to the US are expected to remain muted this fiscal year.
For retail investors, the question isn't whether tariffs are bad (they are), but which companies have the most revenue sitting in the line of fire. We went through recent quarterly filings and earnings calls to find out.
Alkem Laboratories: 21.7% of Revenue From the US
Alkem's US business has been a growth engine. Per their Q4 FY26 investor presentation, US revenue grew 26.2% year-on-year to Rs 7,681 million, contributing 21.7% of total consolidated sales. That growth was powered by new ANDA launches and volume increases — the company filed 5 new ANDAs and received 4 approvals in Q4 alone.
That momentum now faces a headwind. Pharma finished goods already attract tariffs, and the additional 12.5% duty could squeeze margins on generic formulations where pricing power is already thin. Alkem's domestic business (Rs 98,514 million in FY26, up 9.7% YoY) provides a buffer, but over a fifth of revenue is directly exposed.
Gokaldas Exports: "At 50% Tariff, There Is Practically No Business Possible"
For apparel exporters, the situation is existential. Per their Q2 FY26 earnings call, Gokaldas management stated bluntly: "At a 50% tariff, there is practically no business possible." The reciprocal tariff on Indian apparel, stacked on top of already-high MFN duties, had reached a staggering 50% for a significant part of the year.
Gokaldas posted consolidated total income of Rs 3,915 crores in FY25 (63% YoY growth, partly driven by acquisitions of Atraco and Matrix Designs) and improved EBITDA margins to 12.1%. But management noted that customers are "unable to pass on all the cost increases back to their consumers" and are looking to suppliers to absorb the burden. With the US being the single largest destination for Indian garment exports — absorbing about 29% of the roughly $35 billion in annual textile and apparel exports, per Celebrity Fashions' annual report — the extra 12.5% duty is salt on an open wound.
Aarti Industries: 15-20% US Exposure, Impact "a Bit Mixed"
Specialty chemical maker Aarti Industries derives 15-20% of its revenue from the US, per CEO Suyog Kotecha's comments in a recent earnings call. His one-line summary: "the overall US tariff impact in terms of AIL is a bit mixed."
The nuance matters. For some products like MMA (methyl methacrylate), tariffs on competing Chinese product are actually positive — they reduce undercutting from Chinese imports into the US, allowing Aarti to hold pricing. For others, the tariff is a direct cost to American buyers of Aarti's intermediates. Management is pursuing "different strategies for different assets," including absorbing some costs to protect market share in key value chains. With a net profit margin of around 6.5-8.2% per their recent quarterly results, there isn't a lot of room to absorb.
Pitti Engineering: 31% Exports, 30% of That to the US
Pitti Engineering, a maker of electrical steel laminations and motor components, has 31% of consolidated revenue coming from exports, per Managing Director Akshay Pitti's comments in their Q2 FY26 earnings call. Of that export revenue, about 30% goes to the US — meaning roughly 9-10% of total revenue is directly in the tariff crosshairs.
The critical question is whether Pitti can pass the extra cost through. Management acknowledged uncertainty, noting that tariffs would apply similarly to both India and China — the two main manufacturing hubs for their products. But with revenue from operations at Rs 1,412 crores and a gross margin of 39.5%, the company's operating leverage depends on volume, and any demand softening from tariff-driven price increases could hurt disproportionately.
Deepak Nitrite: The Domestic Buffer at Work
Not every exporter is equally vulnerable. Deepak Nitrite offers an instructive contrast. Per their Q4 FY26 earnings call, domestic revenue was approximately Rs 1,835 crore against export revenue of Rs 292 crore — an 86:14 domestic-to-export ratio.
Management explicitly called this an "import substitution strategy" that "provides a stable buffer against geopolitical shocks." Their Advanced Intermediates segment did face tariff headwinds, but the company responded by "pivoting to non-traditional geographies and proactively engaged with customers, thereby protecting market share and volumes." For the nine-month period of FY26, consolidated revenue stood at Rs 5,820 crore. Management sees "potential for further uptick in performance in the event of resolution of US tariffs."
Deepak Nitrite is the kind of company that survives tariff cycles — not because it's immune, but because its US exposure is small enough that domestic growth carries the P&L.
What Retail Investors Should Do
The tariff escalation rewards selectivity. Here's a framework:
- Audit US exposure. Any company with more than 15-20% of revenue from the US deserves closer scrutiny. Most large-cap pharma and specialty chemical companies disclose geographic splits in their quarterly presentations.
- Watch for pass-through ability. Companies selling differentiated or hard-to-substitute products (like Aarti's niche chemical intermediates) can negotiate tariff sharing with buyers. Commodity exporters (apparel, basic chemicals) typically cannot.
- Favour the domestic buffer. Companies like Deepak Nitrite with 80%+ domestic revenue and import-substitution positioning are structurally insulated. A tariff headwind for their exports may even boost their domestic pricing power if competing imports become costlier.
- Don't panic-sell pharma. Pharma tariffs on finished formulations are real, but Indian generics still hold a structural cost advantage. Alkem's 26% US revenue growth even in a tariff-heavy environment shows the market share story isn't dead — it's just getting more expensive.