Textiles – Jul-Sep’26 Earnings Preview – Test of resilience as new US tariff threats emerge
Published on 06 Oct 2026
Indian ready-made garment (RMG) exporters enter the Q2 reporting season amid mixed operating conditions. Festive dispatches and the customary pre-holiday shipping cycle for Western retailers are supporting volumes, while the macro environment remains volatile. Escalating US tariff rhetoric, evolving reciprocal trade frameworks, and geopolitical developments have made brand purchasing teams more cautious on lead times and order commitments. Nevertheless, major apparel exporters such as PGIL, GEXP and KPR are expected to deliver double-digit growth, supported by steady demand during the quarter. India’s garment exports declined 4% and 3% YoY in July and August 2026 respectively, an improvement from 12% decline seen in Q1FY27. Following tariff-related pressure on realizations and margins in the previous year, the garmenting companies are likely to report YoY improvement, as orders for the quarter were booked at lower tariff rates. We expect RMG players under our coverage to report YoY revenue/EBITDA/PAT growth of 12%/22%/21% in Q2FY27.
