On a year-on-year basis, however, net profit declined 71% from ₹50 crore in Q3 FY25, largely due to the impact of a 50% US tariff imposed last year. The company said the improvement in quarter-on-quarter profitability reflects its efforts to navigate the difficult operating environment through productivity gains and tighter cost controls. The apparel exporter’s consolidated total income for the quarter stood at ₹998 crore, largely flat compared with ₹1,001 crore reported in the corresponding quarter last year. Sequentially, income declined marginally by 1% from ₹1,003 crore in Q2 FY26.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at ₹96 crore in Q3 FY26, down 18% year-on-year, with margins compressing to 9.7% from 11.7% a year ago. On a quarter-on-quarter basis, EBITDA rose 15%, while margins expanded by 133 basis points, aided by productivity improvements and cost management initiatives
Commenting on the company’s Q3FY26 performance, Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, said, “Our India operation delivered a growth of 8% YoY, even after absorbing the first full impact of US tariffs in this quarter, whereas apparel export from India remained flat. With a possible renewal of AGOA on the cards, there is a stronger order book for Africa improving the outlook. The EBITDA margin was tempered by US tariff, but was offset by higher productivity gain and diligent cost management measures.”