Gokaldas Exports Ltd (NSE: GOKEX) consolidated net profit reached ₹1,461.31 lakhs for the quarter ended December 31, 2025, as the company integrated new labor code provisions. Revenue remained stable at ₹97,865.14 lakhs while the firm progressed toward the amalgamation of BRFL Textiles Private Limited.
Company Profile and Business Model
Gokaldas Exports Ltd is primarily engaged in the manufacture and sale of apparels. The company operates as a single reportable segment under Indian Accounting Standards. Its business model focuses on apparel production across various subsidiaries, including entities in Kenya, Ethiopia, and the United Arab Emirates.
Latest Quarterly Results and Highlights
For the quarter ended December 31, 2025, the company reported revenue from operations of ₹97,865.14 lakhs. This compares to ₹98,776.76 lakhs in the same quarter of the previous year. Consolidated net profit for the period was ₹1,461.31 lakhs, representing a decrease from ₹5,034.02 lakhs in the prior year’s corresponding quarter. Total expenses for the period stood at ₹97,202.61 lakhs. Basic earnings per share (EPS) for the quarter were ₹2.00, down from ₹7.04 year-over-year.
Future Outlook and Broader Industry Trends
The outlook remains optimistic based on several factors:
• Order Book: Visibility remains strong for both India and Africa operations.
• FTA Tailwinds: The India-EU FTA is expected to be a game-changer, providing Indian exporters with a 12% duty advantage over China and placing them on par with competitors like Vietnam and Bangladesh.
• Global Sourcing Shifts: India is well-positioned as an emerging sourcing hub as supply chains realign due to rising labor costs in China and Vietnam.
Regulatory Milestones and Segment Updates
The Government of India consolidated 29 labor legislations into four new Labour Codes in November 2025. This led to a one-time increase in employee benefit provisions. Gokaldas Exports accounted for an estimated incremental impact of ₹328.43 lakhs under employee benefits expense for the quarter. There are no separate reportable segments for the group beyond apparel manufacturing.
Performance, Growth Trajectory, and Strategic Progress
During the nine months ended December 31, 2025, the company achieved revenue of ₹2,91,879.11 lakhs, showing growth over the ₹2,84,890.41 lakhs recorded in the same period of 2024. Net profit for the nine-month period was ₹6,417.01 lakhs. Strategic progress includes a 19% equity interest in BRFL Textiles Private Limited (BTPL) as of December 31, 2025. The company previously subscribed to optionally convertible debentures in BTPL for ₹17,500 lakhs.
Management Commentary and Market Situation
Management noted that the scheme of amalgamation of BTPL with the company was approved on August 9, 2025. The group is currently in the process of obtaining requisite approvals from relevant authorities. Management has assessed that no impact from this scheme needs to be recorded in the current financial results.
Guidance and Future Outlook
The company will evaluate the further impact of the New Labour Codes once Central and State Rules are formally notified. Future financial reporting will reflect the results of the pending amalgamation with BTPL upon receipt of regulatory clearances. The company continues to monitor broader industry trends related to labor regulation and global apparel demand.
Full-Year Context
For the full year ended March 31, 2025, Gokaldas Exports reported revenue of ₹3,86,423.96 lakhs. The audited net profit for that full year was ₹15,854.09 lakhs. The company’s paid-up equity share capital remained at ₹3,662.00 lakhs as of December 31, 2025.
Where Does Gokaldas Exports Stand Today?
Today, Gokaldas Exports is in a phase of strategic transition. While navigating immediate regulatory hurdles like US tariffs and AGOA expiration, it is aggressively investing in vertical integration and capacity expansion. By diversifying its market focus toward Europe and leveraging upcoming Free Trade Agreements, the company is positioning itself to capture a larger share of the projected global apparel export growth, which is expected to reach US$ 715 billion by 2030.