Gokaldas Exports, KPR Mill, Vardhman, other textile stocks fall up to 5%; here’s why
According to its Q3FY26 earnings presentation, Gokaldas reported EBITDA slipped 18 per cent year-on-year to Rs 96 crore, primarily because the company had to share a considerable portion of the US tariff burden with its key customers.
- Feb 10, 2026,
- Updated Feb 10, 2026 2:55 PM IST
Shares of textile majors Gokaldas Exports, KPR Mill, Vardhman Textiles and others slipped up to 5 per cent on Tuesday following the trade agreement between the United States and Bangladesh.
According to their joint statement, the United States intends to establish a mechanism that will allow certain textile and apparel goods from Bangladesh to receive zero reciprocal tariff rates.
At last check on BSE, Gokaldas Exports shares were down 4.26 per cent to Rs 804 apiece, while KPR Mill stock declined 3.11 per cent to Rs 949.75. Vardhman Textiles counter slipped 4.81 per cent to Rs 482.10, and Pearl Global Industries scrip plunged 5.05 per cent to Rs 1703.90.
The statement said that this mechanism will allow a certain volume of apparel and textile imports from Bangladesh to enter the United States at a reduced tariff rate. “But this volume shall be determined in relation to the quantity of exports of textiles, e.g. U.S. produced cotton and man-made fiber textile inputs, from the United States,” it added.
According to the recently announced trade deal between the US and India, Washington slashed the reciprocal tariff on Indian textile exports to 18 per cent, down from the steep 50 per cent. However, a duty of 18 per cent against a potential zero per cent for Bangladesh may create a competitive benefit for the Bangladeshi peers. “The textile stocks including Gokaldas Exports, KPR Mill, Pearl Global Industries, and Vardhman Textiles, experienced declines of up to 5%, which is primarily due to short-term competitive issues arising from the US-Bangladesh trade agreement, which provides Bangladesh with comparatively favorable tariff treatment on specific apparel exports”, said Saurabh Jain, Head of Fundamental Research, SMC Global Securities.
“While this tariff reduction may be beneficial for India as it will lead to an increase in supplier diversification and capacity constraints for Bangladesh, making India the most credible alternative, however, the market reacted in a negative way,” Jain said. Meanwhile, Bangladesh has also opened its doors wide for American products. “Bangladesh commits to provide significant preferential market access for U.S. industrial and agricultural goods, including: chemicals; medical devices; machinery and motor vehicles and parts; information and communicational technology (ICT) equipment; energy products; soy products; dairy products; beef; poultry; and tree nuts and fruit,” the joint statement said. Jain said this is largely due to the fact that these companies generate between 50 and 70% of their revenue from the US market, and even a 1-2% cost advantage can have a significant impact on buyer order distribution in price sensitive sectors.
“The decline in stock price was further intensified by profit-taking following recent market rallies (panic among investors), uncertainty, and lack of clarity regarding US order flows. This decline is seen more as a short-term affect influenced by sentiments and competitiveness, rather than a decline in long-term fundamentals,” Jain added. According to its Q3FY26 earnings presentation, Gokaldas reported EBITDA slipped 18 per cent year-on-year to Rs 96 crore, primarily because the company had to share a considerable portion of the US tariff burden with its key customers.
Shares of textile majors Gokaldas Exports, KPR Mill, Vardhman Textiles and others slipped up to 5 per cent on Tuesday following the trade agreement between the United States and Bangladesh.
According to their joint statement, the United States intends to establish a mechanism that will allow certain textile and apparel goods from Bangladesh to receive zero reciprocal tariff rates.
At last check on BSE, Gokaldas Exports shares were down 4.26 per cent to Rs 804 apiece, while KPR Mill stock declined 3.11 per cent to Rs 949.75. Vardhman Textiles counter slipped 4.81 per cent to Rs 482.10, and Pearl Global Industries scrip plunged 5.05 per cent to Rs 1703.90.
The statement said that this mechanism will allow a certain volume of apparel and textile imports from Bangladesh to enter the United States at a reduced tariff rate. “But this volume shall be determined in relation to the quantity of exports of textiles, e.g. U.S. produced cotton and man-made fiber textile inputs, from the United States,” it added.
According to the recently announced trade deal between the US and India, Washington slashed the reciprocal tariff on Indian textile exports to 18 per cent, down from the steep 50 per cent. However, a duty of 18 per cent against a potential zero per cent for Bangladesh may create a competitive benefit for the Bangladeshi peers. “The textile stocks including Gokaldas Exports, KPR Mill, Pearl Global Industries, and Vardhman Textiles, experienced declines of up to 5%, which is primarily due to short-term competitive issues arising from the US-Bangladesh trade agreement, which provides Bangladesh with comparatively favorable tariff treatment on specific apparel exports”, said Saurabh Jain, Head of Fundamental Research, SMC Global Securities.
“While this tariff reduction may be beneficial for India as it will lead to an increase in supplier diversification and capacity constraints for Bangladesh, making India the most credible alternative, however, the market reacted in a negative way,” Jain said. Meanwhile, Bangladesh has also opened its doors wide for American products. “Bangladesh commits to provide significant preferential market access for U.S. industrial and agricultural goods, including: chemicals; medical devices; machinery and motor vehicles and parts; information and communicational technology (ICT) equipment; energy products; soy products; dairy products; beef; poultry; and tree nuts and fruit,” the joint statement said. Jain said this is largely due to the fact that these companies generate between 50 and 70% of their revenue from the US market, and even a 1-2% cost advantage can have a significant impact on buyer order distribution in price sensitive sectors.
“The decline in stock price was further intensified by profit-taking following recent market rallies (panic among investors), uncertainty, and lack of clarity regarding US order flows. This decline is seen more as a short-term affect influenced by sentiments and competitiveness, rather than a decline in long-term fundamentals,” Jain added. According to its Q3FY26 earnings presentation, Gokaldas reported EBITDA slipped 18 per cent year-on-year to Rs 96 crore, primarily because the company had to share a considerable portion of the US tariff burden with its key customers.