From the US to Kenya: 6 Indian Textile Stocks Expanding Despite Tariff Uncertainty

Introduction

India’s textile industry has a strong presence in global markets, especially in the US. But with India-US trade negotiations still uncertain, textile exporters are facing an important question: how can they protect their business if tariffs increase or export costs rise?

Some companies are expanding their manufacturing operations overseas, while others are exploring new markets and product categories. The aim is simple reduce dependence on one market and keep the business growing.

Why US Tariffs Matter for Indian Textile Companies

The US is an important market for Indian garments and home textiles. Higher tariffs can make Indian products more expensive for American buyers and less competitive against products from other countries.

This can affect export orders, revenue and profit margins. Companies may also find it harder to plan new investments when trade rules are uncertain.

To manage these challenges, textile exporters are looking at overseas factories, new export markets and improvements in manufacturing efficiency. However, these steps take time and may involve additional costs.

Six Textile Companies to Watch

1. Gokaldas Exports

Gokaldas Exports supplies apparel to international fashion brands. Its manufacturing facilities in Kenya and Ethiopia give it more flexibility when serving global customers.

The company is also expanding capacity in Madhya Pradesh and Karnataka. However, US trade costs and lower profitability remain concerns. In FY26, revenue grew 3.2% to ₹3,987.6 crore, while net profit fell 36.8% to ₹100.1 crore.

2. Welspun Living

Welspun Living is known for home textile products such as towels and bed linen. The US is a major market for the company, but its manufacturing facilities in Ohio and Nevada may help reduce some exposure to India-specific tariffs.

The company is also looking at opportunities in the UK and Europe. Still, FY26 was challenging: revenue declined 10.9% to ₹9,399.1 crore, while net profit fell 68% to ₹204.4 crore.

3. Indo Count Industries

Indo Count Industries focuses on bed linen and other home textile products. Its US manufacturing facilities provide some flexibility, while newer businesses such as utility bedding offer opportunities beyond traditional exports.

The company is also looking to grow in markets outside the US. However, FY26 revenue was nearly flat at ₹4,141.3 crore, and net profit declined 49.3% to ₹126.7 crore.

4. Pearl Global Industries

Pearl Global Industries has manufacturing operations across India, Bangladesh, Vietnam, Indonesia and Guatemala. This global network allows customers to source products from different locations.

The company is expanding its capacity in Bangladesh and progressing with plans in other markets. Its FY26 performance was comparatively stronger, with revenue rising 11.5% to ₹5,024.6 crore and net profit increasing 17% to ₹270 crore.

5. Himatsingka Seide

Himatsingka Seide manufactures bedding, towels and furnishing fabrics. Since North America contributes a large part of its business, the company is working to reduce its dependence on traditional home textiles.

It is expanding into yarn, fabric and apparel-related products using its existing manufacturing infrastructure. The strategy could open new revenue streams, but the transition will take time. In FY26, revenue declined 9.5% to ₹2,515.1 crore, while net profit fell 18.5% to ₹61.96 crore.

6. Kitex Garments

Kitex Garments specialises in infant and children's apparel. The company is investing in manufacturing capacity in Telangana and looking to expand its presence in Europe and Australia.

The expansion could support future growth, but new facilities need sufficient orders and better utilisation to become profitable. In FY26, revenue declined 32.1% to ₹666.9 crore, and the company reported a net loss of ₹13.2 crore. What Is the Common Strategy?

Although these companies operate in different parts of the textile industry, their approaches share a few common themes.

• Expanding overseas: Manufacturing in other countries can give exporters more flexibility when trade rules change.

• Entering new markets: Greater exposure to Europe and other regions may help reduce dependence on US customers.

• Developing new products: Companies are exploring new categories to create additional sources of revenue.

• Improving efficiency: Better cost control and product mix can help protect margins when export conditions become difficult.

However, overseas manufacturing does not remove every risk. New facilities require investment, and companies need enough orders to use that capacity efficiently.

What Should Investors Watch?

For investors following textile stocks, the next few quarters will be important. Here are some areas worth monitoring:

• Progress in India-US trade negotiations and any changes in tariffs.

• Export orders and demand from major international customers.

• Revenue growth and operating profit margins.

• Performance of overseas manufacturing facilities.

• Debt, capital expenditure and cash flow.

• Upcoming Q2 FY27 results and management commentary.

A company expanding internationally may have a useful strategy, but the real test is whether that expansion leads to stronger earnings and sustainable cash flow.

Final Thoughts

India’s textile exporters are adapting to a changing global trade environment. Gokaldas Exports and Pearl Global Industries are using their international manufacturing networks, while Welspun Living and Indo Count Industries are building their presence in the US. Himatsingka Seide is diversifying its product range, and Kitex Garments is investing in new capacity.

Each approach has its own opportunities and risks. For now, investors should look beyond expansion announcements and focus on whether companies can maintain customer demand, control costs and protect profitability.

The bigger story is not just where these companies manufacture, but how well they can turn that flexibility into consistent business performance.