Now Reading: Indian textile makers hit by rising labour and raw material costs
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Indian textile makers hit by rising labour and raw material costs
Indian textile makers hit by rising labour and raw material costs
Indian textile and apparel makers including Arvind Ltd, Pearl Global Industries, and Gokaldas Exports are facing margin pressure in FY27 from higher labour costs, a sharp rise in cotton and yarn prices,…
The Story in Brief
Indian textile and apparel makers including Arvind Ltd, Pearl Global Industries, and Gokaldas Exports are facing margin pressure in FY27 from higher labour costs, a sharp rise in cotton and yarn prices, and elevated petrochemical-linked costs. Companies are absorbing some inflation, selectively raising prices, and stepping up automation and expansion into lower-cost regions. Pearl Global's India EBITDA margin fell to 6.6% in Q1 FY27 from 7.3% a year earlier, while Gokaldas absorbed a Rs 20 crore wage cost increase in the quarter.
The Indian Opinion
The narrative that Indian textile exports are booming hides a stark reality: input costs are squeezing margins far faster than revenues can grow. Absorbing a Rs 100 crore inflation hit on raw materials alone, as Arvind has, isn't a sign of strength. The real test is whether these companies can pass costs to global buyers without losing market share to Bangladesh or Vietnam. If Q2 order books show price escalations sticking, the story changes.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
