The textiles sector is expected to be one of the key beneficiaries of the Indian government signing Free Trade Agreements (FTA) with leading trade partners including the UK, EU, Australia and New Zealand along with Oman, amongst others.
The above government measure is expected to help Indian textile exporters compete effectively in several overseas markets vis-à-vis exporters from key rivals like Bangladesh and Vietnam.
Total textile exports, including handicrafts from India increased from ₹3.09 lakh crore in FY25 to ₹3.16 lakh crore (nearly $ 36 billion) in FY 26.The government and textile industry have set a very ambitious target of $ 100 billion (₹9.58 lakh crore) in textile exports by FY30.
To help readers get greater insight on the textile industry, we picked 3 textile companies, which have shown the fastest sales growth on a compounded basis over the 3 years.
Here are our key findings.
Kusumgar’s Margin Pivot: Engineered Defense Fabrics Drive 38% Profit Growth
Kusumgar is an engineered textiles company, and its specialized engineering fabrics are used in aerospace and defence industries, amongst others. Its performance fabrics are engineered for the most demanding applications including parachute canopies, tactical clothing and specialty gear, amongst others.
The company got listed on 15 July, 2026, and in a recent conference call, the company management highlighted that over the last 5-6 years, they have grown approximately 7-8 times, transforming from being a fabric supplier into a specialized engineering fabrics and aerospace and defense solutions company.
Senior management also highlighted that between Fiscal 2020 and Fiscal 2026, its revenue grew at a compounded annual rate of approximately 35%, and profit after tax grew significantly faster at above 70% over the same period. They pointed out to a reflection of both scale and improving profitability as its business mix shifted towards higher value military and aerospace work
Textile companies performance over the past 5 years
| Kusumgar | Gokaldas Exports | Pearl Global Industries | |
| Compounded sales growth over 3 years (%) | 32% | 22% | 17% |
| Compounded sales growth over 5 years (%) | – | 27% | 28% |
| Compounded profit growth over 3 years (%) | 38% | -25% | 25% |
| Compounded profit growth over 5 years (%) | – | 21% | 101% |
The company had consolidated sales of Rs 302 crore during FY23 and they grew to Rs 692 crore in FY26, according to Screener.in. Its net profit also grew from Rs 37 crore during FY23 to Rs 98 crore during FY26.
The company’s 3 year compounded annual sales growth was 32% and net profit growth of 38%, according to Screener.in.
Gokaldas Exports: Scaling Global Reach Amidst Margin Pressures
Gokaldas Exports is one of India’s largest manufacturers and exporters of apparel, exporting to more than 50 countries including the United States and European Union, and currently has over 30 production units.
Strong exports over the last few years have powered the company’s growth – its consolidated sales were Rs 2,222 crore during FY23 and they grew to Rs 3,988 crore during FY26.
The company’s compounded annual sales growth over the past 3 years was 22%, however, its compounded growth in net profit during this period was negative 25%, according to Screener.in. The company has faced higher employee costs over the past few years and the resulting pressure on net profit growth.
Pearl Global Industries: The Hidden Vendor Behind Gap and Ralph Lauren
Pearl Global Industries is a leading exporter of apparels including knits, woven, denim, outerwear, activewear and athleisure to marquee global brands / retailers including Aritzia, Gap, Chicos, Kohl’s, Muji, Poligono, Primark, PVH, Ralph Lauren and Target.
Expanding Capacity Across 25 Global Facilities
The company has 25 manufacturing units spread across India, Indonesia, Bangladesh, and Vietnam and Guatemala with a total capacity to manufacture nearly 101 million pieces per year (including own and outsourced facilities).
Strong growth in exports has powered the company’s growth – its consolidated net sales were Rs 3,158 crore during FY23 and they grew to Rs 5,025 crore during FY26. Its net profit was Rs 153 crore during FY23 and it grew to Rs 270 crore during FY26.
The company’s 3 years compounded annual sales growth was 17% and net profit growth of 25%, according to Screener.in.
Market Valuation: Are 2026 Growth Opportunities Already Priced In?
The growth opportunities for leading textile companies have not gone unnoticed by investors on Dalal Street.
Pearl Global Industries gained 3.4% to Rs 1,318.2 on Friday, and it is not too far from its 52-week high of Rs 1,353 that was reached on 25 September, 2026.
Gokaldas Exports was broadly flat at Rs 688. The stock had a 52-week high of Rs 953.5.
And the recently listed Kusumgar ended 0.6% higher on Friday to Rs 623.1. The stock had reached Rs 659.6 on 10 August, 2026.
The $100 Billion Target: How FTAs Give Indian Exporters an Edge
India has entered into Free Trade Agreements (FTA) with leading trade partners including the UK, EU, Australia and New Zealand along with Oman, amongst others. The FTAs with different countries are in various stages of agreement and they should provide enhanced growth opportunities for Indian textile exporters over the next few years.
However, rising costs of cotton, synthetic yarn and employee costs remain a cause for concern and will be closely monitored by investors on Dalal Street.
ROE Face-Off: Identifying the Efficiency Leader
Pearl Global Industries has a consolidated Return on Equity of 21%, according to Screener.
It was 25.9% for Kusumgar and 3.09% for Gokaldas Exports.
| Company | Return on Equity (in %) |
| Pearl Global Industries | 21% |
| Kusumgar | 25.9% |
| Gokaldas Exports | 3.09% |
Valuations – Does it still make sense to buy leading textile stocks?
Pearl Global Industries trades at a consolidated P/E of 39.1 times, according to Screener.in.
Kusumgar trades at a P/E of 49 and Gokaldas Exports at 49.2 times.
Textile stocks – growth already factored in?
| Company | Consolidated P/E (x) |
| Pearl Global Industries | 39.1 |
| Kusumgar | 49.0 |
| Gokaldas Exports | 49.2 |
Leading textile stocks appear to have priced in the growth opportunities over the next few quarters. Readers could put leading textile stocks in their watch list for 2026, and see if performance matches expectations, going forward.
Disclaimer:
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
The writer and his family have no shareholding in any of the stocks mentioned in the article.
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