Textile stock in focus after Societe Generale acquires stake in the company

Synopsys:- Shares gained after a French bank acquired 5.02 lakh shares worth ₹40.5 crore via a bulk deal, taking a 0.68% stake. The stock has surged 52% in five days and 11.82% this year. With ₹205 crore FY26 capex planned, expansion and modernisation remain key focus areas.

The shares of the prominent textile stocks  jumped 1 percent in today’s trading session after Société Générale, the French bank, bought 5.02 lakh shares via a bulk deal

Shares of Gokaldas Exports Ltd slipped 2.05% to ₹818.20 despite a strong recent run-up. The stock has surged 52% over the last five sessions and is up 11.82% so far this year. With a market capitalisation of ₹5,992 crore, the recent decline appears more like consolidation than a reversal.

Furthermore, Gokaldas Exports witnessed strong buying interest after the US reduced tariff rates to 18% from 50%, offering significant relief to textile exporters. The stock was locked in a 20% upper circuit in last session, reflecting renewed investor optimism over improved export competitiveness and margin visibility.

Bulk Deal

According to available information, Societe Generale has acquired 5.02 lakh shares, representing a 0.68% stake in Gokaldas Exports, at ₹807.18 per share, amounting to ₹40.5 crore. The transaction signals institutional confidence in the company, especially following the stock’s recent sharp rally and strong short-term momentum.

Q3FY26 Highlights

Gokaldas Exports Ltd announced its financial performance in Q3FY26 recently, in which revenue decreased by 1 percent on a year-on-year basis from Rs 988 crore in Q3FY25 to Rs 979 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue slipped by 1 percent from Rs 984 crore in Q2FY26 to Rs 979 crore in Q3FY26.

Moreover, net profit decreased by 70 percent on a yearly basis from Rs 50 crore in Q3FY25 to Rs 15 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 88 percent from Rs 8 crore in Q2FY26 to Rs 15 crore in Q3FY26.

Over the past year (Dec 2024 to Dec 2025), operating performance showed volatility. Operating profit declined from  Rs 104 crore in Dec 2024 to  Rs 77 crore in Dec 2025. Operating margin also weakened from 11% to 8%, reflecting pressure on profitability despite relatively stable revenue levels and rising cost structures.

CapEx

The company stands among India’s leading apparel manufacturers, operating for over four decades with a strong global footprint. It caters to 50+ brands across 50 countries, supported by 30+ advanced facilities and 54,000 employees. With an annual capacity of 87 million pieces, its scale, skilled workforce, and international presence drive consistent growth.

The company’s capital expenditure has steadily increased from  Rs 143 crore in FY24 to  Rs 191 crore in FY25. In 9MFY26, it has already spent  Rs 175 crore, and FY26 capex is planned at  Rs 205 crore. Investments are split between modernisation and new capacity, with  Rs 100 crore allocated for upgrades and  Rs 105 crore for expansion in FY26.

Global Apparel Market

US clothing retail sales showed steady growth, rising from $203 billion in CY22 to $215 billion in CY24 before easing to $202 billion in CY25. E-commerce sales remained under pressure, declining 2% in CY25. In contrast, UK retail sales grew 6% in CY25 despite earlier volatility, supported by improving consumer demand.

On the trade front, US apparel imports moderated 0.6% in CY25 after sharp swings earlier, reflecting tariff pressures. EU-27 imports rebounded 4%, while UK imports rose 6%. India’s apparel exports grew 2.4% in FY26, following 10% growth in FY25, indicating resilience despite global demand fluctuations.

India’s textile exports reached about US$37 billion in FY25, with apparel dominating at 43% share, followed by yarn and fabric. Total apparel exports stood at US$16 billion, recovering from FY24. The US remained the largest market at 33%, while the EU accounted for 38% and the UK 9%, highlighting diversified export demand.

Gokaldas Exports is one of India’s leading apparel manufacturers, with over four decades of industry experience. The company designs, manufactures, and exports a wide range of garments to global fashion brands across more than 50 countries. Backed by large-scale production capacity and a strong workforce, it has built a solid global presence.

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