Gokaldas Exports Plans ₹450-500 Crore Capex for Next Year Amid Improving Demand

Apparel manufacturer and exporter Gokaldas Exports is planning a significant increase in capital expenditure, projecting combined investments of ₹450 to 500 crore for next year. The move is driven by improving demand visibility and new customer additions.

Sivaramakrishnan Ganapathi, Vice-Chairman and Managing Director of Gokaldas Exports, stated during a post-results analyst call that the company is planning a capex of around ₹150 crore for FY27. However, stronger business projections from customers could necessitate investments exceeding ₹200 crore annually over the next three years.

"Forward-looking projections are very strong. The combined capex for next year would be in the range of ₹450-500 crore," Ganapathi said, pointing to business traction from customers.

These investment plans arrive during an improving demand outlook for the apparel export industry, following a period of subdued sourcing activity across key markets. Apparel imports into the US, the European Union, and the UK declined in the year-to-date period through August 2026, partly due to a high base and retailers maintaining lean inventories amid tariff uncertainty. Despite this, imports into the US and EU returned to positive growth in August, signaling early signs of a recovery.

Gokaldas Exports is also experiencing increased interest from customers looking to diversify their sourcing into Africa, particularly Kenya, to benefit from duty differentials. The company has secured two new customers in Africa—one American and one European—with operations scheduled to commence in April 2027.

"Looking ahead at FY28, we seem to have a strong surge in demand from some newer customers as well as existing customers who want to diversify into Kenya," Ganapathi noted.

Additionally, the company is rebalancing its customer portfolio to prioritize clients and product categories that offer better profitability. Growth in business with European customers in India is expected to remain strong.

Within the domestic market, the company anticipates double-digit volume growth from FY28, with revenue growth expected to pick up pace starting from the third quarter of the current fiscal year.

For the second quarter of FY27, Gokaldas Exports reported a more than five-fold year-on-year increase in consolidated profit after tax (PAT) to ₹41 crore, compared to ₹8 crore in the corresponding period of the previous year. Sequentially, however, PAT declined by 6.8 percent from ₹44 crore in Q1 FY27. Total income grew 13 percent year-on-year to ₹1,135 crore during the quarter.

"Gokaldas Exports' planned capital expenditure of ₹450 to 500 crore reflects a clear strategic alignment with shifting global sourcing trends. As international buyers look to diversify manufacturing hubs—such as moving into Kenya for duty advantages—export-oriented businesses must scale infrastructure proactively to capture this demand. The company's focus on profitability, combined with rising customer traction and double-digit volume expectations, highlights the importance of agile capacity planning in navigating fluctuating international trade environments." — Dr. Shishir Gupta, Founder & CEO, StartupLanes