He said growth momentum is likely to strengthen from the financial year 2027–28 (FY28) as new sourcing cycles and customer demand trends fully reflect in order flows. Ganapathi said, “And 2027-28 will be about 15% over 2026-27. That is the kind of revenue growth we are expecting.”
US buyers had slowed sourcing due to high tariff levels earlier, but demand is now starting to return.
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The company managed to retain business during the high tariff period by sharing part of the tariff burden with customers, which impacted margins. However, he said brands are now looking to increase sourcing from India again as tariff pressure reduces.
He added that most orders for the first two quarters of the next financial year are already booked, with visible improvement expected from the third quarter onward.
Ganapathi said margin recovery is expected as tariff sharing reduces.
He said, “Margins will return. So, EBITDA will grow.”
He said the current quarter may still reflect some tariff impact, but improvement should begin from the next quarter as new order cycles reflect lower tariff levels.
He said Europe now contributes around 16–17% of revenue, up from about 13% earlier. The increase came from diversification efforts and the onboarding of new EU customers.
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Ganapathi said the EU free trade agreement is expected to support long-term expansion, with revenue growth expected to strengthen from the second half of 2026-27.
Ganapathi said Bangladesh continues to have tariff advantages in some markets, but India remains competitive in product categories supported by the fabric ecosystem and faster production cycles.
He added that government trade negotiations could help create a level playing field over time.
He expects capital expenditure of around ₹175 crore over the next two years, with flexibility to increase depending on demand trends. It is also evaluating inorganic opportunities, including factory acquisitions in new markets.
Ganapathi said trade agreements and tariff normalisation could support job creation and export growth in textiles over the next few years.
The company, which has a current market capitalisation of ₹5,855.53 crore, has seen its shares lose more than 10% over the last year.
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