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Gokaldas Exports Ltd

| Quarterly Financial Results Q3 FY 2025-26

BEARISH SENTIMENT

Report Source

⬤31st Jan 26

Summary : Gokaldas Exports reported a significant decline in consolidated profits and EPS for Q3 and 9M FY26, while progressing with the amalgamation of BRFL Textiles Private Limited and evaluating new labor code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Cost of Materials Consumed (Q3 Dec 2025): Rs. 51,425.25 lakhs.
  2. Consolidated Employee Benefits Expense (Q3 Dec 2025): Rs. 34,956.77 lakhs (includes Rs. 328.43 lakhs one-time impact from new Labour Codes).
  3. Consolidated Finance Costs (Q3 Dec 2025): Rs. 2,400.27 lakhs.
  4. Consolidated Depreciation and Amortisation Expense (Q3 Dec 2025): Rs. 4,628.92 lakhs.
  5. Standalone Employee Benefits Expense (Q3 Dec 2025): Rs. 23,229.50 lakhs (includes Rs. 314.42 lakhs one-time impact from new Labour Codes).
  6. Consolidated Revenue from Operations (Q3 Dec 2025): Rs. 97,865.14 lakhs.
  7. Consolidated Revenue from Operations (9M Dec 2025): Rs. 2,91,879.11 lakhs.
  8. Standalone Revenue from Operations (Q3 Dec 2025): Rs. 67,167.77 lakhs.
  9. Standalone Revenue from Operations (9M Dec 2025): Rs. 1,99,775.34 lakhs.
  10. Corporate guarantees amounting to Rs. 275 crores extended to financial institutions on behalf of BRFL Textiles Private Limited.
  11. Paid-up Equity Share Capital (Consolidated & Standalone): Rs. 3,662.00 lakhs (face value Rs 5 each).
  12. Consolidated Other Equity (Mar 31, 2025): Rs. 2,04,494.58 lakhs.
  13. Standalone Other Equity (Mar 31, 2025): Rs. 2,10,919.21 lakhs.
  14. Investment in Optionally Convertible Debentures of BRFL Textiles Private Limited.
  15. Corporate guarantees extended on behalf of BRFL Textiles Private Limited.
  16. Acquisition of equity interest in BRFL Textiles Private Limited.
  17. Consolidated Net Profit (Q3 Dec 2025): Rs. 1,461.31 lakhs vs. Standalone Net Profit: Rs. 3,946.55 lakhs.
  18. Consolidated EPS Basic (Q3 Dec 2025): Rs. 2.00 vs. Standalone EPS Basic: Rs. 5.39.
  19. Standalone results show higher net profit and EPS compared to consolidated for Q3 Dec 2025.

Corporate Overview

  1. India (Holding Company)
  2. UAE (Subsidiaries: Gokaldas Exports FZCO, Amibros S.A, Atraco Logistics LLC, Nava Apparels LLC-FZ)
  3. Kenya (Subsidiary: Ashton Mombasa Apparel EPZ Limited)
  4. Ethiopia (Subsidiary: Ashton Apparel Manufacturing Limited)
  5. USA (Subsidiary: Gokaldas Exports Corporation)
  6. Assessing the financial impact of new Labour Codes on employee benefits.
  7. Primarily engaged in the manufacture and sale of apparels.
  8. Factual reporting of financial results and corporate actions.
  9. No separate reportable segments as per Ind AS 108.
  10. Subscribed to Optionally Convertible Debentures in BRFL Textiles Private Limited for Rs. 17,500 lakhs.
  11. Acquired 19% equity interest in BRFL Textiles Private Limited for Rs. 7,199.06 lakhs.
  12. Board approved scheme of amalgamation of BRFL Textiles Private Limited with the Company, pending regulatory approvals.

Risk Factors

  1. Consolidated profits and EPS declined significantly.
  2. Negative other comprehensive income reported.
  3. Uncertainty from new labor code rules.
  4. Corporate guarantees for associate company.

Key Drivers

  1. Amalgamation of BRFL Textiles Private Limited.
  2. Strategic investment in textile sector.
  3. Potential long-term synergy benefits.
  4. Evaluation of new labor code impact.

Auditor’s Report

  1. Limited Review Report for both consolidated and standalone financial results.
  2. Auditors do not express an audit opinion.
  3. Consolidated results include unaudited financial results of three subsidiaries, which were not subject to review, but deemed immaterial to the Group.

Board Commentary

  1. Financial impact of new Labour Codes on employee benefits.
  2. New Labour Codes (Code on wages 2019, Social Security 2020, Industrial Relation Code 2020, Occupational Safety, Health and Working Condition Code 2020) impacting employee benefits.
  3. Subscribed to OCDs of BRFL Textiles Private Limited for Rs. 17,500 lakhs.
  4. Extended corporate guarantees of Rs. 275 crores on behalf of BRFL Textiles Private Limited.
  5. Acquired 19% equity interest in BRFL Textiles Private Limited for Rs. 7,199.06 lakhs.

Corporate Governance

  1. Audit Committee reviewed the financial results.

Management Discussion & Analysis

Future Strategy

  1. Pursuing amalgamation of BRFL Textiles Private Limited with the Company.

Operational Focus Areas

  1. Evaluating the full impact of new Labour Codes on employee benefits.

Risk Control Measures

  1. Company is evaluating the impact of new Labour Codes as rules are notified.

Critical Risks

  1. Uncertainty regarding the complete financial impact of new Labour Codes.