Five Indian textile stocks that could gain from US tariffs in 2025

The US government is preparing a fresh wave of import tariffs on garments and home textiles from key Asian manufacturing hubs like China, Vietnam, and Bangladesh.

While India will also be in the line of fire with a proposed 26% duty, that’s still lower than the 35–50% slabs expected for others. In the world of global sourcing, even a few percentage points can make a big difference.

That said, there’s a pause. These tariffs—though announced—are currently in a 90-day consultation window before they officially kick in.

Over the past few years, several Indian textile companies have quietly prepared for this moment. In a business where price, speed and reliability rule, these five names stand out.

Let’s take a look.

#1 Welspun Living

Welspun Living is India’s largest home textile exporter with a deep footprint in bed linen, towels, rugs and high-performance technical textiles.

It services global clients like Walmart, Target, and Costco and has recently strengthened its global brand presence through Christy and other licensed lines like Martha Stewart and Disney.

The company also operates a fully automated pillow factory in Ohio, which aligns with the “Make in America" narrative of the US administration.

Exports are a large part of Welspun’s business. For first nine months of FY25, home textile exports contributed nearly 92% of its core business revenue.

Total consolidated revenue for the period stood at ₹8000 crore, growing at 11.7% YoY. Welspun commands an 18% market share in bedsheets and is India’s leading towel exporter to America.

Welspun stands to benefit significantly with the US considering tariffs on textile imports from countries like Vietnam, China, and Bangladesh. Its India-to-US exports could gain as sourcing shifts away from tariff-hit geographies.

Moreover, its partial localisation strategy works well in its favour. The Ohio pillow plant not only helps meet local demand swiftly but also sidesteps tariff implications, giving it a structural edge over fully offshore competitors. 

Looking ahead, Welspun targets ₹15000 crore in revenue by FY27. For FY25, it aims to spend ₹860 crore in capex, of which ₹590 crore had already been spent by Q3FY25.

These are to scale up towel manufacturing in Anjar, expanding the footprint in advanced textiles and flooring and premiumising its global brand portfolio.

The Ohio plant, launched in September 2024, had already achieved 24% utilization by Q3FY25 and is expected to ramp up further, boosting both reach and profitability.

#2 Gokaldas Exports

Gokaldas Exports is one of India’s most prominent apparel manufacturers. The company supplies high-quality fashionwear, outerwear and sportswear to marquee brands across more than 50 countries.

North America remains the core revenue engine. In FY24, 80.8% of its total revenue came from exports to the US and Canada.

In the first nine months of FY25, the company shipped over 50 million pieces—more than double the 20.8 million pieces in the same period last year.

The management noted that Fall/Winter 2025 orders are already in production, with Spring/Summer 2026 also tracking strong.

With the US considering steep tariffs on apparel imports from countries, Gokaldas is structurally well-placed to benefit. The company is already seeing tailwinds from buyers looking to de-risk from politically unstable or high-cost markets.

While Vietnam may still attract China+1 orders, its wage cost ($300 a month) and fabric dependence on China remain concerns.

By contrast, Gokaldas operates with a cost-efficient base in India and Africa (via its Atraco acquisition) and is one of the few players capable of taking on large, complex orders from global brands. 

Looking ahead, Gokaldas is expanding aggressively. It has invested ₹930 crore in Atraco (Kenya, Ethiopia) and Matrix Clothing (India) to diversify products and customers.

On the organic front, new units in Madhya Pradesh, Karnataka and Jharkhand ( ₹350 crore combined) are underway, with Bhopal nearing full capacity. The Tamil Nadu plant will support in-house fabric processing. Together, these expansions could add ₹300+ crore in revenue by FY26.

#3 Faze Three

Faze Three is a home and technical textiles manufacturer with a sharp focus on export-led growth. The company offers a wide portfolio including floor coverings (like rugs and bathmats), outdoor performance textiles, cushions, curtains and blankets.

It caters to large global retailers such as Walmart, Target, M&S, and Zara Home. It exports over 90% of its production, of which nearly 65% is to the US.

If the US imposes tariffs Faze Three could still gain market share. This is especially true in polyester-heavy segments like floor coverings and outdoor fabrics, where China has traditionally dominated.

The company should benefit further if trade barriers widen, given that rising customer preference for non-China sourcing has already led to growing order volumes.

In the last five years, Faze Three has invested ₹240 crore in new product lines in all locations. 

Looking forward, the management expects FY25 revenue to grow 15–18% on the back of utilisation ramp-up and operating leverage boosting margins by FY26.

Moreover, Faze Three has no long-term debt since 2018 and retains a good credit rating which is critical as it gears up for the next phase of export-driven growth.

#4 Indo Count

Indo Count Industries is one of the world’s leading bed linen manufacturers and among the top three suppliers of sheets to the US market.

The company operates integrated manufacturing facilities in Maharashtra and Gujarat, with a total capacity of 153 million meters. Its portfolio spans premium bed sheets, fashion and utility bedding, quilts and institutional products, catering to both B2B and B2C segments globally.

Exports account for over 97.5% of the company’s revenue as of 9MFY25, with the US continuing to be its largest market.

In FY24, Indo Count recorded total income of ₹3,600 crore, up 18% YoY. In 9MFY25 alone, it clocked ₹31 bn in revenue and sold 80.8 million meters of fabric, aiming to close FY25 at the lower end of its 100–115 million meter volume guidance.

The recent acquisitions of US-based Fluvitex, Modern Home Textiles and the iconic Wamsutta brand contributed ₹1 bn in Q3 alone. Indo Count expects these new businesses to add US$ 275 m in revenue over three years.

If the US proceeds with tariffs, Indo Count could still gain. Its US-centric portfolio, legacy retailer relationships, and now a local manufacturing presence in North Carolina (via Indo Count Global East Inc.) give it a strategic edge. The new US plant is set to manufacture 18 million pillows annually starting September 2025, taking total US output to 31 million pillows and 1.5 million quilts. 

Over the last two years, Indo Count has invested over ₹10 bn across spinning, brownfield expansion and acquisitions, including integrating GHCL’s home textile unit and setting up a modern 68,000-spindle facility.

It is now focused on returns from these assets and sharpening execution across the value chain.

With scale, brand-led growth and omnichannel expansion, including in-house brands like Boutique Living and Layers, Indo Count is not just defending its global turf but doubling down on it.

#5 K.P.R. Mill

K.P.R. Mill Ltd is one of India’s largest vertically integrated apparel exporters, with a “fibre-to-fashion" model spanning cotton and viscose yarns, processed fabrics, knitted garments and renewable energy.

Headquartered in Coimbatore, KPR runs 12 advanced manufacturing facilities with over 30,000 employees—90% of whom are women—and supplies high-fashion apparel to global retailers in over 60 countries.

Exports for the company accounted for a significant revenue share, with Europe and North America contributing 55% and 22% respectively in 9MFY25.

US tariffs on imports may still benefit KPR in relative terms, thanks to its high degree of backward integration. This allows it to keep costs competitive.

Moreover, its scale in outerwear and cotton-based apparel gives it an edge in categories where China and Vietnam currently dominate. 

KPR has undertaken several strategic expansions, to sustain momentum. The company invested over ₹1000 crore in recent years to build new vortex spinning capacity and modernise its spinning division. It also installed 193 MW of renewable energy capacity to cover most of its textile power needs.

Meanwhile, KPR’s branded innerwear and athleisure label FASO which is made with 100% organic cotton is being scaled from South India to a pan-India footprint.

Despite a tough FY24 for the sector, KPR maintained stable profitability and rewarded shareholders with a 500% dividend payout, signalling confidence in its fundamentals.

With low leverage and strong cash flows, KPR Mill is positioning itself not just as a textile exporter, but as a resilient, diversified, future-facing enterprise.

Conclusion

The anticipated shift in global sourcing—driven by rising US tariffs on China, Vietnam and Bangladesh—could be a turning point for India’s textile exporters.

For these companies, it isn’t just about filling the gap—it’s about scaling up, premiumising and building resilient global supply chains.

These businesses have already laid the groundwork through vertical integration, local presence in the US and value-added capacity. If they continue executing well—on utilisation, cost control, and customer stickiness—they could turn this geopolitical tailwind into a structural advantage.

That said, investors should remain mindful of volatility in cotton prices, forex swings and global retail demand. While the opportunity is real, so are the risks. Staying updated on trade policy shifts and company-level execution will be key.

For long-term investors, this could be the right time to track these names more closely—because when the global needle moves, the best-positioned players tend to move with it.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com