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Gokaldas Exports indicated that retail demand across the US and Europe remains good

ICICIdirect Research 31 Aug 2026 DISCLAIMER

News: As per recent interview on media, Gokaldas Exports indicated that retail demand across the US and Europe remains good, although month-on-month growth has started to moderate, while the company has secured orders until Q3 and is already evaluating orders for summer 2027. Management expects Gokaldas to grow 15–20% this year, with BRFL expected to contribute ~₹400 crore revenue in FY27 and ₹1,200+ crore in FY28, taking consolidated revenue towards ₹6,000 crore by FY28. Margins are expected to improve to ~12% in H2FY27 as discounts offered during the 50% tariff period will not recur, while consolidated debt is expected to peak at ₹800–850 crore post the BRFL merger before declining to below ₹500 crore and potentially ₹250–300 crore by FY29.

View: We remain positive on Gokaldas Exports, supported by improving competitiveness of the India business, strong order visibility and a favourable growth outlook for Africa. India is benefiting from better tariff positioning, higher customer placements, improved realisations/product mix, productivity gains and ramp-up of capacities, while Africa’s strong H2 order traction, improving utilisation and second-shift operations should drive it towards a US$30mn quarterly revenue run-rate. We expect these factors to support ~15% consolidated revenue growth in FY27, with Africa revenue visibility at US$112–115mn; potential AGOA extension could further support order flows. Consolidated EBITDA margins, which stood at 9.3% in Q1FY27, should gradually recover above 10%, with Africa margins expected to turn double-digit by Q4FY27/early Q1FY28, although elevated freight/logistics, fuel and chemical costs and shipment delays remain near-term headwinds. We expect revenue/PAT to grow at a CAGR of 17%/92% over FY26–28E

Impact: Positive

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