India Textile & Apparel Industry Performance Q1 FY26: Revenue Growth Without Margin Gains
The Wazir Textile & Apparel Index tracked 306 listed companies across the Indian textile and apparel sector against a FY16 base, benchmarking performance for the quarter ended June 2025. Total consolidated sales for all listed T&A companies reached Rs. 44,807 crore in Q1 FY26, up 4% from Rs. 43,216 crore in Q1 FY25. EBITDA margins, however, slipped 1 percentage point to 7%, signalling that revenue growth has not translated into improved profitability at the sector level.
Two Sectors, Opposite Trajectories
The divergence between textiles and apparel defined the quarter.
The Wazir Textile Index (WTI), tracking ten top textile companies, reported consolidated sales flat at Rs. 13,771 crore, a marginal 0.1% decline. Profitability held steady at an average 11% EBITDA. At the company level, results were uneven: Indorama Synthetic posted 36.4% sales growth while Welspun Living contracted 13.2%. Raw material costs as a share of sales remained high, averaging 59% across the textile cohort.
The Wazir Apparel Index (WAI), covering five top listed apparel companies, told a contrasting story. Consolidated sales rose 15% to Rs. 5,315 crore, driven particularly by PDS (up 14%) and Pearl Global Industries (up 17%). Gokaldas Exports grew 13%; SP Apparels, 35%. Despite strong topline momentum, average EBITDA margins compressed 1 percentage point to 6%, as raw material costs rose 2 percentage points to 67% of sales.
Export Context
India’s overall T&A exports grew 2% in Q1 FY26 to USD 9,165 million. Apparel led with 9% growth to USD 4,204 million, while upstream categories struggled: yarn fell 11%, fibre declined 22%, and filament dropped 27%. The USA, absorbing 28% of India’s T&A exports, itself saw overall T&A import demand decline 2%, though India’s share within that market grew 5% to USD 2.7 billion. The EU, a 21% destination, recorded 3% import growth with India’s shipments flat at EUR 2.0 billion.
India’s apparel manufacturers gained ground in a contracting US import market. The structural question for Q2 and beyond is whether that export momentum can offset the margin pressure building from rising input costs.
The full index covers financial performance of 306 listed T&A companies across Q1 FY16 to Q1 FY26, with company-level breakdowns, cost structure analysis, and macroeconomic indicators including IIP and WPI. Download the report for the complete quarterly benchmark.
