Sivaramakrishnan Ganapati, Vice-Chairman and Managing Director, Gokaldas Exports
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Shares of Gokaldas Exports fell nearly 4.92 per cent in Monday’s trade after the company reported a sharp 71 per cent year-on-year decline in profit after tax (PAT) for Q3FY26. Addressing investors after the results, Vice-Chairman and Managing Director Sivaramakrishnan Ganapati said the company’s performance during the quarter was significantly impacted by steep US tariffs, resulting in an estimated impact of around ₹40 crore.
He added that US-based brands are increasingly hesitant to build inventory at higher tariff levels, and may be factoring in weaker consumer demand in 2026. In contrast, imports from the EU and the UK recorded higher growth in the January–November 2025 period than in the same period last year. Looking ahead, Ganapati said the company has good visibility on its order book for both its India and Africa operations in the coming quarters.
Margin pressure
On margins, he cautioned that the reciprocal tariffs imposed by the US on India are likely to continue impacting performance in the next quarter as well. “Any positive outcome from a US-India trade agreement will, of course, help offset this impact,” he said, adding that the Africa business is beginning to see some tailwinds.
Africa operations
The company’s Africa operations, however, were impacted in Q3 by the expiry of the African Growth and Opportunity Act (AGOA), which led to a dip in orders and revenues from the region. This was compounded by supply chain disruptions that affected operations in the quarter. Ganapati noted that the imposition of incremental reciprocal tariffs on Asian countries from August 2025 has since restored Africa’s relative tariff advantage.
Margin recovery
From Q4 onwards, the company expects margin improvement in its Africa business, supported by a stronger order book. This improvement is driven by higher reciprocal tariffs of up to 20 per cent on Asian countries, while tariffs on African exports remain at around 10 per cent.
Over the longer term, Ganapati said free trade agreements with the EU and the UK are expected to provide structural benefits. “Until those materialise, we expect a degree of status quo, with improvements largely coming from internal efficiency measures,” he said.
Bangladesh watch
Providing an update on Bangladesh, Ganapati said the company continues to utilise subcontracting relationships in the country. However, any direct investment in Bangladesh would be considered only after greater clarity emerges on the macroeconomic situation.
“There is an election expected in February, and we will take a call after assessing how the situation evolves post that,” he said.
Published on February 2, 2026
