Textile Industry Check - Demand Revival To Spur Growth In The Sector: Systematix

Systematix Report

We hosted representatives from eight companies and one industry expert at our insightful Textile conference. Companies’ optimism on the demand environment could be attributed to-

1. normalization of apparel channel inventory at the global retailer level,

2. increased traction in the home textiles segment,

3. stable commodity prices, and

4. Bangladesh +1 - shift in orders from Bangladesh to India, given the ongoing political turmoil there.

Demand revival at key textile hubs of Tirupur and Surat has led to capacity utilization increasing to more than 90%. Order visibility has soared, evident from the companies’ robust bookings for the next two quarters.

The government is likely to resume discussions on Free Trade Agreement (FTA) with the UK in the coming new year. We believe FY26 could be robust for India’s textile sector. Companies that have expanded capacities in last 12 months or committed to expansion capex would benefit from the surge in demand from Bangladesh +1 strategy.

We maintain our positive stance on the sector

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