In its report, Emkay Global said India has lost market share in the global apparel trade, which has been stagnant at 3-4% over the past 15 years. However, it believes that the sector may soon see a turnaround led by a strengthening domestic MMF ecosystem, free trade agreements (FTA) with major economies, 7-8% US tariff gap compared to China, favourable regulatory taxes, robust corporate balance sheets and the fastest-growing domestic apparel market.
The brokerage highlighted that Indian textile and apparel manufacturers have largely emerged unscathed from multiple shocks like the COVID-19 pandemic, Russia-Ukraine war, hostile US tariffs and more. “We believe the ongoing West Asia crisis, too, will have a short-term impact on margins (higher energy, logistics costs), which should see a sharp recovery on attaining normalcy. Backed by a robust domestic market, favourable USD-INR rate, and a strong balance sheet, we believe domestic players would be able to absorb future shocks too,” it said.
Emkay called spinners an attractive category, citing several tailwinds. USDA has said that global cotton demand will outpace supply in the upcoming season as cotton production is likely to be hit by the mega El Nino impact, lower water reservoir levels and other factors. This has already resulted in rising cotton prices. “Given the likely global cotton shortage, we expect yarn spreads to at least be rangebound at current levels in the near term,” Emkay said.
Also read: Time for a relook at textile sector as tariff tantrum may soon be history?
Technical textiles, meanwhile, are the sunrise segment, according to the brokerage. These textiles find use in packaging materials, defence uniforms or equipment, auto interiors, industrial ropes and nets, etc. They enjoy superior operating margins of 15-30%. “Technical textiles’ domestic market size saw 7-8% CAGR over FY20-26P; we expect this to increase to early-double digits over the next 5Y, mainly on the back of 1) multiple FTAs; 2) tariff differential vs China; 3) ecosystem boost led by PLIs and PM MITRA parks; and 4) GST cuts on MMF fibers and yarns to 5% (from 12%),” Emkay said.
Emkay on Arvind share price
Emkay initiated coverage on Arvind shares with a ‘Buy’ call and a target price of Rs 700 apiece. This implies an upside potential of nearly 42% from the stock’s previous closing price of Rs 493.70 apiece on NSE.
The shares of the company have gained 5% in one week, 15% in one month and 57% in 2026 so far, bucking the overall market downtrend.
Emkay on Nitin Spinners
Nitin Spinners also got a ‘Buy’ rating from Emkay, which assigned a target price of Rs 750 apiece for the stock. This implies an upside potential of 40% from the previous closing price.The shares of Nitin Spinners have jumped 6% in five days and 12% in one month. The stock overall gained 69% in 2026 so far.
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Emkay on Sanathan Textiles
Emkay has a ‘Buy’ call for the shares of Sanathan Textiles, with a target price of Rs 550 apiece. This implies an upside potential of 39% from the previous closing price.
The shares of the company tumbled more than 9% in one month, and are down 5% in 2026 so far.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
