Shares of textile companies were in focus on Wednesday after the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announced sweeping rate rationalisation. The new structure simplifies slabs into 5% and 18%, while introducing a special 40% slab for luxury and sin goods. The changes will take effect from September 22, 2025.
GST impact on textiles
The council cut GST on man-made fibre from 18% to 5% and reduced tax on man-made yarn from 12% to 5%. Yarn and sewing thread made from man-made filament will also attract 5%. Finished textile products such as carpets, rugs, bath linen and apparel priced up to Rs 2,500 per unit will now be taxed at 5%, down from 12%.
The rate cuts are expected to ease input costs across the textile value chain, boosting profitability for listed players like Welspun Living, Indo Count, KPR Mills, Gokaldas Exports, Vardhman Textiles and Nitin Spinners.
Stock performance snapshot
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KPR Mill Ltd: Shares edged up 0.43% to Rs 1,000.75, compared to the previous close of Rs 996.45. The stock has a market cap of Rs 33,874 crore and a 52-week range of Rs 755.50 to Rs 1,389.
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Gokaldas Exports Ltd: Shares rose 0.79% to Rs 742, up from the previous close of Rs 736.20. The company’s market cap stands at Rs 4,940 crore, with a 52-week range of Rs 668.10 to Rs 1,262.15.
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Nitin Spinners Ltd: Shares gained 0.64% to Rs 336 from a previous close of Rs 333.85. The stock has a market cap of Rs 1,937 crore and trades in a 52-week range of Rs 290.50 to Rs 494.35.
Outlook
The GST reduction on raw materials and finished goods is expected to improve margins and consumer demand across the textile sector. Analysts believe the move could support volume growth and enhance competitiveness of Indian exporters.