Textile sector at a glance
India’s textile and apparel industry was valued at roughly ₹16.66 lakh crore in FY26. The government aims to grow this industry to around ₹33 lakh crore by 2030. Exports are a major part of this industry. India exported textiles, apparel and handicrafts worth ₹3.16 lakh crore in FY26. Markets like Japan, Spain, Germany, the UK, Sudan, Senegal, Egypt, and the UAE account for more than half of the exports.
Government initiatives also support the textile industry’s manufacturing. The Production Linked Incentive (PLI) scheme has an outlay of ₹10,683 crore for selected man-made fibre apparel, fabrics and technical textiles.
The government also approved 7 PM Mitra textile parks, with an allocation of ₹4,445 crore. These parks aim to bring together activities such as spinning, weaving, dyeing and garment-making.
There are some challenges as well in the textile sector. Exports can slow down if tariffs hike or shipping costs increase. Textile companies also depend on raw material prices and customer demand.
Overview of the top 5 textile stocks
These textile stocks belong to companies that make different products and serve different customers. Here’s a quick look at their fundamentals:
Textile stocks are shares of companies involved in the business of making products such as yarn, fabric, clothing or bedsheets. Some companies sell finished products under their own brand names, while others supply fabric or yarn to clothing manufacturers.
Selling textile products involves more than manufacturing. Companies have to manage raw materials, factory output and customer orders. They also compete with other manufacturers and brands.
For example, a retail store selling you a piece of clothing and the clothing company buying fabric from a textile manufacturer are both parts of the same industry. That’s why textile stocks can perform differently even when they belong to the same industry.
Textile sector at a glance
India’s textile and apparel industry was valued at roughly ₹16.66 lakh crore in FY26. The government aims to grow this industry to around ₹33 lakh crore by 2030. Exports are a major part of this industry. India exported textiles, apparel and handicrafts worth ₹3.16 lakh crore in FY26. Markets like Japan, Spain, Germany, the UK, Sudan, Senegal, Egypt, and the UAE account for more than half of the exports.
Government initiatives also support the textile industry’s manufacturing. The Production Linked Incentive (PLI) scheme has an outlay of ₹10,683 crore for selected man-made fibre apparel, fabrics and technical textiles.
The government also approved 7 PM Mitra textile parks, with an allocation of ₹4,445 crore. These parks aim to bring together activities such as spinning, weaving, dyeing and garment-making.
There are some challenges as well in the textile sector. Exports can slow down if tariffs hike or shipping costs increase. Textile companies also depend on raw material prices and customer demand.
Overview of the top 5 textile stocks
These textile stocks belong to companies that make different products and serve different customers. Here’s a quick look at their fundamentals:
Disclaimer: The stocks listed above are selected based on market capitalisation. The information is provided for educational and informational purposes only and should not be considered investment advice.
Page Industries
Page Industries makes innerwear, sportswear and athleisure products. Its brands include Jockey and Speedo. The company holds the exclusive licence for Jockey in India and several nearby markets. It has 16 manufacturing units with a total annual production capacity of 250 million pieces. Products reach customers through brand stores, other retailers and online platforms. The challenge for Page Industries is to keep its products in demand while managing manufacturing and distribution costs.
K P R Mill
K P R Mill makes yarn, fabric and knitted garments. It also has a business in sugar, ethanol and renewable power. In FY25, the company showcased an annual capacity of 1 lakh tonnes of yarn and 177 million knitted garments. Its facilities cover several stages of production, including fabric processing and printing. Making both yarn and finished garments gives K P R Mill customers across different parts of the textile supply chain.
Welspun Living
Welspun Living makes home textile products, including bedsheets, towels and rugs. It sells these products in India and overseas. Home textiles contributed around 70% of its revenue in FY25. It has an annual capacity to produce 90,000 tonnes of bath linen and 108 million metres of bed linen. Welspun’s sales depend on orders from retailers and demand for home products.
Vardhman Textiles
Vardhman Textiles manufactures yarn and fabric used in clothing and other products. It supplies to customers in India and abroad. The company has a weaving capacity of 220 million metres and fabric processing capacity of 180 million metres a year. It also produces synthetic fabrics. Vardhman’s sales depend on demand from garment makers and other fabric buyers. Weak orders can leave factories underused and put pressure on earnings.
Arvind Limited
Arvind Limited is known for denim and woven fabrics. It also makes garments, knitted fabrics and fire-protection fabrics. The company has an annual production of more than 50 million metres of denim, 200 million metres of woven fabric and 74 million garments. The company also makes technical textiles for customers who need specialised fabrics for industrial use. Its demand drops when clothing brands change their styles or cut orders.
How to pick the right textile stocks?
Before choosing textile stocks, the factors that need to be considered include:
- Product mix: Check whether the company mainly makes yarn, fabric, garments or home textiles. Demand and pricing can differ across these categories.
- Raw materials cost: Cotton and polyester prices affect manufacturing costs. Check whether the company can manage these changes without losing customers or hurting its margins.
- Export markets: Find out which countries account for a large share of sales. A company that depends heavily on one market may be affected if orders fall or trade rules change.
- Factory utilisation: Compare actual production with installed capacity. If a company regularly produces much less than it can, weak demand or operational issues may be holding it back.
- Customer base: Check whether sales depend on a few large buyers or come from a wider group of customers. Losing a major order can have a bigger impact on companies with limited buyers.
- Demand for products: Look for changes in sales volumes and new orders. Revenue growth should come from new orders rather than price increases.
The bottom line
Textile companies are affected by several things outside their control. Cotton prices can change, overseas buyers can reduce orders, and fashion trends can shift quickly. Even companies making similar products may report different results because their customers and product mix are different.
Investing in individual textile stocks requires thorough understanding of the company’s business and financials. Alternatively, you can consider investing in a mutual fund with exposure to textile businesses. You can compare different schemes on the Millions app and start an SIP in a suitable fund. Make sure to check the fund’s holdings, costs and risk level involved before investing.
