Archive · 26 Aug 2026
Textile Firms Mount Smart Comeback as FY27 Outlook Strengthens
Textile companies make products such as clothes, yarn, and home furnishings.
In the first quarter, apparel sales grew by more than 20% compared with last year.
Spinning companies also saw their revenues rise by 15% to 20%.
More demand for yarn from China helped these companies.
Yarn prices may stay strong because China is expected to produce less cotton and restrictions affect Xinjiang cotton.
Home textile companies could benefit as buyers look for suppliers outside Bangladesh and Vietnam.
India may become more attractive if its trade agreements with the UK and EU provide benefits.
Lower tariffs in the United States could also help Indian textile exporters.
Apparel companies recorded year-on-year growth of more than 20% in the first quarter.
Spinning revenues increased 15-20%, supported by stronger yarn demand from China.
Yarn realizations benefited from increased demand, while prices are expected to remain firm.
Home textile companies may gain as global buyers diversify sourcing beyond Bangladesh and Vietnam.
India’s expected free trade agreements with the UK and EU, plus US tariff competitiveness, could support future growth.
- Who
- Textile companies, including apparel, spinning, and home textile firms.
- What
- The sector recorded strong first-quarter growth and expects further improvement in FY27.
- When
- In the first quarter, with expectations focused on FY27.
- Where
- India, China, the United States, the UK, the EU, Bangladesh, and Vietnam are referenced in connection with production, sourcing, and trade.
- Why
- Improved demand, stronger order visibility, increased Chinese yarn demand, firm cotton-related pricing, sourcing diversification, and potential trade and tariff advantages are supporting the outlook.
- Apparel growth
- More than 20% year-on-year in the first quarter.
- Spinning revenue growth
- 15-20% year-on-year.
- Demand driver
- Increased yarn demand from China.
- Price outlook
- Prices are expected to remain firm.
- Cotton factors
- Lower cotton production in China and restrictions on Xinjiang cotton are cited as supports.
- Sourcing shift
- Global buyers are expected to look beyond sourcing bases such as Bangladesh and Vietnam.
- Trade support
- Expected FTAs with the UK and EU and tariff competitiveness in the US could benefit Indian firms.