India’s textile and apparel sector showed mixed results in FY25, with growth momentum visible in sales but profit metrics showing a more restrained pace. Insights from the latest Wazir Textile Index (WTI) and Wazir Apparel Index (WAI) reflect the industry's post-pandemic recalibration, grappling with input cost pressures and demand realignments.

Textile sector sees modest uptick, margin pressures persist

The Wazir Textile Index (WTI) for FY25 indicates a stable yet cautious revival. The WTI sales index saw a 7 per cent rise over FY24, and the EBITDA index also improved by 6 per cent, highlighting moderate recovery across major players. However, while the consolidated sales of leading textile firms which included Vardhman Textiles, Welspun Living, Arvind, Trident Group, Filatex India, RSWM KPR Mill, Indorama Synthetics, Indo Count and Nahar Spinning Mills rose by 6 per cent, EBITDA margins remained stagnant, indicating that profitability hasn’t kept pace with revenue growth.

Quarterly trends further underscore this margin stress. In Q4 FY25, the consolidated sales of top textile companies grew by 5 per cent year-on-year. But a notable decline in EBITDA margin—down by 0.4 percentage points—signaled continued pressure from rising operational costs and possibly subdued pricing power in global markets.

Apparel sector grows in volume, slips in profits

The apparel sector showed a contrasting picture, with good sales growth overshadowed by weak margins. According to the Wazir Apparel Index (WAI), FY25 recorded a 22 per cent increase in the sales index, while the EBITDA index dipped by 3 per cent, reflecting rising costs or tighter pricing strategies. The consolidated sales of select top apparel companies the list includes PDS, Pearl Global Industries, Gokaldas Exports, SP Apparels and Kitex Garments, jumped by 23 per cent year-on-year, but EBITDA margins slid by 0.2 percentage points.

The fourth quarter of FY25, however, brought some reprieve. Sales of leading apparel companies rose by 17 per cent compared to Q4 FY24, and the EBITDA margin improved slightly by 0.2 percentage points. This marginal recovery may be linked to easing input costs, better inventory management, or stronger demand in domestic and select export markets.

Revenue recovery meets margin caution

When viewed holistically, the consolidated performance of all listed textile and apparel companies in FY25 reflects a growth narrative tempered by cost pressures. Total consolidated sales across the sector rose by 8 per cent over FY24, a sign of demand stabilization and potentially improved export orders. However, consolidated EBITDA across these firms dropped by 0.5 percentage points. This reflects a challenge in maintaining profits amidst volatile raw material prices and shifting consumer preferences.

Cautious optimism amid structural realignments

The divergent performance between the textile and apparel segments suggests that while the value chain is bouncing back in terms of volume, cost containment and profitability optimization remain critical challenges. Going forward, sustained demand—both domestic and international—alongside softening cotton prices and greater efficiency in production processes, will be key to supporting EBITDA recovery.

Overall, FY25 has been a year of consolidation and cautious optimism for India’s textile and apparel sector. As global supply chains continue to rebalance, the industry’s ability to navigate cost volatility while scaling up value-added product offerings will determine its growth path in FY26 and beyond.