As the UK and India move closer to finalizing a Free Trade Agreement (FTA), textile stocks with strong export exposure are gaining attention. Companies like Indo Count Industries (Maharashtra, India), KPR Mills (Tamil Nadu, India), and Vardhman Textiles (Punjab, India) stand to benefit from tariff-free access to the UK market. However, with current valuations already high, analysts suggest a cautious approach until the deal is fully implemented and export demand trends become clearer.
India is nearing the final stages of signing a Free Trade Agreement (FTA) with the United Kingdom, a move that could reshape the future of its export-driven textile sector. The UK, which is India’s fourth-largest export destination for textiles and apparel, currently imposes tariffs of 8–12% on Indian products. If removed under the new deal, these tariffs would give Indian exporters a competitive edge over countries like Bangladesh, China, and Turkey.
Amid this shift, three major listed textile firms — Indo Count Industries from Maharashtra, KPR Mills from Tamil Nadu, and Vardhman Textiles from Punjab — are emerging as key beneficiaries. Each of these companies has a strong global presence and is well-positioned to scale exports to the UK if the FTA becomes law.
Indo Count Industries – Maharashtra, India
Indo Count is India’s largest bed linen exporter and ranks among the top three globally in the home textile category. With more than 70% of its revenue from the US, the company also exports to over 50 countries, including the UK and Europe, which contribute about 12% to total sales. The firm recently reported a 26% YoY rise in total income to ₹31.6 billion in the first nine months of FY25, driven by strong volume growth.
Despite a 5% drop in net profit due to higher shipping costs and new investments, Indo Count plans to double its revenue by 2028 through expansion in branded offerings and new geographies. A new facility in North Carolina, USA, is expected to start generating $90 million annually by September 2025.
KPR Mills – Tamil Nadu, India
KPR Mills is one of India’s largest integrated textile companies, with end-to-end operations from yarn to garments. It exports to over 60 countries, with 36% of its revenue coming from exports. Of that, over half is from Europe, which includes the UK.
In 9MFY25, the company posted revenue of ₹46.2 billion, up 6% YoY, with garment sales rising 17%. Though margins dipped slightly due to lower ethanol sales, net profit still rose 3.2% to ₹6.1 billion. KPR is currently expanding its garment capacity by 30 million pieces, which could further boost its exports as trade barriers fall under the FTA.
Vardhman Textiles – Punjab, India
Vardhman Textiles holds a leading position in cotton yarn, woven fabrics, and acrylic fiber. With 1.2 million spindles and a massive fabric production capacity, it is India’s largest yarn spinner. The company exports to 62 countries, with exports making up 41% of its revenue.
In FY25, revenue rose 3% to ₹97.8 billion, while net profit jumped 39% to ₹8.9 billion, aided by better margins and lower input costs. Vardhman is also expanding into synthetic and technical textiles and expects a 10% revenue increase in FY26, followed by 30% in FY27.
Outlook
While the India–UK FTA promises tariff benefits for exporters, especially in the textile sector, many of these stocks already trade at high valuations. Indo Count trades at a PE of 19x (vs a 10-year median of 13x), KPR Mills at 55x (vs 18x), and Vardhman at 16x (vs 10x). Given this, investors may prefer a “wait and watch” approach until more clarity emerges on the agreement’s implementation and the resulting export demand.
