• Raw material pricing: The relaxation of cotton import duties helps cool yarn prices that surged over 25%, enhancing export competitiveness as fabric cost fluctuations are typically passed on to buyers.
• US tariff exposure: The company bore a net tariff cost of ₹90 crore (₹140 crore gross) in the prior financial year, and management expects a potential 18% tariff under a US-India trade deal to maintain a level playing field against competing nations.
• EU trade agreement: The proposed EU free trade agreement is expected to be ratified around mid-2027, meaning meaningful top-line and business contributions will only materialize in FY28 and beyond.
• Capex and deleveraging: Free cash flows will be directed toward debt reduction as past investments bear fruit, though working capital debt may temporarily rise due to the BTPL amalgamation before declining sharply from FY28.