• EBITDA margin impact: Vaibhav Global expects every 5% depreciation in the rupee to deliver a 0.5% EBITDA margin improvement, as dollar-denominated revenues outpace rupee-based domestic operating expenses.
• FX hedging approach: Exporters are maintaining minimal hedging positions, relying instead on natural hedges from dollar-based raw material purchases and quarter-by-quarter pricing adjustments with customers.
• US tariff relief: The normalization of US tariffs on Indian apparel shipments from a prohibitive 50% down to a uniform 10% has significantly boosted competitiveness against other global manufacturing hubs.
• Energy inflation risks: Management warned that rising gas and oil prices driven by geopolitical tensions in the Middle East represent the primary threat to western consumer sentiment and demand.