India’s home textile exports rise 10% in 9M FY2025: ICRA

The sector is gaining traction on the back of resilient global demand, a strategic shift by international buyers under the China Plus One policy, and inventory restocking by major global retailers, as per a recent report by ICRA. Industry revenues are projected to rise by 7–9 per cent in FY2025 and by 6–8 per cent in FY2026, with operating profit margins expected to remain between 13–15 per cent. The performance momentum is likely to sustain, supported by gradual inventory liquidation at retailer levels and benefits from the vendor diversification strategy.

The United States remains the largest market for Indian home textile exports, accounting for 59 per cent of the market in FY2024 and 56 per cent in the first nine months of FY2025. However, medium-term growth remains sensitive to tariff-related developments in the US and progress on free trade agreement negotiations with the UK and the EU, the report noted. In terms of product segments, carpets, floor coverings, and bed, table, toilet, and kitchen linens recorded a robust 13 per cent year-on-year growth in 9M FY2025. This was attributed to heightened consumer focus on personal well-being and home aesthetics. Other categories, such as blankets and general furnishing articles, saw more subdued growth.

While US retail sales in furniture and home furnishing stores declined by 2 per cent year-on-year in calendar year 2024 due to weak demand, signs of recovery emerged in Q4 CY2024, with sales growing by 5.5 per cent year-on-year.

ICRA’s sample of four companies — representing around 50 per cent of the industry’s size — saw a 14 per cent year-on-year increase in revenues in FY2024, driven by export volume growth, strong domestic demand, and select inorganic expansions. However, this pace moderated to 8 per cent in 9M FY2025, the report added. Despite stable raw material costs during FY2025, rising logistics and operational expenses are expected to compress margins by 100–150 basis points, although they are still projected to stay within the 13–15 per cent range.

 Looking ahead to FY2026, margins are expected to be supported by improved scale, favourable currency rates, and consistent export incentives.