Arvind Ltd, Pearl Global, Gokaldas Exports face rising labor costs
Big names like Arvind Ltd, Pearl Global, and Gokaldas Exports are having a tough year as labor costs jump:
Pearl Global said minimum wages rose 38% in Haryana and 21% in Noida, while Gokaldas Exports said they rose about 35% in Haryana and 5% in Karnataka.
Even with a weaker rupee helping exports a bit, these higher expenses are eating into profits.
Wage hikes hit exporters' margins
Pearl Global reported higher absenteeism in Q1 FY27, and said wage revision in Haryana weighed on its standalone EBITDA margin.
Gokaldas Exports is shifting focus to central India for better government incentives, while Arvind Ltd is dealing with nearly ₹100 crore in extra costs from pricier cotton and yarn, along with higher petrochemical-related chemical costs.
Despite all this, the industry is hoping smart moves will help them bounce back soon.