23 Apr, 2024
4 mins read
The textile industry is one of the oldest and most significant sectors in India, playing a crucial role in employment, export earnings, and industrial output. With evolving consumer preferences, increased global demand, and strong government support, the best textile stocks in India are drawing investor attention in 2025. Let’s explore the top performers and investment potential in this vibrant sector.
The textile industry in India is the second-largest employer after agriculture, supporting over 45 million people directly and 60 million indirectly. It contributes around 2.3% to India’s GDP and 11% to total merchandise exports.
India has a robust presence in the entire textile value chain - from fiber to apparel - and is among the world’s largest producers of cotton, jute, and silk. With the rise in e-commerce, increasing fashion consciousness, and expansion of domestic and international markets, the industry is poised for long-term growth.
Key government initiatives such as the Production Linked Incentive (PLI) Scheme for textiles, MITRA Parks (Mega Integrated Textile Region and Apparel), and 100% FDI under automatic route further boost its prospects.
Here are the top textile stocks in India in 2025 based on market cap:
|
Company Name |
NSE Stock Code |
Market Capitalisation (₹ Cr) |
Primary Segments |
|---|---|---|---|
|
KPR Mill Ltd. |
KPRMILL |
31,628 |
Garments & Sugar |
|
Trident Ltd. |
TRIDENT |
12,959 |
Home Textiles & Paper |
|
Vardhman Textiles Ltd. |
VTL |
12,623 |
Yarn & Fabric |
|
Welspun Living Ltd. |
WELSPUNLIV |
10,883 |
Home Textiles |
|
Arvind Ltd. |
ARVIND |
8,248 |
Fabrics & Garments |
Note: Market capitalisations are approximate and based on April 2025 data. Market capitalisation equals the number of free float shares* current market price of the stock
Apart from textiles, KPR Mill operates in sugar and ethanol. Its integrated business model, including garment production for international brands, makes it resilient and profitable.
A major exporter of towels and bedsheets, Trident also operates in paper and energy. Its diversified portfolio and strong export focus make it a stable performer.
A vertically integrated player in yarn, fabric, and garments. Vardhman is known for its operational efficiency and consistent dividend payouts, making it one of the best Indian textile stocks.
Welspun is a global leader in home textiles, supplying to major retail chains worldwide. Their strong presence in the US and Europe makes them a key beneficiary of export growth.
One of India's largest textile manufacturers, Arvind is known for denim, woven fabric, and retail brands like Arrow and Flying Machine. The company benefits from strong global exports and domestic brand recognition.
Investing in the textile stocks in India offers several advantages:
Export Potential: With India being a major textile exporter, companies benefit from rising global demand.
Government Incentives: PLI schemes, tax benefits, and infrastructural support boost profitability.
E-commerce Growth: Rising online sales of apparel and home textiles support domestic demand.
Diversification: Many textile companies operate across segments like garments, yarn, paper, and even real estate, offering diversified income streams.
Employment and Rural Upliftment: Investment in textile stocks indirectly supports rural economies and job creation.
Before investing in top textile stocks, evaluate:
Raw Material Prices: Volatility in cotton and polyester prices can affect margins.
Export Dependency: Companies reliant on exports may face currency and geopolitical risks.
Compliance & ESG Factors: Increasing global focus on sustainable and ethical manufacturing.
Debt Levels: Textile is a capital-intensive industry; check for high leverage.
Operational Efficiency: Look at ROCE, asset turnover, and capacity utilisation rates.
The future of textile stocks in India looks promising, driven by:
Rising global outsourcing to Indian manufacturers
Focus on sustainability and circular fashion
Expansion of technical textiles and smart fabrics
Increased automation and adoption of Industry 4.0 technologies
Continued policy support for exports and infrastructure
The Indian textile sector is projected to grow to USD 250 billion by 2030, presenting long-term investment potential for retail and institutional investors alike.
The textile stocks in India offer a compelling investment opportunity, especially with the sector’s growing global relevance, strong government support, and increasing domestic consumption. While there are risks related to commodity prices and global demand, companies with strong fundamentals and export capabilities are likely to thrive. With the right selection, textile stocks can add both growth and stability to your portfolio in 2025 and beyond.
Textile stocks provide exposure to a high-potential sector backed by strong domestic demand, government incentives, and export growth. Many companies are also diversifying into high-margin technical textiles and branded apparel, increasing profitability.
The Indian government supports the textile industry through:
The PLI Scheme for textiles
100% FDI under the automatic route
Development of MITRA parks for integrated textile manufacturing
Subsidies for upgrading technology and improving infrastructure
Calculate your Net P&L after deducting all the charges like Tax, Brokerage, etc.
Find your required margin.
Calculate the average price you paid for a stock and determine your total cost.
Estimate your investment growth. Calculate potential returns on one-time investments.
Forecast your investment returns. Understand potential growth with regular contributions.
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