The Government of India recently announced financial assistance under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to support stressed sectors, including textiles, as the country is assessing the cascading economic impact of the ongoing US-Israel-Iran conflict on lines similar to a Covid-19-like emergency situation. The Southern India Mills’ Association (SIMA) has welcomed the move, describing it as a timely and much-needed liquidity support measure for the textile industry amid mounting geopolitical and trade uncertainties.

The revised scheme has been introduced at a time when the textile sector is facing rising operational and financial pressure due to disruptions linked to the West Asia crisis. Reflecting the resilience shown by the industry through improved PMI trends and export performance, the government has expanded the scheme with enhanced eligibility norms and a credit cap of up to ₹5000 million ($52.55 million) for stressed sectors.

The Southern India Mills’ Association (SIMA) welcomed the Government of India’s ECLGS 5.0 scheme, calling it a timely liquidity support measure for the textile industry amid the ongoing West Asia crisis.
The scheme offers collateral-free loans, extended repayment tenure, and enhanced credit support to help textile firms manage rising raw material costs, logistics disruptions, and financial stress.

According to industry sources, the textile sector has been significantly impacted by the prevailing geopolitical tensions, particularly because the man-made fibre segment remains dependent on the Middle East region for critical raw materials. At the same time, exports of value-added textile products have come under pressure due to abnormally high logistics costs and changing global consumption patterns, with buyers increasingly shifting towards lower-cost products.

The government had earlier launched ECLGS in 2020 during the COVID-19 crisis to provide immediate liquidity support to MSMEs and business enterprises facing operational stress. The scheme played a key role in helping companies meet operational liabilities and sustain manufacturing activities during the pandemic period. SIMA noted that ECLGS 5.0 extends similar support at a time when global geopolitical disruptions are again straining industrial operations.

In a press release, SIMA Chairman Durai Palanisamy expressed gratitude to Prime Minister Narendra Modi and the government for introducing the enhanced scheme. He said ECLGS 5.0 would provide critical liquidity support to businesses affected by the ongoing West Asia crisis and help the industry manage financial stress more effectively.

According to SIMA, the scheme covers both MSME and non-MSME sectors and offers loans with a repayment tenure of up to five years. Loan sanctions under the scheme will remain available until March 31, 2027, while borrowers will also benefit from a one-year moratorium on principal repayment.

The association highlighted that the scheme enables additional credit support of up to 20 per cent of the peak working capital as of the last quarter of the recently concluded fiscal 2025-26, subject to a maximum limit of ₹100 crore per borrower. The facility is fully collateral-free and does not carry any guarantee fee, making it highly accessible and beneficial for the textile industry.

Palanisamy pointed out that inadequate working capital has emerged as one of the biggest challenges for textile manufacturers, affecting their ability to maintain production capacity, retain workers, procure essential raw materials, and service existing bank loans. He further stated that ECLGS 5.0 would play a crucial role in stabilising production, safeguarding employment, and sustaining the textile industry’s contribution to exports and economic growth, especially at a time when raw cotton prices are witnessing abnormal and frequent fluctuations.

SIMA also emphasised that ECLGS 5.0, along with the TEEM scheme and the Mission for Cotton Productivity approved in the recent Union Budget with an outlay of ₹5,659.22 crore, would provide a strong boost to the long-term growth and competitiveness of the Indian textile industry in both domestic and international markets.

The association added that government initiatives related to export risk mitigation, logistics and trade facilitation, and the creation of new strategic markets through free trade agreements (FTAs) would help the textile sector maintain stability and competitiveness despite continuing geopolitical disruptions.

Fibre2Fashion News Desk (KUL)

American footwear and apparel designer Steven Madden Ltd has reported an 18 per cent year-on-year (YoY) increase in revenue to $653.1 million in the first quarter (Q1) of fiscal 2026 (FY26), supported by strong demand across its brands and continued momentum at Steve Madden and Kurt Geiger London.

The net income attributable to Steven Madden increased to $71.8 million, or $1 per diluted share, compared to $40.4 million, or $0.57 per diluted share, in the corresponding quarter of fiscal 2025. Adjusted net income attributable to the company declined to $32.1 million, or $0.45 per diluted share, from $42.4 million, or $0.6 per diluted share, a year earlier.

Steven Madden has reported an 18 per cent YoY rise in Q1 FY26 revenue to $653.1 million, driven by strong demand for Steve Madden and Kurt Geiger brands.
Net income rose to $71.8 million, while direct-to-consumer revenue surged 83.8 per cent.
The company raised FY26 revenue guidance to 10-12 per cent growth and introduced diluted EPS guidance of $2.55-2.65.

“We got off to a solid start to the year in the first quarter, with healthy underlying demand across our brands driven by compelling product assortments and strong marketing execution,” said Edward Rosenfeld, chairman and chief executive officer of Steven Madden.

The gross profit as a percentage of revenue rose to 54.7 per cent from 40.9 per cent in Q1 FY25. Adjusted gross margin improved to 46.3 per cent from 40.9 per cent. Income from operations climbed to $98.7 million, or 15.1 per cent of revenue, compared to $53.5 million, or 9.7 per cent of revenue, in the prior-year quarter.

Operating expenses increased to 39.5 per cent of revenue from 32.0 per cent in the same quarter last year. Adjusted operating expenses rose to 39.2 per cent of revenue from 30.8 per cent, Steven Madden said in a press release.

Wholesale business sees modest growth

Revenue from the wholesale business increased 1 per cent YoY to $443.6 million in Q1 FY26. Excluding Kurt Geiger, wholesale revenue declined 8.2 per cent.

Wholesale footwear revenue fell 5.8 per cent, or 12 per cent excluding Kurt Geiger, while wholesale accessories and apparel revenue increased 15.1 per cent. Excluding Kurt Geiger, accessories and apparel revenue slipped 0.5 per cent.

Gross profit margin for the wholesale segment improved to 49.2 per cent from 35.7 per cent in Q1 FY25. Adjusted gross margin for the segment rose to 39.2 per cent from 35.7 per cent, supported by higher average selling prices, favourable product mix and lower penetration of private label products.

DTC revenue jumped 83.8 per cent YoY to $206 million in the quarter. Excluding Kurt Geiger, DTC revenue increased 8 per cent.

Gross profit margin in the DTC segment improved to 65.9 per cent from 60.1 per cent in the prior-year quarter. Adjusted gross margin rose modestly to 60.8 per cent from 60.1 per cent, aided by the addition of the Kurt Geiger business and growth in the organic business.

At the end of the quarter, the company operated 387 brick-and-mortar retail stores, including 95 outlets, along with eight e-commerce websites and 162 company-operated concessions in international markets.

“The Steve Madden brand continued to gain momentum, as consumers responded favourably to our on-trend assortments, resulting in strong comps in our direct-to-consumer (DTC) business and robust sell-through performance in wholesale. The Kurt Geiger London brand also delivered another strong quarter, with continued momentum across channels,” added Rosenfeld.

Steven Madden raises FY26 revenue outlook

Steven Madden raised its FY26 revenue guidance and introduced earnings guidance for the fiscal year. The company now expects revenue to increase 10 per cent to 12 per cent compared to FY25.

The company expects diluted earnings per share (EPS) in the range of $2.55 to $2.65, while adjusted diluted EPS is projected between $2 and $2.1 for FY26.

“While earnings declined in the first quarter, we expect to return to earnings growth in the second quarter and deliver strong top- and bottom-line growth for the full year,” Rosenfeld said.

“Looking out further, we are confident that our powerful brands, proven business model and talented team position us to deliver sustainable growth for years to come,” he added.

Fibre2Fashion News Desk (SG)

UK import duties on apparel from India have run as high as ** percent, with fabrics at * percent and yarns at * percent, as per the UK Trade Tariff and the UK Fashion & Textiles Association. CETA removes these duties for qualifying Indian goods. The UK Department for Business and Trade estimates duty savings of around £*** million for UK exporters at entry-into-force, rising to £*** million within ten years.

For inbound trade, the impact is just as direct. According to TexPro data, UK textile and apparel imports from India totaled $*.** billion in ****. The two apparel chapters alone—knitwear (HS **) and woven garments (HS **)—account for $*.** billion. Stripping a ** percent duty out of this basket implies up to $*** million in annual duty savings, to be split between UK buyers and Indian suppliers through price negotiation.