Textile sector to see revenue and margin pressure in Q2, FY26: SBI Ecowrap

According to the latest issue of SBI Ecowrap newsletter, published by the State Bank of India (SBI), export-oriented sectors, including textiles, leather, and chemicals, are expected to feel revenue and margin pressures in Q2, FY26 due to the new US tariffs.

The reports says, India's consumer price index (CPI)-based inflation moderated to a 98-month low of 1.55 per cent in July. This marks the ninth consecutive month of decline, dropping from 2.1 per cent in June and 3.60 per cent in July 2024.

Core inflation also decelerated significantly, dropping below 4 per cent for the first time in six months to 3.94 per cent. SBI's estimates point to lower inflation than the Central Bank's projections. However, with the August inflation print likely to exceed 2 per cent, a rate cut in October appears unlikely. The newsletter also suggests, a rate cut in December would be difficult to justify, given the growth numbers for the first two quarters of the year.