Sun Pharma, Gokaldas Exports and Other Export Stocks in Focus After RoDTEP Incentives Restored

Synopsis: Export-oriented stocks such as Gokaldas Exports, Pearl Global, Bata, Redtape and more are in focus after the centre restored full RoDTEP benefits for eligible export products till March 31, 2026. The move is expected to reduce exporters’ tax burden and support sentiment across textiles, footwear, pharma, chemicals, leather and other sectors.

Shares of Gokaldas Exports, Pearl Global, Bata, and other export-orientated companies are in focus on March 24 following the Centre’s move to restore full incentives under the RoDTEP scheme. The Centre’s move, which will be effective from February 23, 2026, to March 31, 2026, is a respite for exporters after the Centre reduced duty benefits and value limits across all tariff lines in the past month.

Relief for exporters

Export-oriented stocks such as Gokaldas Exports, Pearl Global, Bata, Red Tape, Avanti Feeds, Apex Frozen Foods, KRBL and Sun Pharma are in the spotlight on Tuesday, March 24, after the centre decided to restore full benefits under the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme for eligible export products. 

The move comes as a relief for exporters across sectors such as textiles, pharmaceuticals, leather, marine products and agriculture, especially at a time when concerns had emerged over the earlier reduction in incentive rates.

However, the Centre’s latest move includes restoring full export incentives under the Remission of Duties and Taxes on Exported Products scheme from February 23, 2026, to March 31, 2026. This move comes as a relief to exporters as it may help reduce the tax burden. This could be a positive for sectors such as textiles and others where cost competitiveness is key.

The move comes at a time when there are concerns regarding the reduction in incentive rates. The Centre had last month reduced the rates at which duty benefits are provided to all sectors. This reduction was in addition to the reduction in the value of duty benefits.

One such instance of this reduction was in respect of unginned raw cotton with a staple length up to 20 mm, where the rebate was reduced from 3.1%, with a maximum of ₹1.60 per kg, to 1.55%, with a maximum of ₹0.80 per kg.

Why RoDTEP matters

The RoDTEP scheme, notified in 2021, is designed to compensate exporters for embedded duties and taxes, which are not refundable under existing mechanisms. This, in effect, reduces hidden costs in the export supply chain, ensuring Indian products’ global price competitiveness, particularly in labour-intensive industries such as garments, footwear, and leather products.

This policy decision also comes against the backdrop of the Iran-US-Israel war, which is now in its fourth week. At a time when the external environment is volatile, the resumption of full incentives can be construed as a positive move by the Centre to help exporters cope with the additional pressure and sustain the shipment momentum.

What it implies for the market is that the focus for investors may continue to be on those stocks that have an export profile and may benefit from a better duty remission structure in the near term. Gokaldas Exports, Pearl Global, Bata, Redtape, and similar exporter stocks may continue to be in focus as investors try to gauge whether the resumption of the RoDTEP benefits can have a positive effect on earnings and business sentiment.

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