Pokarna Ltd Shares Soar as US Reduces Tariffs on Indian Imports

Synopsis: This export stock jumped sharply after the US slashed its tariff on Indian imports from a steep 50 percent earlier to 18 percent, favouring this company as it derives a significant portion of its money from the US market. The shares of this company, engaged in exploring and mining of stones and processing them into products for the construction and home industry, are in focus after the US, being one of the major customers of the company, slashed its tariff to 18 percent reducing the company’s woes. In this article, we will dive more into the details of it. With a market capitalisation of Rs 2,697 crore, the shares ofPokarna Ltdreached a day high of Rs 869.85 per share (upper circuit), up 20 percent from its previous day’s closing price of Rs 724.90 per share. Over the past five years, the stock has delivered a robust 264.83 percent return, outperforming NIFTY 50’s return of 73 percent. The relationship between India and the United States finally took a turn for the better on February 2, 2026. After discussions between U.S. President Donald Trump and Indian Prime Minister Narendra Modi, the U.S. decided to lower tariffs on Indian products to 18 percent, thus a significant reduction from the extremely high level of 50 percent earlier. This was preceded by a situation where Indian products had been made so expensive in the U.S. that hardly anyone could afford them due to the heavy taxes levied. Besides, India also agreed to purchase more goods from the U.S., such as swapping Russian oil purchases with Venezuelan and US oil and purchase $500 billion (Rs 45 lakh crore) worth of American energy, agricultural, and industrial products. This even helped the two nations to de-escalate the trade war and further develop their business ties. Before that, the trade between the two nations was not very friendly at all. The U.S. started 2025 by imposing a 25 percent tax on several Indian goods with the explanation that it wanted a more equitable trade. Later, it added an extra 25 percent penalty tax, mainly because India was importing oil from Russia, which led the overall tax on many Indian exports to be as high as about 50 percent, which consequently made selling products in the American market exceedingly difficult for Indian companies. This not only affected the exporters but also created concerns among the investors, and that is why the recent reduction of the tariff is viewed as such a major positive development. The United States stands out as India’s biggest trading partner and, interestingly, one of the few major economies where India actually runs a trade surplus. In FY25, their total trade hit a record $132.2 billion, climbing from $119.71 billion the year before. India’s surplus with the US reached $40.82 billion that year, and on top of that, the US is investing heavily, too. Since April 2000, American investors have poured in $70.65 billion, making the US India’s third-largest source of foreign direct investment. Exports to the US really took off in FY25 as India shipped out $86.51 billion worth of goods, up from $77.51 billion the previous year, with over 7,000 different items made their way to American buyers. Big-ticket exports included electrical machinery and equipment ($15.89 billion), pre-metal and articles ($9.97 billion), pharmaceutical products($9.78 billion), machinery and mechanical appliances ($6.69 billion), mineral fuels and oils ($4.20 billion), and iron and steel articles ($3.11 billion). Clearly, India’s export mix to the US isn’t just big, it’s broad and diverse, which makes US one of the largest consumer of India’s good. Pokarna brings in more than 96 percent of its revenue from exports, and the United States alone makes up over 80 percent of the company’s total revenue. That’s a huge reliance on just one market. So when the US rolls out new trade rules or slaps on steep tariffs, Pokarna feels it right away. Higher duties mean their quartz and stone products cost more for American buyers, and that can slow down orders, squeeze margins, and hit profits. Earlier, Pokarna only faced a small 2.34 percent duty and no anti-dumping tax, so this sharp increase is a major challenge. Because of this, the company’s future sales, profits, and order flow could be affected. To deal with this, the company’s talking to customers about how to soften the blow, maybe by tweaking prices or changing how they handle supply. They’re also pushing to break into new international markets so they’re not so tied to the US. Still, with exports making up almost everything they earn, Pokarna’s results swing with global demand and currency shifts. That kind of exposure can make earnings unpredictable. Since Quartz demand is especially strong in the US, the home renovation market makes America a key revenue driver for Pokarna. Pokarna Ltd is a major Indian company engaged in exploring and mining of stones and processing them into products for the construction and home industry. The company was founded in 1991, and its registered office is in Secunderabad, India. Pokarna markets premium quality quartz surfaces and granite, which find extensive applications in kitchens, bathrooms, hotels, and buildings. The export markets, particularly the US, contribute significantly to its sales and are regarded as one of India’s largest exporters of finished granite. Gradually, Pokarna diversified its product portfolio by manufacturing engineered quartz surfaces under the brand name Quantra, which are stone surfaces of a very high standard used in kitchens and bathrooms. So, because of high tariffs, American buyers had to bear the brunt of additional taxes when tariffs were very high, which in turn made the products more expensive and thus reduced the orders. Lower tariffs now mean that Indian stone products get more competitively priced again in the US market. Pokarna Ltd has reported an operating revenue of Rs 118.46 crore in Q2 FY26, representing a staggering 53 percent decline compared to Rs 251.28 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 31 percent from Rs 170.96 crore. Regarding its profitability, the company reported a net profit of Rs 6.33 crore in Q2 FY26, a sharp decline of 86 percent compared to Rs 44.96 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 78 percent from Rs 28.29 crore. However, it is to be noted that since the company was exposed to the high US tariffs, many American buyers and dealers tend to cancel or postpone the orders, as the Americans have to pay a higher amount for the same product which was earlier available at a more affordable price before the tariffs. So in the near term, investor has to look out for the sales, profitability, volume growth, along with the management stance on its business before committing any capital for investment. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies ontradebrains.inare their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing. Satyajeet is a Financial Analyst at Trade brains with 3+ years of experience, focusing on turning complex financial data into clear, data-backed insights. He specialises in equity research, company and sector analysis, IPO evaluation, and tracking market trends to create investor-friendly content.