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India’s largest listed garment exporter, Pearl Global Industries Limited (PGIL), made headlines today with the announcement of its unaudited consolidated results for Q1FY26, showcasing strong resilience and adaptability in a volatile global trade scenario.
PGIL’s revenue for the quarter ended June 30, 2025, surged to Rs. 1,228 crore, clocking robust 16.6% year-on-year growth and maintaining its streak of over Rs. 1,000 crore in revenue for the fifth consecutive quarter. The impressive figures were primarily driven by buoyant sales in Vietnam and Indonesia, attributed to robust order books and growing sales volumes.
Key Financial and Operational Highlights
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Total consolidated revenue stood at Rs. 1,228 crore for Q1FY26, marking a 16.6% increase YoY, anchored by strong sales growth in South-East Asia, notably Vietnam and Indonesia.
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Adjusted EBITDA climbed to Rs. 114 crore, reflecting a 13.4% YoY rise. Margins were calculated at 9.3%, with an even stronger adjusted EBITDA margin of 10.7% when excluding new facility losses and additional tariff costs imposed on Guatemala and Bihar setups.
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Net profits grew to Rs. 66 crore, up 5.9% YoY. Notably, if exceptional items in Q1FY25 are excluded, PAT registered a 13.5% increase YoY.
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The company shipped 17.2 million pieces during Q1FY26, up from 16.7 million in the same period last year, while navigating persistent global headwinds and trade uncertainties.
Standalone Financials Show Strategic Progress
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Standalone revenue came in at Rs. 267 crore, a slight 3.4% YoY dip, but adjusted
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EBITDA surged by 47.2% YoY to Rs. 20 crore.
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Increased operating leverage and a improved customer and product mix led to a 250bps YoY expansion in margins (from 4.8% in Q1FY25 to 7.3% in Q1FY26).
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Profit after tax on a standalone basis registered a notable 62.6% jump to Rs. 26 crore.
Operational Diversification and Dividend Inflows
PGIL reinforced its commitment to capital fungibility and group-wide profitability, with dividends worth approximately Rs. 18 crore received in Q1FY26 from NorpKnit Industries Limited (Bangladesh) and Pearl Global (HK) Limited (Hong Kong), continuing its track record of consistent dividend flow from overseas subsidiaries since FY22.
Strategic Shift Amid Tariffs and Trade Dynamics
Facing a challenging international trade environment, especially the imposition of reciprocal US tariffs of 19%-20% on major garment-supplying countries and double tariffs (effective 50%) on Indian exports, PGIL is responding by realigning production for US-bound orders to lower-tariff countries such as Vietnam, Indonesia, Bangladesh, and Guatemala. The Guatemala facility, notably, benefits from a net 10% baseline with no MFN tariff barrier.
While US revenue from the Indian entity represented 16%-18% of group revenue and only 4%-5% of group profit in FY24-25, the company expects its recalibrated strategy to sustain customer wallet share and group profitability.
Non-US markets, constituting about half of PGIL’s topline, continue to exhibit steady growth, highlighting the effectiveness of a diversified global footprint.
India operations will pivot towards markets with favorable FTAs such as the UK, Japan, and Australia until the US trade environment stabilizes.
Forward-Looking Strategy
PGIL remains watchful in its strategic investments, planning future capex in Bangladesh and adapting its approach in step with global market developments. Management’s commentary underlined a commitment to measured expansion, maintaining high operational standards, and achieving their ambitious FY28 growth targets.
Quotes from Leadership
Vice-Chairman and Non-Executive Director Pulkit Seth credited PGIL’s geographic diversification and consistent execution for the strong result streak, while Managing Director Pallab Banerjee emphasized the company’s agility in navigating tariff changes, reiterating confidence in PGIL’s long-term global value creation.
Source: Company Disclosure to the Stock Exchanges
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