Results     08-Aug-25
Analysis
Pearl Global Industries
Net profit up 3.8% YoY to Rs 67.8 cr in Q1FY2026
On consolidated basis

Quarter ended June 2025 compared with Quarter ended June 2024.

Net sales (including other operating income) of Pearl Global Industries has increased 16.63% to Rs 1227.92 crore.  Sales of Hong Kong segment rose 7.55% to Rs 983.78 crore (accounting for 49.31% of total sales).  Sales of India segment has gone down 3.48% to Rs 266.66 crore (accounting for 13.36% of total sales).  Sales of Bangladesh segment has gone down 0.06% to Rs 330.45 crore (accounting for 16.56% of total sales).  Sales of Others segment has gone down 1.40% to Rs 77.63 crore (accounting for 3.89% of total sales).  Sales of Vietnam segment has gone up 89.16% to Rs 336.74 crore (accounting for 16.88% of total sales).  Inter-segment sales rose Rs 725.56 crore to Rs 767.35 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 7.60% to Rs 103.68 crore.  PBIT of Hong Kong segment fell 1.28% to Rs 42.53 crore (accounting for 41.02% of total PBIT).  PBIT of India segment fell 30.84% to Rs 12.15 crore (accounting for 11.72% of total PBIT).  PBIT of Bangladesh segment rose 12.16% to Rs 19.13 crore (accounting for 18.45% of total PBIT).  PBIT of Others segment fell 158.97% to Rs -8.31 crore (accounting for -8.01% of total PBIT).  PBIT of Vietnam segment rose 74.65% to Rs 38.17 crore (accounting for 36.82% of total PBIT).  

PBIT margin of Hong Kong segment fell from 4.71% to 4.32%.  PBIT margin of India segment fell from 6.36% to 4.56%.  PBIT margin of Bangladesh segment rose from 5.16% to 5.79%.  PBIT margin of Others segment fell from negative 4.07% to negative 10.70%.  PBIT margin of Vietnam segment fell from 12.28% to 11.34%.  Overall PBIT margin fell from 5.42% to 5.20%.  

Operating profit margin has declined from 9.34% to 9.16%, leading to 14.36% rise in operating profit to Rs 112.42 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 39.31% to 43.20%.   Purchase of finished goods cost fell from 11.92% to 11.03%.   Employee cost decreased from 18.61% to 17.77%.   Other expenses fell from 20.67% to 18.90%.   

Other income rose 17.95% to Rs 11.3 crore.  PBIDT rose 14.68% to Rs 123.72 crore.  Provision for interest rose 18.24% to Rs 27.35 crore.  

PBDT rose 13.71% to Rs 96.37 crore.  Provision for depreciation rose 15.39% to Rs 19.72 crore.  

Profit before tax grew 13.29% to Rs 76.65 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 10.77 crore, compared to Rs 11.3 crore.  Effective tax rate was 14.11% compared to 15.43%.

Minority interest increased 33.92% to Rs -2.26 crore.  Net profit attributable to owners of the company increased 3.78% to Rs 67.82 crore.  

Promoters’ stake was 62.78% as of 30 June 2025 ,compared to 66.17% as of 30 June 2024 .  

 

Full year results analysis.

Net sales (including other operating income) of Pearl Global Industries has increased 31.14% to Rs 4506.29 crore.  Sales of Hong Kong segment rose 30.57% to Rs 3,602.94 crore (accounting for 49.42% of total sales).  Sales of India segment has gone up 25.02% to Rs 1,196.14 crore (accounting for 16.41% of total sales).  Sales of Bangladesh segment has gone up 6.88% to Rs 1,488.78 crore (accounting for 20.42% of total sales).  Sales of Others segment has gone up 66.71% to Rs 365.35 crore (accounting for 5.01% of total sales).  Sales of Vietnam segment has gone up 27.82% to Rs 636.95 crore (accounting for 8.74% of total sales).  Inter-segment sales rose Rs 2,390.34 crore to Rs 2,783.86 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 33.10% to Rs 366.52 crore.  PBIT of Hong Kong segment rose 115.40% to Rs 176.88 crore (accounting for 48.26% of total PBIT).  PBIT of India segment rose 35.90% to Rs 65.06 crore (accounting for 17.75% of total PBIT).  PBIT of Bangladesh segment fell 3.96% to Rs 116.24 crore (accounting for 31.71% of total PBIT).  PBIT of Others segment fell 348.07% to Rs -38.40 crore (accounting for -10.48% of total PBIT).  PBIT of Vietnam segment rose 41.99% to Rs 46.74 crore (accounting for 12.75% of total PBIT).  

PBIT margin of Hong Kong segment rose from 2.98% to 4.91%.  PBIT margin of India segment rose from 5.00% to 5.44%.  PBIT margin of Bangladesh segment fell from 8.69% to 7.81%.  PBIT margin of Others segment fell from negative 3.91% to negative 10.51%.  PBIT margin of Vietnam segment rose from 6.61% to 7.34%.  Overall PBIT margin rose from 4.73% to 5.03%.  

Operating profit margin has declined from 8.96% to 8.96%, leading to 31.13% rise in operating profit to Rs 403.63 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.85% to 40.60%.   Purchase of finished goods cost rose from 4.75% to 12.72%.   Employee cost decreased from 19.44% to 18.36%.   Other expenses fell from 22.04% to 19.50%.   

Other income rose 3.65% to Rs 33.55 crore.  PBIDT rose 28.52% to Rs 437.18 crore.  Provision for interest rose 19.06% to Rs 99.19 crore.  Loan funds rose to Rs 772.98 crore as of 31 March 2025 from Rs 588.39 crore as of 31 March 2024.  Inventories rose to Rs 705.13 crore as of 31 March 2025 from Rs 502.73 crore as of 31 March 2024.  Sundry debtors were higher at Rs 324.40 crore as of 31 March 2025 compared to Rs 265.35 crore as of 31 March 2024.  Cash and bank balance rose to Rs 566.40 crore as of 31 March 2025 from Rs 366.50 crore as of 31 March 2024.  Investments declined from Rs 29.97 crore as of 31 March 2024 to Rs 24.27 crore as of 31 March 2025.  

PBDT rose 31.59% to Rs 337.99 crore.  Provision for depreciation rose 17.17% to Rs 75.22 crore.  Fixed assets increased to Rs 745.70 crore as of 31 March 2025 from Rs 624.55 crore as of 31 March 2024.  Intangible assets increased from Rs 21.89 crore to Rs 25.06 crore.  

Profit before tax grew 36.39% to Rs 262.77 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 36.56 crore, compared to Rs 22.94 crore.  Effective tax rate was 13.68% compared to 11.94%.

Minority interest decreased 207.53% to Rs -17.56 crore.  Net profit attributable to owners of the company increased 42.04% to Rs 248.33 crore.  

Equity capital increased from Rs 21.79 crore as of 31 March 2024 to Rs 22.97 crore as of 31 March 2025.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 62.81% as of 31 March 2025 ,compared to 66.19% as of 31 March 2024 .  

Cash flow from operating activities decreased to Rs 176.39 crore for year ended March 2025 from Rs 352.09 crore for year ended March 2024.  Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 119.11 crore, compared to Rs 129.27 crore during the year ended March 2024.  

Operational highlights:

The Company shipped 17.2 million pieces in Q1FY26, up from 16.7 million pieces in Q1FY25 despite global headwinds and tariff uncertainties.

Management Commentary:

Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said , “We are pleased to report another quarter of resilient performance in Q1FY26, with revenue rising 16.6% YoY to Rs. 1,228 crore, despite the challenges in global macro environment. This marks our fifth consecutive quarter delivering above Rs. 1,000 crore, a milestone that underscores consistency, executional discipline, and market responsiveness. This growth was led by enhanced contributions from Vietnam and Indonesia fueled by strong order book and healthy sales volumes despite amid ongoing tariff-related uncertainties. These markets demonstrated robust momentum—highlighting the power of our diversified geographic presence. This is a testament of our multi geographical presence.

On the expansion front, we are carefully tracking market developments across all operating geographies. Any future investments will be undertaken in a measured manner, driven by sustained growth and stability in each target region. With a strong start to FY26, we are energized by the continued support of our customers and the depth of our global reach. Confident in our strategy and execution capabilities, we are well-positioned to accelerate progress toward our FY28 goals and beyond—driving transformative growth with clarity, purpose, and ambition.”

Commenting on the Results, Mr. Pallab Banerjee, Managing Director, said, “We are delighted to share that Pearl Global has once again delivered strong quarterly revenue. On profitability front, our adjusted EBITDA (excluding ESOPs) stood at Rs. 114 crore at 9.3%. EBITDA margin grew by 13.4% Y-o-Y despite the external challenges, notably due to US reciprocal tariffs. Our adjusted EBITDA margin stands at 10.7%, excluding the impact of operational losses at newly established facilities in Guatemala and Bihar, and tariff-related costs. Looking ahead, the global landscape remains uncertain, with geopolitical tensions and evolving US tariff policies at play. We are seeing healthy growth in Indonesia and Vietnam, following the early resolution of tariff structures in these markets. Now that US has declared final reciprocal tariffs on all major garment manufacturing countries which are at 19%-20%. We are seeing positive momentum from US customers for our Vietnam, Indonesia, Bangladesh and Guatemala (which is net 10% baseline and NO MFN tariff).

With tariff imposed on India 50% (25%+25%), Pearl Global is therefore recalibrating its business strategy to adapt to these evolving trade dynamics. While production for the US market will be reassigned to more favourable hubs, India will continue to grow by tapping into new and advantageous partnerships—like the UK FTA—and will focus on other existing FTA markets of Japan and Australia until the US tariff issue is resolved. This approach reflects the company’s agility and long-term commitment to global value creation.

It is pertinent to note that US revenue from Indian entity in FY24-25 stands at 16%-18% of group revenue and profit from the same business is between 4%-5% of the group’s profit. We believe such re- calibrations should help in retaining the customer wallet share and maintaining the profitability.

Our non-US business stands at ~50% of our topline is also witnessing steady growth, further underscoring the robustness of our diversified market.

We remain confident in our growth strategy and will continue with our capital expenditure plan in Bangladesh reinforcing our long-term commitment to operational excellence.”

Pearl Global Industries : Consolidated Results
 Quarter endedYear ended
Particulars202506202406Var.(%)202503202403Var.(%)
Net Sales (including other operating income)1,227.921,052.8016.634,506.293,436.1531.14
OPM (%)9.169.34-18 bps8.968.960 bps
OP112.4298.3014.36403.63307.8031.13
Other Inc.11.309.5817.9533.5532.373.65
PBIDT123.72107.8814.68437.18340.1728.52
Interest27.3523.1318.2499.1983.3119.06
PBDT96.3784.7513.71337.99256.8631.59
Depreciation19.7217.0915.3975.2264.217.17
PBT76.6567.6613.29262.77192.6636.39
Share of Profit/(Loss) from Associates00-00-
PBT before EO76.6567.6613.29262.77192.6636.39
EO Income-0.325.57PL4.56-0.6LP
PBT after EO76.3373.234.23267.33192.0639.19
Taxation10.7711.3-4.6936.5622.9459.37
PAT65.5661.935.86230.77169.1236.45
Minority Interest (MI)-2.26-3.4233.92-17.56-5.71-207.53
Net profit67.8265.353.78248.33174.8342.04
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations67.8265.353.78248.33174.8342.04
EPS (Rs)*14.8213.1412.8053.1138.1639.18
* EPS is on current equity of Rs 22.98 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Pearl Global Industries : Consolidated Segment Results
 Quarter endedYear ended
% of (Total)202506202406Var.(%)% of (Total)202503202403Var.(%)
Sales
United States0.000.000.00-
United Kingdom0.000.000.00-
Hong Kong49.31983.78914.687.5549.423,602.942,759.3830.57
India13.36266.66276.28-3.4816.411,196.14956.7625.02
Bangladesh16.56330.45330.65-0.0620.421,488.781,392.886.88
Others3.8977.6378.73-1.405.01365.35219.1566.71
South Africa0.000.000.00-
Vietnam16.88336.74178.0289.168.74636.95498.3327.82
Total Reported Sales100.001,995.271,778.3612.20100.007,290.155,826.4925.12
Less: Inter segment revenues 767.35725.565.76 2,783.862,390.3416.46
Net Sales100.001,227.921,052.8016.63100.004,506.293,436.1531.14
PBIT
United States0.000.000.00-
United Kingdom0.000.000.00-
Hong Kong41.0242.5343.08-1.2848.26176.8882.12115.40
India11.7212.1517.57-30.8417.7565.0647.8735.90
Bangladesh18.4519.1317.0512.1631.71116.24121.04-3.96
Others-8.01-8.31-3.21-158.97-10.48-38.40-8.57-348.07
South Africa0.000.000.00-
Vietnam36.8238.1721.8674.6512.7546.7432.9241.99
Total PBIT100.00103.6896.367.60100.00366.52275.3733.10
Less : Interest27.3523.1318.2599.1983.3119.05
Add: Other un-allcoable0.000.00-0.000.00-
PBIT Margin(%)
United States 0.000.000.00
United Kingdom 0.000.000.00
Hong Kong 4.324.71-38.68 4.912.98193.33
India 4.566.36-180.31 5.445.0043.56
Bangladesh 5.795.1663.07 7.818.69-88.19
Others -10.70-4.07-662.55 -10.51-3.91-659.97
South Africa 0.000.000.00
Vietnam 11.3412.28-94.24 7.346.6173.22
PBT100.0076.3373.234.23100.00267.33192.0639.19
Previous News
  Pearl Global Industries allots 24,500 equity shares under ESOP
 ( Corporate News - 18-May-26   13:43 )
  Pearl Global Industries spurts after Q4 PAT jumps 25% YoY
 ( Hot Pursuit - 15-May-26   13:08 )
  Board of Pearl Global Industries recommends Second Interim dividend
 ( Corporate News - 15-May-26   11:03 )
  Pearl Global Industries consolidated net profit rises 22.01% in the March 2026 quarter
 ( Results - Announcements 15-May-26   07:36 )
  Pearl Global Industries allots 13,600 equity shares under ESOP
 ( Corporate News - 08-May-26   12:38 )
  Pearl Global Industries schedules board meeting
 ( Corporate News - 07-May-26   16:47 )
  Pearl Global Industries Ltd leads losers in 'A' group
 ( Hot Pursuit - 10-Feb-26   15:00 )
  Pearl Global Industries consolidated net profit declines 5.35% in the December 2025 quarter
 ( Results - Announcements 07-Feb-26   07:40 )
  Pearl Global Industries standalone net profit rises 235.56% in the December 2025 quarter
 ( Results - Announcements 07-Feb-26   07:37 )
  Pearl Global Industries allots 57,550 equity shares under ESOP
 ( Corporate News - 04-Feb-26   12:28 )
  Pearl Global Industries to hold board meeting
 ( Corporate News - 28-Jan-26   13:59 )
Other Stories
  Container Corporation Of India
  03-Jun-26   23:56
  Techno Electric & Engineering Company
  03-Jun-26   23:52
  Rail Vikas Nigam
  03-Jun-26   23:48
  Redtape
  03-Jun-26   23:44
  Transrail Lighting
  03-Jun-26   09:31
  Goodluck India
  03-Jun-26   08:58
  Cummins India
  03-Jun-26   07:50
  ISGEC Heavy Engineering
  03-Jun-26   07:43
  Esab India
  03-Jun-26   07:23
  Cords Cable Industries
  02-Jun-26   22:35
Back Top