PDS Limited has made available the audio recording of its conference call held on February 11, 2026, to discuss Q3 and 9M FY26 financial results, as per Regulation 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The conference call was conducted at 4:00 P.M. (IST) and the recording is now accessible on the company's website.

Conference Call Details

The regulatory filing provides comprehensive information about the conference call availability:

Financial Performance Overview

The conference call discussed the company's mixed performance for the global apparel sourcing and manufacturing company, characterized by steady revenue growth but declining profitability amid challenging market conditions. The company's financial results for the nine-month period ended December 31, 2025, show measured progress in key operational metrics despite profitability challenges.

For Q3 FY26 specifically, GMV reached ₹4,660 crores with 6% year-on-year growth, while revenue stood at ₹3,173 crores, up 2% from the previous year. The quarter saw improved gross margins of 22.7% compared to 20.4% in Q3 FY25, representing an expansion of 230 basis points.

Working Capital Management and Strategic Updates

PDS demonstrated significant improvements in working capital management, with net working capital days declining substantially from 17 days in March 2025 to 7 days in December 2025. The company generated cash flow of ₹644 crores from operations during the nine-month period, with interest costs reducing by 15% in Q3 versus Q2.

Total investment in new initiatives stood at ₹101 crores in 9M FY26, down from ₹115 crores in the previous year. The company highlighted positive outlook for design-led sourcing initiatives, particularly through the Knit Gallery acquisition, which is expected to grow by 50% next year.

Leadership Transition and Market Outlook

The presentation announced a leadership transition, with Sadik Sunasara set to take over as Group CFO from April 2026, replacing Rahul Ahuja who will continue in a Strategic Advisor capacity. Sunasara brings over 20 years of experience in strategic finance and has been with PDS for the last 4 years.

PDS emphasized its strategic positioning to benefit from evolving global trade dynamics, particularly the India-EU and UK Free Trade Agreements. The company's diversified sourcing footprint across India, Bangladesh, Vietnam, Egypt, and Latin America provides flexibility to navigate geopolitical disruptions and supply chain challenges.

PDS Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, regarding the utilization of proceeds from its Qualified Institutional Placement (QIP). The report, prepared by CRISIL Ratings Limited as the appointed monitoring agency, was considered and approved by the company's Audit Committee and Board of Directors in their respective meetings held on February 10, 2026.

QIP Issue Details and Proceeds Structure

The company's QIP was conducted from August 22, 2024, to August 27, 2024, raising gross proceeds of Rs 43,000 lakhs. After deducting issue expenses, the net proceeds available for utilization stood at Rs 41,055.96 lakhs.

As of December 31, 2025, cumulative issue expenses incurred amounted to Rs 1,858.49 lakhs, with the remaining Rs 85.55 lakhs lying unspent in the company's monitoring account and fixed deposits.

Fund Utilization Progress

The monitoring agency report reveals that no funds were utilized during the quarter ended December 31, 2025, toward the stated objectives. The total utilization status shows Rs 30,256.13 lakhs deployed since the QIP completion, leaving Rs 10,799.83 lakhs unutilized.

Deployment of Unutilized Proceeds

The company has deployed the unutilized funds across various instruments to ensure optimal returns while maintaining liquidity. The deployment includes fixed deposits with ICICI Bank, balances in monitoring accounts, and subsidiary account balances.

Compliance and Monitoring Framework

CRISIL Ratings Limited, serving as the monitoring agency under the SEBI regulations, confirmed that all utilization remains aligned with the disclosures made in the placement document. The report indicates no material deviations from the stated expenditure plans and confirms that all necessary government and statutory approvals have been obtained.

The company's fund utilization strategy focuses on two primary objectives: repayment of borrowings across the company and its subsidiaries, and pursuing strategic acquisitions along with general corporate purposes. The monitoring framework ensures transparency and regulatory compliance throughout the utilization process.

Regulatory Compliance Status

The monitoring agency confirmed that PDS Limited has maintained full compliance with SEBI regulations regarding QIP proceeds utilization. No deviations were reported, and the company has obtained all required approvals from NSE, BSE, NSDL, CDSL, and the Registrar of Companies. The report emphasizes that the amount allocated for strategic acquisitions and general corporate purposes does not exceed the prescribed limits of 35% collectively and 25% individually of the gross proceeds.