PDS Limited (ISIN: INE111Q01021), a global fashion infrastructure company, has reported a steady performance for the second quarter and first half of the financial year 2025-26, with a focus on profitability and cash flow improvement amid global economic challenges.

Financial Highlights

• Gross Merchandise Value (GMV) reached ₹5,461.00 crores in Q2 FY26
• H1 FY26 GMV crossed ₹10,000.00 crores, up 8% year-over-year
• Revenue for Q2 FY26 stood at ₹3,419.00 crores, a 14% increase from Q1
• H1 FY26 revenue at ₹6,419.00 crores, showing 8% growth
• EBITDA margin expanded to 3.00% in Q2 from 1.70% in Q1
• Net working capital days improved from 17 days in March 2025 to 6 days in September 2025
• Cash flow from operations in H1 FY26 at ₹593.00 crores, compared to cash outflow in the previous year

Order Book and Business Outlook

The company's order book as of early October 2025 stands at ₹25,300.00 crores, marking a 15% year-over-year increase. This growth in the order book suggests strong customer traction and potential for future revenue growth.

Strategic Initiatives

PDS Limited is implementing several strategic initiatives to enhance profitability and operational efficiency:

1. Cost Optimization: The company is rolling out structural initiatives, including competitive reverse bidding for materials and tighter cost controls across corporate and business units.

2. New Vertical Management: PDS aims to reduce losses in new verticals by 25% and has established financial guardrails for new investments.

3. Working Capital Optimization: Significant improvement in net working capital days has led to better cash flow generation.

4. Customer Diversification: The company has onboarded several major US retailers, including TK Maxx, Ross Stores, Target, Walmart, and PVH (owner of Tommy Hilfiger and Calvin Klein).

Regional Performance

*Europe experienced a decline due to Gerry Weber's bankruptcy, but efforts are underway to replace this business.

Dividend Announcement

The management has declared an interim dividend of ₹1.65 per share, maintaining the same level as the previous year.

Management Commentary

Pallak Seth, Executive Vice Chairman, commented on the US market: "The focus of PDS is on the value sector and the clubs and discounters. That sector is still robust because the consumer is still buying, but they are buying for value."

Sanjay Jain, Group CEO, added: "We continue to see the inherent strength of our asset-light demand responsive business model, which remains the cornerstone of PDS growth journey."

Outlook

While the company faces challenges from global economic headwinds and tariff uncertainties, particularly in the US market, PDS Limited remains optimistic about its future performance. The management expects to see the benefits of its cost initiatives and strategic realignments in Q3 and Q4 of FY26, with a more significant impact anticipated in FY27.

PDS Limited's focus on customer diversification, cost optimization, and cash flow improvement positions it well to navigate the current market challenges and capitalize on future growth opportunities in the global fashion infrastructure space.

PDS Limited , a global fashion infrastructure company, has announced the establishment of a new fully owned subsidiary in the United Kingdom. The new entity, named Simple Approach-UK Limited, will focus on marketing, design, trading, and sourcing activities, further strengthening PDS's presence in the European market.

Key Details of the New Subsidiary

Strategic Expansion

The establishment of Simple Approach-UK Limited is part of PDS Limited's strategic expansion plan. This move is expected to enhance the company's capabilities in:

1. Promoting and developing creative designs
2. Managing marketing initiatives
3. Sourcing materials and products
4. Undertaking trading activities

Regulatory Compliance

PDS Limited has made this announcement in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided the required disclosures as per Schedule III of the SEBI Listing Regulations and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

Implications for PDS Limited

The launch of Simple Approach-UK Limited signifies PDS Limited's commitment to expanding its global presence and strengthening its position in the fashion infrastructure industry. By establishing a direct presence in the UK, PDS is likely aiming to:

• Enhance its proximity to European markets
• Improve its responsiveness to local market trends
• Streamline its operations in the region

As the fashion industry continues to evolve, this strategic move may position PDS Limited to better serve its clients and capitalize on new opportunities in the UK and European markets.