PDS Limited , a global fashion infrastructure company, has announced its financial results for the first quarter, revealing a mixed performance with strong revenue growth but declining profitability.

Revenue Growth

The company reported a robust 14% year-over-year increase in revenue, reaching ₹2,999.00 crore in Q1, up from ₹2,621.00 crore in the same period last year. This growth was primarily driven by the company's sustained customer engagement and strong execution across key markets.

Gross Merchandise Value

PDS witnessed a significant 19% year-on-year increase in Gross Merchandise Value (GMV), which rose to ₹4,634.00 crore. This growth underscores the company's expanding market presence and operational scale.

Profitability Challenges

Despite the strong top-line performance, PDS faced headwinds in profitability:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined to ₹50.50 crore from ₹73.30 crore in the previous year's Q1, representing a 31% decrease.
• EBITDA margin compressed to 1.68% from 2.80% in the previous year.
• Consolidated net profit decreased to ₹13.00 crore compared to ₹19.90 crore in the same period last year, marking a 36% decline.

Gross Margin Pressure

The company's gross margin saw a decline of 139 basis points, falling from 20.8% to 19.4%. This compression was attributed to market disruptions and their implications on customers.

Order Book and Cash Flow

Despite challenging market conditions, PDS maintained a healthy order book:

• The confirmed order book stood at ₹5,200.00 crore, representing an 8% growth compared to the same period last year.
• Operating cash flow improved significantly to ₹256.00 crore, compared to a negative ₹37.00 crore in the previous year.

Management Commentary

Pallak Seth, Executive Vice Chairman of PDS, commented on the results: "While Q1 reflects a dip in profitability owing to macroeconomic headwinds, we remain firmly on track to deliver on our long-term growth vision. PDS's asset-light, demand-responsive model continues to enable scalable solutions across key global markets."

Sanjay Jain, Group CEO, added: "PDS is undergoing a transformation for building a leaner, more agile organisation focused on long-term value creation. Our cost optimisation programmes are already showing promising early signals, reinforcing our commitment to operational excellence and profitability."

Future Outlook

The company remains focused on streamlining underperforming verticals, reallocating capital toward high-potential areas, and implementing cost optimization programs. Management expressed confidence in achieving their guidance and positioning the company for sustained, future-ready growth.

PDS Limited continues to navigate global economic uncertainties while leveraging its strong fundamentals, disciplined execution, and improved cost structure to drive long-term value creation for its stakeholders.

PDS Limited , a prominent player in the fashion and apparel industry, has made significant strides in expanding its global footprint and rewarding its employees. The company recently announced two major developments that underscore its growth strategy and commitment to employee retention.

New US Subsidiary Established

PDS Limited has incorporated a new subsidiary, Design Arc LLC, in Delaware, USA, effective July 29, 2025. This strategic move was executed through PDS Far East USA Inc, making Design Arc a step-down wholly owned subsidiary of PDS Limited. The new entity is set to strengthen PDS's presence in the North American market, offering a wide range of fashion and apparel services.

Design Arc LLC will focus on providing private label and white-label services across various product categories, including:

• Casualwear
• Formalwear
• Activewear
• Loungewear
• Kidswear
• Fashion accessories

The incorporation involved a nominal cash consideration of approximately INR 87.22 (USD 1), with PDS Limited maintaining 100% control through its subsidiary structure.

Employee Stock Option Allotment

In a separate development, PDS Limited has demonstrated its commitment to employee welfare and retention. On July 31, 2025, the company's Nomination and Remuneration Committee (NRC) approved the allotment of 10,000 equity shares under the PDS Limited - Employee Stock Option Plan 2021 - Plan A.

Key details of the stock option allotment include:

• Number of shares allotted: 10,000
• Face value per share: INR 2.00
• Exercise price per share: INR 219.00
• Premium per share: INR 217.00

This allotment was made to employees of PDS Limited and its subsidiaries who had exercised their vested stock options.

Impact on Share Capital

Following the allotment of these employee stock options, PDS Limited's share capital structure has been updated:

The newly allotted shares will rank pari-passu with the existing equity shares of the company.

These developments reflect PDS Limited's dual focus on international expansion and employee engagement. The establishment of Design Arc LLC in the USA positions the company to capture a larger share of the North American fashion and apparel market, while the employee stock option allotment reinforces its commitment to rewarding and retaining talent within the organization.

As PDS Limited continues to evolve its global strategy and strengthen its workforce, investors and industry observers will be keenly watching how these moves translate into long-term growth and value creation for the company.