Pearl Global Industries Limited (PGIL) has demonstrated resilience in the face of challenging market conditions, reporting a 12.7% year-on-year revenue growth to INR 2,541.00 crores for the first half of fiscal year 2026. The company's strategic diversification and focus on high-value products have helped mitigate the impact of ongoing US-India trade tensions.

Financial Highlights

• Consolidated revenue reached INR 2,541.00 crores in H1 FY26, up 12.7% year-on-year
• Adjusted EBITDA rose 18.4% to INR 236.00 crores, with a margin of 9.3%
• PAT grew by 17% to INR 138.00 crores

Navigating Tariff Challenges

Despite facing a 25% penalty tariff on US exports from India, PGIL has managed to maintain its growth trajectory. The company's diversified manufacturing strategy across Vietnam, Indonesia, Bangladesh, and Guatemala has played a crucial role in maintaining resilience.

Strategic Shift in Market Exposure

• US market exposure reduced from 86% to below 50%
• Increased focus on markets in Japan, Australia, UK, and EU

Operational Highlights

• Shipped 37.1 million pieces in H1 FY26, up from 36.0 million in H1 FY25
• Average realization per piece improved, driven by high-value products from Vietnam and Indonesia

Future Outlook

PGIL remains optimistic about sustaining its growth momentum, supported by:

1. Robust order book across all regions
2. Ongoing capacity expansion initiatives
3. Potential benefits from upcoming free trade agreements, including India-EU FTA and UK FTA

Management Commentary

Pallab Banerjee, Managing Director of PGIL, stated, "Our strategy of geographical diversity has been working well for us, and we have been able to make a notable footprint across various markets of Australia, Japan, UK, and EU, apart from the US."

Sanjay Gandhi, Group CFO, added, "We are pretty confident despite the tariff impact, which is there on some of the sales happening from India to US. The overall margin profile of the company should remain in the similar range what we had last year."

Investor Considerations

1. Diversification Strategy: PGIL's multi-country manufacturing model has proven effective in mitigating market-specific risks.
2. Margin Resilience: Despite tariff challenges, the company has maintained its profitability, with potential for improvement if trade tensions ease.
3. Capacity Expansion: Ongoing investments in new facilities and upgrades position PGIL for future growth.
4. Market Adaptability: The company's ability to shift focus to new markets demonstrates its agility in responding to trade dynamics.

As Pearl Global Industries continues to navigate the complex global trade environment, its diversified approach and strategic investments may provide a solid foundation for sustained growth in the coming quarters.

Pearl Global Industries , a leading garment exporter, has announced robust financial results for the second quarter and half year ended September 30, 2025, alongside declaring an interim dividend.

Financial Highlights

• Consolidated Revenue: The company's consolidated revenue for H1FY26 crossed the Rs 2,500 crore milestone, reaching Rs 2,541.00 crore, marking a 12.7% year-on-year growth. This was primarily driven by high value-added product sales in Vietnam and Indonesia.

• Profitability: Adjusted EBITDA stood at Rs 236.00 crore, growing by 18.4% year-on-year, with margins improving by 45 basis points to 9.3%. Excluding the impact of reciprocal tariffs and losses from new facilities, the adjusted EBITDA margin was 10.6%.

• Net Profit: The company reported a consolidated net profit of Rs 138.00 crore for H1FY26, representing a 17% increase compared to the same period last year.

• Q2 Performance: For Q2FY26, revenue stood at Rs 1,313.00 crore, up 9.2% year-on-year, while net profit rose to Rs 72.00 crore, marking a 29.4% year-on-year increase.

Dividend Declaration

The Board of Directors declared a first interim dividend of Rs 6.00 per equity share (120% on face value of Rs 5.00 each) for the financial year 2025-26. The record date for dividend entitlement is set as November 17, 2025, with payment to be made within 30 days to eligible shareholders.

Operational Highlights

• The company shipped 19.9 million pieces in Q2FY26, its highest ever for a Q2 period, up from 19.3 million pieces in Q2FY25.
• Pearl Global received dividends totaling approximately Rs 32.00 crore in H1FY26 from its subsidiaries in Bangladesh and Hong Kong.
• The company upgraded to eFlow Nanobubble technology in Bangladesh, enabling up to 32% water savings, 9% reduction in power consumption, and a 20% improvement in time efficiency.

Management Commentary

Mr. Pallab Banerjee, Managing Director, commented on the results: "We are pleased to share another quarter of strong financial performance, reflecting the resilience of our operations amid an evolving trade environment. Our diversified market base, robust order book coupled with disciplined execution, reinforce our ability to deliver long-term value and maintain momentum."

Future Outlook

The company plans to invest in capacity expansion, sustainability, and efficiency improvements with a planned capex of Rs 250.00 crore. Expansion projects are underway in Bangladesh and India, aimed at enhancing production capacity and improving operational efficiency.

Pearl Global Industries aims to diversify its customer base across the US, UK, Japan, and Australia, while also exploring opportunities arising from potential new Free Trade Agreements.

Note: This article is based on the company's official financial results and statements. Investors are advised to conduct their own research before making investment decisions.