Pearl Global Industries (PGIL) Q1 25/26 earnings summary

Executive summary

• Consolidated Q1 FY26 revenue reached INR 1,228 crore (₹122,791.71 lakh), up 16.6% year-on-year, marking the fifth consecutive quarter above INR 1,000 crore.

• Adjusted EBITDA grew 13.4% year-on-year to INR 114 crore, with a margin of 9.3%; excluding new facility losses and tariff costs, margin was 10.7%.

• PAT rose 5.9% year-on-year to INR 66 crore; excluding exceptional items, PAT grew 13.5%.

• Growth was driven by strong performance in Vietnam and Indonesia, supported by robust order books and healthy sales volumes.

• The Board declared and paid a second interim dividend of ₹6.50 per equity share during the quarter.

Financial highlights

• Standalone revenue for Q1 FY26 was INR 267 crore, down 3.4% year-on-year; standalone PAT grew 62.6% to INR 26 crore.

• Number of pieces shipped increased to 17.2 million from 16.7 million year-on-year.

• Dividend income of INR 18 crore received from Bangladesh and Hong Kong subsidiaries.

• Basic EPS for the quarter was 14.76, compared to 14.99 in Q1 FY25.

• Other income included significant dividends from foreign subsidiaries, totaling ₹1,839.40 lakh.

Outlook and guidance

• Volume growth guidance for FY26 maintained at 12%-14% CAGR, with management confident in achieving targets despite Q1's 3% growth.

• Margin guidance remains steady, with recalibration strategies expected to sustain profitability.

• Company is recalibrating its US market strategy due to new reciprocal tariffs, shifting production to Vietnam, Indonesia, Bangladesh, and Guatemala.

• India will focus on leveraging FTAs with the UK, Japan, and Australia while US tariffs persist.

• CapEx plans on hold pending tariff environment stability, but ongoing Bangladesh expansion to add 5-6 million pieces capacity.