Pearl Global Industries (PGIL) Q1 26/27 earnings summary

Executive summary

• Achieved highest-ever Q1 consolidated revenue of INR 1,528 crore, up 24.5% year-over-year, with strong volume growth across all manufacturing locations and broad-based growth across geographies.

• Adjusted EBITDA (excluding ESOP expenses) rose 44.1% to INR 164 crore, with margins improving to 10.7%, up 140 bps year-over-year, driven by product mix and operating leverage.

• PAT reached INR 99 crore, a 51.4% increase year-over-year, driven by operational efficiency and favorable product mix.

• Board approved a 1:1 bonus equity share issue, subject to shareholder approval.

• Appointment of Major General Sandeep Vohra (Retd.) as Whole-Time Director for three years, subject to shareholder approval.

Financial highlights

• Standalone revenue grew 27.4% year-over-year to INR 340 crore; standalone EBITDA margin declined to 6.6% due to higher wage costs in Haryana.

• Consolidated net profit for Q1 FY27 was Rs. 9,923.43 lakh, up from Rs. 6,555.94 lakh in Q1 FY26.

• Dividend of INR 5 crore received from Hong Kong subsidiary.

• Gross margin improved to 51.5% from 46% YoY, attributed to higher value-added product mix and increased outsourcing.

• Finance cost as a percentage of sales reduced to 1.7%, with net working capital days stable at 43-44.

Outlook and guidance

• Confident of sustaining double-digit EBITDA margins for the full year, targeting 10-12% by FY 2028.

• Revenue CAGR guidance of 12-14% may be exceeded if current momentum continues; potential to reach INR 6,000 crore revenue milestone ahead of FY 2028.

• Capacity expansion plans on track, with group installed capacity expected to reach 108 million pieces by September/October, and further growth to 125-130 million by FY 2028.

• Bonus shares to be credited within two months of Board approval, i.e., by October 4, 2026.

• Management remains confident of delivering another year of profitable growth, supported by healthy order visibility and strong execution.