Pearl Global Industries (PGIL) Q2 25/26 earnings summary

Executive summary

• H1 FY26 consolidated revenue reached INR 2,541 crore, up 12.7% year-on-year, with strong growth in Vietnam and Indonesia and improved profitability despite global uncertainties and tariff headwinds.

• Adjusted EBITDA (excluding ESOP expenses) grew 18.4% year-on-year to INR 236 crore, with a margin of 9.3%.

• PAT for H1 FY26 rose 17% year-on-year to INR 138 crore, with consolidated net profit at INR 141 crore and EPS improvement.

• Diversified manufacturing and customer base across Vietnam, Indonesia, Bangladesh, India, Guatemala, and Hong Kong supported resilience.

• U.S. revenue contribution reduced to about 50%, with increased focus on Japan, Australia, U.K., EU, and Hong Kong.

Financial highlights

• H1 FY26 revenue: INR 2,541 crore (+12.7% YoY); Q2 revenue: INR 1,313 crore (+9.2% YoY).

• Adjusted EBITDA (H1): INR 236 crore (+18.4% YoY, margin 9.3%); Q2: INR 122 crore (+43.6% YoY, margin 9.3%).

• PAT (H1): INR 138 crore (+17% YoY); Q2: INR 72 crore (+29.4% YoY); consolidated PAT after minority interest at INR 141 crore (+14% YoY).

• Gross margin improved by 375 bps to 29% in H1 FY26; consolidated gross margin at 45.4%.

• Standalone India H1 revenue: INR 531 crore; Adjusted EBITDA: INR 30 crore (margin 5.7%).

• Working capital days at 30 as of September 2025.

Outlook and guidance

• Robust order book and diversified presence expected to sustain growth momentum.

• CapEx plan targets capacity above 100 million pieces by mid-FY27, with further expansion to 130–135 million pieces by FY28; INR 250 crore capex for FY26.

• Margin profile expected to remain stable or improve, even if tariff headwinds persist.

• Revenue target of INR 6,000 crore by FY28 remains on track, with potential for upward revision.

• Management expects normalization in US tariff environment and ongoing focus on sustainable, profitable growth.