This article first appeared on GuruFocus .
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Revenue:Nine-month FY26 revenue at INR3,711 crores, up 13.2% year-on-year.
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EBITDA:Nine-month FY26 EBITDA at INR333 crores, up 14% year-on-year; margin at 9%.
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Adjusted EBITDA Margin:Excluding tariff and ramp-up costs, margin at 10.1% for nine months FY26.
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Net Income (PAT):Nine-month FY26 PAT at INR189 crores, up 14% year-on-year.
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Q3 FY26 Revenue:INR1,170 crores, up 14.4% year-on-year.
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Q3 FY26 Adjusted EBITDA:INR97 crores, up 4.4% year-on-year; margin at 8.3%.
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Q3 FY26 Net Income (PAT):INR52 crores, up 6.8% year-on-year.
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Stand-alone Revenue:Nine-month FY26 at INR777 crores.
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Stand-alone EBITDA:Nine-month FY26 at INR43 crores, up 64% year-on-year; margin at 5.5%.
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Stand-alone Net Income (PAT):Nine-month FY26 at INR55 crores, up 72.6% year-on-year.
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CapEx in Bangladesh:INR110 crores allocated, INR66 crores committed; completion by Q2 FY27.
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CapEx in India:Bihar expansion completed; solar power installation completed for all plants.
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Release Date: February 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Pearl Global Industries Ltd ( BOM:532808 ) reported a 13.2% year-on-year increase in nine-month revenue, reaching INR3,711 crores.
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The company's EBITDA grew by 14% year-on-year, with an adjusted EBITDA margin of 10.1% when excluding tariff-related costs and ramp-up expenses.
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The India-US bilateral trade deal significantly reduced tariffs from 50% to 18%, enhancing India's textile export competitiveness.
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Capacity expansion plans in Bangladesh and India are on track, with significant growth expected from these regions in the coming years.
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The company has achieved a notable improvement in its credit profile, with a long-term credit rating upgraded to ICRA A+ stable.
Negative Points
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The company faced challenges due to tariff-related costs and ramp-up expenses, impacting the EBITDA margin.
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India operations have been a drag on overall performance, with margins below company average due to previous trade disadvantages.
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Guatemala operations are still incurring losses, although efforts are being made to reach breakeven in the next financial year.
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Vietnam experienced a slight degrowth in garment exports in terms of dollar value, affecting overall profitability.
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The company is facing challenges in ramping up new facilities, particularly in Bihar and Guatemala, which are impacting short-term financial performance.
Q & A Highlights
Q: Can you provide details on the ramp-up costs for Q3 and whether they pertain to the Bihar or Guatemala facility? Will these costs continue in the coming quarters? A: The ramp-up costs are primarily for the Bihar facility, with some costs for Guatemala. We expect these costs to decrease significantly from the next financial year onwards, with a reduction already visible in Q4. - Sanjay Gandhi, Group CFO
Q: How is the US demand sentiment, especially with the 20% average tariff on apparel exports? Are there variations in demand for high-end fashion versus general clothing? A: The US market has seen a surgical increase in price tickets, not across all products. Retailers are cautious, and while some products have seen price increases, others are still under observation. Inventory levels are slightly decreasing as retailers adjust buying numbers to maintain budgets. - Pallab Banerjee, Managing Director
Q: With the new capacities in Bangladesh and India, how are you positioned in terms of new customer additions or increasing wallet share with existing customers? A: We are well-positioned with a diversified manufacturing presence across five countries and major markets. We continue to add new customers and increase our market share by targeting major growing retailers and brands. - Pallab Banerjee, Managing Director
Q: When can we expect the full ramp-up of the new Bangladesh capacity? A: The construction should be ready by 2027, with ramp-up expected in the 2027-28 financial year. Bangladesh is a mature market, allowing for smoother and faster ramp-up compared to new locations like India. - Pallab Banerjee, Managing Director
Q: How will the recent trade deals with the US, EU, and UK impact your capacity and growth plans? A: We have a continuous growth plan with a compounded growth target of 12% to 15%. We have already built capacity in India to handle increased demand from these trade deals, with readiness to scale up as needed. - Pallab Banerjee, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
