PGILNSEMay 20, 2026

Pearl Global Industries Limited

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Management on call

Pallab Banerjee

MANAGING DIRECTOR – PEARL GLOBAL INDUSTRIES LIMITED

Sanjay Gandhi

GROUP CHIEF FINANCIAL

Shishir Gahoi

HEAD, INVESTOR RELATIONS – PEARL GLOBAL INDUSTRIES LIMITED

Key numbers — 40 extracted

INR5,000 crore

sed execution and the multi-location presence. In this year under review, we crossed revenue of INR5,000 crores and our EBITDA stood at INR468 crores at 9.3%. Excluding the incremental loss at new facilities

INR468 crore

sence. In this year under review, we crossed revenue of INR5,000 crores and our EBITDA stood at INR468 crores at 9.3%. Excluding the incremental loss at new facilities of Bihar and Guatemala and the tariff

9.3%

year under review, we crossed revenue of INR5,000 crores and our EBITDA stood at INR468 crores at 9.3%. Excluding the incremental loss at new facilities of Bihar and Guatemala and the tariff cost that

10.3%

oss at new facilities of Bihar and Guatemala and the tariff cost that we bear this year stands at 10.3%. Our installed capacity reached 101 million pieces per annum. With the completion of financial

101 million

mala and the tariff cost that we bear this year stands at 10.3%. Our installed capacity reached 101 million pieces per annum. With the completion of financial year '26, we feel that we are solidly on track

25%

ed a roller coaster ride with the U.S. tariff in this year of '26. Especially for India, first, a 25% tariff was levied. And on top of this, another 25% penalty was put on to Indian goods. And both

65%

top of the MFN duties already prevalent for U.S. Thus, the total charges went up to the range of 65% to 69% of Indian-made garments out of cotton fabric. After 6 months of this painful situation, a

69%

the MFN duties already prevalent for U.S. Thus, the total charges went up to the range of 65% to 69% of Indian-made garments out of cotton fabric. After 6 months of this painful situation, a deal be

18%

months of this painful situation, a deal between U.S. and India brought this IEEPA tariff down to 18%. And then, of course, the U.S. Supreme Court declared

10%

ting to file legal cases for refunds, though it may not be so easy as it sounds, and currently, a 10% tariff under the Section 122 is in place till the month of July for all countries exporting to U.

6 million

ected to be completed in first half of 2027, it will further expand the capacity by approximately 6 million pieces over the next 2 years of financial year '27 and financial year '28. Driven by recent custo

47%

ramping up on our recently commissioned factory. Indonesia capacity utilization has increased to 47% of its total established capacity that we have there in this year. Last year, it was about 39%. N

Guidance — 20 items

Pallab Banerjee

opening

“FTA, we anticipate higher volumes, increased sourcing from India and renewed growth in our Indian operations from financial year '27 onwards, which were impacted last year, mainly because of U.S.”

Pallab Banerjee

opening

“By leveraging the expanded capacity and the enhanced capabilities that we have recently established in India, we are ready to play an important role in driving growth and delivering the improved profitability going forward.”

Pallab Banerjee

opening

“The ongoing capex project is expected to be completed in first half of 2027, it will further expand the capacity by approximately 6 million pieces over the next 2 years of financial year '27 and financial year '28.”

Pallab Banerjee

opening

“We are confident that our Indonesia operations will deliver both top line and bottom line from this year onwards.”

Pallab Banerjee

opening

“Encouraged by the strong customer traction, we plan to have additional capacity in Vietnam, which would further deepen the customer engagement and increase the wallet share.”

Sanjay Gandhi

opening

“Our installed capacity has crossed 100 million pieces milestone, significantly ahead of our earlier target of H1 FY '27.”

Sanjay Gandhi

opening

“The company through its step-down subsidiary company, DSSP Global Limited, Hong Kong will be acquiring an additional 10% stake from minority shareholder in PT Pinnacle Apparels Indonesia for a consideration of $1.4 million.”

Bharat Gulati

“So just wanted to understand the sustainability of that EBIT going forward?”

Sanjay Gandhi

“Second is, I think you mentioned about sustainability of EBIT margin, which has been achieved, how sustainable it will be.”

Bharat Gulati

“So is that run rate is going to be sustainable going forward even as India business and everything comes back?”

Risks & concerns — 9 flagged

Actual results could be different as future performance is uncertain and involves risks that are hard to predict.

— Shishir Gahoi

We continue to sustain our growth momentum in top line and bottom line despite the challenging and uncertain macro environment driven by our focused execution and the multi-location presence.

— Pallab Banerjee

Adjusted EBITDA margin stood at 9.3%, excluding tariff impact of INR36 crores and incremental loss in Bihar and Guatemala, approximately INR13 crores, adjusted EBITDA margin stands at 10.3% for the full year.

— Sanjay Gandhi

Adjusted EBITDA margin, excluding the reciprocal tariff impact of INR5 crores and incremental loss in Bihar and Guatemala of INR3 crores, adjusted EBITDA margin stands at 10.9% at a group level.

— Sanjay Gandhi

FY '26 performance is a testament to the strength of the Pearl Global diversified business model, which has enabled us to sustain growth even in uncertain geopolitical environment.

— Sanjay Gandhi

So there will be a gain, but very difficult to quantify from the point of view of how much the tariff cost will actually translates because every season there will start a fresh negotiation and the discussion and the fresh cost structure.

— Sanjay Gandhi

So, that's something very difficult to project.

— Pallab Banerjee

That's more difficult to predict because sometimes this onboarding takes maybe years.

— Pallab Banerjee

So yes, so it's very -- to put a number would be difficult, but that's a continuous process that we have.

— Pallab Banerjee

Q&A — 10 exchanges

Congratulations on the great set of numbers. I just had a question regarding growth that has come in this quarter. India has seen a sharp degrowth of about 23% and which predominantly is an India-heavy quarter and its overall contribution last quarter from 32% has dropped to 23%, whereas the other segment that we report in our audited results, that has shot up significantly on a Q-o-Q and Y-o-Y basis to INR214 crores, which I predominantly understand is Guatemala. So, could you explain where that spike came in? And also, we've achieved profitability in that segment. So just wanted to understan

Pallab Banerjee

Okay. I will start and then Sanjay can add to it. See, what happened in India, we were under the very high tariff from U.S. market of almost 50%. So most of our retailers were pushing us to take out as much as goods from India and manufacture in the other countries. So -- but still, like we -- certain customers like which we are serving only from India, we continue to pay the discounts and still continue to have the goods in India. So that's the reason you are seeing that the India total number has come down for this quarter. Now why in this particular quarter? Because since August of 2025, th

First of all, congrats to the team for delivering such a resilient performance in Q4 and FY '26. Sir, I'd like to start with your comments on energy cost, and its impact on the raw materials and the freight costs that you have mentioned in the investor presentation. So as you know, the cotton prices and the polyester prices have increased a lot since the start of the war. And how is Pearl Global managing this? And is the current pricing negotiation that we are actually doing with our customers reflecting the increase? Plus, given the increasing inflation all around the globe, particularly in t

Pallab Banerjee

Yes. So if I go one by one, first of all, the energy impact, 2 parts to it, like whatever is the raw material cost increase that is coming because of this is visible to us as well as our customers. So when we negotiate price, normally, we give that visibility, okay, this is the raw material cost and this is our additional value addition that we are doing. So generally, that impact is suddenly like if you have booked the business and after that, some increase happens, then it impacts us. Otherwise, that also at a maximum of about 1 to 2 months. So that's how, like our industry, the impact shoul

So just wanted to check one thing. When we were saying INR6,000 crores target for FY '28. And on the other hand, we are saying our realization is INR630 now. And we are saying 100 million shipping target by '28. So things are not matching. So do we look at realization declining for next couple of years?

Pallab Banerjee

So let me answer that. INR6,000 crores are something that we talked about in 2023. Yes. So that's the time that we gave ourselves this target. And so naturally, what you are seeing today in the last few years, like we have been ahead of that. And if this trend continues, like which we - - as of now, we are quite confident what we are seeing in this particular year. So naturally, it should be like more -- quite more than INR6,000 crores. So that's… Yes, is it fair to assume 12% to 13% is achievable by looking at the current trend? Yes. If our global leaders continue to be sensible, I think that

Congrats on a good set of results. So my question was basically, when I see the inventory days, it has moved up a bit. And is it fair to assume that this inventory days movement is basically because of lower shipments in quarter 4 or maybe in the second half of the year because of the second half of the quarter because there was a lot of issues relating to the shipments?

Sanjay Gandhi

So, I would -- so that's also one way of looking at it. The second way of looking is that it also depicts the higher shipment, which is expected in quarter 1.

Congratulations on good set of numbers and very happy with the results. Just having 1 or 2 questions. So, first is when we talk about Muji, I just wanted to understand we do have numbers for the contribution from our top 3 clients from the perspective of how much as a vendor we contribute to that sourcing. Just from the Muji perspective, since it's going to move from a tactical segment to a top tier. So what is an expectation of Muji contributing to our revenue, and then how much do we currently contribute to their vendor contribution that the supply that we do to them?

Pallab Banerjee

So, Muji is a Japanese brand, as you know. So, they have been working with us for some time. Once the confidence gets built up, then they grew more rapidly in the last 2 to 3 years. We will continue to grow with them. We are -- at this point in time, we are in discussion with them to grow further. So both India and Bangladesh are the 2 countries that we are servicing from, and they are looking at the other country of origin as well potentially as a source. So in terms of total turnover from Muji, we had already crossed about, I think, $65 million, yes. So that will continue to grow. That's why

Congratulations on the good set of numbers. My first question is regarding the entire INR250 crores capex that will it be enough to do capacity addition of 25 million to 30 million pieces or we'll have to spend beyond INR250 crores?

Sanjay Gandhi

So, this INR250 crores will -- see the addition of the capacity, first of all, let me break this question into 2 parts. The addition of capacity has always been and will always remain a combination of in-house facilities plus the partnership facility. Both are under discussion at this point in time as we really speak. Part of it is factored in the capex program, which we just mentioned, about INR250 crores for the next financial year. The one which is underway should add 6 million to 7 million pieces from 100 million. So we should be at 107 million plus additional 20 million, 20 million pieces

First on the top line front, now that the tariff situation has eased out and we have also increased the capacity and fairly, the capacity in India has also ramped up in the last few quarters. So in this context, what -- how are the discussions with the clients happening now? What is it that the clients are looking for now? Is there any improvement in the timeline of orders being placed with us? And is there some sense of utilization rate improvement that we have over and above what we have achieved? I know Indonesia, Vietnam, etc., have had a very good improvement in utilization this financial

Pallab Banerjee

Yes. So, first part of it, like whether -- what's the trend that we are seeing in India? Because I think India is the country which got affected with the tariff…

Manju, if you can mute yourself, I think there's some kind of disturbance coming from your side. Yes. Thank you. Yes, so talking about India, like that's where like we had this 50% tariff and rest of the other countries, as we had noticed that all were in the similar range of 20% or around. So yes, with this tariff moving away from India, definitely, we are seeing a positive response from the customers. And also added to that are the other European Union and U.K. customers' interest because of the potential FTA implementation in the next few quarters or a year. So, that's -- keeping that in mi

Manjubhashini

Vietnam is already at 80% utilization. And on the existing capacity, you also talked about how you're looking for land banks to increase further capacity there, etc. But this 80% to what extent -- what would be the optimal utilization level? Is 80% itself an optimal level? Or you think it can stretch up to another 10 percentage points, close to 90% at the optimal level. When we will really look for additional capacity to garner higher, more? Yes. So, as you have been talking to us for some time, so you must have noticed that we keep - - try to keep a ratio of about 85-15 or 80-20, kind of how

I have just one question on the design and marketing. Generally, design is one of the pillar of attracting new clients. So, what number of people, what number of designs we would have churned in last 1 year? And how this segment will scale up over the next 2, 3 years? I mean I understand capacity expansion will happen, but winning the customer trust will be based on the designs?

Pallab Banerjee

Design and capability both. So, what we do is if you if you follow us then we have been investing in the design stuff and also in the country where the sales are happening. So that means whether it is European countries like Spain and all where we have a significant exposure. Similarly for U.S., for U.K., these are the places like we have invested in the design team who work very closely with the customers, what kind of trend, what are the requirements that they have. So, that definitely plays in our favor. Exactly how much of number and all of samples, yes, the numbers are quite significant a

Thank you to all participants. With positive industry development in the future, given the tariff and the reciprocal tariff and the penalty is not there. And we, across the geographies are feeling as a Pearl group, a lot of optimism as we step into the new financial year. Of course, there are challenges across, which we are navigating well. And with a diversified manufacturing base, new capacity additions, ongoing expansion plan and a strong relationship with global retailers, Pearl Global is entering FY '27 well positioned for continued profitable growth. We remain confident of sustaining thi

Management

Speaking time

Pallab Banerjee

Sanjay Gandhi

Moderator

Bharat Gulati

Soham Samanta

Kishore Kumar

Harsh Dubey

Manjubhashini

Shirish Pardeshi

Bhavya Gandhi

Opening remarks

Shishir Gahoi

Welcome to our earnings call for Q4 FY '26 and financial year '26. I hope you all have an opportunity to review our press release and the investor presentation, which are available under the Investors section of our website, and the same are also uploaded on the BSE and NSE website. To discuss our results, we have with us our Managing Director, Mr. Pallab Banerjee; and our Group CFO, Mr. Sanjay Gandhi. They will take you through our results and business performance, after which we will proceed for the question-and-answer session. Before we start, I just want to highlight that this call may include forward-looking statements based on the company's current views and expectations. Actual results could be different as future performance is uncertain and involves risks that are hard to predict. I will now hand over the call to our MD, Mr. Pallab Banerjee. Over to you, Pallab ji.

Pallab Banerjee

Thank you, Shishir. Good afternoon, everyone. I welcome you all to the full year of financial year '26 earnings call. We continue to sustain our growth momentum in top line and bottom line despite the challenging and uncertain macro environment driven by our focused execution and the multi-location presence. In this year under review, we crossed revenue of INR5,000 crores and our EBITDA stood at INR468 crores at 9.3%. Excluding the incremental loss at new facilities of Bihar and Guatemala and the tariff cost that we bear this year stands at 10.3%. Our installed capacity reached 101 million pieces per annum. With the completion of financial year '26, we feel that we are solidly on track with our vision of FY '28 shared with all of you earlier and all this while we continue to improve on our efficiencies, governance and ratings. Now an update on the key positive developments in our industry during this year. As you all know that we all experienced a roller coaster ride with the U.S. tari

Sanjay Gandhi

Thank you, Pallab. Welcome all to our quarter 4 and full year FY '26 earnings call. I will now take you through our financial and operational performance. FY '26 consolidated performance. FY '26 was a record year for us where we marked our highest ever consolidated revenue performance despite geopolitical uncertainty. Consolidated revenue grew to INR5,025 crores, up 11.5% year-on-year. This strong growth was driven by volume and high value-added products growth in overseas business. Adjusted EBITDA, excluding ESOP expense, stood at INR468 crores, up by 14% in FY '26. Adjusted EBITDA margin stood at 9.3%, excluding tariff impact of INR36 crores and incremental loss in Bihar and Guatemala, approximately INR13 crores, adjusted EBITDA margin stands at 10.3% for the full year. PAT in FY '26 stands at INR270 crores, a strong growth of 17% on a year-on-year basis. Quarter 4 FY '26 consolidated performance. In quarter 4 FY '26, we achieved our highest ever quarterly revenue with total revenue

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Pearl Global Industries Limited

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