Apparel exporter Pearl Global Industries reports double-digit growth in revenue and profit for FY26, aided by strong overseas demand, record shipments and improving margins despite tariff-related disruptions and rising input costs
Pearl Global Industries posted a 17 per cent rise in consolidated profit for FY26 as strong overseas demand, higher apparel shipments and improved operating margins helped offset tariff disruptions and rising logistics costs amid geopolitical uncertainty.
The apparel exporter reported consolidated profit after tax (Pat) of Rs 270 crore for the financial year ended March 2026, compared to the previous year. Revenue rose 11.5 per cent year-on-year to Rs 5,025 crore, while adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda ), excluding employee stock ownership plan (ESOP) expenses, increased around 14 per cent to Rs 468 crore. Ebitda margin improved to 9.3 per cent during the year.
Record Quarterly Show
The company also reported its highest-ever quarterly revenue in the March quarter at Rs 1,314 crore, up 6.9 per cent year-on-year. Quarterly Pat rose 24.6 per cent to Rs 81 crore, while adjusted Ebitda margin stood at 10.3 per cent, the highest quarterly margin recorded by the company.
Pearl Global said reciprocal tariffs and penal duties imposed by the US affected its India operations during the year. However, the company’s manufacturing presence across India, Bangladesh, Vietnam, Indonesia and Guatemala helped reduce the impact of global trade disruptions.
“In FY26, the group delivered another year of resilient performance against a complex geopolitical backdrop,” said Pulkit Seth.
“During FY26, the global apparel industry faced tariff-related disruptions. Our India operations were impacted by the tariff and penal duties imposed by the US. However, Pearl Global Industries leveraged its diversified, multi-country manufacturing presence to mitigate these challenges,” Seth added.
Capacity Expansion Plans
The company shipped a record 78.1 million pieces during FY26 compared to 74.3 million pieces in FY25. Installed annual manufacturing capacity crossed 100 million pieces during the year.
Pearl Global said ongoing capital expenditure in Bangladesh is expected to add another six million to seven million pieces of capacity in FY27. The company plans to invest Rs 200 crore to Rs 250 crore in FY27 to strengthen manufacturing capabilities and support long-term growth.
“With favourable tariff reductions, free trade agreements and capacity readiness, we are well equipped to scale efficiently in the coming years and drive transformational growth, enhanced profitability and long-term value for stakeholders,” Seth said.
Demand Remains Resilient
Managing Director Pallab Banerjee said the company achieved its second consecutive year of double-digit growth despite a volatile global environment.
“USA retail sales are showing good resilience till now and most of them continue to beat estimates. Reversal of tariff decisions is playing a positive role. We continue to see good demand trends from our customers in other markets as well,” Banerjee said.
He added that geopolitical tensions and Gulf conflicts could lead to higher energy, raw material and logistics costs in the coming quarters, though customers were factoring these pressures into pricing strategies.
Balance Sheet Strengthens
The company’s net worth rose to Rs 1,438 crore as of 31 March 2026 from Rs 1,146 crore a year earlier, while cash and bank balances increased to Rs 634 crore.
Pearl Global also declared a total dividend of Rs 14.5 per equity share for FY26, representing its highest-ever dividend payout ratio at nearly 25 per cent of annual group PAT.
Separately, the company said its Hong Kong-based subsidiary DSSP Global Limited will acquire an additional stake in PT Pinnacle Apparels, Indonesia, increasing its holding to 99.92 per cent.
