Pearl Global Industries Q2 FY27 results: net profit up 74.7% to ₹125.76 crore, revenue up 37.2%

How did Pearl Global Industries perform in Q2 FY27?

Pearl Global Industries reported consolidated revenue of ₹1,802 crore for Q2 FY27, up 37.2% from ₹1,313 crore in Q2 FY26 and 17.9% from ₹1,528 crore in Q1 FY27. EBITDA rose 50.3% year on year to ₹181.85 crore, and its margin increased to 10.1% from 9.2%. Sequentially, EBITDA was up 11.0% from ₹163.83 crore, but the margin declined by 0.6 percentage points from 10.7%.

Consolidated profit before tax was ₹134.77 crore, up 69.8% from ₹79.37 crore a year earlier and 12.7% from ₹119.57 crore in the previous quarter. Net profit was ₹125.76 crore, compared with ₹71.97 crore in Q2 FY26 and ₹99.23 crore in Q1 FY27. Basic EPS was ₹13.62, down 14.6% from ₹15.95 year on year and 37.4% from ₹21.77 sequentially. On a standalone basis, revenue was ₹308.37 crore and profit after tax was ₹16.13 crore, against ₹14.74 crore a year earlier.

The results were announced on 5 November 2026. The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, and the statutory auditors issued limited review reports on both sets of financial results.

What changed in Pearl Global Industries' costs and profit?

Total expenses rose 34.9% year on year to ₹1,675 crore from ₹1,242 crore, below the 37.2% increase in revenue. Cost of materials increased ₹298.81 crore to ₹835.69 crore, employee cost rose ₹50.35 crore to ₹281.99 crore, and other expenses increased ₹169.34 crore to ₹404.80 crore. Finance costs were up ₹1.36 crore at ₹28.79 crore, while depreciation increased ₹3.91 crore to ₹26.30 crore.

Other income rose 20.9% year on year to ₹9.85 crore from ₹8.15 crore. The quarter included an exceptional charge of ₹1.83 crore, against an exceptional gain of ₹0.02 crore in Q2 FY26. Tax expense increased 21.8% to ₹9.01 crore from ₹7.40 crore, while profit before tax rose 69.8% to ₹134.77 crore and net profit rose 74.7% to ₹125.76 crore.

Sequentially, total expenses increased 18.2% to ₹1,675 crore from ₹1,417 crore. Cost of materials rose ₹148.36 crore to ₹835.69 crore, employee cost increased ₹10.53 crore to ₹281.99 crore, and other expenses rose ₹52.44 crore to ₹404.80 crore. Other income fell ₹0.86 crore to ₹9.85 crore, and tax fell ₹11.32 crore to ₹9.01 crore. The exceptional charge was ₹1.83 crore, against ₹2.73 crore in Q1 FY27.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue rose 31.1% to ₹3,329.79 crore from ₹2,540.85 crore in H1 FY26, while total income increased 30.9% to ₹3,350.36 crore from ₹2,560.29 crore. Profit before tax rose 63.4% to ₹254.34 crore from ₹155.7 crore.

Profit after tax for the first half increased 63.6% to ₹224.99 crore from ₹137.53 crore. Basic EPS declined 20.2% to ₹24.5 from ₹30.72. The first-half results covered the period from 1 April 2026 to 30 September 2026 and were unaudited.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹3,986.11 crore, against ₹3,244.70 crore on 31 March 2026, while total equity rose to ₹1,633.74 crore from ₹1,437.99 crore. Borrowings increased to ₹958.41 crore from ₹686.77 crore, and cash declined to ₹549.66 crore from ₹704.41 crore.

Inventories rose to ₹1,055.77 crore from ₹882.47 crore, trade receivables increased to ₹795.46 crore from ₹407.30 crore, and trade payables rose to ₹964.52 crore from ₹697.75 crore. In H1 FY27, operating cash flow was ₹4.87 crore, compared with ₹273.26 crore in H1 FY26. Investing cash flow was negative ₹317.77 crore against negative ₹201.61 crore, while financing cash flow was ₹158.14 crore against negative ₹155.97 crore.

Capital expenditure in H1 FY27 was ₹172.64 crore, compared with ₹64.91 crore in H1 FY26. No closing cash figure for either half-year period was provided in the available data.

How has Pearl Global Industries done over the last 8 quarters?

Revenue and profit reached their highest levels of the reported series in Q2 FY27, at ₹1,802 crore and ₹125.76 crore, respectively. The EBITDA margin peaked at 10.7% in Q1 FY27 before easing to 10.1% in Q2 FY27; its lowest level was 8.2% in Q3 FY26. Revenue had earlier bottomed at ₹1,022.53 crore in Q3 FY25, while profit bottomed at ₹48.24 crore in the same quarter.

The current direction remains upward for both revenue and profit, although the EBITDA margin declined from the preceding quarter. Revenue rose year on year in each of the last eight quarters, and profit also rose year on year in each of the last eight quarters. The trend series covers Q3 FY25 through Q2 FY27.

Which businesses drove the quarter?

Hong Kong remained the largest reported segment, with Q2 FY27 revenue of ₹1,136.15 crore, up 5.1% from ₹1,081.42 crore, and EBIT of ₹69.13 crore against ₹37.52 crore. Its reported EBIT margin was 6.1%. India recorded revenue of ₹310.13 crore, up 17.2% from ₹264.64 crore, but reported an EBIT loss of ₹0.85 crore compared with EBIT of ₹8.90 crore; the margin was negative 0.3%.

Bangladesh reported revenue of ₹479.82 crore, up 9.1% from ₹439.84 crore, and EBIT of ₹28.47 crore against ₹26.06 crore, with a 5.9% margin. Vietnam reported revenue of ₹354.66 crore, up 35.0% from ₹262.69 crore, and EBIT of ₹17.65 crore against ₹37.06 crore, with a 5.0% margin. The UAE reported revenue of ₹539.60 crore, EBIT of ₹45.76 crore and an 8.5% margin, while year-on-year comparisons were not provided.

Others reported revenue of ₹122.77 crore, up 34.4% from ₹91.33 crore, and EBIT of ₹3.40 crore against negative ₹2.73 crore. The segment's reported EBIT margin was 2.8%.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, following a recommendation from the audit committee. The company also filed the related limited review reports issued by its statutory auditors.

The board declared the first interim dividend for FY2026-27 at Rs. 5 per equity share, equal to 100% of the face value of Rs. 5 per share. The dividend is to be paid within 30 days from the declaration date to eligible shareholders, and 13 November 2026 was fixed as the record date. Pearl Global Industries also filed its Q2 and H1 FY27 investor presentation with BSE and NSE.

What did Pearl Global Industries' management say?

Management said the investor presentation covered the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. The company filed the presentation on its website and informed BSE and NSE under Regulation 30 of the SEBI listing regulations.

The available filing extract contained the cover letter and website link, but no operating commentary, guidance, expansion plans, segment discussion, company-acknowledged risks, or analysts’ questions. No management guidance or stated priorities were therefore available from the extract.

How did other Garments & Apparels companies do?

Twelve other Garments & Apparels companies that had filed for the quarter were compared. Their median revenue growth was 16.9%, while seven companies reported higher profit. Profit was compared for 10 of the peers. Seven peers grew more slowly than Pearl Global Industries, and five grew faster than the company.