Pearl Global Industries (PGIL IN) – Q2FY27 Result Update – Growth momentum continues across geographies – BUY
Published on 06 Nov 2026
PGIL reported a revenue/EBITDA/PAT growth of 37.2%/50.3%/74.7% respectively. Volumes grew by 14.6% YoY, and 9.6% QoQ to 22.8mn garments, while the blended realization per piece increased by 11.7% YoY. EBIDTA margin expanded by 90bps YoY to 10.1%, driven by operational efficiencies and higher realizations. Reported revenue includes ~INR980mn from value-added services, along with corresponding expenses of ~INR965mn and contributes only marginally to EBITDA. The company has added a 7mn pieces per annum capacity in Bangladesh, which is expected to ramp-up over the next 6-8 months. PGIL also plans to invest INR6.75-7.25bn over the next 3 years towards capacity expansion and backward integration and has set and aspirational revenue target of INR90-100bn by FY30. We have revised our FY27E/FY28E/FY29E estimates by 10.0%/1.3%/4.6%. We continue to value the stock at 24x Sep’28E EPS with a TP of INR1,550 (earlier INR1,500). Maintain ‘BUY’.
