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Pearl Global Industries (PGIL) has announced the commissioning of its new manufacturing facility in Bangladesh

ICICIdirect Research 23 Sep 2026 DISCLAIMER

News: Pearl Global Industries (PGIL) has announced the commissioning of its new manufacturing facility in Bangladesh with an annual capacity of ~7mn garment pieces (at optimum utilisation levels). It has also announced expansion of its in-house washing facility. With the addition of the new Bangladesh facility, the company’s overall annual capacity now stands at 108mn garment pieces.

View: The capacity expansion and washing facility addition are part of PGIL’s broader capex program of Rs.200-250cr. PGIL has earmarked Rs.110cr for the Bangladesh manufacturing facility and Rs.95cr for sustainable washing capacity expansion. The company continues to add facilities across operating locations to serve growing demand from global retailers. It added a 1.4mn-piece manufacturing facility in Bihar in FY26, with the second shed under construction and expected to be operational by October/November 2026. It is also pursuing other capacity additions, with management highlighting that land has already been acquired in Vietnam for another expansion. Overall, management expects greenfield expansions, along with capacities under the partnership model, to take overall manufacturing capacity to 125mn garment pieces in FY28 from 108mn currently. These incremental facilities should support volume and revenue growth, while backward integration should improve margins over the medium term. We expect PGIL’s volumes and realisation to grow at CAGR of 12%/2%, respectively, over FY26-28E, with revenues/PAT scaling at CAGR of 14%/28% over the same period.

Impact: Positive

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