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Pearl Global Industries (PGIL) reported strong set of results in Q1FY27

ICICIdirect Research 06 Aug 2026 DISCLAIMER

News: Pearl Global Industries (PGIL) reported strong set of results in Q1FY27. Consolidated revenues reported 24% YoY growth in revenues to Rs.1528cr (ahead our expectations). Revenue growth of was largely driven by 21% YoY growth in volumes to 20.8mn pieces (ahead of our estimates of 19mn pieces). Realisation witnessed ~4.5% YoY growth to Rs.687/piece. Growth was broad based across geographies with India business reporting 27% YoY growth in revenues while other international subsidiaries (difference between consol and standalone) reported 24% YoY growth in revenues in Q1FY27. Improved product mix helped 550bps YoY expansion in Gross margins to 51.5%. Flow through of gross margins coupled with operating leverage helped EBITDA margin expansion of 156bps YoY to 10.7% (ahead of our estimates of 9.7%). India business margins stood at 6.5% declining by 35bps largely impacted by ramp up cost of Bihar facility. International subsidiary margins stood at 12% (as per our calculation) improving by 200bps YoY. EBITDA grew by 46% YoY growth to Rs.164cr. Adjusted PAT grew by 54% YoY to Rs.101.3cr. Reported PAT (adjusted for exceptional items) grew by 51.4% YoY to Rs.99.2cr. The company has also announced issuance of bonus shares in the ratio of 1:1 (1 equity share for 1 equity share held for FV of Rs.5 each) (4.61cr shares will increase to 9.23cr share post issue with equity capital at Rs.46.2cr). The company has reserves of Rs.549cr and will capitalise Rs.23.1cr for bonus issue.

View: PGIL delivered an all-round beat to our estimates and a strong performance amidst the continued geopolitical instability during the quarter. The key positive highlight of the performance is EBITDA margin of 10.7% which was better than the guided margin of ~10% by the management. Strong growth in the international subsidiaries also indicate that its Indonesia facility is expected to have scaled along the expected lines coupled with sustained growth in Vietnam and Bangladesh. The management has highlighted that order book continues to remain strong which provides positive outlook for quarters ahead. We believe that stabilisation of Bihar facility will help recovery in India business margins while scale up will provide opportunity for improved volume and revenue growth. This coupled with consistent performance in Vietnam and Bangladesh will help consolidated revenues to scale ahead.

Impact: Positive

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