Pearl Global (PGIL) posted first‑quarter FY27 revenue of INR15 billion, up 24 % from the same period last year. The increase was mainly due to a 21 % rise in sales volumes across its product portfolio.
Its Indian arm contributed INR3.4 billion, reflecting a 29 % year‑on‑year rise. This growth highlights the strength of the domestic market for PGIL’s offerings.
Gross margin improved by 550 basis points, reaching 51.5 %. EBITDA margin also rose, settling at 10.7 %, a jump of 159 basis points from the previous year.
The better margins came from higher volumes and a shift toward value‑added products. A more favourable product mix and improved operating leverage boosted profitability.
In India, the company is moving away from fashion items toward core products that offer higher margins. Capacity utilisation sits around 65‑70 %, leaving room for further expansion.
Management expects mid‑double‑digit revenue growth in the coming years. Planned capacity increases include adding 6‑7 million units in India and 10 million units in Bangladesh.
EBITDA margin is projected to rise to 11‑12 %, driven by better utilisation of capacity and a continued shift to higher‑margin products.
The research house has lifted its earnings forecasts by 9 % for FY27 and 6 % for FY28, and maintains a BUY recommendation. The revised target price is INR2,650, valuing the stock at 16× FY28 earnings‑based EV/EBITDA.
Key risks include tariff changes, exposure to the U.S. market, raw‑material cost pressures, and concentration of projects and customers.