Pearl Global, supplier to Zara, Gap, offsets US tariffs with Vietnam, Indonesia growth; Q2 profit rises 29%

Pearl Global Industries Ltd (PGIL), an apparel manufacturer serving global brands such as Gap, Zara, Muji and Ralph Lauren, announced its second-quarter results for FY26 on Wednesday.

The exporter reported revenue of Rs 1,313 crore, up 9.2% year-on-year (YoY), while profit after tax rose 29.4% YoY to Rs 72 crore in Q2 FY26. The company’s consolidated adjusted EBITDA margin, excluding tariff-related costs or losses from new facilities in Guatemala and Bihar, stood at 10.1% during the quarter.

For the first half of FY26, Pearl Global’s revenue reached Rs 2,541 crore, driven by high value-added product sales in Vietnam and Indonesia.

As of September 30, 2025, the company’s cash and bank balance (excluding cash set aside for LC payments) stood at Rs 416 crore, with an additional Rs 128 crore parked in mutual funds—taking total liquidity to Rs 544 crore, compared with Rs 513 crore as of March 31, 2025.

The company shipped 19.9 million pieces in Q2 FY26--its highest-ever Q2 shipment volume—up from 19.3 million pieces in Q2 FY25.

“Our growth this quarter was led by sustained momentum in Vietnam and Indonesia, which delivered double-digit volume expansion and maintained strong operational performance. These hubs validate our strategic foresight in building multi-hub production capabilities that balance scale with agility,” said Pulkit Seth, Vice-Chairman & Non-Executive Director.

On the tariff environment in the US, Seth said the company expects normalization in the coming quarters and remains confident of adapting swiftly. “With a diversified customer base across the US, UK, Japan and Australia, and ongoing discussions on new FTAs, we remain well positioned to capture increased demand,” he added.

The company has also ramped up investments in India and Bangladesh and is executing a Rs 250-crore capex plan to enhance capacity, sustainability and operational efficiency.

Pallab Banerjee, Managing Director, noted that the US market now contributes 50% of group revenue, down from 86% in FY21. “We have made notable progress in expanding our footprint across Australia, Japan, the UK and the EU, and continue to scout for marquee client relationships. Within India, we have accelerated onboarding of quality domestic customers to bolster near-term stability,” he said.