Pearl Global H1FY27 revenue rose 31.1%, margin reached 10.5%

Pearl Global reported H1FY27 revenue of Rs 3,330 crore, up 31.1% year on year, while adjusted EBITDA margin reached 10.5%, 120 basis points above H1FY26. Adjusted EBITDA rose 47.7% to Rs 348 crore and profit after tax increased 63.6% to Rs 225 crore, according to management.

How did Pearl Global perform in H1FY27?

Pearl Global delivered its highest-ever half-year revenue of Rs 3,330 crore in H1FY27, compared with Rs 2,541 crore in H1FY26. The 31.1% year-on-year increase was attributed by the company to growth across all locations. Revenue had also risen from Rs 2,255 crore in H1FY25, extending the expansion over the prior two half-year periods.

Adjusted earnings before interest, tax, depreciation and amortisation, or adjusted EBITDA, reached Rs 348 crore in H1FY27, compared with Rs 236 crore a year earlier. Pearl Global defines adjusted EBITDA as excluding employee stock option plan, or ESOP, expenses. The 47.7% increase in adjusted EBITDA exceeded revenue growth, lifting the adjusted EBITDA margin to 10.5% from 9.3%.

Profit after tax, or PAT, rose to Rs 225 crore in H1FY27 from Rs 138 crore in H1FY26, while its margin increased to 6.8% from 5.4%. Over a longer comparison, H1FY23 revenue was Rs 1,711 crore and adjusted EBITDA was Rs 120 crore at a 7.0% margin, versus Rs 3,330 crore and Rs 348 crore at a 10.5% margin in H1FY27.

What drove Pearl Global’s H1FY27 revenue growth?

Pearl Global said H1FY27 revenue growth was led by expansion across all locations, while revenue from operations included about Rs 98 crore of incremental value-added services. The disclosed value-added-services revenue was one identified contributor within the Rs 3,330 crore consolidated revenue base.

Export revenue, classified as Rest of the World in the presentation, was Rs 2,682 crore in H1FY27, while India revenue was Rs 648 crore. The India figure matched the reported standalone revenue for H1FY27 and was 22.1% higher year on year. The geographical split shows that Rest of the World was the larger reported revenue component during the half year.

Pearl Global shipped 43.6 million pieces in H1FY27, up from 37.1 million pieces in H1FY26. Product revenue was 69% woven and 31% knits in H1FY27, compared with 73% woven and 27% knits in FY26. The reported mix therefore shifted 4 percentage points toward knits relative to the preceding full year.

Management also cited momentum from existing customers and newly onboarded customer relationships in Q2FY27. The company said recently acquired customer programmes continued to scale, contributing to revenue growth and future expansion visibility. Its Bangladesh facility, inaugurated during H1FY27, is expected to add about 7 million pieces of annual capacity at optimum utilisation.

How did Pearl Global’s margins and profits change?

Pearl Global’s adjusted EBITDA margin widened by 120 basis points to 10.5% in H1FY27 from 9.3% in H1FY26. A basis point is one-hundredth of a percentage point. The margin had been 8.8% in both H1FY24 and H1FY25, placing the H1FY27 result 170 basis points above the H1FY25 level.

Pearl Global disclosed that Q2FY27 adjusted EBITDA included a one-time net tariff-adjustment gain and marginal contribution from value-added services amounting to about Rs 11.5 crore. The identified amount was included in Q2 profitability rather than being described by the company as a recurring operating contribution.

PAT margin reached 6.8% in H1FY27, compared with 5.4% in H1FY26, as PAT increased to Rs 225 crore from Rs 138 crore. The presentation reported profit before tax of Rs 156 crore and a 6.1% margin in H1FY26, while its H1FY27 profit-before-tax entry is labelled Q1FY27; therefore, no H1FY27 profit-before-tax comparison is stated here.

Standalone India adjusted EBITDA did not rise at the same rate as consolidated earnings. Standalone H1FY27 adjusted EBITDA was Rs 32 crore, up 4.5% year on year, and its margin was 4.9%. In Q2FY27, standalone adjusted EBITDA was Rs 9 crore, down 13.3%, with a 3.0% margin, against consolidated Q2 adjusted EBITDA of Rs 184 crore.

How did Pearl Global’s Q2FY27 compare with the first half?

Pearl Global recorded quarterly revenue of Rs 1,802 crore in Q2FY27, up 37.2% year on year from Rs 1,313 crore in Q2FY26. Management described Rs 1,802 crore as Pearl Global’s highest-ever quarterly revenue. Q2FY27 revenue was also higher than Rs 1,202 crore in Q2FY25 and Rs 961 crore in Q2FY24.

Q2FY27 adjusted EBITDA rose 51.1% to Rs 184 crore from Rs 122 crore in Q2FY26, while margin increased to 10.2% from 9.3%. The Q2 margin was 30 basis points below the H1FY27 margin of 10.5%. The quarter included the disclosed Rs 11.5 crore tariff-adjustment and value-added-services contribution.

Quarterly PAT rose to Rs 126 crore from Rs 72 crore, and PAT margin increased to 7.0% from 5.5%. Q2 adjusted EBITDA margin increased from 6.1% in Q2FY23 to 10.2% in Q2FY27. The corresponding quarterly revenue rose from Rs 860 crore in Q2FY23 to Rs 1,802 crore in Q2FY27.

Pearl Global declared an interim dividend of Rs 5.0 per equity share during H1FY27, equal to 100% of face value and representing a 20.6% payout ratio with respect to group PAT. The company reported a dividend payout of Rs 46 crore on H1FY27 PAT of Rs 225 crore, compared with a 24.7% payout ratio in FY26.

Conclusion

Pearl Global’s H1FY27 result combined 31.1% revenue growth with 47.7% adjusted EBITDA growth, producing a 10.5% margin and Rs 225 crore of PAT. The reported performance included growth across locations, Rs 98 crore of incremental value-added-services revenue, shipments of 43.6 million pieces, and a product mix of 69% woven and 31% knits.

The next factors to watch are management’s planned investment of about Rs 675 crore to Rs 725 crore between FY27 and FY30, the ramp-up of the Bangladesh facility’s planned 7 million-piece annual capacity, and the aspirational FY30 revenue target of Rs 9,000 crore to Rs 10,000 crore. Management also expects receivable days, which reached 50 days at September 2026, to normalise in Q3FY27 or Q4FY27 after heavy Christmas-related shipments.