Pearl Global Industries Q2 FY27 Results Analysis: PAT Jumps 71.56%, Cash Conversion Lags (PGIL)

Cofacto Research Published November 05, 2026 5 min read

Positive

Pearl Global Industries Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,801.53 Cr (+37.21% YoY) and PAT growth of +74.73% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 05, 2026
Revenue (Q2)	Rs. 1,801.53 Cr (+37.21% YoY)
PAT (Q2)	Rs. 125.76 Cr (+74.73% YoY)
EBITDA margin	10.09% (+87 bps YoY)
EPS (Q2)	Rs. 13.62 (+70.70% YoY)

Quarter Snapshot

PGIL delivered a second straight record quarter with revenue up 37.21% YoY to Rs.1,801.53 crore and PAT to owners up 71.56% YoY, with EBITDA margin of 10.09% inside the guided 10–12% band and UAE emerging as a new growth engine. The offset is earnings quality: H1 CFO of Rs.4.87 crore was just 0.022× PAT, receivables nearly doubled since March, and net debt swung to Rs.249.88 crore, while the India segment turned loss-making. All quantitative FY27 guidance markers (margin band, capex, capacity, FY28 Rs.6,000 crore revenue) remain on track, with cash conversion the key watch item.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue	"ahead on a YoY basis, with the Q1 sequential momentum the thing to test"	+37.21% YoY, +17.88% QoQ	Played out
Margin	"flat-to-compressing versus Q1's record… whether it holds inside the guided 10–12% band"	10.09% vs 10.72% Q1; inside band	Played out
Realization	"compare Rs./piece against Q1's Rs.735"	Not disclosed in filing	Not observable
Cost pass-through	"whether the ~60% yarn surge… show up in Q2 COGS or are queued in inventory"	CoM +55.70% YoY; other exp +71.92% YoY; inventories +173.30 crore since March	Played out
Q3 replenishment-cost risk	inventory cushion "sees the squeeze with a lag"	H1 inventory build of Rs.187.84 crore per the P&L inventory line — build is on the balance sheet; Q3 cost read is open	Partially
Interim dividend	"the board is to consider a FY27 interim dividend"	Rs.5/share declared November 5, 2026	Played out
Adjusted-vs-reported margin bridge / tariff add-backs	"watch for any adjusted-vs-reported reconciliation"	Only the Rs.1.83 crore exceptional disclosed; no tariff add-back this quarter — remains open for the call	Not addressed in the filing
India–US trade deal / Section 301 / Russia-oil tariff threat	status update expected	Not addressed in the filing	Remains open for the call

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
EBITDA margin 10–12% (FY27 and beyond)	Q4 FY26 / Q1 FY27 earnings calls	10.09% Q2 (P&L-derived, ex-exceptional); 10.47% H1 on company's ex-ESOP adjusted basis	On Track
Revenue Rs.6,000 crore by FY28 or earlier	Q1 FY27 / Q2 FY26 calls ("easily achievable… likely to be exceeded")	H1 Rs.3,329.79 crore, +31.05% YoY	On Track
Revenue CAGR 12–14% ("traction much better")	Q1 FY27 earnings call	+31.05% YoY in H1	On Track
Capex Rs.200–250 crore FY27	Q1 FY27 call	Rs.173.25 crore in H1	On Track
Capacity 110–115 Mn pieces by end FY27	prior calls	~108 Mn pieces p.a. after Sep 22 Bangladesh commissioning	On Track
Guatemala break-even FY27	Q3 FY26 call	"Others" segment (incl. Guatemala) +Rs.3.40 crore vs Rs.(5.17) crore YoY — proxy — Guatemala not separately disclosed	On Track
Realization better than Rs.735/piece in Q2–Q4	Q1 FY27 call	Q2 pieces/realization not disclosed in the filing	Too Early
"Entering FY27 well positioned for continued profitable growth"; Q1 record margin to hold	Q1 FY27 call	Revenue record again; margin 10.09%, within band but below Q1's 10.72% — with QoQ margin softness	Confirmed
India operations to regain growth trajectory from FY27	management commentary on prior calls	India revenue +17.2% YoY but segment result swung to a Rs.(0.85) crore loss — on profitability	Contradicted
Better realizations in Q2–Q4 vs Rs.735/piece as tariff discounts fade	Q1 FY27 call	Volume/realization not disclosed in the filing	Too Early

Key Numbers, Quarter by Quarter

Metric	Q1 FY26	Q1 FY27	Q2 FY27
Pieces shipped (Mn)	17.2	20.8	Not disclosed in filing
Realization (Rs./piece)	715	735	Not disclosed in filing
Group capacity (Mn p.a.)	~100.8 (FY26)	~100.8–108	~108 (post Sep 22 commissioning, per company announcements)

Key Investment Insights

Key Positives

Revenue grew 37.21% YoY to Rs.1,801.53 crore, the highest quarterly revenue in company history, accelerating from Q1's +24.5%
PAT to owners grew 71.56% YoY to Rs.125.78 crore; normalized PAT grew 77.2% YoY with exceptional items immaterial at Rs.1.83 crore
EBITDA grew 50.25% YoY to Rs.181.85 crore with margin of 10.09%, inside the guided 10–12% band and up ~87 bps YoY
UAE segment revenue grew 925.33% YoY to Rs.539.60 crore with results of Rs.45.76 crore at an 8.48% margin, the group's highest
Hong Kong segment results nearly doubled (+84.26% YoY) with margin at 6.08% vs 3.47% a year ago
Others segment (incl. Guatemala) swung to +Rs.3.40 crore from Rs.(5.17) crore a year ago, consistent with Guatemala break-even guidance
Bangladesh unit (~7 Mn pieces) commissioned September 22, 2026, taking capacity to ~108 Mn pieces p.a. toward the 110–115 Mn FY27 target
1st interim dividend of Rs.5/share declared November 5, 2026 (Rs.46.18 crore, 36.7% payout of Q2 PAT); 1:1 bonus issue completed

Risk Factors

H1 cash flow from operations collapsed to Rs.4.87 crore (0.022× H1 PAT) as working capital absorbed Rs.322.95 crore
Net debt swung from net-cash Rs.(60.60) crore to Rs.249.88 crore in six months, funded by Rs.210.79 crore of net short-term borrowing
India segment swung to a Rs.(0.85) crore loss (margin −0.27%) from Rs.8.90 crore profit a year ago despite revenue +17.2% YoY
Vietnam segment results fell 52.38% YoY with margin compressing to 4.98% from 14.11%
Cost of material consumed (+55.7% YoY) and other expenditure (+71.9% YoY) grew well ahead of revenue (+37.2%) on yarn/cotton and energy escalation
Effective tax rate of 6.69% (vs 17.0% in Q1) flattered Q2 PAT by roughly Rs.14 crore