Pearl Global hits record high after Q1 earnings beat, 1:1 bonus issue proposal

Shares of Pearl Global Industries surged to an all-time high on Thursday after the garment exporter reported record quarterly earnings and announced a 1:1 bonus issue, reinforcing investor confidence in the company's growth outlook amid rising global sourcing diversification.

The stock rallied as much as 6.82% during the session to hit a lifetime high of ₹2,248.10 before closing 5.49% higher at ₹2,220 on the NSE.

The company, which manufactures apparel for leading global fashion retailers including Zara, Gap, Ralph Lauren, Primark, Kohl's and Muji, reported a 24.5% year-on-year rise in consolidated revenue to ₹1,528 crore, while profit climbed 48.5% to ₹101 crore. EBITDA rose 46.4% to ₹164 crore, with margin expanding 162 basis points to 10.75%, reflecting improved operating leverage and a better product mix.

Record quarter lifts investor sentiment

Pearl Global described the June quarter as its strongest ever, with record revenue and profitability driven by broad-based growth across manufacturing locations.

"We have started FY27 on a very strong note, delivering the best quarter in Pearl Global's history," vice-chairman Pulkit Seth said. "During the quarter, we delivered broad-based growth across our operating geographies, achieving the highest-ever quarterly revenue of INR 1,528 crore and a record EBITDA margin of 10.7%."

Chairman Deepak Kumar Seth said the performance reflected "the strength of our diversified manufacturing platform, the trust of our global customers, and the disciplined execution of our teams," despite an evolving global trade environment.

Managing director Pallab Banerjee attributed the margin expansion to a stronger order book, manufacturing efficiencies and operating leverage, adding that the company witnessed healthy demand across its markets despite geopolitical uncertainties arising from the Iran conflict.

Bonus issue, capacity expansion add to optimism

Alongside the results, the board recommended a 1:1 bonus issue, under which shareholders will receive one bonus equity share for every existing share held, subject to shareholder approval. The board, however, deferred a proposal to split the face value of its shares.

The company also reiterated that its Bangladesh capacity expansion and laundry operations are on track to be commissioned in September. The expansion is expected to add about 7 million garments annually, taking the group's installed capacity to around 108 million pieces.

Management also struck an optimistic note on exports, saying global apparel brands continue to diversify sourcing towards manufacturers with multi-country production capabilities. Pearl Global, which operates manufacturing facilities across India, Bangladesh, Vietnam, Indonesia and Guatemala, expects supply-chain diversification, the India-UK free trade agreement and progress on the India-EU trade pact to support long-term growth.

Shares of Pearl Global Industries ended Thursday 5.49% higher at ₹2,220 apiece on the NSE. The stock has rallied over 66% in the past year, significantly outperforming the benchmark Nifty Total Market index, which has gained nearly 5% over the same period.