1. Opening Hook

Just when the world thought apparel exports were doomed by geopolitics, tariffs, and moody U.S. retailers, Pearl Global walked in saying, “Relax, we’ve diversified.”

Q2 FY26 wasn’t fireworks, but it definitely wasn’t a funeral either. Revenue crossed ₹2,500 crore in H1, EBITDA expanded, and management sounded suspiciously calm for a company dealing with 25% U.S. penalty tariffs.

Vietnam and Indonesia played hero, India took one for the team, and Guatemala is still in its “trust the process” era. The U.S. is still important, but no longer the center of the universe—PGIL is flirting hard with Japan, Australia, and Europe now.

Margins would’ve been double-digit already… if tariffs didn’t exist.

Read on—because beneath the calm tone lies a very calculated game of geographic chess.

2. At a Glance

• Revenue up 12.7% – Growth, but wearing a tariff-weighted jacket.
• Q2 Revenue ₹1,313 cr – Not explosive, but steady under pressure.
• EBITDA up 18.4% (H1) – Margins quietly flexing despite chaos.
• EBITDA margin 9.3% – Would be 10.6% if tariffs took a holiday.
• PAT up 17% – Profits didn’t panic, unlike markets.
• ROCE at 29% – Capital clearly knows where it’s working hardest.
• Dividend ₹6/share – Management says “confidence,” not generosity.

3. Management’s Key Commentary

“H1 FY26 revenue crossed ₹2,500 crores with improved profitability.”
(Translation: We grew even when the world tried very hard to stop us.) 😏

“Adjusted EBITDA grew 18.4% year-on-year.”
(Costs tried, but failed, to sabotage margins.)

“Without tariffs and losses in Bihar and Guatemala, EBITDA would be 10.6%.”
(Tariffs = legal margin theft.)

“Our geographic diversification strategy is working well.”
(Told you so. Also, thank Vietnam.)

“U.S. exposure is now below 50%.”
(No longer emotionally dependent on one customer.)

“India-U.S. tariffs make aggressive growth unadvisable.”
(Why grow if it hurts margins?) 😬

“We are confident of sustaining growth momentum.”
(Confidence powered by capacity, not optimism.)

4. Numbers Decoded

If tariffs vanish, double-digit margins become less dream, more math.

5. Analyst Questions (Decoded)

• Volumes slowing?
  Management: Seasonality + selective order booking.
  (Translation: We’re not selling loss-making growth.)
• Tariff sharing with brands?
  Management: