Pearl Global Sets 16‑18% Growth Target, Raises FY28 Earnings Forecast
NEWZA Editorial Team•
⚡ Key Financial Takeaways
Management targets INR 60 billion revenue by FY28, ahead of schedule, and INR 90‑100 billion by FY30.
Revenue growth is projected at 16‑18% CAGR, driven by 15% volume growth and 300 bp EBITDA margin expansion.
Capacity will rise from ~108 million pieces to 170‑175 million pieces by FY30, with utilization aimed at ~80%.
Motilal Oswal raises its earnings forecasts and upgrades the target price to INR 1,500, valuing the stock at 18× FY28E EV/EBITDA.
💡 Why It Matters
Pearl Global’s growth targets signal a robust expansion in India’s apparel manufacturing sector, where demand for knit garments is rising. The company’s capacity upgrades and margin improvement plan could enhance profitability and market share, making it a focal point for investors seeking exposure to consumer discretionary growth in the country.
Pearl Global outlines ambitious growth roadmap Pearl Global (PGIL) used its recent analyst meet to reaffirm a **mid‑to‑high‑teens growth trajectory** for the coming years. Management reiterated a FY28 revenue target of **INR 60 billion**, stating it expects to hit this milestone well before the fiscal year ends. Looking further ahead, the company projects **INR 90‑100 billion** in revenue by FY30, implying a **16‑18% compound annual growth rate (CAGR)** from FY26.
Volume and margin targets drive earnings uplift The firm is aiming for **~15% volume growth** and a **300 basis‑point expansion in EBITDA margin**, moving the margin range to **12‑14%**. The improvement is expected to stem from operating leverage and a larger share of higher‑margin knit products in the mix. These assumptions have led Motilal Oswal to **raise its earnings estimates** for Pearl Global.
Capacity expansion to support demand Current production capacity stands at roughly **108 million pieces**. Pearl Global plans to increase this to **120‑140 million pieces by FY28** and further to **170‑175 million pieces by FY30**. Management targets an **~80% utilization rate**, indicating that the additional capacity will be largely absorbed by the anticipated demand surge.
Revised valuation from Motilal Oswal Based on the updated outlook, Motilal Oswal upgraded its recommendation to **BUY** and lifted its target price to **INR 1,500** per share. The new valuation reflects an **18× FY28E EV/EBITDA multiple**, up from the earlier **INR 1,360** target.
Analyst disclaimer The views expressed are those of the research house and not of Moneycontrol.com, which advises investors to consult certified experts before making decisions.
🏛️ Background & Context
Pearl Global operates in the textile and apparel segment, supplying knit and woven fabrics to domestic and export markets. The Indian garment industry has been benefitting from a combination of rising domestic consumption and favorable export dynamics, creating a conducive environment for capacity expansion and higher margins.
👁️ What To Watch Next
Investors should monitor the company’s quarterly revenue and margin performance against the 15% volume and 300 bp margin expansion targets. Updates on capacity utilisation and any shifts in raw material costs will also be critical for assessing whether the FY28 and FY30 revenue goals remain on track.
