Q1 FY27 concall · earnings callPDS Limited
PDS started FY27 with strong revenue and profit growth, driven by a robust order book and improving margins, as the company shifts from platform building to scaling.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| GMV | ₹5,146 Cr | 11% | |
| Revenue | ₹3,444 Cr | 15% | |
| EBITDA Margin | 2.8% | 111 bps | |
| PAT | ₹29 Cr | 43% | |
| Order Book | ₹6,095 Cr | 23% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹3,124.88 Cr+21.1% YoY-5.5% QoQ | ₹42.45 Cr+66.5% YoY-54.4% QoQ | ₹1.77+59.5% YoY-66.7% QoQ |
| Q2 FY25 | ₹3,306.29 Cr+34.3% YoY+26.1% QoQ | ₹93.17 Cr+5.3% YoY+198.6% QoQ | ₹5.32+7.3% YoY+252.3% QoQ |
| Q1 FY25 | ₹2,621.06 Cr+23.9% YoY-18.5% QoQ | ₹31.20 Cr+33.7% YoY-52.3% QoQ | ₹1.51+4.9% YoY-56.6% QoQ |
| Q4 FY24 | ₹3,215.18 Cr+17.3% YoY+24.6% QoQ | ₹65.39 Cr-14.6% YoY+156.4% QoQ | ₹3.48-19.6% YoY+213.5% QoQ |
| Q3 FY24 | ₹2,579.78 Cr+0.2% YoY+4.8% QoQ | ₹25.50 Cr-72.5% YoY-71.2% QoQ | ₹1.11-81.3% YoY-77.6% QoQ |
TL;DR
- Revenue grew 15% year-on-year to ₹3,444 crores, and PAT increased 43% to ₹29 crores.
- EBITDA margin expanded 111 basis points to 2.8%, showing operating leverage.
- Order book grew 23% year-on-year to ₹6,095 crores, reflecting strong customer traction.
- Net working capital improved to 1 day, and net debt reduced by 73% to ₹29 crores.
- Management highlighted new sourcing-as-a-service contracts with an annual potential of approximately US$330 million.
- The company is focused on digital and AI transformation to enhance productivity and operating leverage.
Said on the call
“We are, therefore, moving from a phase of building and investing in the platform to one of scaling the capabilities we have built.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Guidance | Management declined to update full-year guidance, preferring to focus on delivering another healthy quarter (Q2) before revisiting. |
| Finance Cost | Management explained finance cost in dollar terms is stagnant, as they trade off between interest cost and earning higher early payment discounts (EPD) to improve gross margins. |
| AI Benefits | AI is currently focused on productivity enhancement, with examples like a China subsidiary doubling turnover with the same headcount using low-cost AI tools. |
| Working Capital | The 1-day net working capital is partly due to a higher share of factorable receivables, but structurally, the company aims to maintain low single-digit days. |
| Geographic Growth | U.S. revenue grew 48% due to accounts being opened and now scaling, while Europe grew 21% with new accounts like Mango and CCC. |
| Ted Baker Losses | The Ted Baker brand management business incurred a PBT loss of approximately $2 million in Q1, with full-year losses expected not to exceed $2-$3 million. |
| Business Model Risk | Management sees minimal risk of customers bypassing PDS, as factories are a commodity and retailers value strategic partners that simplify multi-geography sourcing. |
Guidance
- Committed to have quarter 2 reflect a similar trend of strong performance.
- For the full year, the overall P&L impact of new initiatives is expected to be broadly in line with prior expectations.
- Losses from the Ted Baker business for the entire year should not exceed more than $2-$3 million.
- Directionally, finance cost in dollar terms is expected to be flat or go down.
Source
Summary written from the transcript filed by PDS Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 20:51 IST.
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