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PDS LIMITED Investor Presentation 2026
60265_rns_2026-05-15_52fa6efd-acf9-4b91-814b-9cab8fde5f17.pdf
Investor Presentation
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PDS
Global | Collaborative | Digital | Ethical
PDS/SE/2026-27/14
May 15, 2026
| Listing Department National Stock Exchange of India Limited Exchange Plaza, C-1 Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Scrip Symbol: PDSL | Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001 Scrip Code: 538730 |
|---|---|
Re: ISIN - INE111Q01021
Sub: Investors Presentation for the announcement of the Financial Results for the year and quarter ended March 31, 2026, i.e., Q4-FY2025-26_Earnings Release
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Investors' Presentation of PDS Limited for the announcement of the Financial Results for the year and quarter ended on March 31, 2026, i.e., Q4-FY2025-26 Earnings Release.
We request you to kindly take the above information on record for the purpose of dissemination to the shareholders.
Thanking you,
Yours faithfully,
for PDS Limited
Abhishekh
Kanoi
Abhishekh Kanoi
Group Legal Head & Company Secretary
ICSI Membership No.: F-9530
Enclosed: As above
PDS Limited
Registered & Corporate Office Address: Unit No. 1031 & 1032, Solitaire Corporate Park Andheri Ghatkopar Link Road,
Andheri East, Mumbai 400093, Maharashtra, India. +91 2241441100
CIN: L18101MH2011PLC388088 www.pdsltd.com [email protected]
PDS
Global | Collaborative | Digital | Ethical
INVESTOR UPDATE
Q 4 & F Y 2 6
M A Y 2026
PDS LIMITED
PDS
Safe Harbour
The Presentation is to provide the general background information about the Company's activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information contained herein. This presentation may include certain "forward looking statements". These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others, general economic and business conditions in India and abroad, ability to successfully implement our strategy, our research & development efforts, our growth & expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global pharmaceuticals industries, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control regulations in India. Neither the company, nor its Directors and any of the affiliates or employee have any obligation to update or otherwise revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. No part of this presentation may be reproduced, quoted or circulated without prior written approval from PDS Ltd.
Figures have been rounded off to the nearest Cr/Mn except otherwise stated
Previous period figures have been re-grouped/ reclassified wherever necessary, to confirm to current period's classification and the impact of the same is not considered to be material.
INVESTOR UPDATE | Q4 & FY26
Table of Contents
01 WHO WE ARE?
04 / 06
02 KEY HIGHLIGHTS
07 / 13
03 PERFORMANCE OVERVIEW
14 / 20
04 PROGRESS UPDATE – MEASURES UNDERTAKEN FOR PROFITABILITY AUGMENTATION
21 / 26
05 EVOLVING MARKET DYNAMICS & PDS POSITIONING
27 / 33
06 OTHER UPDATES
34 / 39
01 Who we are?
PDS LIMITED
PDS
Who we are
$2.2bn GMV. Asset-light. Minimal Inventory. Minimal credit risk. 22+ countries.
WE ARE
The world's largest listed global apparel sourcing platform.
An asset-light, $2.2bn+ GMV platform operating across 22+ countries. We design, source, and deliver apparel for leading global retailers and brands — taking minimal inventory or credit risk.
| $2.2bn+ GMV |
|---|
| $1.5bn Revenue |
| 1.3mn+ Pieces / day |
| Merchandise handled |
| 22+ Countries |
| Operating presence |
| 12,000+ People Strength |
| 4500+ Employees |
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Scale at a glance
A platform built over 25 years — globally distributed, deeply integrated, built for growth.
| 22+
Countries | 90+
Offices | 40+
Business Verticals | 250+
Designers | 600+
Compliant Factory Partners | ~1.3 mn
Pieces / day |
| --- | --- | --- | --- | --- | --- |
25 YRS
GEOGRAPHIC REACH
4 continents
Operating entities in UK, Hong Kong, Bangladesh, India, Vietnam, Sri Lanka, UAE, Turkey, Egypt, US, Latin America.
OPERATING MODEL
Federation, not factory
Entrepreneur-led business model
FINANCIAL SCALE
$2.2bn GMV / $1.5bn Revenue
$500+mn working capital lines
INVESTOR UPDATE | Q4 & FY26
02
Key Highlights
01/ KEY HIGHLIGHTS & FINANCIAL SNAPSHOT
02/ REVENUE BREAK UP
PDS LIMITED
2025-26 Driving Growth, Efficiency, and Strategic Resilience through a tough year
- GMV scaled to ₹19,666 Cr in FY26 (+5% YoY) with Order Book strengthening to ~₹5,074 Cr (+11%) as of early Apr'26; momentum building in higher-value Sourcing-as-a-Service engagements in North America
- Revenue grew 4% YoY to ₹13,110 Cr, reflecting resilient customer retention, diversified sourcing capabilities and continued market share consolidation despite muted industry demand
- Gross Margins remained resilient at 20.6%, supported by strategic customer retention and disciplined execution amid a challenging global pricing environment
- Working capital cycle improved materially to 4 days (vs 17 days in FY25), driven by tighter working capital management and improved operating discipline
- Net debt reduced sharply to ₹105 Cr (vs ₹374 Cr in FY25), reflecting stronger cash generation, disciplined capital allocation and a significantly strengthened balance sheet
- Investment discipline strengthened, with investments in new verticals reduced by 27% YoY, supported by tighter governance and sharper capital allocation frameworks. Investment in capex reduced by 56% in FY26
- Structural trade tailwinds emerging, with India-EU and UK FTAs expected to enhance sourcing competitiveness, supply chain flexibility and medium-term growth opportunities across PDS's diversified sourcing network
- U.S. market presence strengthened through new customer additions and deeper scaling with existing strategic accounts across key retail ecosystems
- Transitioning from BCG's cost transformation recommendations, Project PULSE is being scaled as a platform-wide digital backbone focused on sourcing, supplier governance and master data management, aimed at driving sustainable cost efficiencies and structurally improved margins across the platform
Note: Topline Growth and margins are based on ₹ values
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Management Commentary on Performance - Exe. Vice Chairman
"The period underscores the resilience of our platform and the strength of disciplined execution. Despite external uncertainties and shorter order visibility, we delivered 5% year-on-year growth in GMV and 4% growth in revenues. Focused actions on procurement efficiency, cost discipline and mix improvement supported gross margin expansion to 20.6%, while stringent working-capital management reduced net working-capital days to ~4 days, driving strong operating cash generation of ₹781 crores. With a robust order book, improving trade tailwinds from the India-EU and UK FTAs, and ongoing investments in digital transformation and operational excellence, we are well positioned to enhance profitability and sustain long-term growth."
- Pallak Seth
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Management Commentary on Performance – Group CEO
"FY26 tested our ability to execute under pressure — and we delivered. We strengthened our order book to ~₹5,074 Cr, up 11%, added new strategic accounts across U.S. retail ecosystems, and reduced investments in new verticals by 27% through tighter governance and sharper capital allocation. We continued our cost transformation and profitability agenda, institutionalizing BCG-led initiatives through Project PULSE — our AI-enabled digital backbone integrating sourcing, supplier governance and master data management to drive sharper control, efficiency and margin performance across the Group. We enter FY27 leaner, more disciplined, and with a clearer line of sight to sustainable margin improvement."
- Sanjay Jain
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Performance Snapshot (Q4 FY26)
R IN CR AND $ IN MN, UNLESS MENTIONED OTHERWISE
| GMV | REVENUE | PAT | PAT ATTR. TO EQUITY SHAREHOLDERS |
|---|---|---|---|
| Q4 FY26 | |||
| ₹4,905 | |||
| $ 537 | Q4 FY26 | ||
| ₹3,519 | |||
| $ 386 | Q4 FY26 | ||
| ₹72 | |||
| $ 8 | |||
| PAT Margin 2.0% | Q4 FY26 | ||
| ₹49 | |||
| $ 5 | |||
| Q4 VS Q3 |
5% | Q4 VS Q3
11% | Q4 VS Q3
95% | Q4 VS Q3
150% |
| Q4 VS Q4
2% | Q4 VS Q4
FLAT | Q4 VS Q4
10% | Q4 VS Q4
8% |
Note: Growth, margins, are based on R values
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Performance Snapshot & Key Financial Metrics (FY26)
↑ IN CR AND $ IN MN, UNLESS MENTIONED OTHERWISE
| GMV | REVENUE | PAT | PAT ATTR. TO EQUITY SHAREHOLDERS |
|---|---|---|---|
| FY26 | |||
| ₹19,666 | |||
| $ 2,226 | FY26 | ||
| ₹13,110 | |||
| $ 1,484 | FY26 | ||
| ₹178 | |||
| $ 20 | |||
| PAT Margin 1.4% | FY26 | ||
| ₹112 | |||
| $ 13 | |||
| 29% | |||
| Net working capital days | Net Debt | Cash flow from Operations | ROCE (ex-new verticals) |
| --- | --- | --- | --- |
| 4 days | |||
| Down from ~17 days in FY25 | ₹105 | ||
| ($11) | |||
| Down 72% from FY25 level | ₹781 | ||
| ($86) | |||
| Improved from -$3.6mn in FY25. | 25% | ||
| Reported ROCE 18% |
0.27x Net Debt/EBITDA
0.06x Net Debt/Equity
Notes :YoY comparison vs FY25 | Growth, margins, ROCE are based on ₹ values | ROCE, Net Debt is based on Net Capital Employed
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Revenue Break-up: Geography & Category (FY26)
GEOGRAPHY WISE SPLIT
CATEGORY WISE SPLIT
Note: (I) Revenue Breakup based on Broad Estimates, unadjusted for inter-co eliminations (II) Americas includes USA, Mexico, Canada, Bolivia, Costa Rica (III) Others includes Chile, Brazil, Ecuador, El Salvador, Morocco, Panama, Peru & South Africa (IV) Geographies have been regrouped (V) Graphs are basis INR values
INVESTOR UPDATE | Q4 & FY26
03
Performance Overview
03/ PROFIT & LOSS STATEMENT
04/ BALANCE SHEET
05/ SEGMENTAL PERFORMANCE
06/ CASH FLOW STATEMENT
PDS LIMITED
PDS
Profit and Loss (CONSOLIDATED IN ₹ CRS)
| PARTICULARS
₹ IN CRS., UNLESS MENTIONED OTHERWISE) | QUARTER ENDED | | | | | YEAR ENDED | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 31-Mar-26 | 31-Mar-25 | GROWTH (%)
Y-o-Y | 31-Dec-25 | GROWTH (%)
Q-o-Q | 31-Mar-26 | 31-Mar-25 | GROWTH (%)
Y-o-Y |
| Gross Merchandise Value | 4,905.4 | 5,006.7 | -2.0% | 4,659.5 | 5.3% | 19,665.8 | 18,744.1 | 4.9% |
| Income From Operations | 3,519.0 | 3,525.8 | -0.2% | 3,172.5 | 10.9% | 13,110.1 | 12,578.0 | 4.2% |
| COGS | 2,800.4 | 2,825.0 | -0.9% | 2,453.0 | 14.2% | 10,409.6 | 10,047.1 | 3.6% |
| Gross Profit | 718.6 | 700.8 | 2.5% | 719.5 | -0.1% | 2,700.5 | 2,530.9 | 6.7% |
| Gross Margin (%) | 20.4% | 19.9% | 54 bps | 22.7% | -226 bps | 20.6% | 20.1% | 48 bps |
| Employee Expenses | 347.1 | 319.7 | 8.6% | 344.8 | 0.7% | 1,317.2 | 1,210.8 | 8.8% |
| Other Expenses | 249.5 | 235.6 | 5.9% | 265.3 | -6.0% | 998.3 | 863.0 | 15.7% |
| EBITDA | 122.1 | 145.5 | -16.1% | 109.4 | 11.6% | 385.0 | 457.1 | -15.8% |
| EBITDA Margin (%) | 3.5% | 4.1% | -66 bps | 3.4% | 2 bps | 2.9% | 3.6% | -70 bps |
| Depreciation | 36.3 | 35.5 | 2.1% | 32.0 | 13.2% | 130.9 | 110.7 | 18.2% |
| Other Income | 28.5 | 9.4 | 201.2% | 4.5 | 528.1% | 99.7 | 49.5 | 101.2% |
| EBIT | 114.3 | 119.5 | -4.4% | 81.9 | 39.6% | 353.7 | 395.9 | -10.7% |
| EBIT Margin (%) | 3.2% | 3.4% | -14 bps | 2.58% | 67 bps | 2.7% | 3.1% | -45 bps |
| Finance Costs | 34.2 | 29.5 | 16.0% | 36.1 | -5.4% | 146.5 | 126.5 | 15.8% |
| Profit Before Tax & Associates & IV | 80.1 | 90.0 | -11.0% | 45.7 | 75.1% | 207.3 | 269.4 | -23.1% |
| Add: Profit/(Loss) Of Associates & IV | (1.8) | 0.3 | -739.6% | (1.4) | | (1.8) | (0.9) | |
| Profit Before Tax | 78.3 | 90.3 | -13.3% | 44.3 | 76.6% | 205.5 | 268.5 | -23.5% |
| Tax Expenses | 6.2 | 10.5 | -41.1% | 7.3 | -14.9% | 27.8 | 27.1 | 2.6% |
| Profit After Tax | 72.1 | 79.8 | -10% | 37.05 | 95% | 177.6 | 241.4 | -26% |
| PAT Margin (%) | 2.0% | 2.3% | -21 bps | 1.2% | 88 bps | 1.4% | 1.9% | -56 bps |
| - Owners Of The Company | 68% | 57% | | 53% | | 63% | 65% | |
| - Non - Controlling Interest | 32% | 43% | | 47% | | 37% | 35% | |
COMMENTARY
- GMV increased by 5% in FY26
- Topline grew 10.9% Q-o-Q, driven by strong customer retention, Gross margin impacted by 226 bps
- Y-o-Y Gross Margin expanded by 54bps in Q4FY26 & 48bps in FY26
- Employee expenses in FY26 include incremental employee cost of Knit Gallery & GSCL, not part of FY25
- Other expenses reduced by 6% Q-o-Q, Y-o-Y increase of 15.7% in FY26
- EBITDA improved 11.6% compared Q-o-Q with margin improvement of 2bps
- Finance costs declined 5.4% Q-o-Q, driven by improved operating cash flows. Y-o-Y increase of 15.8% was primarily attributable to incremental debt related to Knit Gallery and the UK property loan
- ETR increased from 10% in FY25 to 14% in FY26 mainly due to Pillar II Impact
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Investment in New Verticals & Outlook thereof
💡 IN CRS, UNLESS MENTIONED OTHERWISE
Losses Down 24% Y-o-Y
| S. No. | Key Focus Area | FY26 | FY25 | Outlook |
|---|---|---|---|---|
| 1 | Design Led Sourcing | |||
| (Stellar Brands, Wonderwall, etc.) | 23.3 | 16.9 | • Design Arc Bandana business discontinued in FY27, curtailing losses of ~$1mn; | |
| • Other Businesses progressing towards profitability | ||||
| 2 | North America | |||
| (GSCL, OLE & Set-up of Growth Team for New Initiatives) | 22.6 | 60.9 | • Positive momentum & green shoots in GSCL | |
| • Continued scaling of the Fast Fashion business in OLE. | ||||
| 3 | Product | |||
| (Angelic Partners, Brand Collective, DesignArc Home) | ||||
| Sustainability | ||||
| (Positive Material, Upcycle labs) | -3.6 | 18.6 | • Upcycle Labs and Design Arc Home strategically rationalized, driving improvement in overall profitability outlook. | |
| Procurement | ||||
| (Central Procurement Team) | ||||
| 4 | Brand Management | |||
| (DA Brands, Luminoso, Roksanda, Moda & Beyond) | 66.4 | 54.4 | • Scaled down by exiting three loss-making brand businesses — Design Arc Brands, Moda & Beyond, and Vivere | |
| • Further 2 businesses merged with a large vertical | ||||
| 5 | Manufacturing | |||
| (Norlanka Cutting Plant) | 2.1 | 8.5 | • Business closed | |
| 6 | Design Services | |||
| (DBS Lifestyle, DSGN) | 13.3 | 3.3 | • Planned DBS divestment to curtail losses | |
| • DSGN integrated into the Group's broader AI strategy to support future digital and innovation capabilities | ||||
| TOTAL | 124.2 | 162.5 |
Note: In S. No. 2 above, the last year figure also include $3mn related to set up of growth team for new initiatives, which are now expenses in normal course and constantly focused on building of funnel of new initiatives | Above numbers represent EBIDTA losses
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Performance Overview of Top 10 Sourcing Verticals
$ IN MN, UNLESS MENTIONED OTHERWISE
Over ~71% of Total Topline – Decline in topline ~4%, PBT down by ~21%
| VERTICALS | KEY COUNTRY | REVENUE | PBT | PBT Margin | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FY26 | FY25 | Growth YoY (%) | FY26 | FY25 | Growth YoY (%) | FY26 | FY25 | |||
| Poeticgem | ||||||||||
| clover@collections | UK | 278.7 | 265.2 | 5.1% | ↑ | 13.4 | 19.6 | -31.7% | ↓ | 4.8% |
| sampleapproach | UK | 204.2 | 200.1 | 2.1% | ↑ | 9.4 | 14.4 | -34.6% | ↓ | 4.6% |
| spring | UK (Turkey focussed)** | 91.0 | 67.5 | 34.8% | ↑ | 3.3 | 1.4 | 135.2% | ↑ | 3.6% |
| NORLANKA | UK (Sri Lanka focussed)** | 90.3 | 89.6 | 0.8% | ↑ | 5.2 | 4.4 | 19.6% | ↑ | 5.8% |
| TECHNO | ||||||||||
| design | Germany | 86.8 | 137.7 | -37.0% | ↓ | 0.8 | 4.8 | -82.9% | ↓ | 0.9% |
| TwinsAsia | ||||||||||
| LIMITED | UK | 74.5 | 95.5 | -22.0% | ↓ | 0.9 | 1.4 | -36.5% | ↓ | 1.2% |
| KDZYOTE | US | 80.4 | 96.6 | -16.7% | ↓ | 5.8 | 8.1 | -28.9% | ↓ | 7.2% |
| zamira | EU/US | 63.0 | 41.9 | 50.5% | ↑ | 2.7 | 0.7 | 304.7% | ↑ | 4.4% |
| EU (China focussed)** | 53.2 | 61.6 | -13.7% | ↓ | 3.1 | 1.9 | 69.5% | ↑ | 5.9% | |
| KOL | ||||||||||
| PUBLICATION | Germany | 40.6 | 55.9 | -27.5% | ↓ | 2.9 | 3.8 | -24.7% | ↓ | 7.1% |
| Total Top 10 | 1,062.6 | 1,111.6 | -4.4% | 47.6 | 60.5 | -21.3% | 4.5% |
Note: Based on Management Accounts subject to regrouping | * Excluding impact of new verticals of existing businesses | ** represents sourcing country | Poeticgem restated to exclude Poetic Brands
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Balance Sheet (CONSOLIDATED IN ₹ CRS)
| PARTICULARS
(₹ IN Crs., UNLESS MENTIONED OTHERWISE) | AS ON | |
| --- | --- | --- |
| | 31-Mar-26 | 31-Mar-25 |
| Non-Current Assets | 1,492 | 1,234 |
| Current Assets | 3,773 | 3,512 |
| Inventories | 557 | 483 |
| Trade Receivables | 1,647 | 1,860 |
| Cash & Bank Balances | 1,036 | 737 |
| Other Current Assets | 534 | 431 |
| Total Assets | 5,266 | 4,745 |
| Total Equity | 1,859 | 1,677 |
| Non-Current Liabilities | 258 | 228 |
| Borrowings (Long Term) | 154 | 119 |
| Other Non-Current Liabilities | 104 | 109 |
| Current Liabilities | 3,148 | 2,841 |
| Borrowings (Short Term) | 987 | 993 |
| Trade Payables | 1,740 | 1,507 |
| Other Current Liabilities | 422 | 341 |
| Total Equity & Liabilities | 5,266 | 4,745 |
| PARTICULARS
(₹ IN Crs., UNLESS MENTIONED OTHERWISE) | AS ON | |
| --- | --- | --- |
| | 31-Mar-26 | 31-Mar-25 |
| Inventory Days | 20 | 18 |
| Debtor Days | 46 | 54 |
| Payable Days | 61 | 55 |
| NWC Days | 4 | 17 |
| Total Debt | 1,141 | 1,111 |
| Net Debt | 105 | 374 |
- Net Debt reduced from ₹374crs as on 31 Mar'25 to ₹105crs as on 31 Mar'26, despite an addition of ₹91crs on account of consolidation of Knit Gallery acquired during the year
- NWC Days declined from 17 days in Mar'25 to 4 days in Mar'26
LEVERAGE RATIOS
- Net Debt / Equity: 0.06x
- Net Debt / EBITDA: 0.27x
RETURN TO STAKEHOLDERS
- Reported ROCE: 18%
- ROCE (Adjusting New Verticals): 25%
Note: ROCE is based on Net Capital Employed | All ratios based on INR Figures
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Segmental Performance AT A GLANCE FY26
Note: *Based on gross capital employed | Consolidated ROCE based on net capital employed
PDS Consolidated numbers above are post eliminations | Growth and Margins are based on ₹ figures.
Regrouping capital employed between sourcing and manufacturing hence not comparable with prior periods
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Cash Flow Statement (CONSOLIDATED IN ₹ CRS)
Generated Cash Flow of ₹781crs from Operating Activities
| PARTICULARS (₹ IN Crs., UNLESS MENTIONED OTHERWISE) | YEAR ENDED | |
|---|---|---|
| 31-Mar-26 | 31-Mar-25 | |
| A. Cash Flow From Operating Activities | ||
| Profit Before Tax | 205.5 | 268.5 |
| Depreciation & Amortization Expenses | 130.9 | 110.7 |
| Finance Costs | 146.5 | 126.5 |
| Fair Value (Gain)/Loss On Financial Assets Measured At FVTPL | -32.3 | -17.5 |
| (Increase)/Decrease In Net Current Assets & Others | 330.3 | -524.8 |
| A. Total Cash Flow From Operating Activities | 780.9 | -36.6 |
| B. Cash Flow From Investing Activities | ||
| Capex | -62.9 | -143.8 |
| Proceeds from / Investment In Bank Deposits | 29.7 | -79.4 |
| Proceeds from sale of investments (net) | 33.0 | -51.4 |
| Investment In Jvs & Subsidiaries & Others | -49.6 | -5.6 |
| Interest & Dividend Received | 17.6 | 21.7 |
| B. Total Cash Flow From Investing Activities | -32.1 | -258.5 |
| (A+B) Total Cash Flow From Operating & Investing Activities | 748.7 | -295.0 |
*FY25 Includes investment in UK Property
| PARTICULARS (₹ IN Crs., UNLESS MENTIONED OTHERWISE) | YEAR ENDED | |
|---|---|---|
| 31-Mar-26 | 31-Mar-25 | |
| C. Cash Flow From Financing Activities | ||
| Proceeds From Borrowings (Net) | -207.8 | 274.1 |
| Proceeds From Issue Of Share Capital / ESOPS | 2.8 | 430.5 |
| Interest Paid | -146.2 | -126.4 |
| Payment Of Dividend To Equity Shareholders | -47.1 | -64.6 |
| Payment Of Dividend To Non - Controlling Interests | -46.2 | -70.7 |
| Payment Of Principal Portion Of Lease Liabilities & Others | -55.6 | -40.3 |
| C. Total Cash Flow From Financing Activities | -500.0 | 402.7 |
| (A+B+C) Net Increase / (Decrease) In Cash & Cash Equivalents | 248.8 | 107.6 |
| Foreign Exchange Fluctuation | 49.8 | -8.0 |
| Add: Cash At The Beginning & Cash Of Acquired Business | 427.5 | 327.8 |
| Add: Bank Overdraft | 34.4 | 7.9 |
| Cash & Cash Equivalent At The End | 760.4 | 435.4 |
Note: Cash Flow converted at Balance Sheet rate.
INVESTOR UPDATE | Q4 & FY26
04
Progress Update – Measures Undertaken for Profitability Augmentation
09/ MEASURES UNDERTAKEN FOR PROFITABILITY AUGMENTATION
10/ PROJECT PULSE – INSTITUTIONALIZING BCG-LED COST TRANSFORMATION
PDS LIMITED
PDS
Measures Undertaken for Profitability Augmentation (1/4)
| Sr No | Measures/Initiatives | Update | Progress Thus Far |
|---|---|---|---|
| 1 | Investment Through P&L related primarily to New Verticals | 1. Adhered to strict financial guardrails on new investments | |
| 2. Investments reduced from ₹162.5crs to ₹124.2crs (~24% reduction) | |||
| 3. Headed towards ~50% reduction in investment from FY25 level | ● | ||
| 2 | BCG Cost Optimization | ||
| i. Cost Reduction at Corporate | |||
| ii. Cost Reduction at Business Verticals | 1. Actions initiated to optimize and control: | ||
| i. Manpower costs | |||
| ii. Board sitting fees | |||
| iii. Travel and discretionary spends | |||
| 2. BCG Cost transformation agenda now institutionalized through Project PULSE | |||
| 3. Key initiatives under Project PULSE: | |||
| i. Coupa e-bidding platform implemented across key verticals | |||
| ii. Enhancement of costing and pricing tools | |||
| iii. Development of centralized MDM and pricing architecture | ● |
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Measures Undertaken for Profitability Augmentation (2/4)
| Sr No | Measures/Initiatives | Update | Progress Thus Far |
|---|---|---|---|
| 3 | Fixing loss making verticals | 1. Design Arc restructuring | |
| i. Successfully completed with closure of Design Arc Brands and Lilly & Sid | |||
| ii. Design Arc Asia and Licensing business consolidated into Poeticgem to simplify structure and improve operating efficiency | |||
| 2. Exited non-core / loss-making verticals including Groupo and J Craft following strategic portfolio and profitability review | |||
| 3. Strategic discussions underway for exiting investment in DBS Lifestyle | |||
| 4. Broader Brands portfolio under closely monitored for optimization | |||
| 5. Techno Design | |||
| i. Performance impacted during the year following Gerry Weber entering administration | |||
| ii. Customer pipeline strengthened with onboarding of The Children's Place, Modivo and Micasa | |||
| iii. Techno Design profitability improved from a loss of ~$0.7 Mn in H1 to a profit of ~$1.5 Mn in H2, reflecting operational recovery |
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Measures Undertaken for Profitability Augmentation (3/4)
| Sr No | Measures/Initiatives | Update | Progress Thus Far |
|---|---|---|---|
| 4 | New Lobster Turnaround | 1. Business performance was impacted by ongoing geopolitical tensions and the US-Iran conflict, resulting in demand slowdown across certain Middle East markets, with select orders deferred or pushed out to subsequent periods | |
| 2. Business restructuring and cost realignment initiatives undertaken to align the operating model with the evolving revenue mix, with agency business now constituting a negligible share of overall operations. | |||
| 5 | Interest Cost Saving | 1. Increased factoring utilization supported reduction in net debt and improvement in receivable days | |
| 2. Interest costs increased ~16% YoY; however, declined ~5% versus Q3 FY26 | |||
| 3. Ongoing balance sheet strengthening and working capital optimization initiatives expected to further moderate financing costs going forward |
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Measures Undertaken for Cashflow/Balance Sheet Augmentation (4/4)
| Sr No | Measures/Initiatives | Update | Progress Thus Far |
|---|---|---|---|
| 1 | Capex | 1. Capex 56% lower than FY25 level | |
| 2 | Divestment of identified non-core assets | 1. Completed sale of stake in Digital Ecom, entire sale proceeds realised | |
| 3 | PDS Ventures Investments | 1. Plan underway for significant curtailment & getting ready for planned divestment | |
| 2. Two investments exited in with profit Q3FY26, significant MTM gain in Q4FY26 | |||
| 3. Venture portfolio to be self sustaining with no new investments | |||
| 4 | Net Working Capital | 1. Working capital days down to 4 days in Mar'26 from 17 days in Mar'25 | |
| 2. Clocked ₹781cr ($86mn) of cash flow from operations vs outflow of ₹37cr ($4mn) in FY25 |
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Project PULSE – Institutionalizing BCG-Led Cost Transformation
Project PULSE establishes the digital backbone for procurement excellence — integrating sourcing, supplier governance, contracts, and master data into a single AI-enabled platform designed to enhance control, efficiency, and margin performance
STRATEGIC RECOMMENDATION (BCG)
-
Prioritise MDM as Critical Path
MDM is the foundational layer for both AI initiatives and the Pricing Tool — any delay cascades. Accelerate MDM cleanse before Jul '26 Coupa go-live. -
Al-First Sourcing Position
Move from manual e-auction to AI-led automatic bidding as the default — creating a structural cost advantage across the $1.5B raw material spend base. -
Data as a Strategic Asset
Harmonised master data unlocks intelligent pricing, supplier benchmarking, and AI-powered negotiation — making PULSE a platform for margin expansion, not just process efficiency.
PLATFORM COMPONENTS
-
Coupa as a Service
Cloud-based Procurement Platform -
Coupa system*
Source-to-pay process automation & workflow -
Excel Plug-in
Seamless Excel integration for users -
Pricing tool
AI-powered pricing engine & analytics -
MDM
Master Data Management for clean, trusted data
WHAT PROJECT PULSE DELIVERS
-
Cost Advantage
AI-driven pricing and sourcing to improve margins -
Contract Discipline
Standardised suppliers and contract-enforced compliance -
Trusted Data
Clean, harmonized master data across the enterprise -
Process Efficiency
Automated workflows and integrated tools reduce cycle time -
Strategic Insights
Real-time analytics for better, faster decisions
*Project Live
INVESTOR UPDATE | Q4 & FY26
05
Evolving Market Dynamics & PDS Positioning
11/ GLOBAL APPAREL INDUSTRY FY26: STABILIZATION AMID STRUCTURAL SHIFTS
12/ FOUR GROWTH VECTORS
13/ US GROWTH TRAJECTORY
14/ DÜSSELDORF DELEGATION VISIT: STRENGTHENING EU-INDIA TIES
15/ EXECUTING THE GROUP'S VISION THROUGH ENTERPRISE-WIDE DIGITAL TRANSFORMATION
PDS LIMITED
PDS
Global Apparel Industry FY26 : Stabilization Amid Structural Shifts
GLOBAL APPAREL MARKET SIZE
~$1.9T in CY26
MARKET GROWTH
3–4%
Value-led, mix-driven
INDUSTRY OUTLOOK
Stabilisation
No meaningful rebound
CONSUMER SENTIMENT
Cautious
Value-seeking consumers; spend remains selective
FY26 IN PERSPECTIVE
INDUSTRY PERFORMANCE
- Global apparel market grew ~3–4% in CY26
- Growth was value-led, not volume-driven
- Industry avoided contraction but did not achieve a meaningful rebound
CONSUMER BEHAVIOUR
- 80% of consumers in value-seeking mode
- 70% planned to spend less on fashion
- Lower basket sizes, trading down, purchases delayed
SEGMENT DIVERGENCE
OUTPERFORMERS
- Athleisure / sportswear
- Value fashion / discount retail
- Essentials & basics
UNDERPERFORMERS
- Luxury
- Occasion / formal wear
RETAIL & CHANNEL DYNAMICS
- Retailers operated on tight inventory discipline
- Reduced forward buys, shorter order cycles, in-season adjustments
- DTC & e-commerce gained share; wholesale under pressure
SOURCING & SUPPLY CHAIN
- Competitive advantage shifted to agility, reliability and flexibility
- Tariffs not disruptive in FY26, but influencing forward sourcing strategy
- Diversification beyond single geographies
ESG & TECHNOLOGY SHIFTS
- ESG moved from differentiator to entry barrier
- Traceability & compliance now baseline
- AI adoption accelerating in planning & operations
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Four growth vectors
One framework. Four compounding engines.
| 1 | 2 | 3 | 4 |
|---|---|---|---|
| US scale-up |
Michael Yee platform built. Fashion Nova + Walmart + Target live.
~$50m SaaS mandate signed Feb 2026. | India manufacturing
Knit Gallery platform + UK-India FTA enables zero-duty access to $1 bn of existing UK customer base. | FTA tailwinds
UK-India + EU-India FTAs materially reduce duties. Positions PDS to redirect UK/EU customer sourcing to India. | Margin transformation
Cost savings programme– processes institutionalized, AI/tech-infra investments rolling in, on the Path to adopt Industry Best Practices |
The compounding logic
These are not four separate bets. They are one bet — that the global apparel sourcing pool is shifting away from China, towards India and Bangladesh, towards asset-light platforms over captive manufacturing, and towards vendors who can deliver a service (SaaS) not just a product. PDS is positioned on each of those four shifts simultaneously.
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
The US growth trajectory
Platform built. First wins logged. The ~$50 mn SaaS mandate is the inflection signal.
Why this works
Four structural reasons the US arc compounds
-
Diversified sourcing advantage
US tariffs on single-country bets favour PDS's multi-geography sourcing base — India, Vietnam, LatAm, Egypt. -
Vendor consolidation tailwind
US retailers are actively consolidating suppliers. Structural win for platforms that can take scale and complexity off the buyer's plate. -
Highest-margin service mix
Sourcing-as-a-Service carries PDS's highest margin profile — and the US arc is anchored in exactly this service line.
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Düsseldorf Delegation Visit: Strengthening EU-India Ties
A delegation from Düsseldorf recently visited our Techno Design, New Delhi office, hosted by Mr. Rajiv Ranjan, reinforcing growing EU-India collaboration. This engagement comes at a pivotal time, with the India-EU Free Trade Agreement expected by early 2027, unlocking significant trade and sourcing opportunities.
With Germany as India's largest EU trading partner, we see strong potential to deepen relationships and accelerate innovation.
EU-India partnerships are evolving into a more integrated, dynamic ecosystem focused on long-term value creation.
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Executing the Group’s Vision Through Enterprise-Wide Digital Transformation
VISION Catalyse business goals through technology and innovation — margin protection, NWC discipline, asset-light scalability.
01 Value Chain Digitisation
Direct tech investment into sourcing, pricing, MES and e-auction — the P&L levers. Enabling functions follow.
02 Strong Project Governance
PMO discipline, BPR rigour, partner mix and dedicated programme management — flawless execution as the norm.
03 Top-Down + Bottom-Up
Top-down standardisation of core platforms (SAP, Coupa, Cyber) + bottom-up vertical innovation under common guardrails.
04 Cyber-Secure by Design
Modern zero-trust stack across the group; cyber posture treated as a board-level risk, not an IT line item.
EXECUTION HORIZON
HORIZON 1
FY 2026 · IGNITE
SAP S/4HANA · Standardisation · Cybersecurity
Stabilise the core. Modernise ERP, mandate group standards, close cyber gaps.
HORIZON 2
FY 2027 · AUGMENT
E-Auction · Pricing · MES · AI @ Design
Layer value-chain platforms on the modern core. Scale AI from pilot to production.
HORIZON 3
FY 2028–29 · EXTEND
PLM · CRM · Enterprise MDM · Digital Properties
Extend standards across all verticals. Build the asset-light, demand-responsive platform.
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Execution-Focused Transformation Roadmap Across the Enterprise
| INITIATIVE | STRATEGIC INTENT | KEY BENEFITS | STATUS | ||
|---|---|---|---|---|---|
| ERP Modernisation | |||||
| SAP ECC → SAP S/4HANA | Standardise core processes across 30+ subsidiaries; remove technical debt; real-time group analytics; embed master data governance. | Real-time group visibility | NWC & cash discipline | AI-ready foundation | IN PROGRESS |
| Kick-off Feb 2026 | |||||
| Go-live Apr 2027 | |||||
| Procurement Transformation | |||||
| Coupa · E-Auction · MDM | Reverse-bidding platform across fabric, trims and yarn; supplier onboarding and qualification; master data harmonisation. | Sourcing price discovery | PO & supplier automation | Procurement governance | LIVE & EXPANDING |
| Coupa LIVE | |||||
| AI @ Scale — Design | |||||
| Simple Approach + Poetic Gem | Augment designer workflows with GenAI, virtual sampling and tech-pack automation; integrate disparate AI tools into one platform. | Faster design cycle | Speed-to-market | D2C-ready uplift | PILOT → SCALE |
| Pilots underway — May 2026 | |||||
| Scale FY 2027 | |||||
| Cybersecurity | |||||
| Group-wide modern stack | Deploy zero-trust stack: identity, endpoint, DLP, email & web gateway; close coverage gaps across all entities. | 60% on modern stack | 437K+ threats blocked | GDPR mitigated | LIVE & EXPANDING |
| Live since Oct 2025 | |||||
| Full coverage FY 2027 | |||||
| Costing & Pricing Intelligence | |||||
| MDM · Costing · Pricing Trio | Unified master data for fabric / yarn / trims; AI-enabled scratch costing; dynamic pricing to arrest gross margin leakage. | Single source of truth | Automated costing | Feeds S/4HANA | BUILD |
| Excel plugin LIVEJan 2026 | |||||
| AI tool Sep 2026 | |||||
| Conquer Platform | |||||
| Factory Compliance · QA/QC | Single, modern platform serving both factory compliance and QA/QC; rebuilt on contemporary tech stack with mobile-first and rich drill-down dashboards. | Compliance migrated | QA/QC tablet app | Drill-down dashboards | LIVE & EXPANDING |
| LIVE May 2026 | |||||
| Operating Model & GCC | |||||
| Shared services · Org redesign | Demand-side + supply-side competency split; PMO governance; shared services for IT, Finance and HR cascading group standards. | Business-facing IT | PMO-driven execution | M&A-ready scale | BLUEPRINT |
| Design FY 2027 | |||||
| Roll-out FY 2028 |
GUIDING PRINCIPAL Success Mantra = Go-Live + Value Realisation. Implementation partners deliver; a Value Engineering Partner ensures benefits are tracked and realised.
INVESTOR UPDATE | Q4 & FY26
06
Other Updates
16/ PROPOSED DIVIDEND
17/ QIP USE OF PROCEED - UPDATE
18/ OTHER UPDATES
PDS LIMITED
PDS
Proposed Dividend
Proposed Payout – 42%
| Particulars | FY25 | FY26 | H1 FY26 Declared & Paid | H2 FY26 |
|---|---|---|---|---|
| Consolidated Net Profit After Tax | 241.4 | 177.6 | 68.5 | 109.2 |
| Less: Net Profit Attributable to Non Controlling Interest | 84.5 | 65.9 | 25.5 | 40.5 |
| Profit Attributable to Equity Shareholders | 156.9 | 111.7 | 43.0 | 68.7 |
| Total Dividend | 46.4 | 46.7 | 23.3 | 23.3 |
| Dividend/Profit Attributable to Equity Shareholders | 30% | 42% | 54% | 34% |
| Dividend Per share | 3.35 | 3.30 | 1.65 | 1.65 |
| Face Value Per Share | 2.00 | 2.00 | 2.00 | 2.00 |
| Dividend % | 168% | 165% | 83% | 83% |
| Promoter Share | 62.7% | 61.4% | 61.5% | 61.4% |
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
QIP Proceeds Utilization – Update
As we optimize working capital and reduce NWC days, benefits of net debt reduction—which were offset by the increase in NWC—should become more visible.
Compared to FY25 NWC reduced from ₹836cr ($98mn) to ₹463cr ($49mn), with NWC days decreasing from 17 days to 4 days
Net Debt reduced from ₹374cr($44mn.) to ₹105cr ($11mn)
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
PDS At the Global Fashion Agenda (GFA) Summit 2026
PDS Limited, through PDS Ventures, recognized breakthrough fashion technologies at the Global Fashion Agenda Summit 2026.
Synflux, led by CEO Kazuya Kawasaki, won the "Tech-Powered Transformation" category for its innovative solutions addressing fashion supply chain inefficiencies.
The award, presented by PDS Co-Founder Faiza Seth alongside Kering's Marie-Claire Daveu, includes strategic growth support and a US$200,000 investment package from PDS Ventures to accelerate scale and industry impact.
INVESTOR UPDATE | Q4 & FY26
PDS LIMITED
PDS
Building Responsible Futures: Earth Day Celebration at Soham
World Earth Day at Soham for Kids, Mallapur was marked through hands-on activities that connected students with nature—ranging from sapling plantation to creative sustainability exercises.
The initiative made environmental awareness practical, engaging, and relatable.
By involving both students and employees, the focus extended beyond the day—fostering environmental responsibility and building lasting habits that go beyond the classroom.
INVESTOR UPDATE | Q4 & FY26
PDS
Global | Collaborative | Digi tal | Ethical
THANK YOU
CONTACT US
PDS LIMITED
Unit No.1031 & 1032, Solitaire Corporate Park,
Andheri-Ghatkopar Link Road, Andheri (E),
Mumbai-400093, Maharashtra, India
CIN: L18101KA2011PLC094125
Tel.: +91-22-41 441 100
Email: [email protected]
- Kanav Khanna | Jeevika Kishnani
- Ernst and Young LLP
- Tel: 9910036240 | 9811685619
- Email: [email protected] | [email protected]