PDS Posts Steady Q3 Growth, PAT Slips, Debt Shrinks Sharply
PDS Limited, a global supply chain solutions company providing product development, sourcing, manufacturing and brand management services to international brands and retailers, reported its consolidated financial results for the quarter and nine months ended December 31, 2025, showing moderate revenue growth alongside a decline in profitability.
For the third quarter of FY26, the company recorded a gross merchandise value (GMV) of Rs 4,660 crore, up 6 per cent from Rs 4,402 crore in Q3 FY25. Revenue from operations rose to Rs 3,173 crore from Rs 3,125 crore, reflecting a growth of about 2 per cent. Gross profit for the quarter stood at Rs 720 crore, compared with Rs 637 crore a year earlier, while EBITDA increased to Rs 109 crore from Rs 96 crore.
However, profit after tax (PAT) declined to Rs 37 crore in Q3 FY26 from Rs 45 crore in the corresponding quarter of the previous year.
For the nine-month period (9M FY26), GMV rose to Rs 14,760 crore from Rs 13,737 crore in 9M FY25, registering a growth of 7 per cent. Gross profit increased to Rs 1,982 crore from Rs 1,830 crore, while PAT fell to Rs 106 crore from Rs 162 crore, reflecting a decline of about 35 per cent.
Commenting on the results, Pallak Seth, Executive Vice Chairman, said the global apparel sector continues to be influenced by evolving trade dynamics, sourcing realignments and cautious customer buying behaviour. He noted that benefits from trade agreements, including the EU-India deal, the UK FTA and reduced US tariffs affecting India and Bangladesh, are expected to materialise gradually. The acquisition of Knit Gallery and the company’s diversified sourcing operations are expected to support future growth.
Group CEO Sanjay Jain said the company has focused on strengthening operational effectiveness and cost optimisation across platforms and business units to improve resilience and long-term profitability. Strategic actions have included streamlining underperforming verticals and concentrating on high-impact areas.
Among operational highlights, PDS reported a significant improvement in net working capital, which reduced from about 17 days to around 7 days over the past nine months. The company generated operating cash flow of Rs 644 crore during the period and reduced net debt from Rs 374 crore in March 2025 to Rs 70 crore by December 2025.
The company said it expects additional benefits from recent trade agreements and tariff reductions, as well as from the integration of Knit Gallery, to support business momentum in the coming quarters.
