India's PDS earns revenue of $361.3 mn in Q3 FY25, up 21% YoY

Meanwhile, profit after tax (PAT) for this quarter touched ₹43 crore, an increase of 66 per cent YoY. Over the last 4 years, the gross margin of the company has expanded by approximately 4 per cent, PDS said in a press release.

The company’s GMV reached ₹13,737 crore in nine-month (9M) FY25, an increase of 31 per cent YoY. The revenue from operations rose to ₹9,052 crore (~$1.05 billion), reflecting a 26 per cent growth from ₹7,157 crore in 9M FY24. Additionally, the company’s profitability metrics improved, with PAT margins standing at ₹167 crore in 9M FY25, compared to ₹137 crore in the same period last fiscal, representing a 22 per cent YoY growth.

“Our Q3 and 9M FY25 results highlight PDS’s ability to navigate a dynamic global landscape while maintaining strong growth momentum. The acquisition of a majority stake in Knit Gallery India Pvt Ltd is a key milestone, strengthening our manufacturing capabilities and solidifying India’s strategic role in our operations,” said Sanjay Jain, chief executive officer (CEO) at PDS. “Alongside this, our collaboration with Boston Consulting Group (BCG) on cost optimization and operational efficiencies reinforces our focus on scaling sustainably. With robust growth in North America and a strong order book of $425 million, we remain committed to driving sustainable value creation, fostering innovation, and enhancing synergies across our operations to deliver excellence to our stakeholders.”

PDS is acquiring 55 per cent stake in Knit Gallery India Pvt Ltd (KGIPL) for an equity consideration of ₹41 crore, subject to diligence and documentation. Part of Knit Gallery business will be transferred from its existing firm to KGIPL for a business transfer consideration of ₹34 crore which will be payable from KGIPL cash flows over 3 years, subject to achievement of pre-defined targets. The combined business clocked around ₹288 crore in FY24 with EBITDA of ₹36 crore. The transaction is expected to consummate by May 2025, the release added.

“This acquisition marks a significant step in enhancing our manufacturing capabilities in India while leveraging it to drive greater sourcing opportunities. Our strong sourcing foundation is complemented by our state-of-the-art manufacturing facilities in Bangladesh and Sri Lanka, which uphold the highest standards of sustainability and compliance. With this strategic addition, we are not only strengthening our garment manufacturing expertise but also reaffirming our commitment to the Make in India initiative and advancing the future of sustainable manufacturing,” said Pallak Seth, executive vice chairman at PDS.

ALCHEMPro News Desk (SG)