Pearl Global Industries Ltd

Dear Stakeholders,

I am privileged to share that Pearl Global has delivered yet another strong year of performance and progress. As we reflect on our achievements and look ahead to future growth, I feel a deep sense of optimism about the path forward for our Company. Our continued success is driven by robust business performance, effective leadership, and a steadfast commitment to environmental, social, and governance (ESG) principles.

As part of our ESG journey, we are making significant investments in sustainability. We are currently installing 1,720.4 KWP or 1.72 MW of solar capacity across five of our units located in Gurugram, Chennai, and Bengaluru. With this initiative, approximately 35% of our energy requirements in India will soon be met through renewable sources. In Bangladesh, we are expanding and upgrading our laundry capacity with a focussed effort to reduce water consumption. These steps reinforce our commitment to environmental stewardship and resource efficiency. Our success is further anchored in strong governance. Our Board of Directors, comprising seasoned professionals and respected industry leaders, continues to provide the strategic oversight and guidance necessary to navigate an evolving business landscape. We remain committed to the highest standards of corporate governance, with transparency, accountability, and integrity at the core of all our operations. As we move forward, we remain focussed on building a resilient, responsible, and future-ready organisation that creates long-term value for all stakeholders.

The Macroeconomic Landscape

The global economic landscape is undergoing a profound transformation. The rules that have shaped the world economy for the past 80 years are being challenged, while new norms are yet to be clearly defined. Recent developments, particularly the wave of tari_ announcements from the United States since late January, have introduced significant disruption. These actions triggered retaliatory measures globally, heightening trade tensions and sharply increasing the overall global tari_ rate. Such unpredictability is weighing on the global outlook and may significantly slow growth if sustained. In this environment of complexity and rapid change, a wide range of economic scenarios must be considered. Amid this volatility, India is at a defining juncture in its economic journey. With real GDP growth projected at 6.5% for 2024-25, at par with the decadal average and among the highest globally, the country is firmly establishing itself as a key driver of global growth. This sustained momentum is backed by strong macroeconomic fundamentals, a demographic dividend led by a young and skilled workforce, and a stable, well-calibrated policy environment. The Union Budget for 2025-26 has laid a strong foundation for the next phase of transformation. In the current economic environment, the fashion and apparel industry is well- positioned for growth. As one of the fastest-growing consumer sectors, it is driven by a young population, higher disposable incomes, rapid urbanisation, and increasing digital adoption. These factors are steadily expanding the market and creating new avenues for innovation and scale. Globally, brands are rethinking their supply chains and seeking greater agility, transparency, and resilience. This puts Pearl Global with multi-geographic presence in a favourable position as a reliable and scalable sourcing destination. The growing shift towards sustainable and ethically produced fashion aligns well with Pearl's strengths in craftsmanship, regulatory compliance, and product innovation. We are living in a remarkable era; one defined by transformation, resilience, and reimagination. In such times, standing still is not an option. At Pearl Global, we have chosen movement. We have chosen momentum. We have chosen to lead. The past year was more than just another chapter in our journey; it was a turning point. It challenged us to face uncertainty (especially in Bangladesh) with courage and a proactive respond to change. It pushed us to question long-held practices, reinvent our strategies, and reenergise our people, our culture, and our ambitions. Above all, it was also a time to strengthen our foundations; the core values, systems, and capabilities that have sustained our success over the years. By deepening our operational resilience, investing in people-centric leadership, we reinforced the platform on which our future growth will be built.

We embraced digital acceleration, expanded our portfolio across products and geographies, and extended our global footprint with intent. At the same time, we nurtured a culture that empowers individuals to thrive, contribute with purpose, and lead with impact. Rather than being reactive measures, these were intentional, forward-thinking moves that now define who we are and how we shape the future. At Pearl Global, we are well-positioned to capitalise on these trends. Our diversified customer base, significant export revenues, and expansive geographic presence enable us to respond with agility and confidence to global sourcing realignments. These strengths, combined with our commitment to quality, compliance, and sustainability, have made us a preferred partner of choice for leading global brands. The past year has been a testament to our resilience and adaptability. Despite global economic uncertainties, we have delivered robust financial performance driven by our focus on execution, supply chain agility and relentless focus on operational excellence. Our revenue growth, profitability, and other financial metrics have been commendable, reflecting our ability to leverage market opportunities and execute effectively.

Approaching with Strength, Resilience, and Responsibility

At Pearl Global, we continue to move forward with clarity, conviction, and a deep commitment to our core values: strength, resilience, and responsibility.

These principles are not just foundational: they inform every strategic decision we make, shape the partnerships we build, and define the milestones we aim to achieve.

Thriving Amid Market Challenges

Global apparel imports are facing a slowdown across major markets like the US, EU, and the UK, driven by economic uncertainty, evolving consumer preferences, and rising supply chain costs. Despite this trend, we have demonstrated our ability to adapt and thrive. Apart from continuing to expand our bookings and broaden our customer base, our growth is also a testament to our resilience, agility, and the strength of our customer relationships. We have successfully added prestigious global brands to our portfolio, underscoring our capability to stay ahead in a competitive market.

Strength through a Diversified Business Model

Our ability to perform in a challenging environment, stems from the strength of our operating model. With a diversified, multi-country manufacturing footprint, a broad portfolio of product categories, and a sharp focus on design agility at the ground level, we have created a flexible and responsive framework that enables us to adapt swiftly to changing market demands. Over the past five years, we have consistently expanded our wallet share among newer clients, while simultaneously deepening our engagement with existing ones, turning every challenge into an opportunity for sustained growth.

We are proud to report that 2024–25 marks our best-ever consolidated performance, setting new benchmarks across all key financial indicators—revenue, adjusted EBITDA, and profit after tax. For the first time, we have achieved

1,000+ crore in revenue in every quarter of the financial year. Our Group turnover has crossed 4,500 crore, and Group adjusted EBITDA has crossed the 400 crore mark, reflecting our continued financial strength and operational excellence.

Innovation-Driven Product Philosophy

Innovation remains central to our product philosophy, as we design stylish, trend-driven apparel that caters to the evolving preferences of a premiumising customer base in global markets. By investing in digital transformation and operational excellence, we are further enhancing our agility, responsiveness, and competitiveness in today's fast-paced fashion ecosystem.

People-Centric Growth and Culture

Our people are at the core of our continued success. Their adaptability, innovative thinking, and collaborative spirit drive our progress. By empowering teams and fostering accountability, we create a workplace where individuals are motivated to lead, contribute, and grow with purpose. This people-first culture is critical not only to our day-to-day operations but also to our long-term success and ability to consistently deliver value to our clients and stakeholders.

Our leadership team has been instrumental in steering the Company through various challenges. Their ability to adapt, innovate, and lead has been crucial in maintaining our competitive edge. Our commitment

Our leadership team has been instrumental in steering the Company through various challenges.

to diversity, equity, and inclusion is reflected in our hiring practices, employee engagement initiatives, and continuous efforts to create an environment where all employees can thrive. Additionally, we prioritise our employees' well-being, health, and safety through comprehensive health programmes, Employee Assistance Programmes (EAP) for mental health support, and educational webinars on health-related topics.

Sustainability as a Strategic Imperative

Aligned with our vision for responsible, long-term growth, we have embedded sustainability into the core of our operations. From low-impact manufacturing and ethical sourcing to circular product design and community upliftment, our sustainability initiatives are central to our business strategy.

Strengthening Governance for a Future-Ready Organisation

As we move forward, strong governance continues to be a critical pillar of our sustained success. In line with this, we are pleased to announce the appointment of Mr. Rahul Mehta Narendra and Ms. Jyoti Arora as Non-Executive Independent Directors on our Board. Their extensive experience, deep industry insight, and balanced perspectives will play a key role in enhancing strategic decision-making and Board oversight, further reinforcing our governance framework as we grow and evolve.

The Road Ahead

Guided by our Vision to become a global leader in end-to-end fashion supply chain solutions and our Mission to exceed stakeholder expectations through sustainability, innovation, and people excellence, we are charting a focussed growth roadmap. This includes scaling our capacity to 135 Million pieces, achieving a 12–14% revenue CAGR, delivering double-digit EBITDA margins, and maintaining ROCE above 20%. This next phase of growth requires us to not only strengthen our existing capacities but also build new ones that position us for long-term success. To support our growth plans we are enhancing our capability in design and marketing hubs such as the US, the UK, UAE and Spain. These locations will serve as creative and strategic anchors thereby driving innovation, enhancing our design capabilities, and bringing us closer to global fashion ecosystems and consumer insights.

As we look ahead, we remain focussed on leveraging our core strengths to capitalise on emerging opportunities. However, infrastructure alone is not enough. To scale effectively, we must build robust operational foundations that enable sustainable and resilient growth. This involves securing compliant capacity, diversifying our customer base to reduce dependency, and tightly managing key levers such as credit, cost, currency, and inventory. At the same time, we continue to embed trust, transparency, and teamwork across the Company, values that are vital to building a culture of performance and integrity. Strong compliance and governance practices will remain non-negotiable as we navigate this journey. These pillars will be instrumental in turning our aspirations into lasting outcomes. As a result, we are poised to lead with responsibility, resilience, and purpose in the years ahead.

Sustainability is deeply embedded in our values. Our environmental actions span renewable energy, waste reduction, water savings, and global certifications, while our social initiatives include education, women empowerment, healthcare, we uphold robust governance with transparent policies, independent audits by leading accounting firms, and strong ethical practices.

What sets us apart is our multi-country manufacturing footprint, multi-category product expertise, global design capabilities, long-standing customer relationships, asset-light model, and integrated supply chain solutions. We are expanding across India, Bangladesh, Vietnam, Indonesia, and Guatemala, while deepening our presence in the US, UK, Japan. Our commitment to shareholder value is reflected in consistent dividends (~22% of PAT), rising EPS ( 54.96 in 2024-25), and improved ROCE (30.5%). We continue to stay ahead of industry trends by responding to customer demands for traceability, premiumisation, and diversified sourcing, while staying true to our core values of sustainability, trust, teamwork, and customer centricity.

Note of Thanks

I extend my heartfelt thanks to the members of our Executive Committee and the remarkable teams across Pearl Global for the energy, dedication, and drive you have shown throughout the past year. Your efforts have been central to everything we have achieved.

To my esteemed colleagues on the Board, I am especially grateful for your commitment and wise counsel as we navigated the demands of a predominantly virtual working environment and a challenging agenda. On behalf of the entire Pearl Global family, I also want to sincerely thank our shareholders, customers, banking partners, and business associates. Your support and confidence in us have been vital to our progress. We truly value the trust we have built together and look towards to continuing this journey towards excellence and shared success.