PDS Limited, a global leader in the design-led sourcing, manufacturing, and supply chain platforms for the apparel industry, closed FY2024–25 on a strong note with robust financials, targeted investments, and well-calibrated strategic shifts. Despite global headwinds, the company reported significant gains across geographies, categories, and customer segments, underscoring the effectiveness of its multi-vertical, diversified sourcing and manufacturing strategy.
The latest developments around the UK–India Free Trade Agreement (FTA) and evolving tariff structures in the US have also set the stage for PDS to consolidate its leadership by leveraging its established presence and adaptive capabilities in both markets.
Strong Financial Performance in FY25
PDS reported a Gross Merchandise Value (GMV) of ₹18,744 crore ($2.2 billion) for FY25, marking a 25% year-on-year growth. Revenue stood at ₹12,578 crore ($1.5 billion), a 21% growth over FY24, while Profit After Tax (PAT) grew by 19%, touching ₹241 crore.
The company’s growth was broad-based. The Americas led the surge with 39% YoY growth, followed by Europe at 21%. The UK, one of its core markets, contributed significantly, delivering 26% YoY GMV growth. The Advanced SAAS services, a value-added digital and design offering, also posted an impressive 56% growth in GMV.
PDS continued to enhance its operating efficiency, with EBITDA at ₹457 crore, up 17%, despite margin pressures due to a realignment in its agency business. Return on Capital Employed (ROCE) stood at 27% (adjusted for new vertical investments), demonstrating disciplined capital deployment and sustainable profitability.
Strategic Impact of UK–India Free Trade Agreement
The recently signed UK–India FTA has significant implications for Indian textile and apparel exporters. Prior to the agreement, Indian exports to the UK faced tariffs ranging from 8–12%. With the FTA expected to phase out these duties, Indian manufacturers now gain a price advantage in one of the world’s most demanding markets.
For PDS, this development presents a strategic opportunity. The company already manages $1 billion of GMV in the UK, serving key customers across apparel, home textiles, and general merchandise. With a solid sourcing base in India and its recent acquisition of Knit Gallery, PDS is well-positioned to rapidly scale UK-focused manufacturing, drive price competitiveness, and meet the increasing demand for
compliant, sustainable products from UK buyers.
Additionally, its robust ESG framework—recognized globally—gives PDS a competitive edge as compliance and traceability become key procurement criteria in post-FTA sourcing dynamics.
Navigating U.S. Tariffs and Strengthening Sourcing Base
Simultaneously, the evolving tariff policy of the United States, especially towards Chinese textile imports, is triggering a reshaping of global supply chains. PDS is strategically benefitting from this shift by offering diversified, tariff-optimized sourcing solutions across India, Bangladesh, Vietnam, Egypt, Sri Lanka, and Latin America.
The company’s recent acquisition of Knit Gallery, with a capacity of over 40 million pieces annually and a strong export client base in the US, UK, and Germany, strengthens its ability to localize and scale up production closer to demand centers.
Additionally, PDS’s collaboration with Foundry Group (GSCL) in North America is helping it add new product categories such as intimates, sportswear, and activewear to its portfolio—expanding both capability and client base.
By consolidating North America operations under experienced leadership, including Michael Yee, and optimizing front-end operations, PDS aims to increase its market share and deepen client engagement in the US.
Manufacturing Expansion and Capital Allocation Strategy
In FY25, PDS continued to grow its manufacturing vertical, which recorded a 32% YoY increase in revenue. With 14 manufacturing units and four warehouses under Knit Gallery and plans to expand capacity further with a 10-acre land parcel, the company is scaling efficiently without large upfront capex.
Meanwhile, PDS continues to implement a disciplined capital allocation strategy, with targeted investments in new verticals (₹162 crore), rationalization of underperforming assets, and a pause on non-core segments such as its digital e-commerce business, where it recently divested a 42% stake.
Despite an increase in net working capital days due to a shift in business mix, PDS maintains a strong balance sheet, with net debt to EBITDA at 0.8x and net debt to equity at 0.2x.
Operational Excellence and Cost Optimization
To further drive profitability, PDS has partnered with Boston Consulting Group (BCG) on a 10-month cost optimization initiative. In just five months, the company has identified significant savings across three verticals, representing 44% of baseline costs, and begun executing reforms aimed at better margins, tighter procurement practices, and improved cash cycles.
Outlook for FY26: Strategic Growth with Financial Discipline
Looking ahead, PDS remains cautiously optimistic for FY26. With global uncertainties and realignments in trade policies, the company is committed to staying agile, balancing growth with profitability, and optimizing its portfolio for performance.
Key pillars of its FY26 strategy include:
- Maximizing value from the UK–India FTA through accelerated scaling of
manufacturing and sourcing. - Strengthening its U.S. presence via category diversification, front-end
consolidation, and agile sourcing shifts. - Deepening customer relationships, especially among top accounts, which
grew by 16% YoY and contributed 58% of total sales. - Enhancing digital, design-led services and expanding SaaS offerings.
- Maintaining strong governance, prudent financial management, and a
sustainability-first approach.
With an order book exceeding $600 million as of early April 2025, PDS is entering FY26 with momentum and visibility.
PDS Limited continues to prove itself as a dynamic and future-ready enterprise, expertly navigating a complex global environment while delivering consistent shareholder value. Its strong FY25 performance, supported by strategic acquisitions, geographic diversification, and a focus on sustainable sourcing, underscores its leadership in the global fashion supply chain ecosystem.
With the UK–India FTA and shifting U.S. sourcing patterns opening new growth runways, and internal initiatives driving operational excellence, PDS is poised to scale greater heights in FY26 and beyond — firmly aligned with its vision of becoming the world’s most sustainable and reliable sourcing platform.