PDS Limited has released its Q3 and 9M FY ’25 financial results. Additionally, PDS has announced the acquisition of a 55 per cent stake in Knit Gallery India Pvt Ltd (KGIPL), marking a significant milestone in its expansion strategy.
Knit Gallery, based in Tirupur, is a clothing manufacturer and exporter founded in 2001. The company specializes in high-quality apparel for babies, children, nightwear, and innerwear. KGIPL operates 14 manufacturing facilities along with warehouses and dormitories, serving clients in Germany, the US, and the UK. The company has an annual production capacity of over 40 million pieces.
Subject to due diligence and documentation, PDS is acquiring a 55 per cent share in KGIPL for US $ 4.9 million in equity consideration. Additionally, contingent on the achievement of set goals, part of Knit Gallery’s operations will be transferred to KGIPL for a business transfer consideration of US $ 4.1 million, which will be paid from KGIPL’s cash flows over a three-year period. In FY ’24, the combined entity generated over US $ 3.5 million, with an EBITDA of US $ 430,000. The deal is expected to close by May 2025.
In the first nine months of FY ’25, PDS achieved consistent growth, reaching a topline of US $ 108.6 million, representing a 26 per cent year-over-year increase. North America stood out as a major contributor with nearly 70 per cent growth, while other regions continued to show positive trends. The company’s gross margin has increased by about 4 per cent over the past four years, aligning with PDS’s strategic focus on expanding its “Solutions & Services” offering. With a strong order book worth US $ 425 million, PDS is well-positioned to maintain its growth momentum throughout the year.
Sanjay Jain, Group CEO, shared insights, stating that the Q3 and 9M FY ’25 results demonstrate PDS’s ability to sustain strong growth while adapting to a changing global environment. The acquisition of a controlling stake in Knit Gallery India Pvt Ltd marks a pivotal moment that strengthens manufacturing capabilities and solidifies India’s strategic role in PDS’s operations.
