Fashion
More risk from Iran war to Bangladesh, Pakistan, Sri Lanka: S&P Global
These countries are particularly vulnerable to rising oil prices and potential supply disruptions, it noted in a recent article.
The Iran war poses a greater risk to Bangladesh, Pakistan and Sri Lanka, and to a lesser extent Laos, due to their high dependence on imported energy and limited reserves, S&P Global Ratings said.
These countries are particularly vulnerable to rising oil prices and potential supply disruptions.
All four governments are likely to see significant credit metric deteriorations, if the conflict is prolonged.
In our base case scenario, the war is unlikely to have a material impact on our sovereign ratings on these countries, but a more prolonged price and supply shock in global energy markets could cause more pronounced credit damage.
Pakistan, Sri Lanka, and Bangladesh are showing signs of economic recovery. The three countries have made progress, but sustained high energy prices and potential disruptions to trade and remittances could derail their fragile economies.
S&P Global Ratings believes the higher-income Asia-Pacific (APAC) economies are better placed to weather temporary disruptions to oil and gas supply from the Middle East.
Even where they are highly dependent on imported energy, they generally have more significant oil reserves to meet the shortfall in imports. They also have financial resources to acquire available supply in the spot oil and gas markets to secure needed energy, the rating agency noted.
Lower-income economies in the region do not enjoy such flexibility. The sovereign ratings on some may face pressure if the supply disruption persists longer than our assumptions. Bangladesh, Laos, Pakistan and Sri Lanka are among this group. These economies have one thing in common: a high dependence on imported energy products.
The Middle East war is likely to have a more severe impact on these economies, due to their fuel import bills, and generally weaker fiscal and external reserves to withstand supply shortages and high oil prices.
Among the four sovereigns, Laos is likely to fare better due to the dominance of hydropower in its energy mix.
Bangladesh, with government revenues at only around 9 per cent of gross domestic product, has fewer options to cap electricity and fuel prices through fiscal means.
All four governments are likely to see significant credit metric deteriorations, through inflation and currency channels, if the Middle East conflict is prolonged. However, the impact on the agency’s ratings on these sovereigns may be limited, as the generally low rating levels have already captured a significant share of the risks.
S&P Global Ratings’ base case for the Middle East war assumes that elevated hostilities will persist into early April, with the Strait of Hormuz facing material disruptions.
Fibre2Fashion News Desk (DS)
The US–Iran military conflict has sent shockwaves through global energy and chemical markets. Crude surged past $*** per barrel in late March and April ****, its highest level in years. Prices briefly touched $*** per barrel in late April before stabilising near $*** per barrel, following several news-driven fluctuations. Year-on-year, this represents a surge of over +** per cent vs. **** highs and remains +** per cent above compared to last year’s equivalent period.
Key petrochemical feedstocks that directly feed the textile chain — Naphtha, Paraxylene (PX), Purified Terephthalic Acid (PTA), Mono Ethylene Glycol (MEG), Ethylene, and Ethylene Oxide are all under severe cost pressure. Further escalation above $***–***/barrel would trigger a new wave of downstream price hikes across yarn, fabric, and finishing chemicals.
The US-Iran war has intensified cost pressures, with higher fuel and product prices sharply weakening consumer sentiment.
Lower- and middle-income households are bearing the steepest burden as gas takes a larger share of discretionary spending.
Higher-income consumers remain more resilient, keeping aggregate demand firm despite widening spending divergence.
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The company reported gross merchandise value (GMV) of ₹19,666 crore (~$2.04 billion) in FY26, up 5 per cent year-on-year (YoY), while consolidated topline increased 4 per cent YoY to ₹13,110 crore (~$1.36 billion). The gross margin improved by 48 basis points (bps) to 20.6 per cent.
PDS Limited has reported higher FY26 revenue and profit despite global trade and demand uncertainties.
GMV rose 5 per cent YoY to ₹19,666 crore (~$2.04 billion), while consolidated topline grew 4 per cent to ₹13,110 crore (~$1.36 billion).
PAT stood at ₹178 crore (~$18.49 million), with gross margin improving to 20.6 per cent.
The company also strengthened its cash flow and reduced debt.
“FY26 was a challenging year marked by heightened global uncertainties—from evolving US tariff actions and geopolitical conflicts creating persistent trade and supply chain disruptions—all of which weighed on consumer sentiment and demand visibility,” said Pallak Seth, executive vice chairman, PDS.
It reported the profit after tax (PAT) of ₹178 crore (~$18.49 million) for full fiscal, with a margin of 1.4 per cent.
The company’s order book as of early April stood at ₹5,074 crore, up 11 per cent. Net working capital improved significantly from around 17 days to nearly 4 days, while operating cash flow stood at ₹781 crore in FY26. Net debt reduced from ₹374 crore in March 2025 to ₹105 crore in March 2026.
“PDS demonstrated the resilience of its platform by delivering stable growth, supported by deep customer relationships and disciplined execution through our diversified sourcing network. We continued to strengthen our US presence, secured a new sourcing-as-a-service mandate with a new value customer having a potential to scale over $50 million, alongside deeper engagement with existing customers,” added Seth.
Quarterly EBITDA and PAT improve
Meanwhile, PDS reported a consolidated topline of ₹3,519 crore (~$365.5 million) in Q4 FY26, up 11 per cent quarter-on-quarter (QoQ), while GMV for the quarter rose 5 per cent QoQ to ₹4,905 crore (~$509.4 million).
The company achieved EBITDA of ₹122 crore during the quarter, registering 12 per cent QoQ growth. EBITDA margin stood at 3.5 per cent, improving by 2 bps. PAT rose sharply by 95 per cent QoQ to ₹72 crore, with a margin of 2 per cent.
“As global sourcing corridors continue to evolve, PDS remains well positioned to benefit from emerging trade tailwinds, while simultaneously strengthening its competitive advantage through deeper integration of technology and AI across the value chain,” said Seth.
Fibre2Fashion News Desk (SG)
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