India’s global supply chain leader PDS Limited has reported gross merchandise value (GMV) of ₹4,660 crore (~$513.78 million), an increase of 6 per cent year on year (YoY) in the third quarter (Q3) of fiscal 2026 (FY26) ended December 31, 2025. Meanwhile, revenue from operations increased 2 per cent to ₹3,173 crore (~$349.83 million).

The gross profit for the quarter grew 13 per cent to ₹720 crore, up from ₹637 crore a year earlier, indicating improved product mix and operating discipline. However, EBITDA rose 11 per cent to ₹109 crore from ₹96 crore, while profit after tax (PAT) declined 18 per cent to ₹37 crore compared to ₹45 crore in Q3 FY25.

PDS Limited has reported GMV growth of 6 per cent to ₹4,660 crore (~$513.78 million) in Q3 FY26 and revenue increased by 2 per cent, while PAT fell 18 per cent.
For 9M FY26, GMV rose 7 per cent to ₹14,760 crore (~$1.63 billion), though EBITDA and PAT declined.
The company improved working capital, cut net debt sharply, and expects gains from new trade agreements and tariff reductions.

For the nine months (9M) period, GMV increased 7 per cent YoY to ₹14,760 crore (~$1.63 billion). Revenue from operations rose 6 per cent to ₹9,591 crore, compared to ₹9,052 crore in 9M FY25, PDS Limited said in a press release.

The gross profit for 9M stood at ₹1,982 crore, up 8 per cent from ₹1,830 crore in the same period last fiscal. However, EBITDA declined 16 per cent to ₹263 crore from ₹312 crore, while PAT fell 35 per cent to ₹106 crore from ₹162 crore in 9M FY25, reflecting margin pressures and a challenging global retail environment.

PDS reported significant improvements in working capital efficiency, with net working capital days reducing from approximately 17 days to around 7 days over the past nine months. The company generated ₹644 crore in operating cash flow during the nine-month period.

As a result of stronger cash generation and disciplined capital management, net debt reduced sharply from ₹374 crore in March 2025 to ₹70 crore as of December 2025, strengthening the company’s balance sheet and financial flexibility.

The company expects to benefit from recently signed trade agreements, including the EU-India trade deal and the UK free trade agreement, as well as US tariff reductions applicable to India operations, particularly Knit Gallery, and Bangladesh. These developments are anticipated to enhance sourcing competitiveness and support future growth.

With improved working capital metrics, lower leverage and steady GMV expansion, PDS is positioning itself to navigate global demand volatility while capitalising on emerging trade and tariff advantages.

Commenting on the results, Pallak Seth, executive vice chairman, said, “The global apparel landscape continues to be shaped by evolving trade dynamics, sourcing realignments and shifting customer priorities. Demand trends are exhibiting gradual and uneven stabilisation across key markets, with customer buying behaviour remaining cautious. Benefits from the EU trade agreement, UK FTA and reduced US tariffs on India & Bangladesh are expected to unfold progressively, the acquisition of Knit Gallery & our diversified sourcing operations position us well to capture these opportunities.”

Sanjay Jain, group CEO, said, “In a period marked by external volatility, we remain focused on strengthening operational effectiveness across the organisation. We have undertaken strategic actions to optimise costs at both the platform and business levels, reinforcing our commitment to building a resilient and cost-efficient PDS. By concentrating on high-impact areas and streamlining underperforming verticals, we are enabling sustainable growth while building a stronger, future-ready organisation focused on enhancing long-term profitability.”

Fibre2Fashion News Desk (SG)

Following the removal of the additional 25 per cent US tariff and the prospect of a significantly lower reciprocal tariff of 18 per cent under the proposed India–US trade deal, India’s textile and apparel industry is optimistic that the coming decade could mark a defining phase for India in global textile and garment trade.

The Apparel Export Promotion Council (AEPC) has welcomed the revocation of the additional 25 per cent duty, which came into effect at 12:01 EST on February 7, 2026, pursuant to Executive Order 14239. The move follows the India–US joint statement on the trade agreement, which aims to enhance bilateral market access and strengthen supply chain cooperation.

India’s textile and apparel industry has welcomed the removal of the additional 25 per cent US tariff and the prospect of an 18 per cent reciprocal rate under the proposed India–US trade pact.
AEPC said the agreement will enhance market access, cut non-tariff barriers, and improve competitiveness.
The deal is expected to boost exports, generate jobs across MSMEs and support farmers.

“On behalf of the entire textile and apparel industry, we welcome the India–US joint statement on the trade deal and the withdrawal of the additional 25 per cent duty imposed earlier,” AEPC chairman Dr A Sakthivel said.

He expressed gratitude to Prime Minister Narendra Modi for his leadership and to Commerce and Industry Minister Piyush Goyal for his efforts in concluding what he described as a landmark agreement with the US.

According to AEPC, the agreement represents a historic milestone for India’s textile and apparel sector, opening opportunities across the entire value chain. It is expected to generate substantial employment, particularly for women and MSMEs, while also benefitting farmers in rural India, thereby supporting inclusive and sustainable growth.

The removal of tariffs and improved market access are expected to significantly enhance the global competitiveness of Indian textiles and apparel, positioning India as one of the most reliable and trusted sourcing destinations worldwide. The deal is also expected to address non-tariff barriers, reduce compliance burdens and procedural delays, and enable faster movement of goods into the US market.

“The coming decade is poised to be India’s decade in textile trade,” Dr Sakthivel said, adding that the agreement could usher in a golden era for the Indian textile and apparel industry.

Fibre2Fashion News Desk (KUL)

ICE cotton futures were largely stable, with a bearish tone. The USDA’s world supply and demand report indicated lower consumption and exports, while production is expected to rise. Although the report was in line with market expectations, it dampened sentiment. A weaker US dollar capped losses in US cotton.

The most actively traded March cotton contract eased by 0.02 cent to settle at 61.59 cents per pound after trading as high as 62.28 cents earlier in the day. The more actively traded May cotton futures contract gained 0.55 cent, or 0.90 per cent, to settle at 63.78 cents per pound.

ICE cotton futures were largely steady after the USDA’s February WASDE report signalled higher global production and stocks alongside lower consumption and exports for 2025–26.
The data, largely in line with expectations, weighed on sentiment, though a weaker US dollar limited losses.
March closed marginally lower, while May gained 0.90 per cent.

Most contracts traded higher by between 2 and 32 points. Contracts from May 2026 through October 2027 recorded their second consecutive higher close, indicating mild strength in deferred months.

Weak US economic data pushed the dollar lower against major currencies, making dollar-denominated cotton relatively cheaper for overseas buyers.

Trading volume was extremely heavy at 131,395 contracts, just below Monday’s 2026 high of 139,728 contracts. Historically, cotton has traded above 100,000 contracts only 25 times, with 15 of the top 18 volume days occurring in the past 12 months, showing that large volumes can occur without major price swings.

USDA February estimates place 2025–26 global cotton production at 119.86 million bales (January: 119.43 million) and ending stocks at 75.11 million bales (January: 74.48 million). The USDA cut its 2025–26 global cotton consumption forecast by 200,000 bales and its export forecast by 60,000 bales.

Market analysts said the data were within expectations and that prices have retreated from recent highs. The market appears oversold and could rebound towards 64 cents.

Meanwhile, Intercontinental Exchange data showed ICE-certified No. 2 cotton stocks at 95,158 bales as of February 9, compared with 93,561 bales a day earlier.

This morning (Indian Standard Time), ICE cotton for March 2026 traded at 61.87 cents per pound (up 0.28 cent), cash cotton at 59.59 cents (down 0.02 cent), the May 2026 contract at 64.04 cents (up 0.26 cent), the July 2026 contract at 65.76 cents (up 0.28 cent), the October 2026 contract at 67.41 cents (up 0.23 cent), and the December 2026 contract at 67.21 cents (up 0.12 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)