S D Retail Ltd

Q2 FY26Textiles & Apparels

S D Retail Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹82

Market cap₹164 Cr

P/E15.4

Updated23 Aug 2026

Read4 min read

The short version

The company targets high double-digit growth in revenue, with a potential CAGR around 20% year-on-year. The company expects high double-digit revenue growth rather than a fixed 20% CAGR, optimistic about H2 FY26 performance.

From S D Retail Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

The company targets high double-digit growth in revenue, with a potential CAGR around 20% year-on-year.
Current momentum shows an increase in EBO revenues, expected to contribute around 20-25% of total revenue by year-end.
The number of Exclusive Brand Outlets (EBOs) is expanding rapidly with a target to open at least 3 stores per month, aiming for 200-250 stores over the next three years.
Sales per EBO store average INR 6-6.5 lakhs monthly, with some stores achieving up to INR 20 lakhs.
Digital and omnichannel integration, including own website growth and marketplace sales, are expected to boost volumes in H2 FY26.

2 more points management made on revenue & sales performance

Profitability & Margins

The company expects high double-digit revenue growth rather than a fixed 20% CAGR, optimistic about H2 FY26 performance.
EBITDA margins are not expected to improve in FY26 due to investments in brand building and store expansions; margin improvement is anticipated from H2 FY27 onwards.
Payback period for EBOs is increasing from 1.5 years initially to around 2.5-3 years due to larger store investments and current muted demand.
Marketing and brand building investments will continue, impacting short-term profitability but aimed at long-term sustainable growth.
Gross margins improved to 55.53% in H1 FY26, mainly driven by EBOs with better margins than other channels.

2 more points management made on profitability & margins

See what S D Retail Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

The company is investing in opening more COCO (company-owned company-operated) stores, which involves higher capex compared to earlier COFO (company-owned franchise operated) stores, leading to a marginally delayed payback period (2.5 to 3 years vs. earlier 1.5 years).
There is ongoing investment in store expansion, targeting three store openings per month, with a plan to open around 36 EBOs (exclusive brand outlets) in the financial year.
Investments are being made in technology with migration to cloud-native infrastructure, low-code and AI tools deployment across operations, and a unified CRM rollout scheduled to be fully active in the current quarter.

2 more points management made on capital expenditure plans

Top-ranked in Textiles & Apparels

Ranked on what management guided this quarter

5x potential

1Virat Industries₹530 Cr

Rev 1Mar 1

2Purple United₹474 Cr

Rev 1Mar 3

3₹847 Cr

Rev 2Mar 1

4₹279 Cr

Rev 2Mar 1

5₹2.7K Cr

Rev 2Mar 2

Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

The transcript provided from the earnings call of S D Retail Limited does not explicitly mention any current or future plans for fundraising through debt or equity. Specific points related to funding or capital raising activities are not discussed in the excerpts on pages 1-15. The focus is mainly on store expansion, operational strategies, marketing, and financial performance. - No explicit mention of new debt or equity fundraising in the call. - Discussion centers on operational growth, store expansion, marketing, and margins.

2 more points management made on fundraising & capital structure

See what S D Retail Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided transcript and document pages do not explicitly mention the current or expected order book or pending orders for S D Retail Limited. The discussion mainly focuses on: - Store expansions, with 64 EBOs operating as of September 30, 2025, and a target of opening about three stores per month, aiming for 36 EBOs in the financial year. - Signed agreements for 33 EBOs and expectations to sign 3-4 more by year-end.

2 more points management made on order book & pipeline

What S D Retail Ltd's management said in earlier quarters

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Frequently Asked Questions

What were S D Retail Ltd Q2 FY26 results?

What is S D Retail Ltd share price analysis?

S D Retail Ltd currently shows a neutral. The stock trades at a P/E of 15.4 with a market cap of ₹164 Cr. Investors should review the full earnings analysis for detailed insights.

Is S D Retail Ltd planning capital expenditure?

The company is investing in opening more COCO (company-owned company-operated) stores, which involves higher capex compared to earlier COFO (company-owned franchise operated) stores, leading to a marginally delayed payback period (2.5 to 3 years vs.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.