S D Retail reported a total of 79 Exclusive Brand Outlets (EBOs) as of 31 May 2026, reflecting its expansion strategy across key geographical zones. The company operates under the brand Sweet Dreams, listed on NSE Emerge as SDREAMS. The network includes a mix of mall stores, high street locations, and airport outlets, with a significant concentration in the North and West zones.

EBO Network Expansion

The company added three new EBOs in May 2026, bringing the total count of operational stores to 79. The expansion included one store in the North zone and two in the West zone. Prior to these additions, the company had 75 EBOs as of March 2026. The total additions up to May 2026 stood at seven, while three stores were closed during the same period.

Store Distribution by Category

The EBO network is categorized into mall stores, high street locations, and airport outlets. Mall stores constitute the largest segment of the company's retail footprint.

Zonal Breakdown

The distribution of stores highlights a strong presence in the North and West zones. The East zone currently has the fewest number of operational outlets.

City-wise Presence

Mumbai leads the network with nine stores, followed by Delhi with six. Ahmedabad and Pune each host five stores. Cities including Noida, Amritsar, and Ludhiana have three stores each. The company has also expanded into emerging cities such as Kolkata, Bareilly, Dehradun, and Udaipur, among others, with one EBO each.

S D Retail Limited reported a 14.4% year-on-year increase in Profit After Tax (PAT) to ₹9.78 crore for the financial year ended March 31, 2026. Revenue from operations grew 13.2% to ₹195.97 crore, while EBITDA improved 15.6% to ₹16.53 crore, reflecting a margin of 8.4%. The company’s strong performance was driven by a 111% surge in Exclusive Brand Outlet (EBO) revenue, which reached ₹46.45 crore, and a 70% jump in direct-to-consumer (D2C) sales to ₹4.83 crore.

Operational Performance

The EBO channel emerged as the primary growth engine, with its revenue share rising to 23.7% from 12.7% in the previous year. The company expanded its retail footprint to 75 EBOs, comprising 46 stores in premium malls, 21 on high streets, and 8 in airports. Total retail area exceeded 36,371 square feet, achieving an annualized sales per square foot of ₹16,549. The management targets crossing 100 EBOs in the current financial year, with a run rate of eight to nine store openings per quarter.

Financial Highlights

Gross profit for the year stood at ₹104.72 crore, an increase of 18.4%, with a gross margin of 53.44%. The company reduced short-term borrowings to ₹16.05 crore from ₹32.96 crore in the previous year. For H2 FY26, revenue reached ₹117.68 crore, a 16.1% increase, with an EBITDA margin of 12.2% and a PAT of ₹9.65 crore. Management attributed the margin compression in H2 to intentional investments in corporate and operational manpower.

Strategic Outlook

S D Retail is focusing on scaling its EBO network in Tier I and Tier II markets, specifically targeting airports and premium malls. The company plans to open larger stores of 1,000–1,200 square feet to improve operational efficiency. Capex for opening a new 500 square feet store is estimated at ₹50 lakh, including interiors, deposits, and inventory. The company aims to reduce its working capital cycle by 10 days annually, having already brought it down to approximately 160 days.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0X6F01017/782b7c1e5e2f4e3a.pdf