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

S D Retail Limited, the company behind the sleepwear brand Sweet Dreams, has expanded its Exclusive Brand Outlet (EBO) network to 78 operational stores across India as of 30th April 2026. The company added 4 new EBOs during April 2026, reflecting continued retail expansion across key urban markets.

New Store Openings in April 2026

Four new Sweet Dreams stores were inaugurated during April 2026, strengthening the brand's presence in prominent retail destinations. The newly opened outlets are located at:

• R City Mall, Ghatkopar, Mumbai
• City Central LA Mall, Bareilly
• Quest Mall, Kolkata
• Seasons Mall, Pune

EBO Network Growth

The following table captures the zone-wise movement in the EBO count from March 2026 to April 2026:

The West zone recorded the highest addition with 2 new stores, while the East zone doubled its count from 1 to 2. One store closure was recorded in the North zone during the same period.

Store Format Distribution

Across the 78 operational EBOs, the network is distributed across three retail formats:

Mall Stores account for the largest share of the network, followed by High Street and Airport locations.

City-Wise EBO Presence

Mumbai leads the network with the highest number of outlets, followed by Delhi, Ahmedabad, and Pune. The city-wise breakdown for stores with 2 or more EBOs is as follows:

Emerging Cities

Beyond established markets, Sweet Dreams has established a single EBO each in 24 emerging cities, broadening its geographic reach:

Hubballi, Vijaywada, Indore, Ambala, Jabalpur, Bhopal, Kanpur, Faridabad, Kochi, Ghaziabad, Meerut, Ajmer, Muzzafarnagar, Bilaspur, Nagpur, Guwahati, Patiala, Gandhinagar, Rajkot, Barnala, Udaipur, Dehradun, Bareilly, and Kolkata.

The 3W Framework

The company positions its sleepwear category using a 3W Framework — Wear-Time Share, Wardrobe Share, and Wallet Share — to highlight the category's consumer relevance:

The framework underscores that while sleepwear commands a significant 42% of wear time at 70 hours per week, it occupies only 10% of wardrobe space and 6% of consumer wallet spend, positioning the category as one with high usage relative to current spending levels.