S D Retail Ltd. (SDREAMS)
SME CapConsumer stocks · SME cap · NSE
S D Retail Ltd. (Sweet Dreams) is an Indian sleepwear brand transitioning from a trade-led model to a consumer-first brand. It operates Exclusive Brand Outlets (EBOs), Multi-Brand Outlets (MBOs), Large Format Stores (LFS), and e-commerce platforms, focusing on comfort-driven sleepwear for all age groups.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -9% YoY · margin compression · Rev +11% YoY · +51% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹118 Cr | +11.3% | +51.3% |
| EBITDA | ₹14 Cr | +16.7% | +600.0% |
| Operating margin | 12.0% | +0 bps | +920 bps |
| PAT | ₹10 Cr | -9.1% | NDF |
| PAT margin | 8.5% | -44 bps | +847 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 revenue grew 13.25% YoY to INR 195.97 Cr, with PAT at INR 9.78 Cr. H2 FY26 revenue grew 16.1% YoY to INR 117.68 Cr. H2 PAT margin compressed to 8.2% (vs 9.0% in H2 FY25) due to intentional upfront investments in manpower and overheads. EBOs and D2C channels drove significant growth.
While EBO and D2C channels show strong growth, overall company revenue growth remains moderate. Management's stated priority of reinvesting for growth over immediate EBITDA expansion suggests continued margin pressure. The high working capital cycle and ongoing store closures indicate operational challenges despite expansion.
Revenue by Channel (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
EBO Network Expansion
EBOs grew to 75 stores in FY26 from 51 in FY25, driving 111% revenue growth in the channel.
D2C E-commerce Platform
Proprietary D2C platform delivered 70% revenue growth in FY26, complementing physical retail.
Product Innovation
Product architecture spans mood-based collections for gifting, travel, and family occasions, deepening appeal.
Geographic Traction
Seeing exceptionally strong momentum in North and West India, with 63 stores in these zones.
EBO Store Count
Expanded retail footprint to 75 Exclusive Brand Outlets as of March 31, 2026, up from 51 stores in FY25.
Future EBO Expansion
Several additional locations are under fit-out. Aim to cross 100 EBOs in FY27, opening about 8-9 EBOs per quarter.
EBO Retail Area
Total EBO retail area now exceeds 36,371 square feet, with an average store size of 485 square feet.
Store Format Diversification
46 stores in premium malls, 21 on high streets, and 8 in major airports. Exploring larger COCO stores (1,000-1,200 sq ft).
Underpenetrated Sleepwear Category
Sleepwear is worn nearly 70 hours a week but occupies less than 10% of wardrobe space, representing a compelling opportunity.
Blurring Lifestyle Categories
Lines between sleep, lounge, and leisurewear are increasingly blurring, positioning the company to lead this transformation.
Muted Discretionary Consumption
FY26 saw muted discretionary consumption across India due to inflationary pressures. Expects continued pressure in FY27.
Margin Compression from Investments
H2 PAT margin compression was driven by intentional upfront investments in corporate/operational manpower and increased overheads.
High Working Capital Cycle
Receivables are around 160 days, though efforts are being made to reduce it by 10 days annually.
Store Underperformance & Closures
Closed four underperforming stores last year. Expects to exit the bottom 10% of operational stores annually as a continuous process.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
H2 results provide insight into recent momentum and margin trends, which are impacted by seasonal factors and strategic investments. Full-year (FY26) results offer a comprehensive view of annual performance and the impact of the company's channel shift strategy.
Total Revenue Growth
FY26: 13.25% YoY (INR 195.97 Cr); H2 FY26: 16.1% YoY (INR 117.68 Cr).
EBO Revenue Growth
FY26: 111% YoY (INR 46.45 Cr); H2 FY26: 104% YoY.
D2C Platform Revenue Growth
FY26: 70% YoY (INR 4.83 Cr).
EBITDA Margin
FY26: 8.4% (INR 16.53 Cr); H2 FY26: 12.2% (INR 14.35 Cr, vs 9.0% in H2 FY25).
Accelerated EBO Expansion
Aim to deepen EBO footprint in Tier I and Tier II markets, targeting airports, high streets, and premium malls to establish a store in every major shopping district.
Unified Omnichannel Ecosystem
Building an integrated system with stock visibility, seamless loyalty benefits, and faster order fulfillment.
Prioritizing Growth over Immediate Profitability
Focus for the next 1-2 years is on expanding sales, building awareness, strengthening the brand, developing infrastructure, and investing in manpower.
FY27 EBO Revenue Target
Targeting EBO revenue in excess of INR 80 crores for FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBO Store Count | 75 stores (as of March 31, 2026) | Progress towards crossing 100 EBOs in FY27 and consistent opening of 8-9 EBOs per quarter. |
| Company-level EBITDA Margin | 8.4% (FY26) | Signs of operational efficiencies kicking in after 1-2 years of investment, leading to margin expansion. |
| EBO Revenue Growth | 111% YoY (FY26) | Sustained high double-digit growth in EBOs, contributing significantly to overall company revenue. |
| Working Capital Cycle | ~160 days | Consistent reduction of 10 days annually, as targeted by management. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
34Bearishfull bear SMA stack · SMA20 -5.7% / mo · MACD +
Technical chart
SDREAMSdaily · 1Y · AUTO+0.2%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 46.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~6.1% over last month) — short-term momentum negative.
- RSI(14) at 46 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 36% off 52W high · 29% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 47 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 47 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 11.8%.
- Fair-value margin of safety is positive at 53.1%.
- Growth contributes 18/25 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Quality is weaker at 1/20; verify the latest quarterly trend.
- Cash flow is weaker at 5/10; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 64th percentile within Consumer. Main check: results consistency is weak at 45/100.
Healthy Trust Lite: Promoter holding is 65.3%. Key concern: Operating cash flow is negative at ₹-6 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 64th pctile, median 66 · SME: 77th pctile, median 64
7 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 65.3%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 11.8%.
Trust risks
- ▸Operating cash flow is negative at ₹-6 Cr.
- ▸ROCE trend is -2.1%.
- ▸OPM spread across recent quarters is 18.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 14.40
- P/B
- 1.27
- EV/EBITDA
- 8.89
- Market Cap
- 153.00Cr
Profitability
- ROE
- 9.22%
- ROCE
- 12.20%
- ROA
- 5.75%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 19.00%
- EPS 5Y
- 98.00%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 35.00%
Balance Sheet
- Debt/Equity
- 0.13
- Interest Coverage
- 5.67×
- Altman Z
- 4.21
- Book Value
- 64.20
Cash Flow
- FCF Yield
- 11.76%
- FCF Positive Y
- 2/5
- OCF
- -6.00 Cr
- EPS TTM
- 5.22
Shareholding
- Promoter Hold
- 65.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 19%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.