PDS Q2 FY27 results: net profit up 44.2% to ₹69.87 crore, revenue up 29.6%

How did PDS perform in Q2 FY27?

PDS reported consolidated revenue of ₹4,432 crore for Q2 FY27, up 29.6% from ₹3,419 crore in Q2 FY26 and 28.7% from ₹3,444 crore in Q1 FY27. Total income was ₹4,442.84 crore, up ₹996.64 crore year on year and ₹989.66 crore sequentially. EBITDA was ₹153.13 crore, against ₹103 crore a year ago and ₹96.13 crore in the previous quarter, while the EBITDA margin was 3.5%.

Profit before tax was ₹82.61 crore in Q2 FY27, up from ₹54.70 crore in Q2 FY26 and ₹32.37 crore in Q1 FY27. Tax was ₹14.03 crore, leaving a net profit of ₹69.87 crore and basic EPS of ₹3.01. The comparable net profit was ₹48.44 crore and EPS of ₹2.13 in Q2 FY26, and ₹28.59 crore and ₹1.33 in Q1 FY27. On the standalone basis, revenue was ₹61.35 crore and PAT was ₹28.93 crore.

What changed in PDS's costs and profit?

The reported cost lines show mixed movements against Q2 FY26. Cost of materials fell 24.2% to ₹154.37 crore and finance costs fell 4.9% to ₹40.58 crore, while employee cost rose 26.9% to ₹395.51 crore, other expenses rose 28.0% to ₹339.96 crore and depreciation rose 23.4% to ₹40.30 crore. Total expenses increased 28.6% to ₹4,360 crore from ₹3,392 crore. There was no exceptional item in either quarter.

Other income fell 61.7% to ₹10.36 crore from ₹27.02 crore in Q2 FY26, while tax expense rose 87.3% to ₹14.03 crore from ₹7.49 crore. Despite the lower other income and higher tax, EBITDA rose 48.7% to ₹153.13 crore, PBT rose 51.0% to ₹82.61 crore and PAT rose 44.2% to ₹69.87 crore. The filing does not provide a further explanation for the year-on-year movements in these lines.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹7,876.2 crore, up 22.7% from ₹6,418.59 crore in H1 FY26. Total income rose 21.8% to ₹7,896.02 crore from ₹6,485.25 crore, while PBT increased 41.2% to ₹114.98 crore from ₹81.44 crore.

H1 FY27 PAT was ₹98.45 crore, up 43.8% from ₹68.47 crore in H1 FY26, and basic EPS increased 42.3% to ₹4.34 from ₹3.05. The investor presentation reported H1 revenue growth of 23%, PAT growth of 44% and a PAT margin of 1.3%.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹5,654.85 crore, up from ₹5,265.64 crore at 31 March 2026. Total equity was ₹1,894.16 crore against ₹1,858.98 crore, borrowings were ₹1,059.98 crore against ₹1,140.85 crore, and cash was ₹926.13 crore against ₹760.43 crore. Inventories were ₹518.64 crore, compared with ₹556.90 crore; trade receivables were ₹1,787.61 crore, compared with ₹1,646.66 crore; and trade payables were ₹2,113.27 crore, compared with ₹1,740.26 crore.

H1 FY27 operating cash flow was ₹456.75 crore, compared with ₹592.89 crore in H1 FY26. Investing cash flow was negative ₹38.29 crore against negative ₹81.68 crore, and financing cash flow was negative ₹214.85 crore against negative ₹300.56 crore. Capital expenditure was ₹27.89 crore in H1 FY27, compared with ₹27.03 crore a year earlier.

How has PDS done over the last 8 quarters?

Revenue reached its highest level in Q2 FY27 at ₹4,432 crore and its lowest point in the reported series in Q1 FY26 at ₹2,999.42 crore. PAT also peaked in Q2 FY27 at ₹69.87 crore, while its low was ₹20.03 crore in Q1 FY26. The EBITDA margin was highest at 3.5% in the latest quarter and lowest at 1.7% in Q1 FY26, while the latest revenue and profit figures followed lower results in Q1 FY27.

Revenue and profit rose year on year in each of the last two quarters. The latest quarter followed a sequential improvement from Q1 FY27, when revenue was ₹3,443.72 crore, PAT was ₹28.59 crore and the EBITDA margin was 2.8%. The reported series shows quarterly movement rather than a continuous rise.

Which businesses drove the quarter?

Sourcing remained the main reported segment, with revenue of ₹4,270.18 crore, up 32.1% from ₹3,233.54 crore in Q2 FY26. Segment EBIT rose to ₹80.54 crore from ₹27.58 crore, with a reported EBIT margin of 1.9%. Manufacturing revenue was ₹225.11 crore, down 5.4% from ₹237.94 crore, while EBIT fell to ₹6.21 crore from ₹19.85 crore; its reported EBIT margin was 2.8%.

Others recorded an EBIT loss of ₹4.18 crore, compared with EBIT of ₹11.13 crore in the year-ago quarter. Less inter-segment loss was ₹0.04 crore, compared with negative ₹3.86 crore, and the share of profit of associates and joint ventures was ₹1.29 crore, compared with ₹1.23 crore. Tax expenses, including deferred tax, were ₹14.03 crore, compared with ₹7.49 crore.

What else did the company announce?

On 4 November 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also declared an interim dividend of ₹2.20 per equity share of ₹2 face value for FY27 and fixed 11 November 2026 as the record date. BG Srinivas resigned as a non-executive independent director with effect from the close of business hours on 4 November 2026, citing other pre-occupations and personal commitments, and also ceased to be a member of the Audit Committee. The same-day filing did not report a fund raise or appointment.

What did PDS's management say?

Management maintained directional guidance and deferred a formal FY27 guidance revision until after the mid-year review. It expected Q2 FY27 to reflect a similar trend to Q1, more profitability from new verticals over the coming two quarters, working capital to remain in low single-digit days, and USD interest cost to remain directionally flat or decline. Management said Ted Baker’s full-year PBT loss was expected not to exceed US$2-3 million and that business in the US and Europe could begin picking up quarterly over the next 12-15 months without a major incremental cost increase.

Management identified risks including delayed annual guidance, execution in onboarding and scaling new mandates and US and Europe accounts, Ted Baker’s operator administration, the sustainability of one-day working capital because it partly reflected factorable receivables, and portfolio rationalisation and new-vertical break-even over several quarters. No analyst questions or specific analyst concerns were recorded in the supplied earnings-call material.

How did PDS shares react?

PDS shares rose 3.5% within five minutes of the filing appearing, 6.2% after 15 minutes and 6.2% after 30 minutes. From the previous close of ₹358.95, the reaction-day close was 12.0% higher. The industry median gain was 0.7%, so PDS outperformed by 11.3 percentage points; figures for the next day and five days were not available.

Earlier reaction-day moves were mixed. PDS fell 3.5% on 7 July 2026, rose 5.8% on 15 May 2026 and fell 2.7% on 10 February 2026. The stock also rose 0.9% on 27 October 2025, fell 1.4% on 31 July 2025 and fell 0.6% on 15 May 2025.