PDS reports strong Q2 FY26 results, declares interim dividend

PDS Limited reported an 18% Q-o-Q increase in gross merchandise value to ₹5,467 crore for Q2 FY26, with a 14% Q-o-Q growth in topline to ₹3,419 crore. Profit after tax (PAT) for the quarter significantly rose to ₹48 crore, a 142% Q-o-Q increase, demonstrating improved profitability. For H1 FY26, GMV grew 8% Y-o-Y to ₹10,101 crore, and topline also increased by 8% Y-o-Y to ₹6,419 crore. The board of directors declared an interim dividend of ₹1.65 per equity share (face value ₹2/-), consistent with the previous year, with October 31, 2025, as the record date.

The company is actively implementing profitability augmentation measures, including a 25-30% reduction in P&L investments in new verticals for FY26, aiming for a ~$4.8m (₹40cr) cut from $19m (₹162cr) last year. Working capital optimization efforts have yielded positive results, with net working capital days decreasing from 17 to 6 days in H1 FY26, generating ₹593 crore in cash flow from operations. Additionally, PDS Ventures entered a strategic partnership with BlueKaktus, an AI-powered digital supply chain platform, to enhance efficiency and sustainability in the fashion industry.

PDS is also focusing on cost optimization, targeting ~$3.5m (₹30cr) savings in FY26, increasing to $7m (₹60cr) in FY27. Investments in new verticals through P&L remained largely flat in H1 FY26. The QIP proceeds are being utilized for the Knit Gallery acquisition ($24cr) and debt repayment ($278cr), with cash and investments in hand at $109cr.