PDS Q2 FY27 Results (NSE: PDSL)
Signal: Growth reaccelerated
The read
The trajectory improved materially: consolidated revenue growth accelerated to +29.6% YoY from +3.4% in Q2FY26, while EBITDA margin expanded 45bps YoY to 3.46% for the second consecutive quarter; however, the recovery is concentrated in Sourcing because Manufacturing revenue fell 30.4% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,432.48 Cr | +29.6% | +28.7% |
| EBIT | ₹112.83 Cr | +60.4% | |
| Net profit | ₹69.87 Cr | +44.2% | |
| EPS | ₹3.01 | +41.3% | |
| EBIT margin | 3.46% |
P&L walk
Consolidated revenue increased to ₹4,43,248.20 lakh, +29.6% YoY and +28.7% QoQ, led by sourcing; gross margin was broadly stable at 20.05%, while EBITDA margin improved to 3.46% as employee and other expenses grew slower than revenue, and PAT rose 44.2% to ₹6,986.69 lakh.
Segments
Sourcing is the clear growth engine, with revenue of ₹4,27,017.74 lakh, +32.0% YoY and 94.99% of disclosed segment revenue, while Manufacturing declined 30.4% YoY to ₹22,511.25 lakh and is dragging the mix; the consolidated result remains materially larger than the standalone result, with PAT of ₹6,986.69 lakh versus ₹2,892.83 lakh.
Key positives
- Consolidated revenue rose ₹4,43,248.20 lakh, +29.6% YoY and +28.7% QoQ, a sharp acceleration from +3.4% YoY in the prior comparable quarter.
- Sourcing revenue increased to ₹4,27,017.74 lakh, +32.0% YoY, and represented 94.99% of disclosed segment revenue.
- EBITDA margin expanded 45bps YoY to 3.46%, with EBITDA growth of 48.7% exceeding revenue growth of 29.6%; employee expense grew 26.9%, other expenses 28.0% and depreciation 23.5%.
- Finance costs declined 4.9% YoY to ₹4,058.39 lakh while PAT rose 44.2% to ₹6,986.69 lakh.
- The company declared an interim dividend of ₹2.20 per equity share.
Key concerns
- Manufacturing revenue fell 30.4% YoY to ₹22,511.25 lakh, leaving the recovery heavily dependent on Sourcing.
- EBITDA margin remains low at 3.46% despite the 45bps YoY improvement, and the filing does not identify a specific structural driver for the expansion.
- Standalone revenue declined 6.1% YoY to ₹6,134.58 lakh, highlighting that group earnings are generated predominantly through subsidiaries and other group entities.
Research and educational content only. Not investment advice.