Sai Silks FY26 PAT Rises 65% to ₹141 Cr
Sai Silks (Kalamandir) Limited reported a 65% YoY increase in FY26 PAT to ₹141 crores, with revenue rising 13.1% to ₹1,654 crores. The company expanded its store count to 81 and aims to add at least 1 lakh square feet of retail space in FY27, targeting an EBITDA margin of 17.50%–18.00%.
*this image is generated using AI for illustrative purposes only.
Sai Silks (Kalamandir) Limited held its earnings conference call for the quarter and year ended March 31, 2026, on May 13, 2026. The call featured Mr. Bharadwaj Rachamadugu, Chief Executive Officer, and Mr. K.V.L.N. Sarma, Chief Financial Officer, who discussed the financial performance and outlined future expansion strategies.
FY26 Financial Performance
FY26 was a transformational year for the company, marked by strong revenue growth and significant profitability improvements. The company expanded its store network from 68 to 81 stores across 5 states, adding 13 new stores and 1 extension store. This resulted in a net retail area addition of approximately 69,000 square feet, bringing the total retail area to approximately 785,000 square feet.
The key financial highlights for Q4FY26 and the full year FY26 are summarised below:
| Metric | Q4FY26 | Q4FY25 | Change |
|---|---|---|---|
| Revenue | ₹419 crores | — | +5.1% Y-o-Y |
| Gross Margin | 42.08% | 41.71% | +37 bps |
| PAT | ₹32.65 crores | ₹13.51 crores | ~+140% Y-o-Y |
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | ₹1,654 crores | ₹1,462 crores | +13.1% |
| EBITDA Margin | 15.76% | 14.48% | +128 bps |
| Gross Margin | 42.07% | — | +30 bps |
| PAT | ₹141 crores | ₹85 crores | ~+65% |
| ROE | 11.78% | 7.78% | — |
| ROCE | 16.70% | 13.70% | — |
Management noted that even after adjusting for a one-time tax impact in the previous year, operational PAT for FY25 was approximately ₹105 crores. Against this, the FY26 PAT of ₹141 crores represents a substantial improvement of more than 30%. The Varamahalakshmi and Valli formats led revenue growth, contributing approximately 52% of overall sales.
Segment and Operational Performance
The KLM format witnessed a low-single-digit decline of approximately 3% during FY26, with more than 60%–65% of KLM stores located in Telangana. To address underperformance, the company reduced KLM retail capacity by approximately 9,000 square feet at one store to improve margins. In contrast, Andhra Pradesh grew approximately 15% and Karnataka grew approximately 27%, driven primarily by new store additions.
On the cost side, Q4FY26 EBITDA margins were impacted by elevated employee costs due to bonus payouts of approximately ₹4 crores spread across Q3 and Q4, as well as the Labour Code impact. Management noted that Q1 and Q2 will not carry the same bonus expenditure.
FY27 Expansion and Outlook
For FY27, the company has outlined an expansion plan targeting at least 1 lakh square feet of net retail area addition, representing at least 20% more than the square feet added in FY26. The expansion will be led by the Kalamandir format in Karnataka and the Varamahalakshmi format in Tamil Nadu and Andhra Pradesh. The company indicated it is in advanced stages of entering at least one new state outside its core South Indian markets.
The key FY27 targets are outlined below:
| Parameter | Details |
|---|---|
| Net Retail Area Target | ~1 lakh sq ft (minimum) |
| EBITDA Margin Target | 17.50%–18.00% |
| Formats Leading Expansion | Kalamandir ( |
| Advertisement Spend Target | ~4% of revenue |
Management confirmed the company is entirely debt-free and has sufficient internal resources to fund the entire expansion programme without any additional borrowings over the next 2–3 years. On inventory management, the company noted that inventory per square feet has been reduced from approximately ₹11,533 to approximately ₹10,480 since FY24.
Which specific new state outside South India is Sai Silks targeting for entry, and how does the competitive landscape there differ from its existing markets?
Given that KLM format stores in Telangana declined ~3%, what turnaround strategies beyond capacity reduction is management considering to revive growth in its home market?
With the company targeting 17.5%-18% EBITDA margins in FY27, how sustainable are these margin improvements if consumer spending in the ethnic wear segment softens amid macroeconomic headwinds?
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
