Sai Silks (Kalamandir) held a Board of Directors meeting on May 12, 2026, approving the audited standalone financial results for the fourth quarter and full financial year ended March 31, 2026. The statutory auditors, M/s Sagar & Associates, issued an unmodified audit opinion on the results. The meeting commenced at 03.00 P.M. and concluded at 6.10 P.M.

Financial Performance

Sai Silks (Kalamandir) delivered a strong financial performance for FY26, with revenue from operations rising to ₹1,653.67 crores from ₹1,462.01 crores in the previous year. Net profit for FY26 stood at ₹140.92 crores, a significant improvement over ₹85.39 crores in FY25. For Q4FY26, the company reported revenue of ₹419.06 crores compared to ₹399 crores in Q4 of the previous year, while net profit rose to ₹32.65 crores from ₹13.52 crores on a year-on-year basis. Q4FY26 EBITDA stood at 611M rupees versus 584.4M rupees in the same period last year, with EBITDA margin at 14.59% compared to 14.65% previously. The following table summarises the key financial metrics:

Q4 YoY Highlights

The table below captures the key Q4 year-on-year performance indicators:

Balance Sheet Highlights

As at March 31, 2026, total assets stood at ₹1,848.90 crores compared to ₹1,640.65 crores as at March 31, 2025. Total equity increased to ₹1,260.47 crores from ₹1,131.77 crores. Inventories were at ₹815.93 crores, while cash and cash equivalents stood at ₹19.38 crores. Current borrowings declined sharply to ₹7.26 crores from ₹148.90 crores in the prior year, reflecting significant deleveraging.

Cash Flow Summary

For FY26, net cash generated from operating activities was ₹322.53 crores, compared to ₹106.78 crores in FY25. Net cash used in investing activities was ₹152.54 crores, while net cash used in financing activities was ₹235.91 crores. Cash and cash equivalents at the end of the year stood at ₹19.38 crores, compared to ₹85.30 crores at the beginning of the year.

Dividend Recommendation

The Board of Directors recommended a final dividend of Rs. 1.50 per equity share (75% of face value of Rs. 2.00 each) for FY26, subject to the approval of shareholders at the Annual General Meeting.

Key Management Changes

The Board approved several significant management and governance changes effective May 12, 2026. Mr. Bharadwaj Rachamadugu was appointed as Chief Executive Officer (CEO) and Key Managerial Personnel at a monthly remuneration of Rs. 5,00,000. He brings over 11 years of experience across retail, finance, and textile sectors, and was previously serving as Senior Vice President of the Company. He is related to Mr. Nagakanaka Durga Prasad Chalavadi, Managing Director and Promoter of the Company, being his son-in-law. Additionally, Ms. Sridevi Dasari (DIN: 07512095) was appointed as Additional Director under the category of Non-Executive Independent Woman Director, for a term of five consecutive years from May 12, 2026 to May 11, 2031, subject to shareholder approval. She is a member of the Institute of Company Secretaries of India (ICSI) with over 15 years of experience in corporate secretarial and regulatory compliances. The Board also noted the resignation of Ms. Sirisha Chintapalli (DIN: 08407008) from the office of Independent Director effective May 06, 2026.

Board Committee Reconstitution

Following the above changes, the Board reconstituted its committees with effect from May 12, 2026. The updated composition is as follows:

Audit Committee

Nomination and Remuneration Committee

Stakeholder Relationship Committee

IPO Proceeds Utilisation

The company also disclosed the utilisation of IPO proceeds as at March 31, 2026. Out of the total planned utilisation of ₹566.24 crores, ₹526.85 crores had been utilised, leaving a balance of ₹39.38 crores.

Investor Conference Call

Sai Silks (Kalamandir) has also scheduled a post-results investor and analyst conference call for Wednesday, May 13, 2026, at 11.30 A.M. IST to discuss the Q4FY26 and FY26 financial performance. The call will be represented by Mr. K.V.L.N Sarma, Chief Financial Officer, and Mr. Bharadwaj B. R, Senior Vice President. Participants may access the call via universal dial-in numbers +91 22 6280 1432 and +91 22 7115 8819. For enquiries, participants may contact M.K. Bhaskara Teja, Company Secretary and Compliance Officer, at +040 29333666 or via email at secretarial@sskl.co.in .

Sai Silks (Kalamandir) Limited has filed its Monitoring Agency (MA) report for the quarter ended March 31, 2026, pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 41 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was prepared and submitted by CARE Ratings Limited, the appointed Monitoring Agency, and was signed by Y. Tejeswari Reddy, Associate Director, on May 12, 2026. The filing covers the utilisation status of proceeds from the company's Initial Public Offering conducted during September 20–22, 2023.

IPO Issue Details

The IPO was a public fresh issue of equity shares, with the company offering 2,70,27,027 equity shares at Rs.222 per share, aggregating to Rs.600 crore. The issue was fully subscribed, and the same number of equity shares was allotted to applicants. After accounting for issue-related expenses, the net proceeds available for utilisation stood at Rs.566.24 crore. The following table summarises the key financial parameters of the issue:

Utilisation of Net Proceeds as of March 31, 2026

As of March 31, 2026, a cumulative amount of Rs.526.85 crore had been utilised out of the total net proceeds of Rs.566.24 crore, leaving Rs.39.38 crore unutilised. The following table details the progress against each stated object:

During Q4FY26 alone, Rs.65.41 crore was utilised across the various objects. Under Object 1, three new stores were opened during the quarter, taking the total to 25 stores set up using IPO funds. Payments under Object 2 were made to various vendors towards setting up a warehouse through the monitoring account. Objects 4 (loan repayment) and 5 (GCP) were reported as fully utilised.

Deviations and Reallocation of Funds

The Monitoring Agency noted that utilisation was not entirely as per the disclosures in the Offer Document, citing the following key observations:

• Timeline deviation: There has been a deviation in the timelines for utilisation of funds under Objects 1 and 2. The Board of Directors has approved an extension of timelines for a further six months, i.e., up to September 30, 2026.
• Reallocation: An amount of Rs.2.36 crore, originally earmarked under Object 1 (setting up of 30 new stores), was utilised towards Object 3 (working capital requirements), following Board approval. This arose from savings of Rs.24.82 crore achieved through better negotiations and lower costs in Tier 2 and Tier 3 cities.
• No material deviation: The deviation in the amount spent towards Object 3 is within 10% as of March 31, 2026, and shareholder approval was therefore not required.
• Revised means of finance: The means of finance for Objects 1 and 3 have been revised; however, the overall proceeds allocated towards the objects specified in the IPO document remain unchanged at Rs.566.24 crore.
• Major deviation vs. earlier report: The revision in funding towards Objects 1 and 3 was not envisaged at the time of the earlier monitoring report for Q3FY26.

The Monitoring Agency also noted a delay in utilisation of funds towards setting up new stores, warehouses, and towards general corporate purposes relative to the timelines stated in the Offer Document.

Deployment of Unutilised Proceeds

The remaining unutilised funds of Rs.39.38 crore were deployed as follows as at the end of the quarter:

Statutory Approvals and Compliance

Sai Silks (Kalamandir) confirmed to the Monitoring Agency that all requisite approvals required for a warehouse and 25 stores opened with IPO funds are in place. The CA certificate relied upon for this report was issued by Sagar & Associates, dated April 11, 2026. The Monitoring Agency clarified that it does not perform an audit and undertakes no independent verification of information or certifications received, and that its report is based on information provided by the issuer and sources believed to be accurate and reliable.