Saraswati Saree Depot Limited announced that Mr. Shankar Laxmandas Dulhani has resigned from his positions as Chairman and Executive Director effective June 5, 2026. The director stepped down to dedicate more time towards managing the business of his partnership firm, with no other material reasons cited for the departure.

The disclosure was made to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the resignation was effective immediately upon submission.

In his resignation letter, Mr. Dulhani expressed confidence in the company's future prospects and offered to extend his assistance and guidance whenever required. He stated that the company is well-positioned to continue its progress under the guidance of the Board and the leadership team.

The following table outlines the key details of the resignation:

Vidhi Bharat Oswal, Company Secretary & Compliance Officer, signed the regulatory filing on behalf of Saraswati Saree Depot Limited .

Saraswati Saree Depot Limited reported a 23.5% decline in net profit to ₹23.41 crore for the financial year ended March 31, 2026, down from ₹30.58 crore in the prior year. Revenue from operations rose 4.6% to ₹631.16 crore from ₹603.59 crore in FY25. The decline in profitability was primarily driven by pressure on gross margins arising from higher procurement costs, which impacted the company's bottom line despite steady revenue growth. The company maintained its debt-free status and strengthened its liquidity position, with cash and cash equivalents increasing by over 50% to ₹69.93 crore as of March 31, 2026.

Financial Performance

For the quarter ended March 31, 2026, the company recorded a profit of ₹3.34 crore, a decrease from ₹7.02 crore in the corresponding quarter of the previous year. Revenue for the quarter stood at ₹133.53 crore, compared to ₹136.35 crore in Q4FY25. EBITDA for FY26 stood at ₹32.02 crore with an EBITDA margin of 5.07%, compared to ₹43.18 crore and 7.16% respectively in FY25. The following table summarizes the key financial metrics for the full year:

Operational Highlights

The company maintained its debt-free status throughout FY26. Trade receivables reduced to ₹72.42 crore, reflecting improved collections and tighter working capital management. Inventory reduced to ₹120.69 crore from ₹125.41 crore, demonstrating improved inventory efficiency and stock optimization. Net worth increased to ₹194.66 crore as on March 31, 2026, from ₹177.91 crore as on March 31, 2025. Management stated that while profitability was impacted by higher costs, the business model demonstrated resilience through its extensive wholesale network and diversified supplier base. The company also noted that it launched a retail initiative during the year as a strategic milestone.

Management Commentary

Mr. Shankar Dulhani, Chairman & Executive Director of Saraswati Saree Depot Ltd., stated that FY26 was a year of steady progress despite a challenging operating environment. He highlighted that the company delivered improved cash flows and a more efficient working capital cycle during the year. The company sees a favorable long-term industry outlook and is focused on product mix improvement, sourcing efficiencies, and profitable growth. Management expects demand conditions in the coming year to remain significantly weaker than recent levels due to softness in consumer spending, and plans to focus on driving operational efficiencies, strengthening relationships, and expanding its retail presence to navigate the cautious market environment.

Audit Qualifications

The statutory auditors, Sanjay Vhanbatte & Company, issued a qualified opinion in their report. The qualification arises because the company has not maintained stock records providing quantitative details of goods dealt in during the year. Closing inventory was determined based on physical counting and related procedures. This qualification has been continuing for five years.