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.

Saraswati Saree Depot Limited disclosed that there has been no creation, invocation, or release of encumbrance on any shares held by its promoter or persons acting in concert during the financial year ended March 31, 2026. The declaration confirms the status of the promoter's holdings regarding any pledged or encumbered shares for FY26.

The disclosure was submitted by Promoter Mahesh Sajandas Dulhani to BSE Limited and the National Stock Exchange of India Ltd. on April 3, 2026. The filing was made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, which requires periodic declarations regarding encumbrances on promoter shares.

Key Details of the Disclosure

The following table outlines the key details of the regulatory submission:

The confirmation provided by the promoter covers shares held by him individually as well as those held by persons acting in concert with him. This regulatory filing ensures transparency regarding the leverage or pledge status of the promoter's shareholding in the company.