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 has notified the stock exchanges of an upcoming Board of Directors meeting, pursuant to Regulation 29 and 43 of the SEBI (Listing Obligation and Disclosure Requirements) 2015 and the Companies Act 2013. The intimation, dated May 12, 2026, was signed by Company Secretary and Compliance Officer Vidhi Bharat Oswal (Membership No. A77054) and addressed to both the National Stock Exchange of India Limited and BSE Ltd.

Board Meeting Details

The meeting has been scheduled for Friday, May 29, 2026, at 4:00 PM, at the company's registered office located at Saraswati Saree Depot SR No. 144/1, Manade Mala, Near Tawade Hotel, Gandhinagar Road, Uchagaon, Kolhapur, Maharashtra, India – 416005. The key details of the meeting are outlined below:

Agenda: Audited Financial Results for Q4FY26

The sole agenda item for the board meeting is to approve and take on record the audited financial results for the quarter and year ended March 31, 2026. This constitutes the company's full-year financial disclosure for FY26, covering both the fourth quarter and the complete fiscal year.

Trading Window Status

In accordance with applicable insider trading regulations, the Trading Window for Saraswati Saree Depot's securities has already been closed. The intimation for the closure was issued on March 26, 2026. The Trading Window will continue to remain closed until 48 hours after the declaration of the audited financial results for the quarter and year ended March 31, 2026.

The filing was submitted on behalf of Saraswati Saree Depot Limited by Vidhi Bharat Oswal, Company Secretary and Compliance Officer, from Kolhapur, on May 12, 2026.