Saraswati Saree Depot Limited reported a modest top-line growth in its unaudited financial results for the quarter ended June 30, 2026, with revenue from operations rising 1.9% year-on-year to ₹1,475.90 million. While profit after tax expanded 4.0% to ₹66.05 million, operating profitability contracted as EBITDA declined 13.1% to ₹78.03 million, reflecting pressure on margins.

The company submitted its financial results along with the Limited Review Report in Times Business (English) and Punyanagari (Marathi) on August 15, 2026. Subsequently, on August 18, 2026, it released an investor presentation detailing the performance under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Vidhi Bharat Oswal, Company Secretary and Compliance Officer of Saraswati Saree Depot Limited, signed both the submission letter dated August 16, 2026, and the investor presentation cover letter dated August 18, 2026, from Kolhapur.

Financial Performance

Revenue growth was outpaced by a 3.3% rise in total procurement costs, leading to an 8.1% decline in gross profit to ₹157.99 million. Consequently, the gross margin eased by 118 basis points to 10.70%, down from 11.88% in the corresponding quarter of FY26.

EBITDA margin contracted by 91 basis points to 5.29%, compared to 6.20% in Q1FY26. Employee benefit expenses rose 25.5% to ₹38.63 million, while other expenses stood at ₹41.32 million.

Despite the operating margin squeeze, net profit benefited from a 58.1% increase in other income to ₹13.99 million and minimal finance costs of ₹0.15 million. The basic earnings per share (EPS) was ₹1.70, up from ₹1.61 in Q1FY26.

What the Numbers Show

The divergence between revenue growth (+1.9%) and procurement cost inflation (+3.3%) highlights the primary headwind for the quarter. While the company maintained its debt-free status and improved its cash conversion cycle by 23 days to 49 days, the reliance on other income to bolster net profit suggests that core operational efficiency remains under pressure. Management noted that restoring margins is a priority amid elevated procurement costs.

Business Outlook

The company serves over 13,000 retailer customers through its wholesale network, which accounts for 98.3% of revenue. A new exclusive retail outlet contributes 1.7% of revenue as it enters its ramp-up phase. Management indicated that Q2 and Q3 FY27 performance may not be strictly comparable to the prior year due to the seasonal shift in Diwali dates. The company remains focused on sourcing efficiency and working capital management.

Saraswati Saree Depot reported audited financial results for the year ended March 31, 2026, recording a revenue of ₹6,035.90 million. The company posted a net profit of ₹234.06 million for the fiscal year, a decline from the ₹305.76 million reported in the previous year. For the quarter ended March 31, 2026, the company achieved a revenue of ₹1,352.65 million and a net profit of ₹33.35 million.

The board of directors approved the audited financial results along with the audit report of the statutory auditors in accordance with Indian Accounting Standards (Ind AS). Additionally, the board appointed M/s. Ajit M. Joshi and Associates, Chartered Accountants, as the internal auditor for the financial year 2026-27 based on the recommendations of the Audit Committee.

Financial Performance

The company's total expenses for the year ended March 31, 2026, stood at ₹5,671.74 million, compared to ₹5,485.54 million in the prior year. Profit before tax for the year was ₹311.96 million, down from ₹408.21 million in FY25. The basic earnings per share for the year were recorded at ₹1.77.

The statutory auditors, Sanjay Vhanbatte & Company, issued a qualified opinion in their report. The qualification noted that the company has not maintained stock records giving quantitative details of the goods dealt in during the year, with closing inventory taken based on physical counting carried out and related procedures.

Key Financial Figures

Board Decisions

During the meeting held on May 29, 2026, the board approved the appointment of M/s. Ajit M. Joshi and Associates as the internal auditor. The firm, holding FRN 100228W, will conduct the internal audit for the company for FY 2026-27. The company also submitted a signed Statement of Impact on Audit Qualifications to the exchanges following a discrepancy raised regarding an unsigned submission.