Saraswati Saree Depot Limited, a company primarily known for its saree and garment trading business, is looking to diversify its portfolio by venturing into real estate development. The company has issued a postal ballot notice to seek shareholder approval for this significant business expansion.

Key Details of the Postal Ballot

Proposed Changes

The company is seeking approval through a special resolution to alter its Memorandum of Association. This alteration would add real estate development as a new business objective, allowing Saraswati Saree Depot to expand beyond its current focus on saree and garment trading.

Implications for Shareholders

1. Diversification: The move signals the company's intent to diversify its business interests, potentially opening up new revenue streams.
2. Risk and Opportunity: Shareholders will need to consider the potential risks and opportunities associated with entering the real estate sector.
3. Voting Rights: All eligible shareholders have the opportunity to participate in this decision through the e-voting process.

Next Steps

Shareholders should review the detailed postal ballot notice to understand the full implications of this proposed change. The e-voting period provides ample time for shareholders to make an informed decision on this strategic move by the company.

The results of this postal ballot, expected by January 3, 2026, will determine whether Saraswati Saree Depot Limited will proceed with its plans to enter the real estate development business. This expansion, if approved, could mark a significant shift in the company's business model and future growth strategy.

Saraswati Saree Depot Limited, a leading organized saree wholesaler in India, has announced strong financial results for the second quarter of fiscal year 2026. The company reported a significant increase in revenue and profitability, driven by healthy sales during the Utsav season and early festival period.

Key Financial Highlights for Q2 FY26

Operational Performance

The company's revenue from operations surged to Rs. 208.39 crore, marking a robust 26.5% year-on-year growth. This impressive performance was attributed to strong sales in the Utsav segment and the early onset of the festive season, with Diwali falling in October this year.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 14.1% to Rs. 14.06 crore, reflecting the company's operational efficiency. However, the EBITDA margin experienced a slight contraction of 73 basis points, settling at 6.75% compared to 7.48% in the same quarter last year.

Profit After Tax (PAT) increased by 9.9% to Rs. 10.51 crore, demonstrating the company's ability to translate top-line growth into bottom-line results. The PAT margin stood at 5.04%, down 77 basis points from the previous year, primarily due to higher depreciation costs.

Financial Position

Saraswati Saree Depot maintained its debt-free status, showcasing strong financial health. The company reported cash reserves of Rs 31.32 crore, providing a solid foundation for future growth and expansion initiatives.

Expansion and Strategic Initiatives

In line with its growth strategy, the company has expanded its operations by establishing a new 25,000 sq ft purchase office in Surat. This move is expected to enhance the company's procurement capabilities and strengthen its presence in one of India's key textile hubs.

Management Commentary

Mr. Shankar Dulhani, Chairman & Executive Director of Saraswati Saree Depot Ltd., commented on the results: "Our performance in Q2 reflects the strength of our business model, the resilience of our categories, and the disciplined execution across all operational fronts. We continue to drive efficiencies across procurement, inventory handling, and store operations, while maintaining disciplined cost controls."

He further added, "The strong performance in Q2 was driven by our continued focus on volume growth, supported by healthy traction in the Utsav segment. Additionally, the early onset of the festive season provided a further boost to demand and enabled us to capture incremental sales."

Conclusion

Saraswati Saree Depot's Q2 FY26 results demonstrate the company's ability to capitalize on seasonal demand and execute its growth strategy effectively. The strong revenue growth, coupled with the expansion of operations and maintenance of a debt-free status, positions the company well for future growth. Investors and stakeholders will be watching closely to see how the company leverages its new purchase office in Surat and navigates the upcoming festive seasons to drive further growth and profitability.