Sai Silks (Kalamandir) Limited, a prominent player in the ethnic wear market, has reported a robust performance for the second quarter of fiscal year 2025-26, with significant growth in revenue and profitability. The company's strategic expansion and focus on new store formats have contributed to its strong financial results.

Financial Highlights

Q2 FY26 Performance

• Revenue stood at INR 444.00 crores, marking a 28% growth compared to INR 347.00 crores in the same quarter last year.
• EBITDA margin improved to 16.21% from 15.95% in Q2 FY25.
• Profit After Tax (PAT) increased to INR 40.00 crores from INR 23.75 crores in the corresponding quarter.
• Same-store sales growth was robust at 17.5%.

H1 FY26 Performance

• Revenue reached INR 823.00 crores, up 34% from INR 614.00 crores in H1 FY25.
• EBITDA margin expanded significantly to 15.68% from 12.00%.
• PAT grew to INR 70.00 crores from INR 26.00 crores.

Expansion and Store Performance

Sai Silks has been actively expanding its retail presence:

• Added approximately 33,000 square feet of retail space through six new store openings in H1 FY26.
• Converted existing stores to the new Valli format, bringing the total Valli format stores to seven.
• Current retail presence spans 7.5 lakh square feet with 74 stores across 22 cities in four states.

Market Dynamics and Strategy

The company benefited from favorable market conditions:

• Strong wedding dates pipeline in Q2 FY26.
• Early onset of festivities contributing to increased consumer demand.
• Rise in bulk purchases and gifting as major sales drivers.

Sai Silks is adapting to changing consumer preferences:

• Focusing on digital-first approach with the Valli format stores.
• Enhancing digital presence across multiple social platforms for better product discovery and customer engagement.

Management Commentary

R. Bharadwaj, Senior Vice President, commented on the performance: "The ethnic retail market witnessed healthy traction with a strong wedding dates pipeline in Q2 FY26. This quarter benefited from occasion and festive demand, contributing to stronger consumer demand and increased footfall in our stores."

Future Outlook

• Management expects annual growth of 18-20% for FY26.
• Projecting second-half revenue of around INR 925.00 crores.
• Focus on sustainable growth, balancing expansion with profitability.
• Continued emphasis on product innovation and digital integration.

Sai Silks (Kalamandir) Limited's strong performance in Q2 FY26 reflects its ability to capitalize on market opportunities and adapt to evolving consumer preferences. The company's strategic expansion, particularly with the new Valli format, positions it well for continued growth in the ethnic wear market.

Sai Silks (Kalamandir) , a leading ethnic wear retailer in South India, has unveiled ambitious expansion plans targeting over 100 stores and a revenue of ₹4,500 crore by FY27. This strategic growth initiative comes on the heels of the company's robust financial performance in the second quarter of FY 2025-26.

Expansion Strategy

The company's growth strategy encompasses several key elements:

1. Pan-India Expansion: Sai Silks (Kalamandir) plans to establish a network of more than 100 stores across India, significantly expanding its current footprint of 74 stores across 22 cities.

2. Premium Silk Portfolio: The retailer aims to develop a high-end silk product line, potentially enhancing its offerings in the ultra-premium and premium ethnic wear segments.

3. Omni-channel Approach: Implementation of an omni-channel sales strategy to integrate online and offline shopping experiences seamlessly.

4. Margin Improvement: The company targets an improvement in EBITDA margins to 13-14%, indicating a focus on operational efficiency and profitability.

Q2 FY 2025-26 Financial Highlights

Sai Silks (Kalamandir)'s Q2 financial results demonstrate strong growth:

The company's EBITDA margin improved to 16.21% in Q2 FY 2025-26 from 15.95% in the same quarter last year, while the PAT margin increased significantly from 6.85% to 9.02%.

H1 FY 2025-26 Performance

For the first half of FY 2025-26, Sai Silks (Kalamandir) reported:

• Revenue: ₹823.35 crore (33.96% YoY growth)
• EBITDA: ₹129.14 crore (73.82% YoY growth)
• PAT: ₹70.14 crore (171.20% YoY growth)

The company's EBITDA margin for H1 FY 2025-26 stood at 15.68%, up from 12.09% in H1 FY 2024-25, while the PAT margin more than doubled from 4.21% to 8.52%.

Expansion Progress

As of September 30, 2025, Sai Silks (Kalamandir) operates 74 stores across five states and union territories, covering a total area of 750,064 square feet. The company's multi-brand strategy, including Kalamandir, Mandir, Vara Mahalakshmi, KLM Fashion Mall, and the newly launched Valli, caters to various market segments and price points.

Market Position and Future Outlook

Sai Silks (Kalamandir)'s strong financial performance and ambitious expansion plans reflect its robust position in the South Indian ethnic wear market. The company's focus on diversifying its brand portfolio, expanding its geographical presence, and improving operational efficiency positions it well to capitalize on the growing demand for ethnic wear in India.

As the company moves forward with its expansion strategy, investors and industry observers will be keenly watching its progress towards achieving the targeted 100+ stores and ₹4,500 crore revenue by FY27. The success of this expansion plan could potentially solidify Sai Silks (Kalamandir)'s position as a dominant player in the Indian ethnic wear retail sector.