Saraswati Saree Depot Limited (SSDL), a leading player in the B2B segment of India's traditional women's apparel industry, has reported strong financial results for the first quarter of fiscal year 2026, along with several strategic initiatives to drive future growth.

Financial Performance

The company's revenue from operations reached ₹144.77 crore in Q1 FY26, marking an 11.1% year-on-year growth. This growth was primarily driven by increased volumes and rising wallet share from existing customers in their core B2B wholesale business of traditional women's apparel.

SSDL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant increase of 14.4%, reaching ₹8.98 crore. The EBITDA margin improved to 6.20% from 6.01% in the same quarter last year, indicating enhanced operational efficiency.

Profit After Tax (PAT) grew by 4.1% to ₹6.35 crore. However, the PAT margin contracted slightly to 4.39% from 4.68%, primarily due to higher depreciation and interest expenses recognized under Ind AS 116, related to operating leases.

Strategic Initiatives

Retail Expansion

In a significant move, Saraswati Saree Depot launched its first exclusive retail outlet in Kolhapur, Maharashtra on June 1, 2025. This marks the company's entry into the retail segment, complementing its strong wholesale business. The store showcases a curated selection of sarees and ethnic wear, blending traditional craftsmanship with evolving consumer preferences. The company is targeting a 20% Return on Capital Employed from this initiative.

Digital Engagement

To enhance customer engagement and increase purchase frequency, SSDL has launched a dedicated WhatsApp store. This digital initiative aims to provide a seamless and convenient ordering channel for its existing customer base.

Product Diversification

In August 2025, the company initiated a pilot launch into men's ethnic wear. This small-scale launch, aligned with the onset of the festive season, is designed to gauge consumer response and fine-tune offerings before considering a broader rollout.

Management Commentary

Shankar Dulhani, Chairman and Executive Director of Saraswati Saree Depot Limited, commented on the results: "As we step into the first quarter of the new financial year, our focus remains firmly on consistent operational execution and prudent financial management. These developments underscore our cautious yet forward-looking approach—exploring new avenues for growth while remaining anchored in the core strengths that have defined SSDL for decades."

Vinod Dulhani, Managing Director and CEO, added: "We are pleased to share that Q1 FY26 has commenced on a strong and steady note, reflecting the continued momentum in our core business and the disciplined execution of our strategic initiatives. Looking ahead, we remain confident that our deep product expertise, customer-centric designs, and disciplined execution will allow us to capitalize on upcoming festive and wedding seasons, driving sustainable growth and enhancing long-term stakeholder value."

Future Outlook

With its strong financial performance, strategic retail expansion, and initiatives in digital engagement and product diversification, Saraswati Saree Depot Limited appears well-positioned to capitalize on the growing organized saree sector in India. The company's focus on operational efficiency and prudent financial management, coupled with its exploration of new growth avenues, suggests a balanced approach to long-term value creation in the traditional women's apparel market.

As Saraswati Saree Depot continues to evolve its business model and expand its market presence, investors and industry observers will be keenly watching the company's performance in the coming quarters.

Saraswati Saree Depot Limited (SSDL), a leading organized saree wholesaler in India, has reported strong financial results for the first quarter, demonstrating steady growth and strategic expansion initiatives.

Financial Highlights

The company's revenue from operations for Q1 stood at Rs. 144.77 crore, marking an 11.1% increase compared to Rs. 130.37 crore in the same quarter last year. This growth was primarily driven by increased volumes and a rising wallet share from existing customers.

SSDL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant boost, rising by 14.4% year-over-year to Rs. 8.98 crore. The EBITDA margin expanded to 6.20% from 6.01% in the corresponding quarter of the previous year, reflecting improved operational efficiency.

Profit After Tax (PAT) for the quarter increased by 4.1% to Rs. 6.35 crore, compared to Rs. 6.10 crore in the corresponding quarter of the previous year. However, the PAT margin experienced a slight decrease to 4.39% from 4.65%, primarily due to higher depreciation and interest expenses recognized under Ind AS 116 on account of operating leases.

The company's Earnings Per Share (EPS) for Q1 stood at Rs. 1.61.

Key Financial Metrics

Strategic Initiatives and Expansion

Saraswati Saree Depot has embarked on several strategic initiatives to drive growth and enhance customer engagement:

1. Retail Expansion: The company launched its first exclusive retail outlet in Kolhapur, Maharashtra, which became operational on June 1. This marks SSDL's entry into the retail segment, with the store showcasing a curated selection of sarees and ethnic wear.

2. Digital Engagement: SSDL introduced a dedicated WhatsApp store to increase purchase frequency among existing customers, offering a seamless and convenient ordering channel.

3. Product Diversification: In line with its strategy to diversify into men's ethnic wear, the company initiated a pilot sale in August, coinciding with the onset of the festive season.

4. Expanded Product Catalog: The company's product catalog now consists of more than 300,000 different SKUs, catering to a wide range of customer preferences.

Management Commentary

Shankar Dulhani, Chairman & Executive Director of Saraswati Saree Depot Ltd., commented on the performance: "As we step into the first quarter of the new financial year, our focus remains firmly on consistent operational execution and prudent financial management. We are taking measured steps toward strategic expansion—both in our product portfolio and customer engagement initiatives."

Vinod Dulhani, Managing Director & CEO, added: "We are pleased to share that Q1 has commenced on a strong and steady note, reflecting the continued momentum in our core business and the disciplined execution of our strategic initiatives. Looking ahead, we remain confident that our deep product expertise, customer-centric designs, and disciplined execution will allow us to capitalize on upcoming festive and wedding seasons, driving sustainable growth and enhancing long-term stakeholder value."

Future Outlook

With its strong market position, diverse product portfolio, and strategic expansion initiatives, Saraswati Saree Depot Limited is well-positioned to capitalize on the growth opportunities in the Indian ethnic wear market. The company's focus on operational efficiency, prudent financial management, and strategic expansion aligns well with its goal of achieving sustainable growth and enhancing shareholder value in the long term.

As the organized saree sector continues to grow at a 9-10% CAGR, SSDL's initiatives in retail expansion and digital engagement are expected to strengthen its market position and drive future growth.