Saraswati Saree Depot Reports 26.5% Revenue Growth in Q2FY26

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

Particulars (Rs. Crore)	Q2 FY26	Q2 FY25	YoY Change
Revenue from Operations	208.39	164.75	26.5%
EBITDA	14.06	12.32	14.1%
EBITDA Margin	6.75%	7.48%	(73 bps)
PAT	10.51	9.57	9.9%
PAT Margin	5.04%	5.81%	(77 bps)
EPS (Rs.)	2.65	2.42	9.5%

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.35%	-2.44%	-5.44%	-20.46%	-42.51%	-60.77%

Saraswati Saree Depot Limited (SSDL) has reported robust financial results for the second quarter ended September 30, 2025, while also announcing plans to diversify into the real estate sector.

Financial Performance

The company's financial results for Q2 FY2026 showcase significant growth:

Particulars	Q2 FY2026 (₹ in million)	Q2 FY2025 (₹ in million)	YoY Growth
Revenue from Operations	2,083.91	1,647.50	26.49%
Profit After Tax	105.09	95.67	9.85%
Earnings Per Share (₹)	2.65	2.42	9.50%

SSDL's revenue from operations increased by 26.49% year-over-year, rising from ₹1,647.50 million in Q2 FY2025 to ₹2,083.91 million in Q2 FY2026. The company's profit after tax grew by 9.85%, reaching ₹105.09 million compared to ₹95.67 million in the same quarter of the previous fiscal year.

Expansion into Real Estate

SSDL's Board of Directors has approved an alteration to the company's Memorandum of Association, allowing it to venture into the real estate development business. The proposed new object clause includes:

Development of real estate projects
Acquisition, sale, construction, leasing, and management of various properties
Development of land, buildings, housing projects, and integrated townships
Infrastructure development related to real estate projects

This expansion into real estate marks a significant diversification for SSDL, potentially opening up new revenue streams and growth opportunities.

IPO Proceeds Utilization

The company's monitoring agency report confirms the full utilization of IPO proceeds totaling ₹1,039.97 million. These funds were primarily used for:

Working capital requirements
General corporate purposes

As of the latest report, ₹5.57 million remains in the public issue account.

Financial Position

SSDL's balance sheet as of September 30, 2025, reflects the following financial position:

Particulars	September 30, 2025 (₹ in million)	March 31, 2025 (₹ in million)
Total Assets	3,794.64	2,899.33
Total Equity	1,886.96	1,778.56
Current Assets	3,549.03	2,641.12
Current Liabilities	1,807.03	1,005.12

The company's total assets have grown by 30.88% in the six months since the end of the previous fiscal year.

Outlook

With its strong financial performance and plans to enter the real estate sector, Saraswati Saree Depot Limited appears to be positioning itself for growth. The company's utilization of its IPO proceeds for working capital and expansion purposes demonstrates effective capital management. As SSDL ventures into real estate development, this diversification may impact the company's future performance and market position.