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:

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:

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.

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.