Sai Silks (Kalamandir) Reports Timeline Deviations in IPO Proceeds Utilization for Q3FY26

Sai Silks (Kalamandir) Limited has filed its quarterly monitoring agency report for the period ended December 31, 2025, detailing the utilization of proceeds from its ₹600 crore Initial Public Offering. The report, prepared by CARE Ratings Limited as the appointed monitoring agency, reveals timeline deviations in several key objectives while maintaining that overall fund allocation amounts remain unchanged.

IPO Proceeds Overview

The company's IPO, conducted from September 20, 2023, to September 22, 2023, involved issuing 2,70,27,027 equity shares at ₹222 per share. After accounting for issue-related expenses of ₹33.76 crore, the net proceeds available for utilization stood at ₹566.24 crore.

Parameter:	Amount (₹ Crore)
Total IPO Proceeds:	600.00
Issue Expenses:	33.76
Net Proceeds Available:	566.24
Amount Utilized (Q3FY26):	461.44
Unutilized Amount:	104.80

Fund Utilization Progress

As of December 31, 2025, the company has deployed ₹461.44 crore across various objectives, with ₹59.48 crore utilized during the third quarter of FY26. The monitoring agency noted timeline deviations in four out of five stated objectives, though no material deviations were observed in terms of fund amounts.

Object-wise Utilization Status

Objective:	Allocated (₹ Cr)	Utilized (₹ Cr)	Remaining (₹ Cr)
30 New Stores Setup:	125.08	88.81	36.27
Two New Warehouses:	25.40	4.29	21.11
Working Capital:	280.07	235.44	44.63
Debt Repayment:	50.00	50.00	-
General Corporate:	85.69	82.90	2.79

Store Expansion and Infrastructure Development

The company has successfully established 22 new stores out of the planned 30 stores, with two stores opened during Q3FY26. The management indicated that store establishment involves lengthy procedures due to strategic location selection for optimal market capture. The entire allocated funds for store expansion are expected to be utilized by March 2026.

For warehouse development, the company has spent ₹4.29 crore towards setting up facilities, significantly behind the original timeline that projected completion by March 2024. The management cited strategic location planning to serve Tamil Nadu showrooms while minimizing logistics and maintenance costs as the reason for delays.

Timeline Deviations and Management Response

The monitoring agency identified specific timeline delays across multiple objectives:

Store Setup: Originally scheduled for completion by March 2026, currently ongoing with ₹88.81 crore utilized
Warehouse Development: Delayed from March 2024 target, with exact delay period not ascertainable
General Corporate Purposes: Delayed from March 2024 completion timeline
Debt Repayment: Completed with a three-month delay to avoid prepayment charges

Deployment of Unutilized Funds

The company has deployed ₹104.80 crore of unutilized funds in fixed deposits with HDFC Bank and monitoring accounts, earning returns ranging from 6.12% to 7.35%. The fixed deposits are scheduled to mature between January 2026 and December 2026, with ₹2.47 crore maintained in the IPO monitoring account.

Investment Type:	Amount (₹ Cr)	Return Rate
HDFC Bank FDs:	127.00	6.12% - 7.35%
Monitoring Account:	2.47	-
Interest Earned:	24.67	-

Regulatory Compliance and Monitoring

CARE Ratings Limited confirmed that all requisite government and statutory approvals for the warehouse and 22 stores opened with IPO funds are in place. The monitoring agency emphasized that while timeline deviations exist, there are no material deviations in fund allocation amounts, and the company maintains compliance with SEBI regulations regarding IPO proceeds utilization.

The report was submitted in accordance with Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and Regulation 41 of SEBI (Issue of Capital Disclosure Requirements) Regulations 2018, ensuring transparent disclosure of fund utilization progress to stakeholders.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.26%	+5.42%	-16.07%	-23.44%	-20.28%	-47.65%

Sai Silks (Kalamandir) Limited has filed its investor presentation for the quarter ended December 31, 2025, with stock exchanges in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015. The presentation provides comprehensive insights into the company's operations as one of South India's leading ethnic apparel retailers.

Company Overview and Store Network

The company operates an extensive retail network of 79 stores across 22 cities, covering a combined area of 7,70,610 square feet with an average store area of 9,755 square feet. The stores are strategically distributed across five states - Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Puducherry - following a cluster-based expansion model.

State:	Stores	Area (sq. ft.)	9M FY26 Revenue (₹ cr)	Revenue Share
Telangana:	29	2,91,111	386.31	31.29%
Andhra Pradesh:	23	2,24,377	340.98	27.62%
Karnataka:	12	1,33,559	209.32	16.95%
Tamil Nadu:	14	1,10,871	281.43	22.79%
Pudicherry:	1	10,692	16.57	1.34%

Multi-Brand Portfolio Strategy

The company operates five distinct brand formats targeting different market segments. Kalamandir focuses on ethnic fashion for middle-income customers with products priced between ₹1,000 to ₹100,000. Mandir caters to the ultra-premium segment with designer sarees ranging from ₹6,000 to ₹350,000. Kanchipuram Varamahalakshmi Silks specializes in premium ethnic sarees and handlooms for weddings and occasions, priced between ₹4,000 to ₹250,000.

KLM Fashion Mall targets the value fashion segment with affordable pricing from ₹200 to ₹75,000, while the newly launched Valli Silks brand in 2025 offers everyday ethnic elegance at pocket-friendly prices ranging from ₹250 to ₹35,000.

Financial Performance Highlights

For the nine months ended December 31, 2025, the company demonstrated strong financial performance with significant year-over-year improvements across key metrics.

Metric:	9M FY26	9M FY25	Growth (%)
Revenue from Operations:	₹1,234.61 cr	₹1,063.17 cr	+16.13%
EBITDA Margin:	16.15%	14.41%	+174 bps
PAT Margin:	8.77%	6.76%	+201 bps
Profit After Tax:	₹108.28 cr	₹71.88 cr	+50.63%

The company achieved an average revenue per store of ₹215 million and average revenue per square foot of ₹20,417 for FY 24-25, indicating efficient space utilization and strong operational performance.

Digital Presence and Technology Integration

The presentation highlights the company's omnichannel approach with dedicated websites for each brand format and strong social media presence. The company maintains 1.24 million Facebook followers, 737.4 thousand Instagram followers, and 392.92 thousand YouTube subscribers. The e-commerce platform serves 25 states and 6 union territories with an average order value of ₹5,747.

The company has implemented technology-driven supply chain management with in-house ERP systems, AI/ML integration for store-level insights, and partnerships with over 4,000 master weavers, weavers, and vendors across India. The warehousing capacity spans 173,000 square feet across five locations in Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu.

Recognition and Awards

The company has received 27 awards and recognitions since 2012, including six consecutive years of awards at the Times Business Awards by Times of India from 2015 to 2020. Recent recognitions in 2025 include the Retail Icon Award for Authentic Silk Sarees Brand and the Leading Ethnic Fashion Retail Group award from Times of India.

The investor presentation document has been uploaded on the company's website and shared with BSE Limited and National Stock Exchange of India Limited for public dissemination as required under regulatory compliance.