Sai Silks (Kalamandir) Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sai Silks (Kalamandir) Ltd filed with BSE on 19 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sai Silks (Kalamandir) Limited reported Q4 FY26 revenue of about Rs 419 crores, up 5.1% year-on-year, with gross margin at 42.08% and PAT of Rs 32.65 crores versus Rs 13.51 crores last year. For the full year, revenue grew 13.1% to Rs 1,654 crores, EBITDA margin expanded 128 basis points to 15.76%, and PAT rose to Rs 141 crores from Rs 85 crores, alongside the addition of 13 new stores and 1 extension store during the year. Management discussed retail expansion plans, gross and EBITDA margin trends across store formats, an income tax matter involving the promoter group, and inventory management practices.
Numbers mentioned
Revenue: INR419 crores (Q4 FY26)
p. 4
“We delivered a revenue of about INR419 crores, representing a growth of 5.1% Y-o-Y despite a relatively mixed consumption environment across certain mature markets.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
Gross margin: 42.08% (Q4 FY26)
p. 4
“Our gross margin stood at 42.08 compared to 41.71 last year, an increase of 37 basis points.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
PAT: INR32.65 crores (Q4 FY26)
p. 4
“Our PAT for the quarter stood at INR32.65 crores compared to INR13.51 crores last year, an increase of about 140% Y-o-Y.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
Revenue: INR1,654 crores (FY26)
p. 4
“For the full year, our revenue grew by 13.1% to INR1,654 crores compared to INR1,462 crores last year, while the same-store sales growth stood at plus 3%.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
EBITDA margin: 15.76% (FY26)
p. 4
“For the full year FY26, our EBITDA grew by 128 basis points to 15.76 percentage compared to 14.48 percentage last year.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
Gross margin: 42.07% (FY26)
p. 4
“Despite the changing market environment, we continue to maintain healthy gross margins at 42.07 percentage, reflecting an improvement of 30 basis points over last year.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
PAT: INR141 crores (FY26)
p. 4
“Our PAT for the year grew significantly to INR141 crores compared to INR85 crores in the previous year, representing a very strong growth of nearly 65 percentage.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
ROE: 11.78% (FY26)
p. 5
“Additionally, a few other metrics such as the ROE has improved from 7.78 percentage to 11.78 percentage, while the ROCE improved from 13.7 percentage to 16.7 percentage, reflecting stronger profitability and improved capital efficiency.”
Bharadwaj Rachamadugu, page 5 of the filed PDF · View the filing
Total store network: 81 stores across 5 states (FY26)
p. 4
“During the year, we have added 13 new stores and 1 extension store, taking our total network of our stores from 68 stores to 81 stores across 5 states.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
Retail area: about 785,000 square feet (FY26)
p. 4
“We added close to 78,600 square feet of retail space with a net retail addition of about 69,000, taking our overall retail area to about 785,000 square feet across 5 South Indian states.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
Bonus expenditure impact: INR4 crores (Q4 FY26)
p. 12
“It ranges, I think Q4, we seem to have disbursed about INR4 crores bonus. We spread it over the year, some in Q3, some in Q4. And the impact during the quarter was to the extent of about INR4 crores.”
K.V.L.N. Sarma, page 12 of the filed PDF · View the filing
Increase in inventory: INR34 crores (FY26)
p. 16
“Yes. Even in this year, you would have seen despite adding 70,000 square feet, the increase in inventory was only INR34 crores.”
K.V.L.N. Sarma, page 16 of the filed PDF · View the filing
Inventory per square feet: INR10,480 (FY26)
p. 16
“What was around INR11,533 has come down to INR10,480 or so.”
K.V.L.N. Sarma, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Net retail square feet addition — about 20% more than last year's addition, in the range of 100,000 square feet · FY27
stated conditionally by Bharadwaj Rachamadugu
p. 5
“But at least for now, we should be able to expect at least 20% more than last year's square feet addition.”
Bharadwaj Rachamadugu, page 5 of the filed PDF · View the filing
Same-store sales growth — similar to a little bit better than 3% · FY27
stated as an aspiration by Bharadwaj Rachamadugu
p. 6
“So, we do anticipate a similar to a little bit better SSSG numbers than we've achieved this year.”
Bharadwaj Rachamadugu, page 6 of the filed PDF · View the filing
Revenue growth — more than FY26 growth · FY27
stated conditionally by Bharadwaj Rachamadugu
p. 6
“But broadly, if I have to give you, it should be more than the guidance that more than what we achieved last year '25-'26.”
Bharadwaj Rachamadugu, page 6 of the filed PDF · View the filing
EBITDA margin — 17.5% to 18% · FY27
stated as an aspiration by K.V.L.N. Sarma
p. 15
“The target would be the same. This year, we have reached about 16-point-odd. And our target, with the plan of action on expansion and Varamahalakshmi format it should be possible that we should at least be in the 17.5% to 18% range this year.”
K.V.L.N. Sarma, page 15 of the filed PDF · View the filing
H2 vs H1 revenue split — H2 stronger than H1 · FY27
stated as an aspiration by Bharadwaj Rachamadugu
p. 11
“But overall, the growth should be evenly spread out between H1 and H2. And this year, I'm expecting that H2 should be better than H1.”
Bharadwaj Rachamadugu, page 11 of the filed PDF · View the filing
Advertisement expenditure — around 4% of revenue · FY27
stated firmly by Bharadwaj Rachamadugu
p. 14
“See, yes, it is possible, but we have budget on the advertisement side to still be able to run at 4% kind of a number only, which is a similar number compared to this year.”
Bharadwaj Rachamadugu, page 14 of the filed PDF · View the filing
Borrowings — no further borrowings · next 2-3 years
stated firmly by K.V.L.N. Sarma
p. 14
“there will not be any further borrowings this year and we expect that the company will not have a necessity for borrowings for the next 2, 3 years also.”
K.V.L.N. Sarma, page 14 of the filed PDF · View the filing
New state expansion — at least 1 store outside core markets · FY27
stated firmly by Bharadwaj Rachamadugu
p. 11
“I think probably this year, you should be able to see at least 1 store outside of our core markets.”
Bharadwaj Rachamadugu, page 11 of the filed PDF · View the filing
Format mix of store expansion — approximately 60-40 between Kalamandir and Varamahalakshmi format · FY27
stated as an aspiration by K.V.L.N. Sarma
p. 17
“Broadly, I think we should implement approximately in the range of 60-40 between Kalamandir and Varamahalakshmi format this year.”
K.V.L.N. Sarma, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said retail addition should be at least 20% more than last year, SSSG should be similar or slightly better, but declined to give a specific revenue growth number.
Answered by Bharadwaj Rachamadugu
Asked by Rahul Jain: What is the outlook on net square feet addition and SSSG, and thereby revenue growth for FY27?
p. 6
“Now keeping that in mind, our revenue targets will not have a right number if I can give you a number right now.”
Bharadwaj Rachamadugu, page 6 of the filed PDF · View the filing
Management attributed the gap to advertisement cost timing and employee cost increases from new store openings and bonus payouts.
Answered by Bharadwaj Rachamadugu
Asked by Rahul Jain: Why did EBITDA margin lag despite strong gross margin in Q4?
p. 7
“So, advertisement cost, we have been reducing the advertisement cost overall, and if you see that between last year and this year.”
Bharadwaj Rachamadugu, page 7 of the filed PDF · View the filing
Management explained the promoter tax matter involved a family trust transaction where the original contention was found untenable and dropped, while the company's matter was a separate, already-settled issue.
Answered by K.V.L.N. Sarma
Asked by Bala Murali Krishna: Why was the promoter's tax demand waived while the company paid its own tax demand?
p. 7
“The contention on which they have raised the demand on personal taxation of promoter group was wrong.”
K.V.L.N. Sarma, page 7 of the filed PDF · View the filing
Management cited a consumption slowdown in late January-February and late store openings in March that limited revenue contribution, rather than the Valli format mix.
Answered by Bharadwaj Rachamadugu
Asked by Bala Murali Krishna: What caused the slowdown in Q4 growth versus Q3?
p. 8
“In the month of late January to February, there has been some slowdowns in the overall consumption pattern, and that's what has caused us to this kind of a plus 5%.”
Bharadwaj Rachamadugu, page 8 of the filed PDF · View the filing
Management said Varamahalakshmi contributed about 52% of sales while KLM declined by about 3%, partly due to a deliberate store area reduction.
Answered by Bharadwaj Rachamadugu
Asked by Ankit Gupta: What is the format-wise sales breakup and KLM performance for FY26?
p. 9
“So, KLM, I think the decline has been around low-single-digit, about 3% or so is the overall decline for KLM format.”
Bharadwaj Rachamadugu, page 9 of the filed PDF · View the filing
Management reiterated a target of 17.5% to 18% EBITDA margin, driven by Varamahalakshmi format productivity gains and no additional interest cost due to being debt-free.
Answered by K.V.L.N. Sarma
Asked by Ankit Babel: What EBITDA margin improvement is expected for FY27 given expansion plans?
p. 14
“So mostly, that will add to the improvement in the margin profile as such.”
K.V.L.N. Sarma, page 14 of the filed PDF · View the filing
Management said the constraint is not financial but the careful process of identifying and validating store locations, with potential for more than 1 lakh square feet if the pipeline supports it.
Answered by K.V.L.N. Sarma
Asked by Ankit Babel: Why is expansion limited to 1 lakh square feet rather than more, given available resources?
p. 15
“Currently, we have a visibility of approximately 1 lakh square feet on which we have closed the entire process of identification of the stores and then the other modalities of executing it.”
K.V.L.N. Sarma, page 15 of the filed PDF · View the filing
Management said Varamahalakshmi format stores achieve payback in 8-9 months and reach mature EBITDA margins in 1.5 to 2 years, with Kalamandir taking slightly longer.
Answered by K.V.L.N. Sarma
Asked by Nilesh Doshi: How long does it take for a new store to reach mature EBITDA margins and achieve payback?
p. 17
“Depending on the format, Varamahalakshmi format will give a payback within 8 to 9 months, whereas to reach the EBITDA margins to get the store mature, it will be approximately 1.5 years to 2 years.”
K.V.L.N. Sarma, page 17 of the filed PDF · View the filing
Risks flagged
Mixed discretionary demand environment and increased competitive industry intensity
p. 3
“FY26 has been an important and transformational year for Sai Silks (Kalamandir) Limited despite mixed discretionary demand environment and increased competitive industry intensity.”
Bharadwaj Rachamadugu, page 3 of the filed PDF · View the filing
Heightened competitive intensity, faster fashion cycles, and digital influence affecting purchase behaviour
p. 4
“However, the industry is also witnessing heightened competitive intensity, faster fashion cycles, increasing digital influence, which has an impact on the purchase behaviour.”
Bharadwaj Rachamadugu, page 4 of the filed PDF · View the filing
KLM format underperformance concentrated in Telangana affecting SSSG
p. 10
“I think we are having plans on the KLM front to be able to revive that to still be able to deliver a positive SSSGs.”
Bharadwaj Rachamadugu, page 10 of the filed PDF · View the filing
Slowdown in consumption pattern in late January to February
p. 8
“In the month of late January to February, there has been some slowdowns in the overall consumption pattern, and that's what has caused us to this kind of a plus 5%.”
Bharadwaj Rachamadugu, page 8 of the filed PDF · View the filing
Increase in employee cost from bonus payouts and Labor Code impact affecting EBITDA
p. 7
“And on the employee cost front also, there are other factors such as this bonuses as well as the Labor Code impact to a certain extent.”
Bharadwaj Rachamadugu, page 7 of the filed PDF · View the filing
Risk of aggressive expansion leading to store consolidation
p. 15
“Majorly, I think we have seen many in the cases in the market that too aggressive expansion also can cause consolidation of stores.”
Bharadwaj Rachamadugu, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.