1. At a Glance
Sai Silks is trying to wrap India in silk and sarees—literally. But while the embroidery is intricate, the earnings aren’t. Q1 FY26 was like a festive lehenga with a broken zip—looks pretty, but doesn’t quite hold up when tested.
- Q1 FY26 Net Profit: ₹30 Cr (up from ₹14 Cr YoY)
- Revenue: ₹379 Cr (flat YoY)
- OPM: 15% (stable but not sparkling)
- Stock P/E: 33.4x — expensive like a Kanjeevaram in recession
2. Introduction with Hook
Imagine a wedding where the bride arrives in a ₹50,000 silk saree—and the groom is still paying EMIs on the sherwani. That’s Sai Silks right now. A glitzy ethnic fashion powerhouse operating in India’s wedding-obsessed culture… but still battling flat growth like it’s doing cardio in high heels.
- 68 stores across South India
- FY25 Sales: ₹1,462 Cr
- FY25 Net Profit: ₹85 Cr
- Inventory Days: brace yourself — 334
3. Business Model (WTF Do They Even Do?)
Basically, they sell sarees. But with four glorified avatars:
- Kalamandir: Mid-range sarees for that ₹2,999 Insta look.
- Mandir: For when your cousin’s wedding is bigger than your salary.
- Varamahalakshmi Silks: Heritage, tradition, and prices that scream “dowry upgraded.”
- KLM Fashion Mall: Budget shoppers’ paradise with fashion, footwear and full-on LED lights.
It’s a family of fashion outlets trying to give Reliance Trends a heartburn.
4. Financials Overview
Let’s decode the silk threads from the spreadsheet:
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹1,462 Cr | ₹1,374 Cr | 6.4% |
| EBITDA | ₹212 Cr | ₹219 Cr | -3.2% |
| PAT | ₹85 Cr | ₹101 Cr | -15.8% |
| OPM | 14% | 16% | Slippage |
Commentary:
Margins tighter than a size-30 blouse on a size-36 body. PAT down despite topline growth. Classic case of “more stores, more expenses, meh profit.”
5. Valuation
Let’s look at it two ways before we pledge loyalty to any silk empire:
- P/E Method
- EPS TTM = ₹7.39
- At 25x = ₹185 (Already here)
- At 30x = ₹222
- Fair Value Range: ₹185–₹220
- EV/EBITDA Method
- EBITDA FY25: ₹212 Cr
- Net Debt: ~₹300 Cr
- EV = ₹3,152 Cr
- EV/EBITDA = 14.8x
- Premium pricing for ethnic growth
Verdict: If you think paying 30x for low double-digit ROCE is smart, you probably also paid ₹600 for pani puri at a 5-star hotel.
6. What’s Cooking – News, Triggers, Drama
- Final dividend of ₹1/share? Cool, but doesn’t pay for a handloom tassel.
- Q1 FY26 Net Profit ₹30 Cr vs ₹14 Cr YoY = jump, but hold the champagne: Q4 FY25 PAT was also ₹30 Cr.
- Store additions slowing.
- FII holding inching up from 3.17% to 3.44% (maybe they like embroidery).
Upcoming:
- Earnings call on July 26. Expect: “challenging macro,” “festive outlook,” and “strategic expansion” a.k.a. we’ll open 2 stores and hope for Diwali magic.
7. Balance Sheet
Let’s thread this needle:
| Particulars | FY25 | FY24 |
|---|---|---|
| Net Worth | ₹1,131 Cr | ₹1,062 Cr |
| Total Debt | ₹405 Cr | ₹464 Cr |
| Total Liabilities | ₹1,641 Cr | ₹1,642 Cr |
| Fixed Assets | ₹465 Cr | ₹414 Cr |
| Inventory | ₹1,204 Cr | ₹1,058 Cr |
Key Take:
- Debt: Not Titanic-level, but iceberg on the radar.
- Inventory: Higher than your NRI cousin’s saree stash.
- Fixed Assets growing but asset turns crawling.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY25 | ₹107 Cr | ₹118 Cr | ₹-184 Cr | ₹41 Cr |
| FY24 | ₹-21 Cr | ₹-332 Cr | ₹393 Cr | ₹40 Cr |
Commentary:
- CFO finally positive. Good.
- CFI positive due to investment reversal? Possibly an asset sale or rollover.
- CFF negative = debt paydown + dividend = responsible parenting.
Still, cash flow looks like your freelancer friend—sometimes flush, mostly broke.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 |
|---|---|---|
| ROE | 7.78% | 6.58% |
| ROCE | 12.0% | 16.0% |
| D/E | 0.36 | 0.44 |
| OPM | 14% | 16% |
| P/E | 33.4x | 35x+ |
- ROCE is decent, not dazzling.
- ROE is where dreams go to nap.
- P/E is party-level. But what’s the theme? Not clear yet.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹1,351 Cr | ₹219 Cr | ₹101 Cr |
| FY24 | ₹1,374 Cr | ₹219 Cr | ₹101 Cr |
| FY25 | ₹1,462 Cr | ₹212 Cr | ₹85 Cr |
Analysis:
- Revenue up, but EBITDA flat.
- PAT actually down despite store growth.
- The only curve rising fast is inventory.
11. Peer Comparison
| Company | Revenue (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| Trent | ₹17,134 | ₹1,436 | 124.8x | 30.1% |
| Vedant Fashions | ₹1,386 | ₹388 | 49.3x | 22.9% |
| V2 Retail | ₹1,884 | ₹72 | 92.8x | 23.2% |
| Sai Silks | ₹1,574 | ₹113 | 33.4x | 7.78% |
Key Line:
Looks like the least drunk guest at a wedding full of finance bros. It’s there, it’s sober, but not dancing with the stars.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 60.97% (steady hands, or hands-off?)
- FIIs: Slight bump up this quarter.
- DIIs: Dropping like sensex in global recession
- Public: Rising—clearly the crowd loves shiny sarees
- No major M&A, IPOs, or stake sales announced recently.
Promoters: Smart players from Hyderabad retail scene.
They’re not your Bollywood-type promoters. More like: wedding planners turned business tycoons.
13. EduInvesting Verdict™
Sai Silks is that cousin who shows up at every function in style—but is secretly struggling with EMI on her lehenga. The brand is strong in South India, but flat margins and bloated inventory are hard to ignore.
It’s a decent pit stop for ethnic wear plays—but don’t expect business class legroom in the balance sheet.
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Sai Silks (Kalamandir), Q1 FY26, Ethnic Retail, Analysis, EduInvesting Premium
