1. At a Glance – Old School Fabric, New Age Cash Flows
Siyaram Silk Mills Ltd is that uncle at Indian weddings who wears a perfectly stitched suit, doesn’t dance, doesn’t shout, but quietly owns half the banquet hall. Market cap sitting around ₹2,526 Cr, stock price hovering near ₹557, down ~26% in the last 3 months, dividend yield a comforting 2.15%, and a P/E of ~12.3 while the industry is partying at ~18–19x.
Q3 FY26 just dropped and the company posted Q3 revenue of ₹639 Cr, PAT of ₹42 Cr, and 9M FY26 PAT of ₹134 Cr. ROCE is flexing at 20.4%, ROE at 16.4%, and debt-to-equity a very desi-parent-approved 0.30.
This is not a hot IPO, not a turnaround sob story, not a “next Zara of India” pitch. This is a 40+ year old textile player quietly printing cash, distributing dividends, buying back shares occasionally, and letting Ranbir Kapoor do the shouting in ads.
So why is the stock beaten down? Why is growth boring? And why does the balance sheet look like it went to CA coaching classes? Let’s decode.
2. Introduction – The Textile Stock Nobody Brags About
If Indian stock market had a popularity contest, Siyaram Silk would not win “Most Talked About”. No Twitter threads. No “multibagger loading” reels. No Telegram gurus whispering sweet nothings.
And yet, here’s a company that has survived fashion cycles, cotton cycles, China dumping, COVID, and still manages ₹2,400+ Cr annual sales, ₹200+ Cr profits, and consistent dividends.
Siyaram is not chasing fast fashion chaos blindly. Instead, it is doing something very un-Indian-market-like:
- Selling fabric (boring, but high ROCE)
- Outsourcing aggressively (asset-light vibes)
- Expanding retail slowly (no YOLO capex)
- Paying shareholders regularly (dividend addicts rejoice)
The irony? While everyone wants to invest in “brands”, Siyaram earns 81% of revenue from fabric, not garments.
Fabric is where margins are stable, volumes are predictable, and fashion risk is lower.
Is it exciting? No.
Is it durable? Very.
And sometimes boring businesses make the best money… slowly.
3. Business Model – WTF Do They Even Do?
Let’s simplify Siyaram for your lazy but intelligent investor brain.
Step 1: Make Fabric
Siyaram manufactures and sources a wide range of fabrics – wool blends, cotton, linen, bamboo fabric, terry rayon, suiting fabrics, and ethnic wear fabrics.
They have:
- 494 looms
- 55.2 million meters fabric capacity
- 2.4 million kg knitted fabric capacity
- 4.8 million kg indigo capacity
But here’s the twist: ~50% fabric production is outsourced. So when demand goes up, they scale without burning capital like a FMCG startup on IPL ads.
Step 2: Convert Some Fabric into Garments
Garments contribute only 13% of revenue, and 80% of garmenting is outsourced.
Translation: Siyaram doesn’t want to babysit tailors and factories. They want return on capital, not operational headaches.
Step 3: Sell Under Trusted Brands
They sell under brands that your dad trusts blindly:
- Siyaram’s
- J. Hampstead
- Oxemberg
- Cadini Italy
- Mozzo
- Royale Linen
- Bamboo Fabric
New kids on the block:
- ZECODE (Gen Z, South India, ≤₹999 pricing, 16 stores)
- DEVO (Ethnic, North India, 10 stores)
Step 4: Distribution
