1. Opening Hook
Q3 arrived, the festive calendar ghosted, and Sai Silks was left explaining why weddings don’t follow Excel sheets. Dasara packed its bags early, footfalls followed, and Q3 quietly underperformed—no drama, just timing issues.
Management insists demand didn’t die, it merely took a detour to Q2. Meanwhile, margins flexed, costs behaved, and profits quietly compounded. The market sulked over quarterly optics; management zoomed out to nine months and smiled.
This is one of those concalls where topline mood swings, but the backend keeps working overtime. Expansion continues, ads get trimmed, and profitability refuses to crack.
Read on—because the real story isn’t Q3. It’s what they’re building underneath while everyone’s counting wedding dates.
2. At a Glance
- Revenue ₹411 cr: Q3 blamed the calendar—apparently festivals need better GPS.
- 9M Revenue ₹1,234 cr (+16% YoY): Zoom out and suddenly growth reappears.
- Gross Margin 42.2% (+40 bps): Product mix did what discounts didn’t.
- PAT ₹38.4 cr: Q3 dipped, but nothing structurally broke.
- 9M PAT ₹108 cr (+50% YoY): Profits sprinted while revenue jogged.
- EBITDA ~17%: Cost discipline showed up, unlike festive footfalls.
3. Management’s Key Commentary
“Q3 demand was impacted due to festive
calendar shift.”
(Translation: Don’t annualise a quarter that lost Dasara 😏)
“Underlying demand for ethnic wear remains structurally strong.”
(Weddings don’t care about macro narratives.)
“Gross margins improved due to pricing discipline and product mix.”
(Discounts were told to sit this one out.)
“We have not closed a single store till date.”
(Retail graveyard avoided. Rare flex.)
“We will expand aggressively to 80,000–85,000 sq ft next year.”
(Capex with confidence, not caffeine.)
“Advertisement spend was consciously reduced.”
(Marketing didn’t vanish—it got a budget haircut.)
“Varamahalakshmi delivers superior capital efficiency.”
(The golden goose stays on payroll 🥚)
4. Numbers Decoded
| Metric | Q3 FY26 | 9M FY26 | What It Really Means |
|---|---|---|---|
| Revenue | ₹411 cr | ₹1,234 cr | Q3 weak, YTD solid |
| Gross Margin | 42.2% | ~42% | Mix > volumes |
| EBITDA Margin | ~17% | ~16% | Ads cut, costs behaved |
| PAT | ₹38.4 cr | ₹108 cr | Operating leverage kicking in |
| Retail Area | 7.7 lakh sq ft | +54,500 sq ft | Expansion stayed disciplined |
