1. At a Glance

Textile veteranSiyaram Silk Mills Ltd (SIYSIL)has stitched another profitable quarter that smells of polyester, powerlooms, and pure desi persistence. The company’sQ2FY26numbers were as smooth as its “Royale Linen” —Revenue ₹743 Cr,EBITDA ₹145 Cr, andPAT ₹87 Cr, growing16.1% YoYand27.2% YoY, respectively.

At acurrent price of ₹826, Siyaram sits on a comfymarket cap of ₹3,749 Crwith aP/E of 17.9x,ROE of 16.4%, andROCE of 20.4%. Compare that with industry average P/E of22.1x, and it looks like Siyaram is giving a “Buy 2 Get 1 Free” discount in valuation terms.

Despite 50% of its fabric being outsourced, 80% of garments subcontracted, and 100% of the industry gasping for oxygen post-COVID, this 46-year-old mill remains that seasoned uncle who still rocks a blazer to weddings and never runs out of “suiting” advice.

2. Introduction

Siyaram Silk Mills isn’t just selling fabrics. It’s selling legacy wrapped in polyester blends and sprayed with celebrity endorsements. Founded way before Instagram influencers learned what “linen” meant, this company is proof that you can survive multiple fashion eras — from bell-bottoms to joggers — as long as your margins don’t sag.

Headquartered in Mumbai, Siyaram has quietly transformed from being a “fabric-first” player to a full-blown lifestyle brand with an army of brands —Siyaram’s,J. Hampstead,Oxemberg,Cadini Italy, and nowZECODEandDEVO— aimed at Gen Z and tradition-loving millennials respectively.

The company, unlike your neighborhood tailor, doesn’t just hem pants — it hems entire P&Ls with precision. Over the years, Siyaram’s has expanded from selling bolts of fabric to running over500+ franchise-led retail outletsacross India. It’s now eyeing554 stores by FY26, with dreams woven in polyester and stitched with EBITDA.

With exports contributing9% of salesand India remaining a 91% playground, the brand is domestic at heart but global in ambition.

3. Business Model – WTF Do They Even Do?

Siyaram Silk Mills is basically India’s go-to “men’s wardrobe OEM.” Think of it as the textile industry’s version of Amul – except instead of milk, it pours out miles of fabric and gallons of brand nostalgia.

Here’s the business breakdown:

• Fabric Division (81% of revenue): The money-spinner. From wool blends to bamboo fabrics, this is the backbone of the business — quite literally, the “suit” behind the “boot.”
• Garments (13%): Includes blazers, shirts, trousers, and now Gen Z streetwear. Outsourced to contract manufacturers because, let’s face it, margins are too thin to stitch in-house.
• Others (6%): Mostly accessories and miscellaneous fabric items — the “adda” of textile leftovers.

What’s fascinating is how Siyaram’s has turnedoutsourcing (40–50%)into a financial advantage. While others drown in fixed costs, Siyaram’s rides the “asset-light” wave, using small-town suppliers to flex production without blocking capital.

The company even ventured into thefast-fashion racethroughZECODE, a youth-oriented brand focusing on Rs.999 price tags and “Insta-worthy” aesthetics, whileDEVOcaters to the ethnic market. These dual fronts ensure Siyaram doesn’t get stuck between a Kurta and a Hard Place.

4. Financials Overview