At a Glance
Siyaram Silk Mills just released its Q1 FY26 results, and the numbers are more wrinkled than an old blazer. Revenue at ₹388.5 Cr grew 26.7% YoY, but PAT plunged 62% to ₹4.6 Cr, as margins collapsed under pressure. Despite this textile tragedy, the stock still trades at a P/E of 16 and offers a modest 1.77% dividend yield. Expansion continues with 7 new stores, but the bottom line looks like it just got dry-cleaned out of existence.
1. Introduction
Siyaram Silk is known for making men look sharp with its fabrics and garments, but Q1 FY26 was anything but sharp. A profit wipeout of 62% has left investors wondering if this is just a seasonal hiccup or the start of an unraveling thread. The company’s retail expansion continues, exports remain solid, yet margins got shredded like leftover fabric on the factory floor.
2. Business Model (WTF Do They Even Do?)
- Core Business: Manufacturing and selling fabrics, readymade garments, and branded menswear.
- Geography: Exports to UAE, Australia, Bangladesh, and other markets.
- Revenue Streams:
- Fabrics (main revenue driver)
- Garments & Accessories
- Exports
Roast Mode: They sell premium fabrics, but their profits in Q1 looked like bargain-bin leftovers.
3. Financials Overview
Q1 FY26 Highlights
- Revenue: ₹388.5 Cr (+26.7% YoY)
- EBITDA: ₹20.7 Cr (Margin 5.3%) vs 15% last year
- Net Profit: ₹4.6 Cr (-61.7% YoY)
- EPS: ₹1.01 vs ₹2.65 last year
Comment: Strong sales growth, but costs ate up all the gains.
4. Valuation
- P/E: 16x – not dirt cheap given the profit collapse.
- P/B: 2.4x – investors still value the brand.
- Fair Value Range: ₹550 – ₹750.
At this valuation, Siyaram is priced like premium fabric but delivering polyester-level profits.
5. What’s Cooking – News, Triggers, Drama
- PAT down 62% – margin pressure from raw material costs.
- 7 new stores opened – expansion continues.
- Exports steady – foreign markets cushioning some domestic slowdown.
- Rating Stable – CRISIL reaffirmed ratings, so liquidity isn’t an issue.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 1,606 | 1,893 |
| Borrowings | 175 | 262 |
| Net Worth | 1,141 | 1,288 |
Comment: Balance sheet is strong, debt is manageable.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Operating Cash | 235 | 128 | 256 |
| Investing Cash | -113 | 68 | -248 |
| Financing Cash | -123 | -194 | -10 |
Verdict: Positive operating cash flow – at least the cash machine still works.
8. Ratios – Sexy or Stressy?
| Ratio | 2023 | 2024 | TTM |
|---|---|---|---|
| ROE | 17% | 16% | 16.4% |
| ROCE | 20% | 20% | 20.4% |
| OPM | 14% | 12% | 5% (Q1) |
| D/E | 0.15 | 0.20 | 0.20 |
Comment: Margins nosedived, but capital efficiency remains decent.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | TTM |
|---|---|---|---|
| Revenue | 2,229 | 2,220 | 2,302 |
| EBITDA | 369 | 277 | 288 |
| Net Profit | 252 | 199 | 191 |
Observation: Flat revenue growth over 3 years, profits slowly declining.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| KPR Mills | 49 | 17% | 19% |
| Garware Tech | 38 | 18% | 21% |
| Vardhman Textile | 16 | 9% | 13% |
| Siyaram Silk | 16 | 16% | 13% |
Comment: Valuation in line with peers, but margins are under pressure.
11. Miscellaneous – Shareholding
- Promoters: 67.45% (stable)
- FIIs: 2.5% (low)
- DIIs: 2.5%
- Public: 27%
12. EduInvesting Verdict™
Siyaram Silk Mills remains a brand-driven textile player with strong market presence and export reach. However, Q1 FY26 results were a punch in the gut – profits were shredded due to rising costs and weak operating leverage. The company is still fundamentally solid with manageable debt, strong promoter holding, and expansion plans.
SWOT Analysis
- Strengths: Strong brand, export presence, healthy ROE.
- Weaknesses: Low revenue growth, margin volatility.
- Opportunities: Retail expansion, premium apparel demand.
- Threats: Input cost spikes, demand slowdown.
Final Word: Siyaram’s Q1 looks ugly, but long-term investors may still see value if margins recover. For now, the stock is a “watch from the sidelines” case until profits stop unraveling.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Siyaram Silk Mills, Q1 FY26 Results, Textile Stocks, Indian Garment Industry
