Sai Silks Q1 profit slides ~15% YoY as margins compress; revenue flat at ₹375 Cr
PAT -14.7% YoY · revenue -1.04% · margins compressing · miss vs street
₹375.08 Cr
-1.04% YoY
₹25.64 Cr
-14.7% YoY
6.73%
-1.1pp YoY
₹1.74
Sai Silks (Kalamandir) opened FY27 with a soft standalone print: revenue held roughly flat at ₹375.08 Cr (−1.0% YoY vs ₹379.02 Cr), but net profit fell 14.7% YoY to ₹25.64 Cr as margins gave way. Net margin compressed to 6.84% from 7.81% a year ago, and operating (EBITDA) margin eased to ~13.8% from 15.07% — the squeeze sits on the cost base rather than any one-off, as there were no exceptional items this quarter. EPS dropped to ₹1.74 from ₹2.04. The turnover figure exactly matches the company's own July 1 quarterly update (₹375 Cr, −1.05% YoY), so the topline was already telegraphed; the profit erosion is the new information.
Q1 FY-2027 vs prior quarters
The result runs against management's own FY27 framing from the Q4 concall (May 13), where the tone was confident and guidance called for revenue growth above FY26's 13.1%, SSSG at or slightly better than 3%, and an EBITDA margin lift to 17.5–18%. Q1 starts well behind on all three: revenue is down YoY and the ~13.8% EBITDA margin is roughly four points short of the guided range. There is no formal quarterly guidance, but on the annual trajectory this is an early miss. The Street had modelled 15–20% PAT growth for FY27 (basis the ₹130 target vs ~₹110 price); a −15% YoY Q1 sits against that narrative, though no Q1-specific consensus was published.
The stock went into the print at ₹98, down 7.2% over the past month of trading.
What the summary numbers don't show
No exceptional items — PBT ₹34.41 Cr with tax of ₹8.77 Cr (~25.5% effective rate)
Standalone results only — no subsidiaries/JVs, so consolidated is not applicable
Management guides for an accelerated pace of store expansion in FY27, targeting at least 100,000 sq ft of new retail space, funded internally while remaining debt-free. They anticipate same-store sales growth (SSSG) to be similar or slightly better than FY26's 3%, and project revenue growth to exceed the 13.1% achieved
— This quarter: missed
The QoQ drop (revenue −10.5%, PAT −21.5% off Q4's ₹419.06 Cr / ₹32.65 Cr) is largely seasonality — Q4 carries the wedding/festive-heavy quarter for ethnic apparel — so the sequential fall should not be read as fresh deterioration. The company continued to spend on growth: purchases of ₹280.40 Cr against a ₹62.60 Cr inventory build reflect stocking for new stores, and two new Kalamandir outlets opened in Karnataka (~30,000 sq ft; store count now 83). The board also fixed August 3 as record date for the ₹1.50 final dividend and set the AGM for August 10. The read heading into Q2: a stable but no-growth topline with margins that need to recover materially to keep the FY27 guidance credible.
What to watch
W1
Revenue re-acceleration vs the >13.1% FY27 guidance and SSSG vs FY26's 3% — Q1 at −1% YoY starts behind
W2
EBITDA margin recovery toward the guided 17.5–18% (Q1 ~13.8%, down from 15.07% YoY)
W3
Store-expansion pace vs the ≥100,000 sq ft FY27 target (~30,000 sq ft added in Q1)
Scanned/OCR-ish but figures and column headers legible. No exceptional items; tax ₹8.77 Cr = current+deferred+prior-year (line breakdown blurred, but PBT−PAT reconciles cleanly). No consolidated section — Note 4 confirms no subsidiaries/JVs. Q1 is seasonally the weakest quarter for apparel retail.
Informational and educational content only. Not investment advice.