Sai Silks (Kalamandir) (KALAMANDIR) Q4 25/26 earnings summary

Executive summary

• Achieved strong double-digit revenue growth and significant profitability improvement in FY 2026, despite a mixed discretionary demand environment and increased competition.

• One of South India's largest ethnic apparel retailers, specializing in sarees and value fashion, with a strong presence across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu, and Puducherry.

• Operates 81 stores under five differentiated brands, serving diverse customer segments from ultra-premium to value-focused shoppers.

• Emphasizes omnichannel retailing, with robust online platforms and a seamless customer experience.

• Approved audited financial results for Q4 and FY ended March 31, 2026, with a recommended final dividend of Rs. 1.50 per share, subject to shareholder approval.

Financial highlights

• FY 2026 revenue grew 13.1% to INR 1,654 crore (₹1,653.67 crore), with Q4 revenue at INR 419 crore; gross margin improved to 42.08%.

• FY 2026 PAT rose to INR 141 crore (₹140.92 crore), up nearly 65% year-over-year; Q4 PAT was INR 32.65 crore, a 140% increase year-over-year.

• EBITDA margin for FY 2026 at 15.76%, with Q4 impacted by bonus and employee costs; EBITDA increased to ₹370.93 crore (22.43% margin).

• ROE improved from 7.78% to 11.78%; ROCE from 13.7% to 16.7%.

• Basic and diluted EPS for FY26 was Rs. 9.56, compared to Rs. 5.80 in FY25.

Outlook and guidance

• Plans to add at least 100,000 sq ft of retail space in FY 2027, a 20% increase over last year.

• SSSG expected to be similar or slightly better than FY 2026; H2 anticipated to outperform H1 due to festival timing.

• EBITDA margin targeted at 17.5-18% for FY 2027, with continued improvement expected.

• Expansion to focus on Karnataka (Kalamandir format) and Varamahalakshmi Silks in Andhra and Tamil Nadu; entry into at least one new state likely.

• Focus on expanding store footprint using a cluster-based model in prime city locations and continued investment in technology, inventory management, and omnichannel capabilities.