Silky Overseas Ltd — Q3 FY26 earnings call

Call held 21 Jan 2026

Management summary

Silky Overseas Limited reported FY25 revenue of ₹124 crores and PAT of ₹10 crores, positioning itself as India's only listed mink blanket manufacturer. The company highlighted strong operational metrics, including a low e-commerce return rate of 3-4% and the successful installation of a 750kW solar power system to reduce energy costs. However, the company faced challenges with high receivable days this year due to external factors like North India floods and US import tariffs, alongside a capacity utilization of 68% for FY24-25.

Highlights

  • FY25 Revenue of ₹124 crores and PAT of ₹10 crores.

  • Low e-commerce sales return rate of 3-4%, with total customer and courier returns at 10-12%, considered very good for the e-commerce industry.

  • Successful installation of a 750kW solar power system, leading to reduced energy costs.

  • Strategic expansion of storage facilities using IPO proceeds, improving raw material and finished goods management.

  • Partnership with Flipkart expanded to 3 new states (Rajasthan, Jaipur, Ahmedabad, Lucknow).

Concerns

  • High receivable days in the current year attributed to North India floods in August/September and US import tariffs on textiles, impacting sales.

  • Current capacity utilization for FY24-25 is 68%, indicating underutilization.

Key financials

2 periods

FY24-25

  • Capacity Utilization
    68%

FY25

  • Revenue
    ₹124 Cr
  • PAT
    ₹10 Cr

What they filed

Q1 FY27: revenue down 32.1%, net profit down 71.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue48 31 24 25 38 −21%32 +4%13 −47%17 −32%
EBITDA5 5 3 4 5 −2%4 −18%0 −92%2 −37%
Net profit4 3 3 3 2 −42%2 −26%-1 −123%1 −71%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

E-commerce Sales

  • E-commerce share of total sales E-commerce Sales · next couple of years · Medium confidence 10%
    Our total sales ka jo he e-commerce 3% hi hai. Jo hamara next couple of years me target hai with the Flipkart, FBF enrollment, jo 10% he humara next USP yahi hai ki ham e-commerce mein isko jitna Zada badha sake, wo hum badhayenge.

    — Mr. Ananya Goyal

Revenue

  • Revenue at 100% capacity utilization Revenue · if 100% capacity utilization · Medium confidence ₹150-170 crores
    At 100% capacity utilization, I think, We could be at, more than 150 crores, it'll be 150 to 170 crores is the figure that we can achieve if 100% capacity utilization, if we are able to achieve 100% capacity utilization.

    — Mr. Ananya Goyal

What to watch in Q4 FY26

E-commerce share of total sales

next couple of years
Current 3%
Target Progress towards 10%

Why it matters

Key growth driver and strategic focus for the company's digital-first transformation.

Our total sales ka jo he e-commerce 3% hi hai. Jo hamara next couple of years me target hai with the Flipkart, FBF enrollment, jo 10% he humara next USP yahi hai ki ham e-commerce mein isko jitna Zada badha sake, wo hum badhayenge.

Risks & concerns

  • Competition from unorganized players

    medium

    The home textile market in India is flooded with unorganized players who operate with low compliance costs.

    Analyst acknowledged

  • Raw material price volatility

    medium

    Fluctuations in crude polyester prices could impact margins if not managed through pass-through clauses or advance purchases.

    Analyst acknowledged

  • High receivable days / working capital stretch

    medium

    Receivable days recently rose from 60 to 77 days due to external factors like floods and US tariffs, potentially stretching working capital.

    Analyst acknowledged

Q&A highlights

7 direct
E-commerce sales return rate and reverse logistics cost Direct
Hamara jo return, wo hamara customer returns is only for 3-4%. Customer and courier returns, milake, vote 10-12 percentile, which is very good, which is considered very good in the e-commerce industry.

Provides key operational metric for e-commerce, showing better-than-industry-standard returns.

Asked by Finportal

Maximum revenue at 100% capacity utilization Direct
At 100% capacity utilization, I think, We could be at, more than 150 crores, it'll be 150 to 170 crores is the figure that we can achieve if 100% capacity utilization, if we are able to achieve 100% capacity utilization.

Gives an upper bound for revenue potential with existing infrastructure.

Asked by Finportal

Sustainability of 15% EBITDA margin Partial
Jessaki Amalendu sir pointed out key the hum advance purchase karke ham price factor ko hum control karte hain. But, yeah, Amalendu Sir, if you have anything to, add to this?

Addresses a key investor concern about margin resilience to raw material price fluctuations, with management explaining their cost management strategy.

Asked by Finportal

Right to win against unorganized players Direct
it's a mix of both, distribution advantage we have, and, distribution advantage, and humne apni jo production process me improvement or advancements kar rakhi hai, so it's a mix of both so that we mitigate our compliance cost.

Explains competitive advantages in a fragmented market.

Asked by Finportal

Purpose of new storage facilities Direct
Nahi nahi wo storage facilities jo humne invest kiya use hamare raw material or finished goods ka jo current level hai use manage karne ke liye storage facilitites to expand kiya hai.

Clarifies the strategic intent behind capital allocation for infrastructure, focusing on current inventory management rather than manufacturing expansion.

Asked by Finportal

Reason for high receivable days Direct
This year receivable days high hone ka 2-3 reason rahe hai ekto north india me kafi barish hui he august or September mai, barish ki wajah se jo floods aye uski wajah se product all over india timely dispatch nahi ho paya matlab dispatch hone mai kafi time laga like job hi product 4-5 days me pochahta hai usko double din lag jate hai, woh ek bada factor tha. Pluse reciprocal tarrif jo US ne import kar diye the textile pe or wo sab pe use jo kafi exporter hai unka product domestic market mai aa gaya unki wajah se receivable high huye hai or sales pe thoda effect aya hai. But going forward I don't feel that future me working capital ka stretch hoga.

Explains the causes of increased receivable days and management's outlook on future working capital.

Asked by Finportal

Long-term target mix for B2C Direct
future ke liye target ye hai ki hum un portal ke through hi apni sale increase kare. So that hume waha pe pahle spend karna na pade. So I personally prefer flipkart where you don't have to burn so much money to get order and the burn is done by this aggregators and on your own website you have to burn lot of money to get order, toh waha pe customer acquisition kafi high hota he, future me bhi hamara yahi target rahega ki third party aggregator pe apna sale increase kare.

Details the strategy for B2C growth, emphasizing leveraging third-party aggregators to manage marketing spend.

Asked by Finportal

Strategy to expand exports Direct
And in terms of strategy that we look to expand as to like, participate in more trade shows, jo yeh trade show hote hain, where we can connect with buyers, and so, yeah, that would be the strategy to increase our exports to connect with the buyers through trade shows.

Outlines the company's approach to international market expansion, focusing on trade shows.

Asked by Finportal

2 min read 6 chapters

Detailed narrative

Company Overview and Market Position

Silky Overseas Limited, incorporated in 2016, is India's only listed manufacturer of mink blankets, operating from Panipat, Haryana. The company reported a revenue of ₹124 crores and a PAT of ₹10 crores in FY25. It operates under the brand Rian Decor and transitioned from a private to a limited company in November 2023, followed by an IPO in July 2025 on the NSE Emerge platform.

Operational Efficiency and Infrastructure

The company's factory in Panipat spans 4 acres, with 1.5 acres dedicated to production. It boasts state-of-the-art, imported technology and an automated high-speed production process, with a skilled workforce of over 130 people. Recent investments include a 750kW solar power system, which has helped reduce energy costs and carbon footprint. IPO proceeds were utilized to construct sheds on 2.5 acres of open space, enhancing raw material and finished goods storage efficiency.

Product Portfolio and Sales Channels

Silky Overseas' primary product is mink blankets, available in over 20 SKUs ranging from 1.3KG single bed to 8KG double bed, made from polyester with soft, durable, and machine-washable designs. They also offer baby blankets (300-600 grams) and have expanded their portfolio to include comforters, bed sheets, and curtains, sourced from Panipat. The sales model is predominantly B2B (97%) through a PAN-India distribution network, with 3% from e-commerce via Flipkart and Myntra under their Rian Decor brand.

E-commerce Strategy and Performance

The company is transitioning into a brand-led, digital-first home furnishing growth story, with its products being best-sellers on Flipkart and achieving platinum seller status in December 2022. They have partnered with Flipkart for fulfillment (FBF) in West Bengal, Karnataka, and Maharashtra, and recently expanded to Rajasthan, Jaipur, Ahmedabad, and Lucknow. The e-commerce sales return rate is notably low at 3-4%, with total customer and courier returns at 10-12%, which is considered very good for the industry. The company targets to increase e-commerce's share of total sales from 3% to 10% in the next couple of years.

Challenges and Mitigation

The company faced challenges with high receivable days, recently rising from 60 to 77 days. This was attributed to heavy rainfall and floods in North India during August-September, causing dispatch delays, and reciprocal tariffs imposed by the US on textile imports. Management expressed confidence that working capital stretch would not be an issue going forward. They also manage raw material price volatility through advance purchases and pass-through clauses in contracts.

Capacity Utilization and Future Outlook

Current capacity utilization for FY24-25 stands at 68%. At 100% utilization, the company estimates it can achieve a revenue of ₹150-170 crores. The company is actively pursuing incentives from state and central government schemes, including a 70% capital subsidy incentive for its ETP and UFRO plants. Export expansion is a key focus, with plans to participate in more trade shows to connect with international buyers, particularly in the Middle East and African markets.

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