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    Siyaram Silk Mills Q1 FY27 earnings call

    SIYSIL
    Textiles·31 Jul 2026
    Management Summary

    Siyaram Silk Mills Limited reported a strong Q1 FY27, with revenue growing 16.4% to ₹466 crores and PAT soaring 144.4% to ₹11 crores. The company continued its retail expansion under the ZECODE and DEVO brands, targeting 70 stores by FY27, and saw the approval of its bonus preference share scheme. Despite moderation in Q1 demand due to Adhik Maas and persistent input cost inflation, management remains confident in its FY27 guidance, driven by positive sentiment for upcoming festive seasons.

    Highlights

    5

    • Total income increased to ₹466 crores in Q1 FY27 from ₹400 crores in Q1 FY26, representing a growth of 16.4% YoY.

    • EBITDA grew 22.3% YoY to ₹40 crores in Q1 FY27 from ₹33 crores in Q1 FY26.

    • Profit after tax (PAT) for Q1 FY27 stood at ₹11 crores, a 144.4% YoY growth compared to ₹5 crores in Q1 FY26.

    • Retail expansion is on track, with 3 ZECODE and 2 DEVO stores added, aiming for 70 stores across both brands in FY27.

    • The scheme for issuing cumulative nonconvertible redeemable preference shares by way of bonus has been approved by the NCLT.

    Concerns

    3

    • Wedding and occasion-led consumption witnessed some moderation due to the Adhik Maas period in Q1 FY27.

    • Consumer spending remained value-conscious, and inflationary pressures on input costs persisted during the quarter.

    • The new retail business is expected to cause an annual drop in overall EBITDA by about 150 basis points for FY27.

    Key financials

    Single quarter

    06 metrics
    1. 01Total Income₹466 Cr+16.4%YoY
    2. 02EBITDA₹40 Cr+22.3%YoY
    3. 03EBITDA Margin8.6%
    4. 04Profit After Tax₹11 Cr+144.4%YoY
    5. 05PAT Margin2.4%

    Segment breakdown

    Fabrics
    71% Revenue Share
    Garments
    19% Revenue Share
    Yarn & Others
    10% Revenue Share
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹100 crores

    internal accruals

    Debt

    Debt disclosed

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Overall Revenue Growth
    approximately 12%
    		High
    Margin
    Overall EBITDA Margin
    14% (with 150bps drop due to retail)
    		High
    Retail Revenue
    Retail Business Revenue
    ₹160 crores
    		High
    Retail Store Count
    Total ZECODE and DEVO Stores
    70 stores
    		High
    New Project Completion
    New Construction Project Timeline
    24 months
    		High

    What to watch in Q2 FY27

    5

    Retail Store Performance & Maturity

    Next quarter / FY27
    CurrentEarly stage, some EBITDA positive, but too few mature stores for overall assessment.
    TargetMore stores reaching maturity (1.5-2 years old) and consistent EBITDA positivity.

    Why it matters

    Crucial for validating the new retail growth strategy and potential for franchise expansion.

    For some of the stores that we've opened, we have seen very positive results, and I've indicated earlier that some stores have turned EBITDA positive, but it's too early to come to those conclusions. We are very positive on this business.

    Risks & concerns

    3
    RiskSeverity

    Discretionary Spending Postponement

    Adhik Maas period traditionally leads to postponement of discretionary purchases, impacting Q1 demand. — Management acknowledged

    medium

    Value-Conscious Consumer Spending

    Consumer spending remained value-conscious, influencing purchasing decisions across segments. — Management acknowledged

    medium

    Persistent Input Cost Inflation

    Inflationary pressures on input costs persisted, and global raw material volatility affected the textile industry. — Management acknowledged

    medium

    Q&A highlights

    8

    “For some of the stores that we've opened, we have seen very positive results, and I've indicated earlier that some stores have turned EBITDA positive, but it's too early to come to those conclusions. We are very positive on this business.”

    Analyst sought clarity on the financial viability of new retail formats, with management indicating early positive signs but stressing the need for more maturity and scale for conclusive assessment.

    asked by Yash Sedani

    2 min read7 chapters

    Detailed Narrative

    01

    Robust Q1 FY27 Financial Performance

    Siyaram Silk Mills Limited delivered a strong Q1 FY27, with total income increasing by 16.4% year-on-year to ₹466 crores. This growth was accompanied by a 22.3% rise in EBITDA to ₹40 crores, resulting in an EBITDA margin of 8.6%. Profit after tax (PAT) saw a significant surge of 144.4% to ₹11 crores, with a PAT margin of 2.4%, largely attributed to operating leverage.

    02

    Strategic Retail Expansion Under Siyaram 2.0

    The company is actively pursuing its 'Siyaram 2.0' growth phase, focusing on sharper design, contemporary merchandising, and a retail-first approach through its ZECODE and DEVO brands. In Q1 FY27, 3 new ZECODE stores and 2 new DEVO stores were added, bringing the total to 30 and 19 stores respectively. The ambitious target is to expand to 70 stores across both brands by the end of FY27, with all expansion funded through internal accruals.

    03

    Retail Business Profitability and Outlook

    While some ZECODE stores have shown positive EBITDA, management emphasized that the retail business is still in its early stages (18 months old) and requires 100-125 stores operating for over a year to provide meaningful profitability data. The retail segment is projected to contribute approximately ₹160 crores in revenue for FY27, up from ₹80 crores in the previous year, though it is expected to cause an annual 150 basis point drop in the overall EBITDA margin.

    04

    Raw Material Costs and Margin Management

    The company faced persistent inflationary pressures and volatility in global raw material costs during the quarter. Management confirmed that some cost increases were passed on in Q1. Despite these challenges, the company expressed confidence in maintaining its overall FY27 EBITDA margin guidance of approximately 14%, after accounting for the impact of the retail business.

    05

    Seasonal Demand and Market Sentiment

    Q1 FY27 experienced some moderation in wedding and occasion-led consumption due to the Adhik Maas period, which typically leads to deferred purchases. However, management conveyed a positive sentiment for the upcoming festive and wedding seasons in H2 FY27, expecting strong demand. The company's asset-light model allows for agility in responding to market demands.

    06

    Capital Allocation and Bonus Preference Shares

    Siyaram Silk Mills plans a capital expenditure of approximately ₹100 crores for FY27, with ₹40-50 crores specifically allocated to the retail project, all funded through internal accruals. The company maintains a healthy debt-to-equity ratio of 0.24 as of June 30, 2026. A significant corporate development was the NCLT approval for the scheme to issue cumulative nonconvertible redeemable preference shares by way of bonus to equity shareholders, with August 22, 2026, set as the record date.

    07

    New Project Construction Underway

    Following the receipt of necessary approvals and completion of the tendering process, the company expects to commence construction on a new project in Q1 FY27. This project is anticipated to be completed within 24 months, indicating a long-term investment in expanding capabilities or infrastructure.

    This is an AI-generated summary of a publicly available earnings call transcript.