Siyaram Silk

Siyaram Silk Mills Limited delivered robust financial results for Q4 FY26, with Total Income growing 16.1% YoY to ₹871 crores and EBITDA increasing 21% YoY to ₹152 crores, achieving a margin of 17.4%. For the full fiscal year 2026, the company reported a Total Income of ₹2,653 crores, marking a 15.5% YoY growth. Full year EBITDA stood at ₹413 crores (up 17.1% YoY) with a margin of 15.6%, and PAT reached ₹228 crores (up 14.8% YoY) with a margin of 8.6%. This performance reflects a new milestone of crossing ₹2,500 crores in revenue, ₹300 crores in PBT, and ₹225 crores in PAT.

The company is actively expanding its retail footprint, currently operating 44 stores (27 ZECODE and 17 DEVO). The target is to reach approximately 70 stores by the end of FY27, implying 26 new store additions. While the pace of store openings in FY26 was slower than initially guided due to construction-related delays, management is adopting a more conservative and achievable target for FY27. The strategy remains focused on Company-Owned, Company-Operated (COCO) stores, with franchising to be considered once the business model is fully established. Consumer feedback for both ZECODE and DEVO has been very positive, with some ZECODE stores already achieving EBITDA positivity.

For FY27, the company anticipates a total capex of approximately ₹100 crores, comprising ₹50-60 crores for regular maintenance and ₹40 crores for additional retail stores. The net debt position stands at approximately ₹40 crores, which management believes internal accruals will sufficiently cover. Additionally, the company is undertaking a one-off^📎 residential project in Dombivali, leveraging an existing land parcel. This project, with an estimated build-up area of 77,000 sq ft, is expected to incur a cash outflow of ₹45 crores (₹25 crores in FY27 and the balance in FY28) and generate an estimated revenue of ₹80 crores over 24 months, with revenue recognized upon completion.

The company's growth in FY26 was supported by improved consumer demand, particularly during the wedding and festive seasons, and income tax relief measures. The fabric business, which constitutes 80% of revenue, continues to gain market share from unbranded players, growing at approximately 10% in volume and 11% in value. The garment business (excluding new retail) grew around 9% in volume and 8% in value. Despite macroeconomic headwinds, volatile input prices, and geopolitical uncertainties, Siyaram remains confident in its long-term growth prospects, leveraging its brand strength, diversified product portfolio, and distribution network.

The preferential issue, which was expected to conclude by the end of FY26, is now awaiting the final order from the NCLT, with the hearing completed on April 16. Management expects the order by the first week of June 2026, followed by 3-4 months for the completion of the order spread and issuance of RPS. For FY26, the company's other income included approximately ₹27 crores from interest received, ₹21 crores from profit on the sale of assets, ₹12.73 crores from net market gain on investment mark-to-market, and ₹5.31 crores from capital subsidy received.