Saraswati Saree Depot Ltd

Financial highlights

• Revenue from operations ₹1,475.90m, up 1.9% YoY.
• EBITDA (Excluding Other Income) ₹78.03m, down 13.1% YoY.
• EBITDA margin 5.29%.
• PAT ₹66.05m, up 4.0% YoY.
• PAT margin 4.48%.
• EPS ₹1.70.
• QoQ revenue up 10.5% to ₹1,335.33m.

Outlook and strategic notes

• Retail initiative to build direct-to-consumer presence alongside wholesale leadership.
• Surat purchase office improved sourcing efficiency; may be scaled down over time.
• Debt-free balance sheet with healthy liquidity supports growth.
• Demand expected to remain measured; Diwali timing may affect Q2/Q3 FY27 comparability.

Business overview

• Leading organized saree wholesaler in India with wholesale core and direct-to-consumer retail pilot.
• Two stores in Kolhapur and Ulhasnagar; total area 235,000+ sq ft.
• Sarees constitute about 89% of revenue; sourcing from 900+ weavers.
• Utsav event drives 13–15% of annual revenues.

Operational highlights

• Q1 FY27 revenue rose 1.9% YoY to ₹1,475.90 Mn.
• EBITDA ₹78.03 Mn; margin 5.29%.
• PAT ₹66.05 Mn; margin 4.48%.
• Debt-free balance sheet; no borrowings; current ratio 3.1x.
• Cash conversion cycle improved to 49 days.
• Exclusive retail outlet launched; two stores totaling 235,000+ sq ft.
• 13,000+ retailer customers; 6,986 unique customers served.
• 60 million units sold in Q1 FY27.
• Catalog exceeds 300,000 SKUs.

Financial performance

• FY26 revenue ₹6,311.62 Mn; EBITDA ₹320.23 Mn; PAT ₹234.06 Mn.
• FY26 gross margin 9.95%; PAT margin 3.71%.
• Equity ₹2,016.00 Mn; RoE 13.3%; RoCE 14.6%.

Capital structure & liquidity

• Debt-free balance sheet with ₹0 borrowings.
• Healthy liquidity and no leverage implied by 3.1x current ratio.

Strategic priorities & outlook

• GP margin recovery to 11.6% in Q1 FY27; closing gap.
• Ramp up direct-to-consumer retail while wholesale remains core.
• Deploy cash engine for expansion; no dilution.
• Demand to remain measured; Diwali timing may affect quarterly comparability.

Risks & governance

• Seasonal Diwali shift may impact Q2/Q3 YoY comparability.
• Retail expansion-focused strategy with DTC ramp.

Leadership & governance

• Chairman & ED: Rajesh Dulhani; MD & CEO: Vinod Dulhani.

Regulation 74(5) status

• No dematerialisation/rematerialisation requests were received in the reporting quarter.
• Regulation 74(5) not applicable as all shares are held in demat form.

Audit and governance updates

• Board approved Audited Financial Results for the quarter and year ended 31 March 2026.
• Signed Statement on Impact of Audit Qualifications submitted; unsigned version previously submitted.
• Internal Auditor appointed: M/s Ajit M. Joshi and Associates for FY 2026-27.
• Independent Auditor's Report contains a qualified opinion due to stock records not maintained.
• Revenue from operations for year ended 31 March 2026: 6,359.73 million; PAT 234.06 million.
• Income from 50% associate Saraswati Saree Depot (Ahmednagar) recorded in standalone financials.
• Interim dividend declared in Q1 FY2025-26 was Rs 1.515 per share.