Synopsis: Sai Silks (Kalamandir) Ltd shares fell 6% on weak Q3FY26 results: sales down 8% YoY to Rs. 411 cr, net profit down 17% to Rs. 38.1 cr, with store and warehouse expansion delayed.
This company is one of South India’s largest ethnic apparel retailers, primarily focusing on sarees and ethnic fashion across premium, ultra-premium, and value segments, and is now in the spotlight after it fell by 6% for weak Q3 results.
With a market capitalisation of Rs. 1,874 cr, the shares of Sai Silks (Kalamandir) Ltd are currently trading at Rs. 122.20 per share, slipping 6% in today’s market session, making a low of Rs. 120.50, down from its previous close of Rs. 128.10 per share.
YoY Performance
Sai Silks Ltd’s financials for Q3FY26 show a decline compared to Q3FY25. Sales fell 8% from Rs. 449 crore to Rs. 411 crore. EBITDA dropped 11% from Rs. 78.9 crore to Rs. 70.2 crore, indicating margin compression. Net profit decreased 17% from Rs. 46 crore to Rs. 38.1 crore, and EPS declined 17% from Rs. 3.00 to Rs. 2.49. Overall, the YoY trend points to a slowdown in revenue growth and profitability.
QoQ Performance
Compared to Q2FY26, Sales decreased from Rs. 444 crore to Rs. 411 crore, down 7%, while EBITDA dropped by 2.5% from Rs. 72.0 crore to Rs. 70.2 crore, reflecting stable but slightly pressured operational efficiency. Net profit fell 5% from Rs. 40.1 crore to Rs. 38.1 crore, with EPS declining by 4.5% from Rs. 2.61 to Rs. 2.49.
Funding Capex for New Store Openings
SSKL budgeted Rs.103.32 crore for the opening of thirty new stores by March 31, 2025. To date, as of December 31, 2025, Rs. 88.81 crore has been spent. As explained by management, the establishment of multiple stores in strategically placed locations takes time, and stores are being added over time at a deliberate pace (quarter by quarter). Management’s objective is to spend all the allocated resources on the expansion of its market presence by March 2026.
Funding Capex for New Warehousing Facilities
Funding has been set aside for the establishment of two new warehouses, which were anticipated to be fully funded by March 2024. However, on December 31, 2025, SSKL spent only Rs. 4.29 crore on this initiative. These expenditures have been delayed as a result of planning to secure the construction of warehouses in optimal locations (Tamil Nadu), which will enhance logistics support while minimizing maintenance costs. This extension on the warehouse funding was approved at a Board meeting on May 24, 2024.
Funding Working Capital Needs
For working capital needs, SSKL budgeted Rs. 228.98 crore as of March 31, 2025. Up to December 31, 2025, SSKL has spent a total of Rs. 235.44 crore on working capital needs. The primary purpose for these expenditures has been to pay suppliers of materials to company-operated new stores. Expenditures to be made from working capital funds are based on the timing of new store openings and, as such, SSKL expects to spend all working capital by March 2026.
General Corporate Purposes
SSKL set aside funds for general corporate usage, to be spent completely by March 2024. As of December 31, 2025, SSKL has spent Rs. 82.90 crore of that money. The fact that the funding has yet to be spent indicates that it is being spent gradually and is to be used specifically for wider corporate purposes based on the company’s operational and strategic needs.
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