Synopsis: On the occasion of its founder’s centenary birth anniversary, Siyaram Silk Mills has declared a special interim dividend of Rs. 4 per share and recommended a final dividend of Rs. 5 per share for FY26, while reporting a 15.7 percent revenue jump and approving a one-off residential project on company-owned land in Dombivali a combination that puts investor attention on both the payout and what the land-monetisation strategy signals for capital allocation going forward.
Shares of a leading textile manufacturer moved into focus on Tuesday after a busy board meeting that approved FY26 audited results, declared a bumper multi-part dividend, and greenlit a real estate project on the company’s own leasehold land all in a single sitting. The disclosures were filed with the BSE and NSE on 19th May, 2026.
With a market capitalisation of Rs. 2,638.72 crore, the shares of Siyaram Silk Mills Limited were trading at Rs.582 per share, down 4.75 percent from its previous close of Rs.611.7. The stock trades with a P/E of 12.6.
The textile company delivered a healthy set of numbers for the quarter and year ended 31st March, 2026. On a standalone basis, revenue from operations reached Rs. 2,569.28 crore in FY26, up 15.7 percent from Rs. 2,220.32 crore in FY25. Profit after tax grew 14.8 percent to Rs. 228.08 crore from Rs. 198.73 crore in the prior year. The Q4 numbers were sharper: revenue for the March quarter stood at Rs. 852.60 crore, with PAT surging 30.6 percent year-on-year to Rs. 94.60 crore from Rs. 72.45 crore in Q4 FY25.
The results carry a meaningful caveat on cash generation. Despite PAT growth of nearly 15 percent, standalone operating cash flow fell sharply from Rs. 256 crore in FY25 to Rs. 93 crore in FY26 driven by a Rs. 145 crore buildup in trade receivables and a Rs. 102 crore rise in inventories.
Both receivables and inventory expanded at roughly 24 percent, well ahead of the 15.7 percent revenue growth, pointing to working capital stretch that investors should monitor. Other income also included Rs. 21.23 crore from the sale of industrial land and buildings. Stripping these out, the underlying operating result is somewhat softer than the headline PAT suggests. Additionally, the company recognised an impairment loss of Rs. 3.37 crore on its investment in wholly-owned foreign subsidiary Cadini SRL, a modest but notable signal on the subsidiary’s performance.
On a consolidated basis, revenue from operations reached Rs. 2,572.49 crore and PAT attributable to owners stood at Rs. 230.90 crore, broadly in line with the standalone figures given Cadini SRL’s limited scale.
The board declared a special interim dividend of Rs. 4 per equity share representing 200 percent of the Rs. 2 face value specifically on the occasion of the centenary birth anniversary of the company’s founder, Late Shri Dharaprasad Poddar. The interim dividend will be paid on or after 2nd June, 2026 to shareholders on record as of the 25th May, 2026 record date. In addition, the board recommended a final dividend of Rs. 5 per share (250 percent of face value) for FY26, subject to shareholder approval at the ensuing AGM. If approved, the total FY26 payout works out to Rs. 9 per share a combined 450 percent of face value.
The board also approved the development of a residential project on the company’s MIDC leasehold land in Dombivali, Thane, Maharashtra. The project envisages a basement-plus-stilt building with approximately 18 floors, comprising 68 two-BHK units with a total built-up area of 77,400 square feet.
The estimated construction cost is Rs. 45 crore, excluding land cost. This is described as a one-off development rather than a foray into real estate as a business line. The use of existing leasehold land means no fresh land acquisition outflow, and the Rs. 45 crore project cost is manageable relative to the company’s balance sheet.
Business Overview
Siyaram Silk Mills Limited is one of India’s established textile companies engaged in manufacturing fabrics and readymade garments, particularly in the men’s wear segment, with exports across the UAE, Australia, Canada, and several other markets.
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