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Sai Silks Q3 Profit Dives 17%, Revenue Slips Amid Cost Pressures

Ethnic apparel retailer Sai Silks reported a significant 17.4% year-on-year decline in net profit for the December quarter, with revenue also falling by 8.3%. The company's operating performance was under strain, as reflected in a 12.1% drop in EBITDA and a contraction in its EBITDA margin. However, for the nine-month period, the company showed resilience with both net profit and revenue registering growth compared to the previous year. The retailer continues to invest in expansion using IPO proceeds, even as near-term profitability faces pressure from costs and demand conditions.

Key Points: Sai Silks Q3 Profit Falls 17%, Revenue Drops 8.3%

  • Q3 net profit fell 17.4% to Rs 38 crore
  • Revenue declined 8.3% to Rs 411 crore
  • EBITDA margin narrowed to 17% from 17.7%
  • Stronger 9-month performance with profit up to Rs 108.3 crore
2 min read

Sai Silks' Q3 profit falls over 17 pc, revenue drops over 8 pc

Sai Silks reports Q3 FY26 net profit down 17.4% to Rs 38 crore and revenue down 8.3%. EBITDA margin contracts despite stronger 9-month performance.

"Operating performance remained under strain during the quarter. - Company Filing"

Mumbai, Jan 19

Ethnic apparel retailer Sai Silks Limited on Monday reported a 17.4 per cent year-on-year drop in its net profit for the December quarter of the current financial year.

The company's net profit dropped to Rs 38 crore in the third quarter of FY26, compared with Rs 46 crore in the same period last financial year (Q3 FY25), according to its stock exchange filing.

Revenue from operations also declined by 8.3 per cent to Rs 411 crore, down from Rs 448 crore a year earlier.

Operating performance remained under strain during the quarter. EBITDA fell 12.1 per cent year-on-year to Rs 69.8 crore from Rs 79.4 crore, while the EBITDA margin narrowed to 17 per cent from 17.7 per cent in the corresponding quarter last financial year.

Profit before tax stood at Rs 51.1 crore in Q3 FY26, compared with Rs 61.5 crore in the year-ago period. Earnings per share also slipped to Rs 2.59 from Rs 2.72 a year earlier.

Despite the weaker December quarter, Sai Silks reported a stronger performance for the nine-month period ended December 31, 2025.

Net profit for the nine months rose to Rs 108.3 crore, compared with Rs 85.4 crore in the corresponding period last financial year.

Revenue for the nine-month period increased to Rs 1,234.6 crore from Rs 1,063.2 crore, supported by better performance in the first half of the financial year.

The company, which operates popular brands such as Kalamandir, Varamahalakshmi and KLM Fashion Mall, continues to invest in store expansion and supply chain infrastructure.

These investments are being supported by funds raised through its initial public offering, even as near-term profitability remains under pressure due to cost trends and demand conditions.

Ahead of the Q3 earnings announcement, Sai Silks shares closed 3.90 per cent higher at Rs 129 on Monday. However, the stock has declined 15.55 per cent over the past one month.

- IANS

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Reader Comments

R
Rohit P
As a small investor, the 15% stock drop in a month is worrying. They're expanding stores, but if revenue is falling, where is the growth coming from? Need to see their strategy for improving same-store sales.
A
Arjun K
The demand for ethnic wear is always there in India, especially with the wedding season. Maybe high prices are pushing people towards local markets or online? Sai Silks needs to check their pricing strategy.
S
Sarah B
Interesting to see the full picture. While Q3 is down, the nine-month performance is actually up significantly year-on-year. This suggests the first half was very strong. Could be a seasonal adjustment or increased competition in Q3.
V
Vikram M
With the IPO money, they are investing in expansion which is good for long term. But near-term pressure on profits is clear. Hope the management has a solid plan to turn this around. The brand is trusted, but they can't take customers for granted.
K
Kavya N
Honestly, their sarees are beautiful but very expensive. In today's economy, many middle-class families are cutting back on discretionary spending. A small drop in revenue might be a sign of broader consumer sentiment. 🛍️

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