Why Did Sai Silks See a 17.4% Drop in Q3 Profit?
Click to start listening
Synopsis
In a surprising turn of events, Sai Silks (Kalamandir) Limited has reported a staggering 17.4% drop in its Q3 profit. As the company grapples with declining revenues and challenging market conditions, what does the future hold for this ethnic apparel giant? Find out more in our detailed report.
Key Takeaways
- 17.4% YoY drop in net profit for Q3 FY26
- Revenue decreased by 8.3% to Rs 411 crore
- EBITDA fell 12.1% YoY
- Profit before tax at Rs 51.1 crore
- Investment in expansion continues despite challenges
Mumbai, Jan 19 (NationPress) The ethnic apparel retailer Sai Silks (Kalamandir) Limited announced on Monday a notable decline of 17.4% year-on-year (YoY) in its net profit for the December quarter of the ongoing financial year (Q3 FY26).
During this period, the company reported a net profit of Rs 38 crore, a decrease from Rs 46 crore recorded in the same quarter of the previous financial year (Q3 FY25), as stated in their filing with the stock exchange.
Moreover, revenue from operations also fell by 8.3%, amounting to Rs 411 crore, down from Rs 448 crore a year prior.
The operating performance faced challenges throughout the quarter, with EBITDA declining by 12.1% YoY to Rs 69.8 crore, compared to Rs 79.4 crore the previous year. The EBITDA margin also contracted to 17% compared to 17.7% in the corresponding quarter of the previous financial year.
Profit before tax for Q3 FY26 was Rs 51.1 crore, down from Rs 61.5 crore in the same quarter last year. Earnings per share also fell to Rs 2.59, down from Rs 2.72 a year earlier.
Despite the weaker performance in the December quarter, Sai Silks reported an improved performance for the nine-month period ending December 31, 2025. Net profit for this period rose to Rs 108.3 crore, up from Rs 85.4 crore in the same period last year.
Additionally, revenue for the nine months increased to Rs 1,234.6 crore from Rs 1,063.2 crore, bolstered by stronger results in the first half of the financial year.
The company, known for its brands such as Kalamandir, Varamahalakshmi, and KLM Fashion Mall, is actively investing in expanding its store presence and enhancing its supply chain infrastructure.
These initiatives are being funded through resources raised from its initial public offering, even as short-term profitability faces pressure from cost trends and market demand conditions.
Before the announcement of the Q3 earnings, shares of Sai Silks closed at Rs 129, reflecting a 3.90% increase on Monday, although the stock has seen a 15.55% decline over the past month.
Point of View
The recent financial results of Sai Silks highlight the ongoing challenges in the retail sector, particularly for ethnic apparel. While the company shows resilience in its nine-month performance, the Q3 drop raises concerns about consumer demand and market dynamics. It’s crucial for the industry to adapt to these changing conditions while maintaining growth strategies.
NationPress
21/01/2026
Frequently Asked Questions
What caused the decline in Sai Silks' profit?
The decline in profit for Sai Silks is attributed to a combination of reduced consumer demand and increased operational costs, leading to a significant drop in revenue.
How does this affect Sai Silks moving forward?
This financial setback may prompt Sai Silks to reassess its market strategies and operational efficiencies to regain profitability.
What are the company’s future plans?
Sai Silks continues to invest in store expansion and supply chain improvements, aiming to bolster its market position despite current challenges.
