Sai Silks (Kalamandir) (KALAMANDIR) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 FY25 was ₹347.31 Cr, up 6.26% year-over-year, with gross margin improving to 42.17% and PAT at ₹23.77 Cr.

• Operates 63 stores in 17 cities across 4 states, specializing in sarees and value fashion, with 6.91 million customers in FY24.

• Focuses on cluster-based expansion, innovative designs, and technology-driven operations.

• Festive and wedding season demand drove recovery despite weather and calendar headwinds.

• Shifted advertising focus from offline to digital, lowering ad expenses and improving engagement.

Financial highlights

• Q2 FY25 revenue grew 6.26% YoY to ₹347.31 Cr; gross margin rose to 42.17%.

• Q2 FY25 EBITDA margin was 15.95%; PAT margin at 6.85%.

• SSG was negative in H1 FY24, with Q1 at -20% and H1 at -6.5%, but expected to turn positive in H2.

• Store-level EBITDA margins: Vara Mahalakshmi 32%-34%, KLM 23%-24%.

• Saree segment accounted for 69.5% of FY24 revenue.

Outlook and guidance

• Optimistic for H2 FY25 due to more wedding dates and festive demand.

• Plan to add 45,000-50,000 sq ft in H2, targeting 6-8 new Vara Mahalakshmi stores.

• FY26 target is 800,000 sq ft retail area, with 10%-12% annual sq ft addition.

• IPO proceeds allocated to new stores, warehouses, and debt repayment.