Sai Silks (Kalamandir) (KALAMANDIR) Q2 25/26 earnings summary

Executive summary

• Q2 FY 2025-26 saw strong consumer demand driven by a favorable wedding calendar and early festive season, resulting in increased footfalls and bulk purchases, especially in wedding and occasion wear categories.

• One of South India's largest ethnic apparel retailers, specializing in sarees and value fashion, with a strong presence across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu, and Puducherry.

• Operates 74 stores under five differentiated brands, serving diverse market segments from ultra-premium to value-focused customers.

• Emphasizes omnichannel retail, innovative store experiences, and technology-driven inventory management.

• Unaudited financial results for the quarter and half year ended September 30, 2025, were approved and reviewed by the Board and statutory auditors.

Financial highlights

• Q2 FY 2025-26 revenue from operations was ₹444.33 crore, up from ₹347.31 crore in Q2 FY 2024-25; H1 revenue reached ₹823.35 crore, a 33.96% increase year-over-year.

• Q2 PAT reached ₹40.08 crore, up from ₹23.75 crore; H1 PAT was ₹70.14 crore, up from ₹25.86 crore year-over-year.

• Q2 EBITDA margin improved to 16.21% from 15.95%; H1 EBITDA margin rose to 15.68% from 12%.

• H1 PAT margin increased to 8.52% from 4.21% year-over-year.

• Basic and diluted EPS for H1 FY26 was ₹4.76, compared to ₹1.76 for the same period last year.

Segment performance

• Sarees contributed 71.5% of FY25 revenue, with the remainder from other ethnic and value fashion products.

• Vara Mahalakshmi format continues as a growth engine, with improving productivity and capital efficiency; inventory requirement at ₹20,000 per sq ft.

• Valli format is digital-first, lower CapEx, and targets rapid expansion in tier 1-3 cities; margins currently lower but expected to improve as stores mature.

• KLM format shows improved SSG for the second consecutive quarter, with focus on product mix and store display enhancements.

• Telangana and Andhra Pradesh remain the largest markets, accounting for nearly 60% of H1 FY 2025-26 revenue.