Sai Silks (Kalamandir) (KALAMANDIR) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 saw moderated demand due to the festive calendar shift, resulting in lower footfalls and softer non-occasion demand.

• Operates 79 stores across 22 cities, with a combined area of 7.7 lakh sq. ft., focusing on ethnic and value fashion retail.

• Five differentiated brand formats target various market segments, from ultra-premium to affordable ethnic wear.

• Emphasizes omnichannel retail, serving customers in 25 states and 6 UTs through e-commerce.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and statutory auditors.

Financial highlights

• Q3 FY 2026 revenue was ₹411.25 crore, down from ₹448.5 crore YoY, mainly due to lower festive-driven footfalls.

• Nine-month revenue grew 16.1% YoY to ₹1,234.61 crore; PAT for the period rose to ₹108.28 crore from ₹71.88 crore YoY.

• Q3 gross margin improved 40 bps YoY to 42.2%; nine-month PAT margin increased to 8.77% from 6.76% last year.

• EBITDA margin for 9M FY 2025-26 rose to 16.15% from 14.41% YoY.

• Basic and diluted EPS for Q3 FY26 were ₹2.59, compared to ₹3.12 in Q3 FY25.

Outlook and guidance

• FY 2026 revenue growth guidance revised to 15%, down from earlier 18%-20%, reflecting Q3 softness but confidence in Q4 recovery.

• FY 2027 targets 15%-20% top-line growth, with 5% SSG and 15% from new store additions.

• Focus on cluster-based expansion, technology-driven inventory management, and omnichannel growth.

• Gross margin expected at 42%-43% and EBITDA margin at 17%-18% for FY 2027.

• PAT growth for FY 2026 projected at 35% YoY.