Sai Silks (Kalamandir) (KALAMANDIR) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue grew 11% YoY, with full-year revenue up 6.5% to INR 1,462 crores, driven by a favorable wedding and festival calendar and expansion to 68 company-owned outlets.

• Sarees contributed 71.5% of FY25 revenue, with a strong presence across four South Indian states and multiple brand formats.

• Strategic focus on digital marketing and CRM led to 18.5 lakh unique customers and 43% repeat customers.

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

• Report covers unaudited financial results for the quarter and nine months ended December 31, 2024, reviewed and approved by the Board and auditors.

Financial highlights

• FY25 revenue grew 6.5% to INR 1,462 crores, with Q4 revenue at INR 399 crores (up 11% YoY); gross margin expanded to 41.8% from 40.6% last year.

• EBITDA margin decreased to 14.48% from 15.43% YoY; PAT margin declined to 5.84% from 7.34% YoY.

• Q3 FY25 revenue was ₹448.56 crore, net profit ₹46.02 crore, and EPS ₹3.12.

• Operating cash flow improved to ₹106.79 crore in FY25 from negative ₹21.46 crore in FY24.

• SSG for Q4: -1.5% YoY; full-year SSG: -5%.

Outlook and guidance

• FY26 targets 15%-20% revenue growth and margin improvement, with expansion focused on Varamahalakshmi Silks.

• Wedding dates for FY26 expected to increase 5%-10% YoY and be more evenly distributed, supporting steady demand.

• Double-digit SSG growth seen in the first 45 days of Q1 FY26.

• Focus on omnichannel expansion and leveraging technology for operational efficiency.

• Gross margin expected to expand by 1%-1.5% over the next two years, driven by premiumization and vendor discounts.