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 a strong saree segment contributing 71.5% of revenue.

• Operates 68 stores in 20 cities, with 67,000 sq ft added in FY25 and plans for further expansion, mainly in the Varamahalakshmi Silks format.

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

• Emphasizes 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: INR 1,462 crores (up 6.5% YoY); Q4 revenue: INR 399 crores (up 11% YoY); Q3 FY25 revenue: ₹448.56 crore.

• Gross margin improved to 41.8% from 40.6% YoY; Q4 gross margin: 41.7%; EBITDA margin slightly decreased to 14.48%.

• PAT margin declined to 5.84% from 7.34% YoY; Q3 FY25 net profit: ₹46.02 crore.

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

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

Outlook and guidance

• FY26 revenue growth targeted at 15–20%, with margin improvement expected as new stores mature and Varamahalakshmi share rises.

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

• Inventory days targeted to reduce to 150–160 by FY26 as store productivity improves.

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

• SSG for non-KLM formats expected to be positive; KLM to recover to flat or low single-digit growth.