Same-store sales growth (SSSG)
3%
+3pp YoY
Full-year SSSG for FY26 was +3%, with management expecting similar or slightly better in FY27.
SAISILKS
Diversified
15 May 2026
Sai Silks Limited — Q4 FY26
Sai Silks delivered a mixed Q4 FY26 with revenue of ₹419 crore (+5.1% YoY) and PAT of ₹32.65 crore (+140% YoY), driven by gross margin expansion (+37bps to 42.08%) and cost controls.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Sai Silks delivered a mixed Q4 FY26 with revenue of ₹419 crore (+5.1% YoY) and PAT of ₹32.65 crore (+140% YoY), driven by gross margin expansion (+37bps to 42.08%) and cost controls. Full-year revenue grew 13.1% to ₹1,654 crore with EBITDA margin expanding 128bps to 15.76%. Growth was led by the Vara Mahalakshmi format (52% of sales) and strong performance in Karnataka (+27%) and Andhra Pradesh (+15%), while Telangana remained soft due to KM format decline. Management guided for ~100,000 sq ft of retail addition in FY27 (20%+ YoY), same-store sales growth of 3-5%, and EBITDA margin improvement of at least 50bps to ~17.5-18%. Key risk: aggressive expansion into new states (e.g., Maharashtra) could pressure margins and execution bandwidth.
Key Numbers
Retail space addition (net)
69,000 sq ft
+78,600 sq ft gross, -9,600 sq ft reduction
FY26 net addition of 69,000 sq ft; FY27 target of ~100,000 sq ft net addition.
Vara Mahalakshmi format share of sales
52%
+2pp YoY
VML format now contributes 52% of total sales, driving margin expansion.
Inventory per square foot
₹10,480
-₹1,053 YoY
Inventory per sq ft reduced from ~₹11,533 in FY24 to ₹10,480 in FY26, improving efficiency.
Management Guidance
Net retail space addition of ~100,000 sq ft in FY27
Management expects at least 20% more square footage addition than FY26, targeting ~100,000 sq ft net addition, with potential upside after H1.
Management guidance expansionEBITDA margin improvement of at least 50bps in FY27
Management guided for EBITDA margin to improve by at least 50 basis points from FY26's 15.76%, targeting 17.5-18%.
Management guidance marginsEntry into at least one new state in FY27
The company plans to open its first store outside core markets, likely in Maharashtra, with advanced discussions underway.
Management guidance expansionAdvertisement spend to remain at ~4% of sales
Despite new store openings and entry into new states, management expects ad spend to stay at similar percentage levels as FY26.
Management guidance otherKey Risks
Slowdown in mature markets (Telangana/Andhra)
Telangana revenue declined from ₹600cr in FY23 to ~₹500cr in FY26, and Andhra growth is slowing. Management attributes this to KM format weakness but has not provided a concrete revival plan.
high · analyst_questionMargin pressure from new store openings and new state entry
Entering Maharashtra and opening ~100,000 sq ft of new space could increase pre-operating expenses and drag on EBITDA margins in the near term.
medium · management_commentaryInventory days remain elevated
Despite improvement, inventory days are still high (~180 days). Management avoided giving a specific target, citing risk of impacting sales if inventory is cut too aggressively.
medium · analyst_questionGold price volatility impacting consumer budgets
Rising gold prices may reduce wedding budgets for apparel, though management sees potential diversion from gold to sarees. Impact is uncertain.
low · management_commentaryNotable Quotes
We are commanding the highest EITA margins and PAT margins. The challenge is not opening retail stores and be able to like you know be okay with reduced margins.
We should be able to expect at least 20% more than last year square edition easily.
It should be possible that we should at least be in the uh 17 and half to 18 guaranteed 17 and a half to 18 guaranteed.
Frequently Asked Questions
What was Sai Silks's revenue in Q4 FY26?
Sai Silks reported revenue of ₹419 Cr in Q4 FY26, representing a +5.1% change compared to the same quarter last year.
What guidance did Sai Silks management give for FY27?
Net retail space addition of ~100,000 sq ft in FY27: Management expects at least 20% more square footage addition than FY26, targeting ~100,000 sq ft net addition, with potential upside after H1. EBITDA margin improvement of at least 50bps in FY27: Management guided for EBITDA margin to improve by at least 50 basis points from FY26's 15.76%, targeting 17.5-18%. Entry into at least one new state in FY27: The company plans to open its first store outside core markets, likely in Maharashtra, with advanced discussions underway. Advertisement spend to remain at ~4% of sales: Despite new store openings and entry into new states, management expects ad spend to stay at similar percentage levels as FY26.
What are the key risks for Sai Silks in FY27?
Key risks include Slowdown in mature markets (Telangana/Andhra) — Telangana revenue declined from ₹600cr in FY23 to ~₹500cr in FY26, and Andhra growth is slowing. Management attributes this to KM format weakness but has not provided a concrete revival plan.; Margin pressure from new store openings and new state entry — Entering Maharashtra and opening ~100,000 sq ft of new space could increase pre-operating expenses and drag on EBITDA margins in the near term.; Inventory days remain elevated — Despite improvement, inventory days are still high (~180 days). Management avoided giving a specific target, citing risk of impacting sales if inventory is cut too aggressively.; Gold price volatility impacting consumer budgets — Rising gold prices may reduce wedding budgets for apparel, though management sees potential diversion from gold to sarees. Impact is uncertain..
Did Sai Silks meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Sai Silks Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.