28-Oct-2026 16:17:30
SIYARAM SILK MILLS Q2 CONCALL: MANAGEMENT RAISES FY27 REVENUE GROWTH GUIDANCE TO 14–15%, TARGETS ₹160 CR RETAIL REVENUE, 70 STORES BY FY27-END & ₹100 CR CAPEX
• MANAGEMENT RAISES FY27 REVENUE GROWTH GUIDANCE TO 14–15%, SUPPORTED BY STRONG FABRIC DEMAND, FESTIVE & WEDDING-SEASON SALES AND EXPANDING RETAIL OPERATIONS • MANAGEMENT EXPECTS STRONGER FESTIVE & WEDDING-SEASON DEMAND IN Q3 FY27, PARTICULARLY ACROSS TIER 2 & TIER 3 MARKETS, SUPPORTING FABRIC & APPAREL SALES • MANAGEMENT TARGETS APPROXIMATELY ₹160 CR RETAIL REVENUE IN FY27, WITH ZCODE & DEVO EXPECTED TO CONTRIBUTE AROUND 5–7% OF TOTAL COMPANY TURNOVER • MANAGEMENT TARGETS 70 OPERATIONAL RETAIL STORES BY FY27-END, UP FROM 61 CURRENTLY, WITH FUTURE EXPANSION PRIMARILY LED BY ZCODE • MANAGEMENT EXPECTS DEVO STORE COUNT TO STABILIZE AROUND 20–25, WHILE ZCODE EXPANSION CONTINUES ACROSS SOUTHERN INDIA • MANAGEMENT MAINTAINS APPROXIMATELY 14% UNDERLYING EBITDA MARGIN REFERENCE, WITH RETAIL EXPANSION EXPECTED TO CREATE A MAXIMUM MARGIN DRAG OF AROUND 150 BPS • MANAGEMENT PLANS FY27 CAPITAL EXPENDITURE OF APPROXIMATELY ₹100 CR, INCLUDING ₹40–50 CR TOWARD RETAIL EXPANSION, FUNDED THROUGH INTERNAL ACCRUALS • MANAGEMENT HAS IMPLEMENTED CUMULATIVE SELLING-PRICE INCREASES OF APPROXIMATELY 4–6% OVER THE PAST SIX MONTHS TO PARTIALLY OFFSET RISING RAW MATERIAL COSTS • Q2 TOTAL INCOME GREW 15.1% YOY TO ₹827 CR, WHILE H1 FY27 TOTAL INCOME INCREASED 15.6% TO ₹1,293 CR • Q2 EBITDA ROSE 8.3% YOY TO ₹131 CR, WITH EBITDA MARGIN AT APPROXIMATELY 15.8%, REFLECTING CONTINUED INPUT-COST PRESSURES • Q2 PAT DECLINED 13.8% YOY TO ₹75 CR FROM ₹87 CR, PARTLY DUE TO A ₹24 CR NON-RECURRING OTHER-INCOME ITEM IN THE PRIOR-YEAR QUARTER • H1 FY27 EBITDA STOOD AT ₹170 CR, WHILE PAT REACHED ₹86 CR, WITH DEBT-TO-EQUITY AT 0.58X • FABRICS CONTRIBUTED APPROXIMATELY 77% OF Q2 REVENUE, FOLLOWED BY GARMENTS AT 16% & YARN AND OTHER SEGMENTS AT 7% • FABRIC BUSINESS RECORDED APPROXIMATELY 2.5% VOLUME GROWTH & 11% VALUE GROWTH, SUPPORTED BY BETTER PRODUCT MIX & IMPROVING DEMAND • RETAIL NETWORK EXPANDED TO 61 OPERATIONAL STORES, COMPRISING 38 ZCODE STORES & 23 DEVO STORES • H1 FY27 RETAIL REVENUE REACHED APPROXIMATELY ₹65 CR, WITH MANAGEMENT TARGETING A SIGNIFICANTLY STRONGER H2 TO ACHIEVE ITS ₹160 CR FULL-YEAR OBJECTIVE • MANAGEMENT INDICATED SOME RETAIL STORES HAVE ALREADY ACHIEVED STORE-LEVEL EBITDA PROFITABILITY, WHILE NEW STORE INVESTMENTS CONTINUE TO WEIGH ON OVERALL MARGINS • RETAIL EXPANSION REQUIRES APPROXIMATELY ₹1–1.5 CR PER STORE IN CAPEX & DEPOSITS, ALONG WITH ₹70–80 LAKH IN INVENTORY INVESTMENT • H1 FY27 CAPEX STOOD AT APPROXIMATELY ₹51 CR, WITH MANAGEMENT EXPECTING FULL-YEAR SPENDING TO REMAIN WITHIN ITS ₹100 CR PLAN • MANAGEMENT PLANS TO ANNOUNCE FY28 RETAIL STORE EXPANSION & FUNDING GUIDANCE TOWARD THE END OF FY27, AFTER ASSESSING EXISTING STORE PERFORMANCE • MANAGEMENT EXPECTS PREFERENCE-SHARE LISTING APPROVAL TO TAKE AT LEAST ANOTHER SIX MONTHS, WITH APPLICATIONS ALREADY SUBMITTED TO BSE & NSE • COMPANY DECLARED AN INTERIM DIVIDEND OF ₹4 PER SHARE, WHILE CONTINUING TO FUND RETAIL EXPANSION THROUGH INTERNAL CASH GENERATION • MANAGEMENT REMAINS POSITIVE ON FY27 REVENUE GROWTH, FESTIVE DEMAND, FABRIC SALES & RETAIL EXPANSION, BUT RAW MATERIAL INFLATION, RETAIL PROFITABILITY, COMPETITION & MARGIN PRESSURE REMAIN KEY RISKS
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