Sai Silks extends Rs 20.27 crore warehouse deadline to 2027

Sai Silks (Kalamandir) Limited extended the deadline to deploy Rs 20.27 crore of unutilised initial public offering funds for two warehouses to September 30, 2027, while retaining the original purpose. The board approved the change on November 3, 2026 after reconsidering a resolution passed on September 29, 2026.

What did Sai Silks decide about its warehouse IPO funds?

Sai Silks decided that the Rs 20.27 crore remaining from funds earmarked for setting up warehouses will continue to be used for warehouses, with utilisation permitted until September 30, 2027. The board disclosed the decision on November 3, 2026 after reconsidering the resolution passed at its September 29, 2026 meeting.

The decision changes the timing rather than the stated use of the money. Sai Silks said the unutilised balance forms part of the warehouse allocation described in the prospectus dated September 23, 2023, and the board specifically resolved that it should be deployed for setting up warehouses. The November 3, 2026 board meeting commenced at 12.30 p.m. and concluded at 5 p.m.

Why did Sai Silks extend the warehouse utilisation deadline?

Sai Silks did not state a reason for extending the warehouse-fund deadline in its November 3, 2026 announcement; it only recorded the board’s resolution to set September 30, 2027 as the new deadline. The filing therefore establishes the revised timetable but does not disclose a project delay, a warehouse location, or a revised capital-cost estimate.

The company’s decision followed a prior board resolution dated September 29, 2026, which was reconsidered at the November 3 meeting. The disclosure does not specify the terms of the September 29 resolution or identify construction milestones for the two warehouses. It confirms the end date of September 30, 2027, but provides no intermediate project schedule between November 2026 and that deadline.

How much IPO money remains for Sai Silks warehouses?

Sai Silks had Rs 20.27 crore unutilised for capital expenditure on two warehouses as of September 30, 2026, out of Rs 25.40 crore allocated to that object in the prospectus. It had used Rs 5.13 crore of the allocation by that date, leaving the reported Rs 20.27 crore balance for the two warehouses.

The warehouse allocation was one component of the IPO proceeds utilisation statement, which reported Rs 566.24 crore as the total amount to be utilised under the prospectus and Rs 545.97 crore utilised up to September 30, 2026. The disclosed total unutilised balance was Rs 20.27 crore, matching the warehouse balance, while the allocations for repayment or pre-payment of borrowings, general corporate purposes and working-capital requirements showed no unutilised amount.

The prospectus allocation included Rs 280.07 crore for repayment or pre-payment of borrowings, Rs 50.00 crore for general corporate purposes and Rs 85.69 crore for working-capital requirements. By September 30, 2026, Sai Silks reported utilisation of Rs 282.43 crore for borrowings, Rs 50.00 crore for general corporate purposes and Rs 85.69 crore for working capital. The filing does not explain why the borrowing utilisation exceeded the stated prospectus amount by Rs 2.36 crore.

How did Sai Silks perform in the September 2026 quarter?

Sai Silks reported revenue from operations of Rs 434.05 crore for the quarter ended September 30, 2026, compared with Rs 444.33 crore in the quarter ended September 30, 2025. Profit after tax was Rs 31.08 crore, down from Rs 40.08 crore a year earlier, while total income was Rs 438.87 crore versus Rs 448.84 crore.

The September 2026 quarter improved from the preceding June 2026 quarter, when revenue from operations was Rs 375.08 crore and profit after tax was Rs 25.64 crore. Profit before tax was Rs 41.45 crore in the September 2026 quarter, compared with Rs 34.41 crore in the June 2026 quarter and Rs 54.41 crore in the September 2025 quarter.

For the half year ended September 30, 2026, revenue from operations was Rs 809.13 crore compared with Rs 823.35 crore in the corresponding 2025 period. Profit after tax declined to Rs 56.73 crore from Rs 70.14 crore, while profit before tax fell to Rs 75.86 crore from Rs 94.65 crore. These results were among the unaudited financial statements approved by the board on November 3, 2026.

What does Sai Silks’ balance sheet show alongside the extension?

Sai Silks reported total assets of Rs 1,956.33 crore as of September 30, 2026, compared with Rs 1,848.91 crore at March 31, 2026. Inventories rose to Rs 959.59 crore from Rs 815.93 crore over the six-month period, while property, plant and equipment increased to Rs 283.22 crore from Rs 273.12 crore.

Cash and cash equivalents stood at Rs 12.26 crore on September 30, 2026, versus Rs 19.38 crore at March 31, 2026, while bank balances other than cash equivalents were Rs 236.32 crore, down from Rs 329.04 crore. The half-year cash-flow statement reported net cash used in operating activities of Rs 29.74 crore, compared with net cash generated of Rs 180.37 crore in the half year ended September 30, 2025.

Non-current lease liabilities increased to Rs 360.48 crore at September 30, 2026 from Rs 323.60 crore at March 31, 2026. Total equity rose to Rs 1,293.60 crore from Rs 1,260.47 crore across the same dates, with other equity increasing to Rs 1,264.13 crore from Rs 1,231.00 crore.

Conclusion

Sai Silks has retained warehouses as the designated use for the remaining Rs 20.27 crore from its Rs 25.40 crore IPO allocation, but extended the deployment deadline to September 30, 2027. Only Rs 5.13 crore had been used for the two warehouses by September 30, 2026, while the company reported total IPO-object utilisation of Rs 545.97 crore out of Rs 566.24 crore.

The next disclosed milestone is the September 30, 2027 utilisation deadline. Readers should watch for future Sai Silks disclosures on progress at the two warehouses, as well as any further change to the timing or use of the Rs 20.27 crore balance; the November 3, 2026 filing provides neither warehouse locations nor intermediate construction targets.