Saraswati Saree Depot Limited Q2 profit falls 30% as sales drop

Saraswati Saree Depot Limited reported profit of Rs 7.387 crore for the quarter ended September 30, 2026, 29.7% below Rs 10.509 crore a year earlier, as revenue from operations declined 31.2% to Rs 143.387 crore. Saraswati Saree Depot's profit was nevertheless 11.8% higher than Rs 6.605 crore in the June 2026 quarter.

How did Saraswati Saree Depot perform in the September 2026 quarter?

Saraswati Saree Depot reported lower revenue and profit than a year earlier in the quarter ended September 30, 2026. Revenue from operations was Rs 143.387 crore, compared with Rs 208.391 crore in the quarter ended September 30, 2025, a reduction of Rs 65.004 crore. Including other income, total revenue declined to Rs 145.100 crore from Rs 209.684 crore.

The sequential comparison was mixed in the September quarter. Revenue from operations declined from Rs 147.590 crore in the quarter ended June 30, 2026, while other income increased to Rs 1.712 crore from Rs 1.399 crore. Profit for the period rose by Rs 78.2 lakh from Rs 6.605 crore in June despite the Rs 4.203 crore sequential fall in revenue from operations.

The September-quarter figures are unaudited standalone results. Saraswati Saree Depot reported one operating segment, textiles and apparels with similar characteristics, under Indian Accounting Standard 108 on operating segments. The filing therefore provides no separate revenue or profitability split by product, geography or customer category.

Why did Saraswati Saree Depot's profit decline year on year?

Saraswati Saree Depot did not provide a management explanation for the profit decline, but the filing shows that profit before tax fell alongside revenue. Profit before tax was Rs 9.505 crore in the September 2026 quarter, down Rs 4.452 crore from Rs 13.957 crore in the corresponding 2025 quarter. Total tax expense also declined, to Rs 2.418 crore from Rs 3.483 crore.

Profit for the period fell by Rs 3.122 crore year on year to Rs 7.387 crore. Basic and diluted earnings per share, or EPS, were Rs 1.87 each, compared with Rs 2.65 each in the September 2025 quarter. The statement says EPS is not annualised and that comparative EPS numbers were retrospectively restated to comply with Indian Accounting Standard 33.

The quarter-on-quarter result moved differently from the annual comparison. September 2026 profit before tax was Rs 9.505 crore, compared with Rs 9.003 crore in June 2026, while profit for the period increased from Rs 6.605 crore. The filing does not give a separate explanation for this sequential increase while quarterly revenue declined.

What do Saraswati Saree Depot's half-year results show?

Saraswati Saree Depot's revenue and profit for the six months ended September 30, 2026 were below the comparable prior-year period. Revenue from operations was Rs 290.977 crore, versus Rs 353.162 crore in the six months ended September 30, 2025, a reduction of Rs 62.185 crore. Total revenue was Rs 294.089 crore, compared with Rs 355.340 crore.

Profit for the six months was Rs 13.992 crore, down from Rs 16.861 crore a year earlier. Profit before tax fell to Rs 18.717 crore from Rs 25.840 crore, and total tax expense decreased to Rs 4.725 crore from Rs 5.723 crore. Year-to-date basic and diluted EPS were Rs 3.53 each, against Rs 4.26 each in the comparative period.

Income from associates was Rs 28.5 lakh for the six months ended September 30, 2026, compared with Rs 59.7 lakh a year earlier. Saraswati Saree Depot holds a 50% profit share in a partnership firm named Saraswati Saree Depot in Ahmednagar, and reports the related income in its standalone accounts. The company said those accounts are not consolidated financial statements because the partnership is not a subsidiary.

How did Saraswati Saree Depot's assets and cash position change?

Saraswati Saree Depot's total assets increased to Rs 402.545 crore at September 30, 2026 from Rs 298.947 crore at March 31, 2026. Current assets rose to Rs 387.625 crore from Rs 282.920 crore, including inventories of Rs 181.501 crore versus Rs 120.691 crore. Trade receivables increased to Rs 91.903 crore from Rs 79.421 crore over the same period.

Cash and cash equivalents rose to Rs 88.655 crore at September 30 from Rs 69.928 crore at March 31. The six-month cash-flow statement reported a net increase of Rs 18.727 crore in cash and cash equivalents, with net cash from operating activities of Rs 30.968 crore. Bank balances other than cash equivalents were Rs 11.898 crore at September 30, compared with Rs 18 lakh at March 31.

Current liabilities rose to Rs 204.798 crore at September 30 from Rs 102.910 crore at March 31, while trade payables increased to Rs 188.548 crore from Rs 92.861 crore. Total equity was Rs 196.343 crore, compared with Rs 194.661 crore six months earlier. Equity share capital remained Rs 39.600 crore at both reporting dates.

What did the auditor and board disclose with the results?

Saraswati Saree Depot received an unmodified review conclusion from PPC&Co Chartered Accountants in its report dated November 14, 2026. The auditor said that nothing had come to its attention to suggest the unaudited standalone financial results were not prepared in accordance with applicable accounting standards and listing requirements. The review was conducted under Standard on Review Engagements 2410.

The auditor also said the associate partnership's interim financial information for the quarter and half year ended September 30, 2026 had not been reviewed by its auditors. Income from the associate was recorded using unaudited and unreviewed financial information communicated by management. PPC&Co did not modify its conclusion on that matter or on the predecessor auditor's qualified opinion for the year ended March 31, 2026.

Saraswati Saree Depot declared an interim dividend of Rs 3 per equity share with a face value of Rs 10 at a board meeting on September 24, 2026. The company also said the retrospective EPS restatement had no impact on revenue, profit after tax, total comprehensive income, cash flows, assets, liabilities or equity in current or prior periods.

Conclusion

Saraswati Saree Depot's September 2026 results show a year-on-year contraction in both sales and profit, with revenue from operations down Rs 65.004 crore and profit for the period down Rs 3.122 crore. The sequential increase in profit from the June quarter contrasts with lower sequential revenue, while the six-month revenue and profit figures also remained below the prior-year levels.

The next disclosures to watch are whether the associate partnership's financial information receives auditor review and how the higher inventories, receivables and trade payables reported at September 30 develop. Saraswati Saree Depot has also declared a Rs 3-per-share interim dividend, which was approved on September 24, 2026.