Siyaram Silk Mills Q4 FY26: Strong Finish, Retail Scaling, And A One-Off Real Estate Monetisation

Siyaram Silk Mills ended FY26 on a strong note. In Q4 FY26, total income rose to INR 870.5 crore from INR 749.7 crore in Q4 FY25, a year-on-year increase of 16.1%. Profitability expanded faster than revenue. EBITDA increased to INR 151.6 crore (up 21.0%) and profit after tax rose to INR 94.6 crore (up 30.6%). Margins improved as well. EBITDA margin for the quarter stood at 17.4% and PAT margin at 10.9%.

For FY26, total income was INR 2,652.6 crore compared to INR 2,295.6 crore in FY25, an increase of 15.5%. Revenue from operations was INR 2,569.3 crore. EBITDA for the year was INR 413.2 crore and PAT was INR 228.1 crore. Management highlighted that the business crossed INR 2,500 crore revenue, INR 300 crore PBT and INR 225 crore PAT in FY26.

What drove FY26 performance

Management attributed Q4 strength to a gradual improvement in consumer demand despite macro uncertainty, supported by higher spending during the wedding and festive season. The company also emphasised the role of its brand portfolio and disciplined operations.

The revenue mix remained fabric-led. In Q4 FY26, management stated the mix was led by fabric at 80%, garments at 15%, and yarn and others at 5%. At the full-year level, the investor presentation shows FY26 revenue from operations of INR 2,569.3 crore split across fabric (INR 2,010.9 crore, 78%), garments (INR 389.3 crore, 15%) and others (INR 169.1 crore, 7%). Exports contributed 10% of revenues in FY26, as disclosed in the investor presentation.

Management also provided colour on growth in the core fabric business. On the earnings call, it stated fabric volume growth was about 10% and value growth about 11% odd for FY26. The company noted that fabric market growth is not very high, and it believes it is gaining market share through brand strength and trade relationships.

Note: As reported in the investor presentation; standalone financials.

Retail pivot: ZECODE and DEVO remain the key scaling lever

Siyaram’s “Siyaram 2.0” narrative is anchored in its newer retail brands. The company ended FY26 with 44 company-owned and company-operated stores, 27 ZECODE outlets and 17 DEVO stores.

In the conference call, management said it intends to reach approximately 70 stores across both brands by the end of the coming financial year. It also clarified that the retail model will remain COCO for FY27, and franchising could be considered later once the model is better established.

Retail has begun to show early traction, but management continues to position it as a young business. It said FY26 was the first full year of sales for the retail business, where it had estimated INR 70 to 80 crore of sales and achieved about INR 80 crore. It reiterated that retail has an impact of about 150 basis points on consolidated EBITDA margin guidance because the store base is still in the early stabilisation phase.

Store rollouts were slower than earlier expectations in FY26. Management acknowledged that it did not meet the earlier store-add target and attributed delays mainly to identified locations being in under-construction properties and to the company’s lean execution approach. For FY27, it guided to about 26 new stores, with an indicated split of about 8 DEVO stores and the rest ZECODE.

ZECODE is positioned as value fast fashion with a store size of 6,000 to 10,000 sq ft, targeting Gen Z and a South India focus. DEVO is positioned as mid-to-premium men’s ethnic wear with store sizes of 2,000 to 4,000 sq ft, focused on North India.

Capex, working capital, and the one-off Dombivali project

Management provided FY27 capex guidance on the call. It indicated INR 50 to 60 crore of regular maintenance capex and about INR 40 crore to fund additional store openings to reach around 70 stores.

Working capital was a notable discussion point. FY26 operating cash flow was INR 93.3 crore, while PAT was INR 228.1 crore. Management attributed the gap to higher inventories and receivables. It stated that the inventory build is partly structural because inventory for new company-owned stores sits on the company’s books and cited inventory per store of about INR 60 to 70 lakh. It also explained that as a made-to-stock company it built inventory ahead of a strong Q4, and Q4’s strong sales carried debtors into subsequent months.

The board also approved a one-off residential project on MIDC leasehold land at Dombivali, Thane. The regulatory filing describes a residential building (basement plus stilt with 18 floors) aggregating to about 77,400 sq ft built-up area with 68 units. It states project cost of about INR 45 crore excluding land cost. On the call, management stated it expects to complete the project in about 24 months and cited an estimated revenue potential around INR 80 crore, while emphasising that it is a one-off monetisation since the land parcel already sits on the balance sheet.

Shareholder returns and capital allocation signals

Siyaram continued to emphasise shareholder distributions. The board declared a special interim dividend of INR 4 per equity share and recommended a final dividend of INR 5 per equity share (both on face value INR 2). The investor presentation states total dividend of INR 16 per share in FY26, including special interim dividend.

Separately, the investor presentation discussed a scheme of arrangement involving issuance of cumulative non-convertible redeemable preference shares as a bonus to shareholders. On the call, management indicated the NCLT final hearing was held on 16 April 2026 and the order was awaited, after which it expects the process to take another three to four months.

Key takeaways

Siyaram closed FY26 with strong Q4 momentum, improving margins, and a steady fabric-led mix. The retail expansion strategy is clearly the next leg, with a defined store target and capex plan, but the business remains early and management is not yet sharing store-level unit economics. Investors will likely track two things closely in FY27: working capital discipline as the COCO store base scales, and execution consistency against the guided store rollout and margin framework.