Saraswati Saree Depot Q1 FY27: Steady Revenue, Margin Pressure, and a Debt-Free Base to Fund the Next Phase

Revenue from operations was ₹1,475.90 Mn, EBITDA was ₹78.03 Mn (5.29% margin), and PAT was ₹66.05 Mn (4.48% margin). Basic EPS was ₹1.70.

Gross margin declined by 118 bps to 10.70% and EBITDA margin declined by 91 bps to 5.29%, which management attributed primarily to elevated procurement costs.

Wholesale contributed 98.28% of revenue (₹1,450.51 Mn) and retail contributed 1.72% (₹25.39 Mn).

In the reported split, sarees account for 89.8% of revenue, kurtis and dress materials 7.0%, and other categories 3.1%.

The Kolhapur store accounts for close to 89% of total combined sales, and West zone contributes 85.1% of revenue in Q1 FY27.

Management expects demand to remain measured and highlighted that Q2 and Q3 FY27 year-on-year comparisons may be affected by a shift in Diwali timing.

The company states it is debt-free with a current ratio of 3.1x. The cash conversion cycle was 49 days, improving by 23 days versus the preceding quarter.