Sai Silks PAT Surges 142% in Q4; Board Recommends 75% Dividend as Ethnic Wear Demand Booms

Synopsis: Sai Silks (Kalamandir) reported a spectacular 141.67% year-on-year surge in net profit to Rs. 32.65 crore for Q4 FY26. Backed by strong revenue growth and stable operating margins, the Hyderabad-based retailer has also announced a 75% dividend, signaling robust cash flows and confidence in the domestic ethnic apparel market.

In a detailed regulatory filing with the NSE and BSE, Sai Silks (Kalamandir) Limited announced its audited financial results for the quarter and year ended March 31, 2026. The ethnic apparel giant saw its consolidated profit after tax (PAT) skyrocket to Rs. 32.65 crore in the March quarter, compared to Rs. 13.51 crore in the same period last year. Revenue from operations also witnessed a steady climb, rising 5.07% YoY to Rs. 419.06 crore.

The company’s full-year performance for FY26 highlights a significant scale-up in operations, with total revenue reaching Rs. 1,653.67 crore, up 13.11% from FY25. The most striking figure remains the full-year net profit, which surged 65% to Rs. 140.92 crore. Operational efficiency was a key driver, as the company maintained a resilient full-year EBITDA margin of 15.78% despite seasonal cost pressures in the final quarter.

A standout feature of the FY26 balance sheet is the massive jump in net cash from operating activities, which rose to Rs. 322.53 crore from Rs. 106.78 crore in the previous year. This liquidity strength allowed the board to recommend a final dividend of Rs. 1.50 per share (75% of face value).

During Q4 FY26, the company saw its gross margins improve by 37 bps to 42.08%. This was achieved despite a nearly 10% increase in employee expenses, which stood at Rs. 61.22 crore. Management’s focus on financial discipline was evident in the 21.13% decline in interest costs, which fell to Rs. 8.21 crore as the company optimized its debt profile. For FY27, investors are closely watching the “Same Store Sales Growth” (SSSG) and the timeline for utilizing the remaining IPO proceeds, which has been extended to September 2026.

Following the stellar earnings report on May 12, 2026, shares of Sai Silks (Kalamandir) witnessed a sharp rally. During today’s session on May 13, 2026, the stock surged over 8% to hit an intraday high of Rs. 120.49 on the NSE.

The stock currently trades at a P/E ratio of 11.79, significantly lower than the Industry PE of 43.0, suggesting a potential valuation catch-up. While the stock has faced some pressure over the last six months, today’s volume-backed surge indicates a trend reversal, with the market capitalization settling at approximately Rs. 1,767.54 crore.

Company Overview

Founded in 2005, Sai Silks (Kalamandir) Limited is one of the largest retailers of ethnic apparel in South India. The company operates a hub-and-spoke model with a strong presence in Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu. Specializing in high-quality silk sarees and festive wear, the brand serves millions of customers through its premium and value retail formats, bridging the gap between traditional craftsmanship and modern retail.

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