💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 77.64% YoY, increasing from INR 69.70 Cr (6970.49 Lakhs) in FY 2023–24 to INR 123.82 Cr (12382.20 Lakhs) in FY 2024–25, driven by higher demand and a favorable product mix.

Geographic Revenue Split

The company maintains a domestic market orientation with operational presence and branches in Delhi, Haryana, and West Bengal, though specific percentage splits per region are not disclosed.

Profitability Margins

Net Profit Margin (PAT Margin) improved from 8.13% in FY 2023-24 to 8.38% in FY 2024-25, reflecting better operational efficiencies and a shift toward higher-margin products.

EBITDA Margin

While specific EBITDA is not explicitly stated, Profit After Tax (PAT) grew by 83.23% YoY, rising from INR 5.67 Cr (566.52 Lakhs) to INR 10.38 Cr (1038.04 Lakhs), indicating strong core profitability growth.

Capital Expenditure

The company raised INR 30.68 Cr through an SME IPO in June 2025 specifically to fund capacity expansion and scale operations to meet rising demand.

Credit Rating & Borrowing

The company has sanctioned working capital limits exceeding INR 5 Cr from banks and financial institutions, secured against current assets, though specific interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Cotton and Polyester, which are subject to high price volatility in the domestic market.

Import Sources

The company primarily focuses on the domestic market for sourcing and sales, with procurement strategies designed to mitigate local price fluctuations.

Key Suppliers

Not disclosed in available documents, though the company maintains long-term relationships with reliable vendors to manage supply chain risks.

Capacity Expansion

Current capacity is being scaled up using the INR 30.68 Cr raised from the IPO in mid-2025 to enhance manufacturing output and productivity.

Raw Material Costs

Raw material costs are a significant driver of expenses; the company manages this through timely procurement strategies to reduce the impact of cotton and polyester price volatility.

Manufacturing Efficiency

Growth in profitability (83.23% YoY) is attributed to improved operational efficiencies and the optimization of the product mix.

Logistics & Distribution

The company operates three branches in Delhi, Haryana, and West Bengal to facilitate distribution across key domestic hubs.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the utilization of INR 30.68 Cr in IPO proceeds for capacity expansion, investing in workforce training to enhance productivity, and maintaining high quality standards (GOTS/OEKO-TEX) to attract a wider customer base.

Products & Services

The company manufactures textile products and garments, evidenced by its GOTS (Global Organic Textile Standard) and OEKO-TEX® certifications.

Brand Portfolio

Silky Overseas Limited.

New Products/Services

The company is focusing on a 'favorable product mix' to drive higher margins, though specific new product names were not listed.

Market Expansion

Expansion is focused on scaling manufacturing capacity following the July 2025 listing on the NSE Emerge platform.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable and certified textiles; Silky is positioned for this through GOTS and OEKO-TEX® compliance.

Competitive Landscape

Intense competition exists from both domestic manufacturers and low-cost international exporters in the textile sector.

Competitive Moat

Competitive advantage is derived from operational efficiency, a wide customer base, and high-standard certifications (ISO, GOTS) which act as barriers to entry for unorganized players.

Macro Economic Sensitivity

Highly sensitive to raw material price cycles (cotton/polyester) and domestic consumer demand trends.

Consumer Behavior

Demand is influenced by changing consumer trends in the domestic textile and apparel market.

Geopolitical Risks

Competition from international low-cost hubs such as Bangladesh and Vietnam represents a significant external threat to market share.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, Accounting Standards, and Cost Records and Audit Rules 2014.

Environmental Compliance

The company maintains GOTS and OEKO-TEX® certifications, indicating compliance with international environmental and textile safety standards.

Taxation Policy Impact

The company complies with the Companies Act, 2013; however, the specific effective tax rate percentage is not disclosed.

Legal Contingencies

The company has zero pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of cotton and polyester prices, which can fluctuate significantly and impact the cost structure.

Geographic Concentration Risk

Operations are concentrated in India, specifically through branches in Delhi, Haryana, and West Bengal.

Third Party Dependencies

Dependency on raw material vendors is managed through long-term contracts and diversification of sources.

Technology Obsolescence Risk

The company uses accounting software with audit trail (edit log) facilities to ensure data integrity and mitigate digital risks.

Credit & Counterparty Risk

The company maintains working capital limits with banks, and quarterly returns filed are in agreement with books of accounts, indicating stable counterparty relationships.