SIYSIL - Siyaram Silk

📊 NSE: SIYSIL 🏢 Textiles - Processing 📅 Last Updated: 12/14/2025 13:28

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, Fabric contributed 77% (approx. INR 572 Cr), Garments 15% (approx. INR 111 Cr), and Yarn/Others 8% (approx. INR 60 Cr). For FY25, Fabric was 81% (INR 1,803 Cr), Garments 13% (INR 287 Cr), and Others 6% (INR 130 Cr). Growth is driven by volume and better realizations in the fabric segment.

Geographic Revenue Split

Not disclosed in available documents, though the company highlights a growing presence in Tier-2 and Tier-3 cities to capture rural and semi-urban demand.

Profitability Margins

Gross margins are impacted by material costs (30-40% of sales). Net Profit Margin stood at 8.95% in FY25 (INR 198.73 Cr) compared to 8.85% in FY24. Q2 FY26 PAT margin improved to 11.7% (INR 87 Cr) from 10.9% YoY due to higher sales volumes and festive demand.

EBITDA Margin

EBITDA margin for Q2 FY26 was 19.5% (INR 145 Cr), up from 17.5% (INR 110 Cr) in Q2 FY25, a 200 bps improvement. FY25 EBITDA margin was 15.88% (INR 352.66 Cr). The improvement is attributed to a better product mix and operational efficiencies.

Capital Expenditure

The company follows an asset-light outsourcing model, minimizing heavy manufacturing capex. However, it is investing in retail expansion with a target of approximately 35 new stores in FY26, with 16 already achieved in H1 FY26.

Credit Rating & Borrowing

CRISIL reaffirmed 'CRISIL AA-/Stable' for long-term and 'CRISIL A1+' for short-term/commercial paper. Interest coverage ratio was 13.04x in FY25, down from 14.00x in FY24, reflecting slightly higher finance costs of INR 2.38 Cr.

⚙️ Operational Drivers

Raw Materials

Cotton and blended fibers are the primary raw materials, with material costs constituting 30-40% of the total cost of sales.

Capacity Expansion

Current capacity is not specified in MT; however, the company is expanding its retail footprint by 35 stores in FY26 to increase direct-to-consumer reach.

Raw Material Costs

Cost of materials consumed was INR 255.41 Cr in Q2 FY26. Sharp commodity price fluctuations in FY24 caused margins to moderate to 13.6% from 16.8% in FY23, demonstrating high sensitivity to input price volatility.

Manufacturing Efficiency

The company utilizes an asset-light model to maintain high ROCE (18.44% in FY25) and flexibility in production volumes based on seasonal demand.

📈 Strategic Growth

Expected Growth Rate

12-14%

Growth Strategy

Growth will be achieved through a 12-14% revenue guidance for FY26, driven by the expansion of the retail store network (35 new stores), aggressive promotion of premium brands like Cadini, and leveraging the early onset of the festive season to drive volume growth in the Fabric and Garment segments.

Products & Services

Fabrics (Suiting and Shirting), Readymade Garments, and Yarn.

Brand Portfolio

Siyaram's, Cadini, J. Hampstead, Oxemberg.

New Products/Services

The retail business expansion is expected to contribute to topline growth but may initially hit EBITDA margins by approximately 150 basis points due to setup and promotional costs.

Market Expansion

Focusing on Tier-2 and Tier-3 cities and expanding the store network to 35 outlets in FY26.

Market Share & Ranking

The company is noted as one of the largest players in the organized fabric segment in India.

Strategic Alliances

Cadini SRL, Italy is a 100% subsidiary providing premium brand positioning and operational integration.

🌍 External Factors

Industry Trends

The textile industry is seeing a shift toward branded apparel and organized retail. SIYSIL is positioning itself by increasing its garment share (15% of Q2 revenue) and expanding its own retail outlets to capture higher margins.

Competitive Landscape

Operates in a highly fragmented industry with intense competition from both organized players and unorganized local manufacturers.

Competitive Moat

The moat consists of a 40-year-old legacy brand, a massive distribution network, and an asset-light model that ensures a healthy ROE of 15.42% and ROCE of 18.44% even during market volatility.

Macro Economic Sensitivity

Highly sensitive to consumer buying sentiment and the festive/wedding season, which drives significant quarterly volume fluctuations.

Consumer Behavior

Shift toward ready-to-wear garments is prompting the company to increase its focus on the Garment segment (15% of revenue) vs traditional Fabric (77%).