Saraswati Saree Depot Limited – Investor Presentation Summary

Key Operational Highlights

  • Revenue from Operations: ₹631.16 crore in FY26, representing 4.6% year-on-year growth from ₹603.59 crore in FY25
  • Number of units sold: 13.9 million units (exact figure not specified for FY26)
  • Total number of customers: 13,907 unique customers in fiscal 2024
  • Key drivers: Extensive wholesale network, diversified supplier base with over 900 weavers, strong market presence in southern and western regions
  • Retail initiative launched during FY26 marks strategic milestone for direct consumer-facing presence

Segment-wise Performance

  • Sarees contribute over 90% of main revenue
  • Other women's apparel includes kurtis, lehengas, dress materials, and accessories
  • Product catalogue lists more than 300,000 different SKUs
  • Maharashtra stores contribute nearly 88% of total combined sales

Financial Highlights

  • Revenue: ₹631.16 crore (FY26)
  • EBITDA: ₹32.02 crore with EBITDA margin of 5.07% (FY26), declined from ₹43.18 crore and 7.19% margin in FY25
  • PAT: ₹23.41 crore with PAT margin of 3.71% (FY26), declined from ₹30.58 crore and 5.07% margin in FY25
  • EPS: ₹5.89 basic EPS (FY26), down from ₹7.72 in FY25
  • Gross Profit: ₹62.83 crore with gross profit margin of 9.95% (FY26), declined from ₹68.90 crore and 11.42% margin in FY25
  • YoY comparison: Revenue growth of 4.6% but profitability declined across all metrics
  • Drivers of financial performance: Higher procurement costs impacting gross margins, pressure on profitability despite revenue growth
  • Key Risks: Continued softness in consumer spending, cautious market environment, margin pressures from procurement costs

Geographical Revenue Split

  • Domestic vs Export: Primarily domestic market focus
  • Regional Breakdown: Southern and western regions including Maharashtra, Goa, Karnataka, and Tamil Nadu
  • Maharashtra contributes nearly 88% of total combined sales

Balance Sheet Snapshot

  • Shareholders Funds: ₹194.66 crore (Mar'26) vs ₹177.86 crore (Mar'25)
  • Share Capital: ₹39.60 crore
  • Other Equity: ₹155.06 crore
  • Net Debt: Debt-free status maintained
  • Current Assets/Liabilities: Current liabilities of ₹90.90 crore (Mar'26)
  • Trade Payables: ₹87.85 crore (Mar'26)
  • Financial Health Insights: Strong cash flow generation, improved liquidity with cash and cash equivalents of approximately ₹69.9 crore as of March 31, 2026

Capex & Cash Flow Health

  • Capital Expenditure: Not specified
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Maintained debt-free status
  • Investment Rationale: Focus on capacity expansion through new purchase office in Surat measuring 25,000 square feet

Strategic & R&D Initiatives

  • Investments in Innovation: Surat procurement office established to improve sourcing efficiencies and enhance vendor engagement
  • Retail segment entry with first exclusive outlet in Kolhapur
  • Expected impact: Strategic expansion into direct consumer market while maintaining wholesale leadership
  • Strategic Rationale: Expanding into high-growth organized retail segment, reducing operational costs through improved sourcing

Industry Trends & Business Environment

  • Macro/Industry Trends: Saree industry valued at ₹515 billion in fiscal 2024 with ~5% growth from previous year
  • Organized saree sector growing at 9-10% CAGR, expected to constitute 32-37% of market by fiscal 2029
  • Industry projected to grow at 5-6% CAGR from fiscal 2024 to 2029, reaching ₹650-675 billion by fiscal 2029
  • Growing preference for higher-quality, premium sarees leading to increased average prices
  • Impact on Company: Positioned to capitalize on organized market growth with established brand and distribution network

Management Commentary & Growth Outlook

  • Strategic Outlook: Expect demand conditions to remain significantly weaker than recent years due to soft consumer spending and cautious market environment
  • FY Guidance: Not specifically provided
  • Market Share Targets: Not specified
  • Risks and Opportunities: Near-term challenges may persist, but company approaches with prudence and confidence supported by strong business fundamentals
  • Focus areas: Driving operational efficiencies, strengthening customer and supplier relationships, expanding product portfolio, enhancing retail presence