Saraswati Saree Depot Posts 4.0% Profit Growth in Q1 FY27

Profit After Tax (PAT) ₹66.05 million; Revenue ₹1,475.90 million.

Reader Takeaway: Stable profit growth amid rising costs; retail expansion is key.

What just happened

Saraswati Saree Depot reported its financial results for the quarter ended June 30, 2026. The company saw a 1.9% increase in revenue from operations, reaching ₹1,475.90 million. Profit After Tax (PAT) grew by 4.0% to ₹66.05 million, and basic Earnings Per Share (EPS) improved to ₹1.70 from ₹1.61 year-on-year.

Why this matters

While revenue and profit saw modest growth, a significant 13.1% drop in EBITDA to ₹78.03 million and a compression in EBITDA margins to 5.29% (down from 6.20%) highlight cost pressures. The company's ability to manage procurement costs and improve margins will be crucial for future profitability.

The backstory

Saraswati Saree Depot primarily operates as an organized saree wholesaler, with sarees forming nearly 90% of its revenue. The company has served over 13,000 retailers. Recently, it has begun expanding into the retail segment with an outlet in Kolhapur.

What changes now

The company is prioritizing margin recovery by addressing elevated procurement costs. It is also focusing on scaling its new direct-to-consumer retail outlet. Management has advised caution for comparing Q2 and Q3 FY27 results year-on-year due to the shifted Diwali festival timing.

Risks to watch

Investors should monitor the impact of sustained high procurement costs on margins. The success of the new retail venture in Kolhapur is a key factor to watch. Additionally, seasonal shifts affecting the festival quarter could impact short-term performance comparisons.

Peer comparison

While specific peer data for saree wholesalers is not provided in the filing, the broader textile retail sector often faces challenges related to raw material costs and changing consumer preferences. Saraswati Saree Depot's move into retail is a diversification play.

Context metrics (time-bound)

For Q1 FY27, revenue was ₹1,475.90 Mn, up 1.9% YoY. PAT was ₹66.05 Mn, up 4.0% YoY. EBITDA was ₹78.03 Mn, down 13.1% YoY. EBITDA margin was 5.29%, down 91 bps YoY.

What to track next

Investors will be keen to see the company's progress in controlling procurement costs and improving margins. The ramp-up and performance of the Kolhapur retail outlet will also be a key indicator of strategic success.