Siyaram Silk Mills Q2 FY27 Income Hits Rs 827 Crore, PAT Rs 75 Crore

Reader Takeaway: Strong revenue growth supported by festive demand faces headwinds from rising raw material costs and retail expansion.

What just happened

Siyaram Silk Mills posted a total income of Rs 827 crore for Q2 FY27, a 15.1% increase from Rs 719 crore in Q2 FY26. While the top-line expanded, the company reported a profit after tax (PAT) of Rs 75 crore, down from Rs 87 crore in the same quarter last year. The company declared an interim dividend of Rs 4 per share.

Why this matters

The decline in PAT highlights how rising input costs are putting pressure on margins, despite the company implementing cumulative price hikes of 4% to 6% over the last six months. Investors are looking for a balance between maintaining market competitiveness and protecting bottom-line profitability.

Retail and Expansion

The company currently operates 61 retail stores under its ZECODE and DEVO brands and remains on track to hit 70 stores by the end of FY27. The retail division reported H1 revenue of Rs 65 crore, with an annual goal of Rs 160 crore. Management confirmed that this expansion is currently being funded entirely through internal accruals.

Management Outlook

Management has revised its annual revenue growth guidance to 14%-15%, buoyed by an optimistic outlook for the festive season in Tier-2 and Tier-3 markets. Currently, the company is prioritizing its cluster-based store approach over e-commerce expansion.

Risks to watch

Raw material price volatility poses a persistent risk in the current geopolitical climate. Additionally, the aggressive retail expansion strategy requires sustained capital allocation, which investors should monitor for its impact on overall profit margins in the coming quarters.

Context metrics

• H1 FY27 Total Income: Rs 1,293 crore (up from Rs 1,118 crore in H1 FY26).
• Q2 FY27 EBITDA: Rs 131 crore (up from Rs 121 crore in Q2 FY26).
• FY27 Retail Store Target: 70 stores.