Saraswati Saree Depot: FY26 Results

Revenue from operations for the year ended March 31, 2026, was ₹631.16 crore.
Net profit for the year ended March 31, 2026, was ₹23.41 crore.

Reader Takeaway: Revenue growth offset by profit decline; repeated audit qualification on inventory.

What just happened

Saraswati Saree Depot Limited has announced its financial results for the fiscal year ended March 31, 2026. The company reported a consolidated revenue from operations of ₹631.16 crore, an increase of 4.57% from ₹603.59 crore in the previous fiscal year. However, net profit saw a substantial decline of 23.45%, falling to ₹23.41 crore from ₹30.58 crore in the prior year.

Why this matters

The divergence between revenue growth and profit decline is a key concern for investors. It suggests potential pressures from rising costs or reduced profit margins. Furthermore, the company's independent auditor has issued a Qualified Opinion for the fifth consecutive year, citing the company's failure to maintain stock records with quantitative details of goods. This persistent issue raises questions about internal controls and inventory management transparency.

The backstory

This marks the fifth consecutive year the company has received a qualified audit opinion related to inventory records. The company attributes this to a process issue in recording stocks, stating it's a recurring matter.

What changes now

The Board of Directors has appointed M/s. Ajit M. Joshi and Associates as the new internal auditor for the fiscal year 2026-27. This appointment is aimed at strengthening internal controls.

Risks to watch

The primary risk for investors is the continued qualified opinion on inventory records, which impacts transparency and potentially operational efficiency. The declining profitability despite revenue growth also needs close monitoring.

Context metrics (time-bound)

• Revenue from operations for FY26: ₹631.16 crore (up 4.57% from FY25)
• Profit for the period in FY26: ₹23.41 crore (down 23.45% from FY25)
• Basic EPS in FY26: ₹5.89
• Total Assets as of March 31, 2026: ₹286.94 crore