Siyaram Silk Mills Posts Strong FY26 Performance, Declares Dividend

Siyaram Silk Mills reported total revenue of ₹2,653 crore and a net profit of ₹228 crore for the fiscal year 2026. The company also announced a dividend of ₹16 per equity share.

Strong Financial Growth

Siyaram Silk Mills announced its financial results for the fourth quarter and full fiscal year 2026. For FY26, total revenue reached ₹2,653 crore, marking a 15.5% increase from the previous year. Net profit after tax (PAT) for the fiscal year grew by 14.6% to ₹228 crore. Shareholders will receive a dividend of ₹16 per equity share.

Investor Positives and Expansion Plans

The company's performance reflects robust double-digit growth in both revenue and profit for the fiscal year. The consistent dividend payout offers a positive signal to shareholders. Siyaram Silk Mills is also expanding its retail presence and initiating a real estate project.

Company Background

Siyaram Silk Mills is a key player in the textile and fashion industry, with fabrics accounting for about 80% of its revenue. The company has been actively growing its retail footprint through brands such as ZECODE and DEVO.

Future Investments and Projects

Looking ahead to FY27, Siyaram Silk Mills plans capital expenditures of approximately ₹100 crore. This includes ₹50-60 crore for maintenance and ₹40 crore dedicated to retail expansion. The company is also undertaking a residential real estate project.

Potential Risks

A notable concern is the 150 basis point drag on EBITDA margins stemming from nascent retail store operations. This impact is expected to continue as these stores mature. The company's diversification into a residential real estate project also presents a new area of risk outside its core textile business.

Key Financial Metrics for FY26

• Total Revenue: ₹2,653 crore (compared to ₹2,296 crore in FY25)
• Net Profit: ₹228 crore (compared to ₹199 crore in FY25)
• Dividend: ₹16 per equity share
• Retail Stores: 44 locations
• FY27 Capital Expenditure Guidance: Approximately ₹100 crore

What Investors Should Watch

Investors will be closely monitoring the performance of the retail segment and its future profitability contributions. The success and overall impact of the residential real estate venture will also be a key point of interest.