Siyaram Silk Mills Ltd (SIYSIL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Q2 FY27 earnings call of Siyaram Silk Mills Limited, hosted by Marathon Time. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. I now hand the conference over to Ms. Devanshi from Marathon Time. Thank you and over to you.
Devanshi (Marathon Time): Good afternoon, ladies and gentlemen. I welcome you to the Q2 and H1 FY27 earnings conference call of Siyaram Silk Mills Limited. To discuss this quarter's performance, we have from the management, Mr. Gaurav Poddar, President and Executive Director, Mr. Ashok Jalan, Senior President and Director, Mr. Surendra Shetty, Chief Financial Officer and Mr. Denish Sethia, Vice President Finance. Before we proceed with the call, I would like to mention that some of these statements made in today's call may be forward-looking in nature and may involve risk and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website. Without further ado, I would like to hand over the call to the management for their opening remarks and then we can open the floor for question and answer. Thank you and over to you, sir.
Gaurav Poddar (Siyaram Silk Mills Ltd): Good afternoon everyone and thank you for joining us today for Siyaram Silk Mills Limited Q2 and H1 FY27 earnings conference call. As we approach the festive season, I would like to extend my warm wishes to all our shareholders, investors, analysts, and stakeholders for a happy, healthy and prosperous Diwali. We are pleased to have you as we discuss the company's performance and key developments during the quarter and first half of the year. We trust you have had the opportunity to review our financial results and investor presentation, which have been made available on the Stock Exchanges and on the company's website for your reference. Siyaram Silk Mills Limited has built a strong reputation as one of India's most trusted names in premium fabrics, apparel and textile products. Backed by decades of expertise, a diversified brand portfolio, and an extensive distribution network, the company continues to cater to evolving consumer preferences across categories. While remaining firmly rooted in its rich textile heritage, the company is advancing its Siyaram 2.0 journey through a sharper focus on design, merchandising and retail-led growth, expanding its presence in the value fashion and ethnic wear segments. Our retail growth strategy continued to make steady progress during the first half of the year supported by the measured expansion of Zencode and DEVO across key markets. As on date, we have 38 Zencode stores and 23 DEVO stores taking the total store count to 61 stores as against 70 stores that we had guided. We are confident that we shall be able to close the store count at 70 stores across the two formats by FY27. Importantly, this expansion continues to be funded entirely through internal accruals, reflecting our disciplined approach to growth and capital allocation. Coming to the overall industry environment, despite uneven monsoon and increasing inflationary pressures in key raw materials, the demand across textile and apparel sector remained broadly stable during the first half of FY27. Retail activity received support from seasonal consumption and occasions such as Raksha Bandhan and Onam. We also continue to see opportunities in Tier-2 and Tier-3 markets where rising aspirations and expanding reach of organized retail are supporting consumption. With a larger part of the festive season following in the next quarter, a significant portion of the festive-led consumption is expected to be reflected in Q3.
Gaurav Poddar (Siyaram Silk Mills Ltd): We are also optimistic of the upcoming festive season, and it will boost our to give a boost to our performance. And we also revise our revenue guidance to 14% to 15% for this year. We at Siyaram continue to execute our strategic priorities with discipline and agility. Our focus on product innovation, retail expansion, and brand development enables us to strengthen our market position while creating a strong foundation for future growth. Our company has delivered another quarter of strong performance with total income of Rs. 827 crores in Q2 FY '27, compared to Rs. 719 crores in Q2 FY '26, a growth of 15.1%. For H1 FY '27, total income stood at Rs. 1,293 crores as against Rs. 1,118 crores, growth of 15.6% in the corresponding period last year. Despite a relatively measured demand environment, we continue to remain focused on driving sustainable growth while maintaining prudent financial management and operating operational discipline. In line with this commitment, the Board of Directors have approved first interim dividend of Rs. 4 per equity share of Rs. 2 each in FY '27. This reflects the company's disciplined approach to rewarding shareholders consistently over the years. We will continue to execute our strategy with discipline while creating long-term value for our stakeholders. On that note, let me invite our CFO, Mr. Surendra Shetty, to take you through the financial highlights and key operating metrics for the quarter. Thank you.
Surendra Shetty (Siyaram Silk Mills Ltd): Thank you, Gaurav ji. And good afternoon, everyone. Let me take through the company stand-alone financial performance for the quarter and half year ended September 30th, 2026. For the quarter 2 financial year '27, the total income stood at Rs. 827 crores compared to Rs. 719 crores in the quarter 2 of financial year '26, excluding nonrecurring other income of Rs. 24 crores. During the quarter, Fabrics contributed 77% of the revenue, while Garments accounted for 16%, and Yarn and others contributed 7%. EBITDA for the quarter stood at Rs. 131 crores in quarter 2 of the financial year '27 compared to Rs. 121 crores in quarter 2 of financial year '26. Profit after tax for the quarter stood at Rs. 75 crores in quarter 2 of financial year '27 as against Rs. 87 crores in the corresponding period of the last year. For the first half of financial year '27, total income stood at Rs. 1,293 crores compared to Rs. 1,118 crores in the first half of financial year '26. EBITDA for the period stood at Rs. 170 crores, while profit after tax was Rs. 86 crores. The company's balance sheet continued to remain healthy, supported by prudent financial management and disciplined approach to capital allocation. Our debt-equity ratio as of September 30th, '26, stood at 0.58. With that, I conclude my remarks. We will now happy to take the questions. Thank you.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dev Gulwani from Care PMS. Please go ahead.
Dev Gulwani (Care PMS): Good af- Good afternoon, Gaurav, sir. Congratulations on great set of numbers despite delayed festive season and you have even increased the revenue guidance. Sir, first question is what was the volume growth and value growth this quarter in the fabric segment? Hello?
Gaurav Poddar (Siyaram Silk Mills Ltd): Yes, yes, Dev. So, in in general as as we mentioned over the previous few calls we don't look at it as a break-up of value and volume because there is a change in mix of suiting and shirting that keeps evolving over a certain period of time. However, just as you've asked in the fabric bus-
Gaurav Poddar (Siyaram Silk Mills Ltd): roughly the volume percentage has been an increase of roughly 2.5% and value has been roughly 11%. But again, it's better to just look at an absolute value rather than looking at a volume mix and a and a breakup of volume and value.
Dev Gulwani (Care PMS): Fine sir. And what price hike has the company taken in current quarter to offset the impact of higher raw material prices?
Gaurav Poddar (Siyaram Silk Mills Ltd): So as as we mentioned in the last call as well, raw material fluctuation has been quite drastic and that depends on a commodity price and demand supply scenario to that extent, and that happens in a more immediate manner. However, as a branded player, we face the consumer through a channel. So it's a branded consumer product and we cannot follow the exact same trend of raw material pricing going up as well as going down. So it is a more gradual approach to price hike. And I think in over the last six odd months, we have cumulatively taken a price hike of about I think between 4 to 6% in that kind of range. And that happens in a very gradual manner and it takes it takes a larger period of time to absorb everything. The raw material side, looking at the geopolitical tension at the moment, still remains uncertain. So one has to wait and watch you know, how much, what needs to be done because there is even a chance, if everything settles down, for things to correct. So we wouldn't want to overdo too many things. And that is why also it has to be taking a gradual approach.
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