This article first appeared on GuruFocus .
Release Date: January 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Siyaram Silk Mills Ltd ( BOM:503811 ) reported a year-on-year revenue growth of 8.9% for Q3 FY26, with total income reaching INR 639 crores.
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The company expanded its retail network by adding 2 ZCode and 5 Davo outlets, aiming to open about 35 stores during the year.
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A second interim dividend of INR 3 per share was declared, reflecting confidence in financial strength and future growth prospects.
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The company is focusing on strengthening core capabilities in design and product development to align with emerging consumer preferences.
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Siyaram Silk Mills Ltd ( BOM:503811 ) is intensifying marketing initiatives to enhance brand visibility and digital engagement, aiming to accelerate demand across key markets.
Negative Points
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Despite revenue growth, the EBITA margin for Q3 FY26 declined to 13.2% from 14.1% in the previous year, impacted by increased employee costs and advertising expenses.
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The company's textile business growth was approximately 3%, lagging behind competitors like Raymond, which grew by 11%.
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There was a significant increase in processing and labor charges, accounting for approximately 14-15% of net sales.
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Store expansion for ZCode was slower in Q3, raising concerns about meeting the target of opening 35 stores by year-end.
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The retail business is currently operating at a loss, impacting overall profitability with a 100-150 basis points drop in EBITA.
Q & A Highlights
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Q: What is the revenue from Zip Code and Dago in this quarter? A: The new retail businesses have achieved around 55 crores in revenue over the past nine months. The target for the entire year is between 70 to 80 crores, and we expect to meet this guidance. (Respondent: Unidentified_3)
Q: Why has the growth in the textile business been approximately 3%, while competitors like Raymond have grown by 11%? A: The textile business is seasonal, and we provide annual guidance rather than quarterly numbers. Diwali was at the beginning of the quarter, which shifted sales to the previous quarter. We have increased our overall guidance for the year from 10-12% to 12-15%, and we are confident of achieving this by year-end. (Respondent: Unidentified_3)
Q: What is the reason for the increase in gross margins by approximately 3%? A: The increase in gross margins is due to a combination of different product mixes across various segments. We expect a stable number overall for the year. (Respondent: Unidentified_3)
Q: Store expansion was slow for Zode this quarter. Will you be able to achieve the guidance of opening 26 stores for Zode? A: We aim to achieve our initial guidance. The third quarter was intentionally slower to focus on operations during the festive season. We are confident of opening approximately 35 stores by the end of the year. (Respondent: Unidentified_3)
Q: How do you see the mix of fabric revenue evolving over time, given it still contributes more than 75% of revenue? A: Fabric has traditionally been a larger percentage of revenue, but this has decreased to 75-78% as other businesses grow. The retail business will become more meaningful as the number of stores increases, reducing the fabric business's share in percentage terms. (Respondent: Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
