Sai Silks (Kalamandir) Ltd Management Discussions

1. Economic Scenario

India retained its status as the worlds fastest-growing major economy in the Financial Year 2025, with GDP rising by 6.5%. Despite global challenges ranging from trade disruptions and geopolitical tensions to financial market volatility the Indian economy demonstrated remarkable resilience, supported by strong macroeconomic fundamentals, policy stability and a sound monetary system.

Robust public sector investments and large-scale infrastructure development were key growth drivers, effectively counterbalancing subdued private consumption. The governments focus on capital expenditure in transportation, energy and digital infrastructure sustained momentum, even as household spending faced pressure from elevated inflation at times.

Policy efforts remained firmly committed to building a transparent, rules-based environment that fosters investment and innovation. Structural reforms to strengthen manufacturing, improve domestic supply chains, accelerate digital adoption and advance sustainability remained central priorities. The broader vision of achieving “Viksit Bharat” (Developed India) by 2047 continues to shape Indias medium- and long-term policy trajectory.

Outlook

Looking ahead, the RBI forecasts GDP growth of 6.5% for FY26, with inflation expected to remain within its target range of 4%, supported by stable commodity prices and steady demand. While Indias macroeconomic and financial fundamentals remain strong, the outlook carries some risks. Geopolitical uncertainties, including recent border tensions and shifting global conditions could impact market sentiment and external trade flows. However, the countrys sustained progress in domestic reforms and its resilient economic base position India well on the global stage, creating a solid foundation for continued growth and development.

Indias GDP Growth Trend (%)

FY22	FY23	FY24	FY25
9.1	7.2	8.2	6.5

Source: Ministry of Statistics and Program Implementation (MoSPI)

2. Industry Review

2.1 Indian Retail Industry

The retail industry in India has long been a vibrant and dynamic sector, deeply embedded in the countrys economic and cultural fabric. Over the years, it has undergone significant transformation continually adapting to shifting consumer preferences, technological advancements and evolving market dynamics. Today, as the landscape is reshaped by ongoing geopolitical developments, Indias retail sector stands on the cusp of a new era filled with promise and potential.

As a key pillar of the Indian economy, the retail sector ranks among the worlds top five markets and is set to become the third-largest consumer market by 2030, behind only China and the United States. This strong growth trajectory highlights the sectors immense potential.

Valued at USD 780 billion in 2019, Indias retail market surged to USD 1,200 billion within four years, despite the pandemics disruptions, driven by rising demand across food, beverages, luxury jewellery, and apparel. Looking ahead, the market is projected to reach USD

2,500 billion by 2035, growing at a CAGR of 6%.

Indian Retail Growth

Size (USD Billion)

Growth drivers

Favourable demographics	Young population: Approximate 29% of the country are youth. Rising middle class: Nearly 40% of the population is middle class Urbanisation: The urban population is expected to reach 40% by 2036 Changing lifestyle, evolving consumption patterns and favourable government initiatives have been the growth engines
Rising income	Indias per capita income is expected to be INR 14.9 Lakh in 2047 from INR 2.12 Lakh in 2023-24
Easy credit availability	Credit card spending in 2024- 25 increased nearly 5% reaching approximately INR 1.7 trillion. Indias credit card market to touch 200 million cards in 5 years, with the growth doubling in just half the time.
Brand consciousness	Brand consciousness is influenced by economic, cultural and technological factors. This has pushed brands to be agile, continually innovate to achieve a competitive edge.

Outlook

The transition from unorganised to branded retail and the rise of e-commerce have transformed shopping behaviour. Going forward, the sector will keep evolving through AI-powered automation, hyper-personalised customer experiences, sustainability-focused practices and the rapid expansion into Tier 2 and Tier 3 cities all set to fuel the next wave of growth.

2.2 Indian Textile Industry

The textile industry has long served as a vital pillar of the Indian economy, contributing significantly to production, employment, and exports. Renowned for its rich heritage of fabrics and craftsmanship, the sector is undergoing a major transformation, driven by policy reforms, sustainability initiatives, and evolving global supply chains. As the Indian textile market aspires to strengthen its position as a global brand, it faces both promising opportunities and inherent challenges while responding to rising domestic demand

Market size and growth

By 2025, Indias textile and apparel industry is projected to reach an estimated size of USD 225 Billion, up from approximately USD 165 billion in 2022 reflecting a robust compound annual growth rate of 10 12%. The domestic market remains the primary growth engine, fuelled by rising incomes, rapid urbanisation, and shifting fashion preferences.

Technological advancements and sustainability

Indias textile industry is increasingly embracing technology and sustainable practices. Manufacturers are adopting automation, AI, IoT-enabled machinery, and digital fabric printing to boost efficiency, enhance customisation, and streamline production. Digital textile printing, in particular, is growing at over 10% annually, fuelled by the rise of e-commerce and fast fashion.

On the sustainability front, the industry is shifting toward eco-conscious operations embracing organic cotton, recycled fabrics and dyes, recyclable textiles, and zero liquid discharge systems driven by growing consumer demand for environmentally responsible products.

E-commerce and changing consumer trends

E-commerce continues to reshape the textile landscape, allowing both established players and direct-to-consumer (D2C) brands to access wider audiences. By 2025, Indias e-commerce market is expected to reach USD 160 billion, with apparel and textiles representing a significant share. This digital surge has accelerated demand for niche segments such as athleisure, fusion wear, and sustainable fashion. Alongside these modern categories, there is renewed interest in traditional, culture-based, and ethnic wear specifically for handlooms, artisanal embroideries and regional specialties reflecting consumers desire to celebrate heritage while embracing contemporary styles.

Government initiatives and support

In the near future, the Indian textile industrys growth is expected strongly backed by targeted government initiatives. The Production Linked Incentive (PLI) scheme, with an allocation of INR 10,683 Crore, has driven substantial investments in man-made fibres and technical textiles, generating thousands of new employment opportunities.

The PM MITRA scheme envisions the development of seven mega textile parks across different states. These parks are designed to offer integrated infrastructure, cost-effective logistics, and end-to-end value chain efficiencies to boost competitiveness. Additional support comes through tariff reforms, technology upgrades, and initiatives to promote start-ups in the technical textiles space, all contributing to the sectors modernisation and global positioning.

Outlook for the Future

With further reforms and infrastructure upgrades, India could target textile exports of USD 65 billion or more by FY 2026. Achieving this ambition will require strengthening domestic manufacturing capacities, advancing technical textiles, improving ease of doing business, and investing in green technologies to enhance global competitiveness. In 2025, the industry stands at a dynamic inflection point, where traditional strengths in weaving, handloom, and handmade textiles intersect with modern innovations and government incentives. Indias rich legacy of artisanal craftsmanship from intricate handwoven fabrics to region-specific techniques remains a core differentiator in global markets that increasingly value authenticity and sustainability. The combination of heritage skills, contemporary design, and quality infrastructure is paving the way for a new era of growth. To fully realise this potential, the sector must overcome structural challenges, scale efficiencies, and embed sustainable practices across the value chain. If successful, India is poised to emerge as a true global textile powerhouse, celebrating both its cultural heritage and its modern manufacturing capabilities.

2.3 Apparel Industry

The Indian apparel market is expected to expand at a compound annual growth rate (CAGR) of 9.7% between 2024 and 2028, reaching USD 50 billion by the end of the forecast period. This growth will be propelled by rising disposable incomes, shifting fashion trends, and the growing popularity of online shopping platforms. The ethnic wear market is Indias largest apparel category, and the share of the organised segment within this market is growing rapidly. Previously dominated by unorganised players, this shift offers significant opportunities for branded players.

Growth drivers

1. Customer experience & omnichannel

Brands now prioritise seamless experiences across online and offline touchpoints, making convenience a core differentiator.

2. Premiumization & luxury growth

Rising incomes, social media, and easy credit are driving demand for high-quality, premium products, especially in fashion.

3. Value fashion expansion

Affordable, trend-driven clothing is booming, as youth and budget-conscious shoppers seek stylish options at accessible prices.

4. Social marketing & community building

Brand communities strengthen loyalty, boost retention, and help tailor products through insights from customer data.

5. E-commerce & digital payments

E-commerce is surging, with Tier II and III cities leading growth. Digital payments, EMIs, and ONDC are further accelerating adoption.

6. Shift to sustainability

Circular fashion and sustainable practices are becoming mainstream, as brands reduce waste and meet eco-conscious consumer demand. According to Credence Research, the India womens apparel market is projected to grow from USD 28,786.82 Million in 2023 to USD

45,491.96 Million by 2032, at a CAGR of 5.21% between 2024 and 2032. This growth is driven by rising disposable incomes, increasing demand for fashion-forward clothing, and a larger base of working women.

Key factors fuelling expansion include growing fashion-consciousness, evolving consumer preferences, and deeper e-commerce penetration. Social media influence, celebrity endorsements, and lifestyle shifts also play a significant role. Emerging trends such as sustainable fashion, the rise of athleisure, ethnic wear and the demand for customised and personalised products are further shaping the markets future.

Womens apparel is a faster growing market Supply-side structural shifts

Entry of domestic and international branded players Expansion of modern retail and organised trade formats

Demand-side structural shifts

Rise in discretionary spending Increasing number of working women Shift from need-based to aspiration-driven consumption

Outlook

Indias retail sector is in specific the garment market poised for significant growth, bolstered by its vast population, accelerating urbanisation, increasingly connected rural consumers, and rising economic activity. With over half of the population under 30, young consumers are a powerful driver of demand. A significant share of the fashion market remains unorganised, creating ample opportunities for organised players to expand. As shoppers become more brand-conscious and seek higher-quality experiences, organised retail is expected to gain substantial ground. Ethnic and value fashion will also benefit as consumers transition from unbranded to branded products.

The trajectory is expected to be driven with contribution from all segments, ethnic wear, modern wear, casual wear and also fashion accessories Digital transformation is further reshaping the market. The spread of e-commerce, smartphones, and internet access is making fashion more accessible, while also delivering a more personalised and convenient shopping experience.

2.4 Indian Silk Sector

Silk is associated with Indian heritage and culture since time immemorial. Indians have a strong cultural bond with silk products. In the modern age of convenience clothing, athleisure, Indian women aspire and choose to buy the best of the sarees, lehengas, ghagras and other traditional Indian women attire crafted from silk with intricate work. A silk garment is the “pride of the women wearing it and envy for the other women. India remains the worlds second-largest producer of silk, accounting for over 30% of global output, with Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal, and Jharkhand as key production hubs. The Indian silk industry is projected to grow steadily, driven by rising domestic demand for traditional attire such as sarees, lehengas, and dupattas, as well as increased exports to the US, Europe, and Southeast Asia. Indias raw silk production reached 34,042 metric tonnes during the April January period of 2024 25, marking a significant increase of nearly 10,000 metric tonnes from 24,299 metric tonnes recorded in the same period of 2014 15. This growth reflects the impact of several government initiatives strategically designed to strengthen the sericulture sector. Programmes such as the Catalytic Development Programme, the North East Region Textile Promotion Scheme (NERTPS), the Integrated Scheme for the Development of the Silk Industry, and the Silk Samagra initiatives have played a pivotal role in modernising production practices, improving quality standards, and expanding output across key silk-producing states.

Employment generation remains one of the most important contributions of the silk sector, with an estimated 80.90 lakh people engaged in sericulture activities as of January 2025 71.2 lakh in direct employment and 9.7 lakh in indirect roles. This underlines the industrys critical role in supporting rural livelihoods. Quality improvements have also been prioritised through the establishment of 109 Automatic Reeling Machines across the country, enabling the production of international-grade 3A and 4A silk, further strengthening Indias position in the global silk market.

To sustain this momentum, the Central Silk Board is implementing the Silk Samagra-2 scheme, with a total allocation of 4,679.85 crore for 2021 26. Under this programme, 1,075.58 crore has already been disbursed, benefiting approximately 78,000 stakeholders involved in pre- and post-cocoon activities such as silkworm rearing, kisan nurseries, infrastructure development, and post-cocoon processing. Research and development initiatives have further contributed to higher productivity and better alignment with the governments vision of Aatmanirbhar Bharat (Self-Reliant India) in silk production. Over the last three years, Andhra Pradesh and Telangana alone have received 72.50 crore and 40.66 crore respectively to implement beneficiary-oriented components of the scheme, bolstering regional supply chains. Overall, Indias ongoing investment and policy support are expected to enhance the sectors global competitiveness, create more employment opportunities, and increase its contribution to textile and handloom exports.

Outlook

Consumer spending on weddings, festivals, and cultural celebrations continues to fuel demand for premium and handloom silks, while government initiatives like the Silk Samagra 2.0 scheme are supporting sericulture development, technology upgrades, and skill training for artisans. Sustainability is also gaining prominence, with growing interest in organic, eco-friendly silk production and traceable supply chains.

Overall, Indias silk sector is expected to see healthy expansion, balancing heritage craftsmanship with innovation and responsible production practices to meet evolving consumer expectations at home and abroad.

3. Company Overview

Your Company is a leading player in the ethnic womens wear especially sarees in South Indian states of Telangana, Andhra Pradesh Karnataka, Tamil Nadu and Pondicherry through various formats- Kancheepuram Varamahalakshmi, Kalamandir and Mandir. The company also operates in the value fashion segment through KLM Fashion Malls in Andhra Pradesh, Telangana and Karnataka. Indian women, South Indian women in particular, have a strong cultural and sentimental bonding with the saree. Saree is the preferred dress code at festivals, celebrations, functions and events across India, more specifically in South India.

Women irrespective of age, strongly prefer to look at a saree in the day light, feel the fabric before deciding to buy a particular piece. Also, traditionally buying for celebrations and events is done by a group of women from the family and friends visiting an outlet and only after deliberating on the fabric, colour, design and various other intricate details. The showrooms of the Company have been designed to meet the above unique shopping experience. All formats are designed to induce a festive, joyful atmosphere with a touch of divinity to the customers.

The companys sales strategies have been designed to give best of the following characteristics: P Price Q Quality R Range S Service Women across segments demand huge range before buying a garment, all the more a saree. Once the design is chosen, the quality and price are double checked by the customer before the billing. Apart from price, quality and range, availability of tailoring services, other accessories within the outlet play a significant role in fructifying a sale. The showrooms of the company offer extremely high-quality services in: a. Articulated explanation of the saree comprising of fabric, design, color, trend and other factors b. Professional tailors for accessories including delivery of the accessory at the desired location of the customer

c. Brands:

Kalamandir:

‘Kalamandir the flagship brand, was launched in September, 2005. The brand was launched to capture the larger market for ethnic wear for the entire family. Kalamandir showrooms are operational in cities and towns in Andhra Pradesh, Telangana and Karnataka enjoying good patronage and brand recall.

Mandir:

Mandir format was launched to offer sarees, lehengas and other ethnic womens wear customised with intricate art work, both with thread and other material. Mandir caters to the hyper customised ethnic fashion requirements for customers willing to pay higher premium customization. Customers interact with the staff at the showroom to explain the desired customization. A dedicated workshop with artisans works to deliver the final product with precise customization. Mandir showrooms are located in the niche residential and business localities in Hyderabad- Telangana.

Kancheepuram Varamahalakshmi:

Kancheepuram Varamahalakshmi format offers sarees across outlets including ethnic wear at select outlets. Kancheepuram Varmahalakshmi stores have a pious and serene store layout displaying the rich cultural heritage of the country. The showrooms have ethnic interior with murals, art works and paintings clubbing the cultural values and divinity.

Kancheepuram Varamahalakshmi format launched on 31st July, 2011 for selling sarees sourced from Kancheepuram and other major weaving centres, now has a curated collection of pure silk and handloom sarees sourced directly from weavers across the country to meet the diverse ethnic requirements of customers. With wide range across designs and prices, these showrooms are a ‘one-stop location for buying sarees for wedding, festivities and all other events, doing away with the cumbersome activity of moving around various outlets for shopping. Customers across cities and towns vouch the tag line of the format ‘PQR Price Quality Range. Customers to this format leave with a unique experience assisted by well-trained saree drapers and the inputs provided by the sales personnel on the product, design and prevailing trends to customers across age groups. The ‘temple style elevation for ethnic womens wear was adopted for first time in the market by your company for Kancheepuram Varamahalakshmi format. The adoption of temple elevation by major saree retailers in South India subsequent to our unique elevation in 2011 demonstrates the popularity of the format. Kancheepuram Varamahalakshmi format, the key growth driver for the company operates across cities and towns in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Pondicherry. Showrooms under this format are being rolled across towns and cities in South India in a big way.

KLM Fashion Mall:

Your company identified the market potential in value fashion and launched KLM Fashion Mall in the year 2017 across cities and towns in Andhra Pradesh, Telangana and Karnataka.

KLM Fashion Mall is a one-stop family shopping destination for all occasions, offering value fashion garments for men, women, children and teenagers. KLM showrooms have a vibrant and trendy layout to ensure maximised display. This format attracts footfall all through the year.

Product-wise/Segment-wise performance

(in Cr)

Category	FY 2024-25	FY 2023-24
Sarees	1045.32	951.88
Ladies apparel	194.97	181.53
Mens	114.11	130.26
Kids	101.86	109.66
Few-Rasamayi	5.75	0.21
Total	1462.01	1,373.55

SWOT Analysis

Strengths

Leading ethnic wear and value-fashion retail brand in south India with a scalable model

The Group has established itself as one of South Indias foremost names in ethnic and value-fashion retail. A proven and scalable business model enables expansion across geographies and store formats, ensuring sustainable growth while catering to diverse consumer segments.

Focused sales and marketing strategy along with unique shopping experience

A targeted approach to sales and marketing has strengthened customer engagement, enhanced brand recall, and driven consistent footfall across stores. Focused promotions, loyalty programs, and curated merchandising strategies have positioned the brands effectively in their respective categories.

Well-positioned to leverage industry growth

With Indias ethnic and value-fashion apparel market witnessing strong growth, the Group is well-placed to capitalise on rising demand driven by evolving consumer preferences, increasing disposable incomes, and greater acceptance of branded ethnic wear.

Strong omni-channel presence

The Group combines an extensive offline store network with robust online platforms, providing customers a seamless shopping experience across channels. This omni-channel model strengthens market reach and ensures relevance in an increasingly digital retail environment.

Proven track record of growth and profitability

The business has consistently delivered growth in revenues and profitability, underpinned by disciplined cost management, healthy unit economics, and an efficient operating model that supports scale without compromising margins.

Experienced leadership and skilled teams

A seasoned Promoter and professional management team, backed by experienced in-house design, sourcing, and operations teams, have demonstrated strong execution capabilities. Their expertise drives innovation, operational excellence, and consistent performance across business verticals.

Weakness

Concentration in South India

A significant portion of revenues comes from stores located in four South Indian states, exposing the business to regional economic fluctuations, cultural preferences, and competitive pressures. However south India accounted more than 50% of the saree business and hence growth perspective in this strong market may not be a major weakness.

High dependence on physical stores

While there is an omni-channel presence, a substantial part of sales still comes from offline retail outlets, making the business vulnerable to disruptions such as pandemics or changes in mall footfalls. However the saree is not a self-serving category and need to be explained by the sales personnel and predominantly a physical shopping experience

Inventory management challenges

Managing a diverse product portfolio ranging from premium sarees to value fashion requires efficient inventory planning. Overstocking or understocking could lead to working capital inefficiencies or missed sales opportunities.

Exposure to fashion trends and seasonality

The business is sensitive to changing fashion preferences, wedding seasons, and festival-driven demand cycles, which can lead to sales volatility.

High competition

The ethnic and value-fashion market is highly fragmented, with intense competition from national brands, regional retailers, and unorganised players offering similar products at competitive prices.

Opportunities Product range

The Company aspires to be a one-stop destination for families seeking affordable, high-quality products. A diverse portfolio of brands and in-house designs has strengthened its position in the retail market. The dedicated product design team drives innovation and differentiation, introducing new products to enhance variety and appeal.

Quality control and assurance

Robust quality control processes reflect the Companys commitment to excellence. Routine inspections, staff training and adherence to regulatory standards ensure products consistently meet customer expectations.

Customer support

Sai Silks is dedicated to delivering superior in-store experiences, with trained staff assisting customers and collecting feedback to improve service. Exclusive Brand Outlets (EBOs) further enhance customer interaction and strengthen relationships.

Store network and online sales

As on March 31, 2025, the Company operating through 68 stores and expanded its e-commerce presence through its websites. A strong omnichannel approach integrates physical stores and online platforms, broadening reach and reinforcing brand awareness across geographies. Leading retailer

As one of Indias leading retailers, the Company serves diverse premium and ultra-premium saree segments, along with mens and childrens ethnic wear. This diversification expands the customer base and creates multiple revenue streams.

Integration of technology

Technology integration has optimised operations and supply chains, enabling data-driven decisions that improve efficiency and resource utilisation.

Threats

Price pressure from discounters

Intense price competition from discount retailers can erode margins and impact sales performance, potentially leading to customer attrition over time.

Market disruptions from online sellers

The rise of online platforms has increased price transparency, challenging the Companys pricing strategy and putting additional pressure on profitability.

Weaver management challenges

Ineffective supervision and policies for managing weavers could result in production delays and missed delivery timelines. Maintaining strong relationships with artisans is essential to ensure consistent quality and supply.

Rising competition

Growing competition in the ethnic and value-fashion segment can dilute brand value and market share. Sustained investments in innovation to remain competitive may also weigh on profitability.

Changing market dynamics

The textile industry is highly dynamic, driven by shifting consumer preferences, evolving lifestyles, and the rising influence of Western fashion, making demand unpredictable.

Talent retention

Retaining skilled sales staff is critical to delivering superior customer service. High attrition can weaken operational efficiency and impact the overall shopping experience.

Location risks

Inability to secure high-traffic, strategic store locations can hurt sales growth, hinder customer acquisition, and affect expansion plans.

Showroom Network

Saree is a ‘one-size fits for all product. However, saree is not a self-serving category. The sales person initiates the sale process by explain various facets, unique features. The sales teams at the showrooms are formed to ensure every customer is provided with the best inputs on the saree while the saree is being displayed. The showroom network of the Company has been designed to capture maximum customers. Showrooms in a format are homogenous at a macro level.

The interiors are customised based the local culture and other aspects. All showrooms are spacious with a bright entrance, warm interiors and maximised utilizable area to provide customers a unique shopping experience. Visual merchandizing, window displays, and vibrant posters are an integral component across formats. The expansive showroom network creates a seamless two-way communication channel providing key inputs to procurement teams with the current customer preferences and the sales personnel explaining the special features and other intricate details of the sarees to the customers wherever required.

The company has developed strong e-commerce platforms for Kanchipuram Varmahalakshmi and Mandir brands to engage with customers who prefer to shop online. Live shows are conducted regularly to support the online formats and to provide on-line shoppers to take through the intricate superior details of each saree. Products on the on-line channels are carefully selected displayed with all product features.

States	Number of stores (as on March 31, 2025)	Aggregate area (sq. ft.)	FY 2024-25 revenue (INR Crore)	FY 2023-24 revenue (INR Crore)
Telangana	26	2,80,751	490.54	535.87
Andhra Pradesh	17	1,97,745	412.86	441.59
Karnataka	10	1,16,209	224.89	208.59
Tamil Nadu	14	1,10,871	325.70	187.51
Pondicherry	1	10,692	8.02	-
Total	68	7,16,088	1,462.01	1,373.56

Marketing and Promotion

The well laid network of showrooms is supported by al activities. strong marketing and promotional activities play are crucial elements to enthuse buying. The company has a dynamic advertisement, publicity and marketing strategy to i. Maximise footfall ii. Attract new customers iii. Retain existing customers iv. Instinctive buying by customers Marketing and publicity are conducted through print media, television sponsorships, pamphlets, radio advertisements, LED signages, display at airports, metro stations, traffic dividers, display places of worship, sponsoring and branding for movie related activities, religious and cultural events, The company uses advanced techniques for visibility and to attract customers, reach out the target customer segment through social media and live shows. The digital publicity channels and sub-streams are handled by dedicated teams with well laid down evaluation metrics for the activities run on a particular digital marketing platform. The marketing and publicity content is curated in line with the unique features of the format and product and the format to maximise customer reach. Celebrities both national and local are engaged to attract customers and augment the brand recall. Promotions are rolled at regular intervals to cater the buying spree during, festivals and pre-wedding season and other major events. The in-store promotional activities are carefully designed to attract customers.

Human Resources

The procurement and sales personnel working in a synchronization are the back-bone of the with the support of other functions are the backbone of the company. The sales personnel provide the procurement teams with various inputs related to prevailing trends, market updates enabling the procurement personnel reach out to the weavers, machine made fabric manufacturers, and other supply sources to source the products at competitive prices.

The seamless flow of information between these teams ensures efficient inventory management, a key to the success in the retail industry. Structured incentive plans have been put in place to reward employee dedication, commitment and performance. As on March 31, 2025 there are 6439 employees (other than Executive Directors) in the Company. Your Company has well laid policies for the health, safety and security of the employees. Work protocols have been put in place for cordial conduct of business activities. Women employees are actively involved in various decision-making activities apart from being employed across hierarchy and functions. The company has set up policies and relevant controls to ensure that there is no discrimination with reference to caste, creed. Gender, sexual orientation or any other classification that is not limited demographically The company acknowledges the contribution of the weavers in the success of the organization.

Financial Review

(INR in Crore)

Year	FY 2024-25	FY 2023-24
Revenue	1462.01	1373.55
EBITDA	211.64	211.98
PAT	85.39	100.87

Operational performance overview and the significant changes in ratio

Key Ratios

Particulars	As at March 31, 2025	As at March 31, 2024	Variance	Remarks for variance More than 25%
a) Current Ratio:	4.48	3.41	31.45%	Decrease in CL due to payment of Creditors & reduction in working capital utilisation by utilising IPO funds & Internal Accruals.
Current Assets	1,125.09	1,175.08
Current Liabilities	251.32	345.05
b) Debt Equity:	0.15	0.24	-39.32%	Due to repayment of Term Loans & reduction in utilisation working capital limits by utilising IPO funds & Internal Accruals of the Company
Total Debt (long-term and short-term interest bearing)	166.53	257.75
Shareholders Equity	1,131.77	1,062.94
c) Debt Service Coverage Ratio:	3.12	2.59	20.67%	Not Applicable
Earnings available for Debt Service	234.69	233.65
Debt Service (Obligation)*	75.13	90.25
d) Return on Equity:	7.78%	13.82%	-43.67%	Fresh equity through IPO are under the process of deployment and reduction in PAT due to Tax liability araised in Search & Seizure.
Net Profits after taxes	85.39	100.87
Average Shareholders Equity	1,097.35	730.14
e) Inventory Turnover Ratio:	1.95	1.94	0.19%	Not Applicable
Total Sales	1,462.01	1,373.55
Average Inventory	750.52	706.49
f) Trade Receivables	502.37	443.78	13.20%	Not Applicable
Turnover:
Total Sales	1,462.01	1,373.55
Average Accounts Receivable	2.91	3.10
g) Trade Payables Turnover:	21.11	5.87	259.72%	Decrease in Trade Creditors level by utilising IPO funds & Internal Accruals of the Company
Total Purchases	905.54	848.56
Average Trades Payable	42.90	144.62
h) Net Capital Turnover:	1.72	2.59	-33.64%	Decrease in CL due to payment of Creditors & reduction in working capital utilisation by utilising IPO funds & Internal Accruals.
Total Sales	1,462.01	1,373.55
Average Working Capital	851.90	531.11
i) Net Profit Ratio:	5.84%	7.34%	-20.47%	Not Applicable
Net Profit	85.39	100.87
Total Sales	1,462.01	1,373.55
j) Return on Capital Employed:	13.74%	13.94%	-1.41%	Not Applicable
Earning before interest and taxes	183.01	187.54
Capital Employed	1,331.66	1,345.37
k) Return on Investment*	NA	NA	NA	Not Applicable

* There are no investments made by the company, as such the ratio is not applicable.

Financial Performance Indicators (KPIs):

Particulars	As at March 31, 2025	As at March 31, 2024
Revenue from	1,462.01	1,373.55
Operations
EBITDA	211.64	211.98
EBITDA Margin	14.48%	15.43%
Gross Margin	610.88	558.88
Gross Margin (%)	41.78%	40.69%

Outlook

We see a strong and promising future for Indias wedding / festive related and ethnic sector. A robust economic outlook, rising per capita GDP, increasing discretionary spending, and the shift from unorganised to organised retail will continue to drive growth.

SSKL is well-positioned to scale and strengthen market leadership in the coming years. Over time, the Company has transformed significantly by building multiple high-growth platforms across categories and segments. These platforms are designed to tap large, high-potential markets through a brandled approach, creating iconic brands and winning retail formats.

A diverse portfolio, a wide distribution network, and a strong operational backbone empower us to grow at scale. Our commitment to innovation, customer-centricity, distribution expansion, and operational excellence continues to reinforce our leadership. Leveraging our trusted brands, strong retail formats, and presence across promising categories, SSKL is well prepared to capture the sectors growth potential delivering exceptional value to consumers and creating long-term shareholder wealth.

Risks and concerns

The Companys performance is closely linked to the broader economic environment and discretionary spending of the people. Wedding and festivity calendar would also have an impact.

Indias textile market is highly competitive, requiring the Company to meet demand consistently and manage inventory effectively. To address this, the Company employs demand forecasting, analytics-driven planning, and proactive stock management.

As a labour-intensive business, the Company relies on a skilled workforce to deliver quality customer service. Hiring, training, and retaining talent remain critical priorities to sustain smooth operations and drive sales performance.

Timely procurement from third-party vendors and master weavers is essential to maintain production schedules. Fluctuations in raw material prices, availability, and quality can disrupt operations and affect product consistency.

The Company has adopted strategic pricing practices to mitigate rising input costs by passing price increases to customers when necessary. Rigorous quality control measures are also in place to ensure products meet the highest standards.

Cautionary statement

Certain statements in the MDA section about future prospects may be forward-looking statements, which include a number of underlying identified and unidentified risks and uncertainties that might cause actual results to differ considerably. In addition to the aforementioned macroeconomic changes, such ongoing geopolitical developments pose unprecedented, unknown and continually shifting risk(s) to the company and the environment in which it operates. The reports facts and statistics are based on the findings of these assumptions, which are based on available internal and external information. Because the factors behind these assumptions change with time, so do the estimates upon which they are founded. These forward-looking statements reflect only the companys current objectives, beliefs, or expectations and each forward-looking statement is only as of the date it was made. The company disclaims any duty to alter or update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Internal financial control systems

Internal financial controls, including entity-level controls, have been introduced to ensure that business operations run smoothly and efficiently. This includes following Company policies and procedures, maintaining accounting records that are accurate and comprehensive, preparing and reporting reliable financial information on time, protecting assets and preventing and detecting fraud and errors. These internal financial controls were examined using an internal audit procedure designed by the Company and a professional firm hired to conduct systematic internal audits. Based on the evaluations, the directors confirm that the applicable Accounting Standards were followed in the preparation of the financial statements for the fiscal year ending March 31, 2025. Internal financial controls were determined to be generally adequate and effective, with no significant flaws discovered.