Siyaram Silk Q1 FY26 Results (NSE: SIYSIL)
Signal: Margin pressure
The read
Q1FY26 PAT of ₹11 Cr looks optically strong (+137% YoY) but this is almost entirely treasury other income (₹21.7 Cr) and a one-off property development cost (₹24.6 Cr) distorted the operating margin; core textile OPM ex-property cost was ~8.7% vs ~6% a year ago, still below historical levels. The auditor's going-concern emphasis on loss-making Italian subsidiary Cadini S.R.L. is a structural risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹445.66 Cr | 14.4% | -47.8% |
| EBIT | ₹21.73 Cr | 34.2% | |
| Net profit | ₹11.01 Cr | 137.3% | |
| EPS | ₹2.43 | 138.2% | |
| EBIT margin | 3.2% |
P&L walk
Revenue grew 14.4% YoY but fell 47.8% QoQ on seasonal weakness; EBITDA margin contracted ~280bps YoY to ~3.2% because of a ₹2,455.66 lakh property development cost (one-off) and higher raw material cost (50.0% of revenue vs 45.5% a year ago); PAT jumped 137.3% YoY to ₹1,101 lakh, entirely driven by other income (₹2,168.49 lakh, +81.4%) and lower depreciation; the foreign subsidiary Cadini S.R.L. continues to erode net worth, flagged by auditors with a going-concern emphasis.
Key positives
- Revenue from operations grew 14.4% YoY to ₹44,566 lakh, driven by higher textile volumes.
- Other income surged 81.4% YoY to ₹2,168.49 lakh, providing a cushion to the bottom line.
- EPS climbed 138% YoY to ₹2.43, with no equity dilution.
Key concerns
- Core operating margin compressed ~280bps YoY to ~3.2% due to higher raw material cost (50.0% of revenue vs 45.5%) and a one-off property development cost.
- Foreign subsidiary Cadini S.R.L. continues to incur losses and has negative net worth; auditor issued a going-concern emphasis of matter.
- Sequential revenue halved (-47.8% QoQ) due to seasonal Q1 weakness; quarterly earnings are lumpy.
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