Siyaram Silk Q2 FY27 Results (NSE: SIYSIL)
Signal: Steady quarter
The read
The Q2 seasonal rebound lifted consolidated revenue to ₹81,357.95 lakh, +15.3% YoY, but the thesis is mixed: gross margin compressed 1,923bps to 48.7%, finance costs rose 34.7% to ₹1,198.08 lakh and PAT fell 14.1% to ₹7,450.28 lakh; H1 operating cash flow nevertheless turned positive at ₹7,460.28 lakh from negative ₹5,155.88 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹813.58 Cr | +15.3% | +82.6% |
| Net profit | ₹74.5 Cr | -14.1% | |
| EPS | ₹16.42 | -14.1% | |
| EBIT margin | 14.3% |
P&L walk
Revenue increased to ₹81,357.95 lakh, +15.3% YoY and +82.6% QoQ, but gross margin fell to 48.7% from 67.9% YoY as disclosed material, trading and inventory-related costs rose faster than revenue; EBITDA margin was broadly stable at 14.3% versus 15.2% YoY, while finance costs rose 34.7% and PAT declined 14.1%.
Key positives
- Revenue from operations reached ₹81,357.95 lakh, +15.3% YoY, with QoQ growth of 82.6% after the low Q1 base.
- Employee benefits expense grew only 4.0% YoY to ₹5,890.94 lakh versus 15.3% revenue growth, reducing employee-cost intensity to 7.2% of revenue.
- Operating cash flow turned positive at ₹7,460.28 lakh in H1FY27 versus negative ₹5,155.88 lakh in H1FY26.
- EPS tracked PAT without dilution: EPS declined 14.1% YoY to ₹16.42, matching the 14.1% PAT decline.
Key concerns
- Gross margin compressed 1,923bps YoY to 48.7% as raw material cost rose to 37.9% of revenue from 36.2%; the filing does not disclose the driver.
- Finance costs rose 34.7% YoY to ₹1,198.08 lakh, including ₹289.15 lakh of cumulative NCRPS dividend provision.
- PAT declined 14.1% YoY to ₹7,450.28 lakh despite 15.3% revenue growth, showing that top-line growth did not translate into earnings growth.
- Inventories stood at ₹63,971.34 lakh and trade receivables at ₹65,343.01 lakh at 30 September 2026, keeping working-capital intensity elevated.
Research and educational content only. Not investment advice.