Siyaram Silk Mills Ltd (NSE: SIYSIL) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Ayushi Gupta — Investor Relations
Gaurav Poddar — Chief Executive Officer
Surendra Shetty — Chief Financial Officer
Analysts:
Unidentified Participant
Dev Gulwani — Analyst
Apoorva — Analyst
Varun — Analyst
Pratik Shah — Analyst
Riddhi Vora — Analyst
Kriti Agrawal — Analyst
Deepak Patil — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the CRR Silk Mills Limited Q3FY26 earnings conference call. 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 the conference call, please signal an operator by pressing Star10Zero on your touchtone phone. Please note that this conference is now being recorded. I now hand the conference over to Ms. Ayushi Gupta. Thank you. And over to you, ma’. Am.
Ayushi Gupta — Investor Relations
Thank you. Good morning ladies and gentlemen. I welcome you to the Q3 and 9 months FY26 earnings conference call of CRM Silk Mills Limited to discuss this quarter’s performance. We have from the management, Mr. Gaurav Podar, President and Executive Director, Mr. Ashok Dalant, Senior President and Director and Mr. Surendra Shetty, Chief Financial Officer. Before we proceed with the call, I would like to mention that some of the statements made in the 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 Q and A. Thank you. And over to you sir.
Gaurav Poddar — Chief Executive Officer
Good morning and thank you all for joining us for the earnings conference call of ciara Silk Mills Limited to discuss Q3 and 9 months FY26 results. Wishing you and your families a Happy New Year. I hope you all have had the opportunity to review our financial results and investor presentation which have been uploaded to both the Stock Exchange and our company website. CRMs continues to focus on developing products that keep pace with changing market trends and customer needs. We aim to offer quality choices across different price points and style preferences. Our brands enjoy strong recognition and we are committed to building on that foundation.
With our integrated manufacturing and distribution setup supported by a dedicated creative design team that drives innovation across our collections, we are able to deliver consistently across all categories. In the third quarter of FY26, we saw demand pick up at the start of the festive season. However, as the quarter went on, customers stayed cautious with their spending and footfall remained moderate. The demand during the quarter remained largely occasion driven with spikes limited to key events rather than rather than a sustained trend. As a result, the quarter delivered moderate performance despite a challenging market environment. CRM has strengthened its market position and has grown the overall business.
Alongside this, the company has consistently expanded its retail network by adding new stores and widening its retail footprint. In line with this measured expansion, we have remained disciplined in our capital allocation which has helped us maintain absolute EBITDA with while pursuing sustainable growth in Q3 of FY26, we continued expanding our store network by adding two Zcode and five Devo outlets, taking the total number of stores for Zcode and Devo to 25 and 17 respectively. We remained focused on achieving our plan of opening about 35 stores during the year. Our priority is to open stores in markets with strong potential, ensuring sustainable growth and better long term returns.
We are pleased to share that the Board of Directors has declared a second interim dividend of Rupees three per share with a face value of Rupees two each. This decision highlights our ongoing commitment to rewarding shareholders and reflects the confidence in our financial strength and future growth prospects. In quarter three of FY26, our total income was 639 crores compared to 586 crores compared to in the same quarter of the previous year. Reflecting a year on year growth of 8.9% for nine months FY26 period, the total income reached 1782 crores up from 1546 crores in the corresponding period last year representing an increase of 15.3%.
This performance highlights the resilience of our business model and the steady momentum created through disciplined execution and strong customer engagement. As we move ahead, we are placing greater focus on strengthening our core capabilities in design, product development and understanding emerging consumer preferences. Our aim is to offer products that are more relevant, contemporary and aligned with what customers are seeking across different markets. We continue to refine our internal processes and enhance coordination across teams to improve speed, consistency and execution across our categories. Alongside these efforts, we are also intensifying our marketing initiatives to support the growth of our business.
By strengthening brand visibility, enhancing digital engagement and running targeted campaigns. We aim to build deeper customer connections and accelerate demand across key markets. We see meaningful opportunities emerge across businesses and we are aligning our strategies to participate effectively in this growth. With a disciplined approach and a clear long term vision, we believe CRMs is well positioned to build momentum and create sustained value in the years ahead. Now I would like to request our CFO Mr. Surendra Shetty to share highlights of the financial performance. Thank you. Thank you, Gauravji. Good morning everyone.
Surendra Shetty — Chief Financial Officer
For the third quarter for the financial year 26, our total income stood at rupees 639 crores compared to 586 crores in the quarter three of financial year 25 in terms of the revenue mix, fabric contributed 78%. Garment accounted for 15% and Yan and others made up 7%. Our EBITDA for the quarter was rupees 84 crores as against 83 crores in the quarter three of Financial Year 25. Reflecting a year on year growth of 1.5%. The EBITDA margin for the quarter came at 13.2%. PAT for the quarter three, financial year 26 stood at 42 crores compared to Rs.
46 crores in the same quarter last year. The PAT margin for the quarter was 6.6%. Moving into the nine month period for the financial year 26, our total income reached 1782 crores as compared to rupees 1546 crores in the same period of the last year reflecting a year in growth of 15.3%. EBITDA for nine months financial year 26 to date rupees 262 crores with the EBITDA margin of 14.7%. PAT for the nine month period came in at rupees 134 crores and PAT Marjid was 7.5%. Thank you. That concludes my remarks. We can now open the floor for the question answer.
Surendra Shetty — Chief Financial Officer
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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 — Analyst
Thank you for the opportunity. First question is what is the revenue from ZCODE and Devo in this quarter?
Ayushi Gupta — Investor Relations
So the new retail business is for the. I’ll tell you for the overall nine months so far and that is around 55 crores that we have achieved in these nine months. So our original target for the whole year original target for the whole year was around 70 to 80 crores and we will I think achieve will be in line with those guidance.
Dev Gulwani — Analyst
Can you give a breakup between them, Zeecode and Devo?
Gaurav Poddar — Chief Executive Officer
We are not giving breakups at the moment because it’s too early in the business and we are giving an overall number just as an indication as to the progress that we’ve made.
Dev Gulwani — Analyst
So my growth. Second question is. My growth in textile business has been just approximately 3% whereas peer like Raymond has grown 11%.
Gaurav Poddar — Chief Executive Officer
Generally in the Traditional business. We give an annual guidance and it’s a seasonal business. So we don’t look at quarterly numbers because they vary a lot. And it also depends on the festivities in this quarter. Particularly Diwali was in the beginning of the quarter which resulted in the sales in the previous quarter which saw much higher growth. In any case, we have increased the overall guidance for this year which is as an exception and we from 10 to 12% as an overall company to between 12 to 15%. And by the end of the year we are confident of remaining within that guidance of 12 to 15% as an overall growth.
Dev Gulwani — Analyst
What is the volume growth in textile business this quarter?
Gaurav Poddar — Chief Executive Officer
So once again it’s not advisable to look at it on a quarterly basis. But if you look at a 9 monthly basis, then there is about 9% odd volume growth. But again there is a difference in suitings and shirtings as a category. So it is more advisable to look at value as a whole.
Dev Gulwani — Analyst
But if you can provide for yoy.
Gaurav Poddar — Chief Executive Officer
I mentioned fabrics is about 9% also.
Dev Gulwani — Analyst
There was increase in gross margins by approximately 3%. YoYo, what is the reason behind that?
Gaurav Poddar — Chief Executive Officer
That is I think a combination of different product mix across different segments. So I think it is a overall in the year we will see a balanced stable number.
Dev Gulwani — Analyst
There was also increase in processing and labor charges from it is approximately 14 to 15% of net sales. Why is there is a sudden increase?
Gaurav Poddar — Chief Executive Officer
That may be because of a buildup in inventory that we are creating for the next quarter which traditionally is the best quarter of the year.
Dev Gulwani — Analyst
And store expansion was quite slow for Zcode this quarter. So will you be able to achieve FS26 store guidance for Zcode?
Gaurav Poddar — Chief Executive Officer
It is our endeavor to achieve our initial guidance. The third quarter intentionally was slower because we wanted to focus on operations during the festive season rather than store openings. Because we are working on a very lean team. And that is why a large part of the stores were opened in the second quarter to get better use of the festive season. And that is why the third quarter the numbers are small, but we are confident of getting in line with about those 35 approximately stores that we plan for the year.
Dev Gulwani — Analyst
And recently we have seen trends. Sales have slowed down in recent quarter. So do we see it as an opportunity or a challenge?
Gaurav Poddar — Chief Executive Officer
I’m sorry, can you repeat your question please?
Dev Gulwani — Analyst
We have seen trend sales have slowed down in recent quarter. So do we see it as an opportunity or the challenge?
Gaurav Poddar — Chief Executive Officer
I think that the overall apparel market, if you see as a whole is a very Very large market. The largest player in the market also is a very small percentage of the overall market share. So the market is very large and a large part of that is unorganized. So there is already a big headroom for a lot of players to do well. We are in a very small stage and to compare us with established players right now is not fair. And we are progressing well. We have set ourselves some benchmarks and we are progressing well towards those benchmarks.
We’ve given an initial target for this year of about 70 to 80 crores. So we are in line with those targets. So I mean we are looking at our own internal operations on how we can improve efficiency there rather than look outside. There is a lot of headroom for growth and we are very confident with what we are doing and the results that we achieved so far.
Dev Gulwani — Analyst
What are your store expansion plans for Zcode and Devo for FY27?
Gaurav Poddar — Chief Executive Officer
This is something that we will declare by the end of next quarter. We are still in plans of deciding the numbers and the locations of what we want to do and when we firm up that maybe in the next quarter we will have a better idea and share that with you.
Dev Gulwani — Analyst
Also, will you be moving to any new geography.
Gaurav Poddar — Chief Executive Officer
Again? That’s something that we are reviewing at the moment. I will be able to give you better clarity in the next quarter.
Dev Gulwani — Analyst
Okay, thank you.
Gaurav Poddar — Chief Executive Officer
Thank you.
operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of APURVA from Whitestone pms. Please go ahead.
Apoorva — Analyst
Yes, thank you sir for the opportunity. So my first question is on the say in our quarterly numbers, how much is the loss from our retail business? Maybe at EBITDA or PBT level we’ve.
Gaurav Poddar — Chief Executive Officer
Given an initial guidance of 100 to 150 basis points drop in EBITDA for the whole year. So we will stick to that guidance and we’ll be within that limit for the whole year.
Apoorva — Analyst
Got it. Got it sir. And Sarit, what are store addition plans for the Q4? Like you mentioned 35 stores. So that is for the Zcode.
Gaurav Poddar — Chief Executive Officer
We had planned for 35 stores for Zcode and they were put together this year we have opened I think about 22 stores odd and the balance stores is our endeavor to complete by March. Maybe there is a spillover but this is a kind of broad guidance.
Apoorva — Analyst
Got it sir. So my next question is what benefits do you see like with the Euro Europe happening? As I know that although Exports are only 9% or maybe 10% approximately we see heading for exports as well.
Gaurav Poddar — Chief Executive Officer
Yes, of course, exports. India as a country is really promoting manufacturing and with these new FTAs coming in place, that will also help Indian manufacturing. Apart from that, there are other global positionings of different other countries that will also help India in terms of being an export destination for apparel and textiles. We are already exporting about as you mentioned, 10% of our turnover. This is largely fabrics. So it’s not direct export to these countries, but it is export to converters. So these new treaties and India positioned as a manufacturing hub will definitely help us. Our business largely is domestic and branded.
So and there is growth within that. The new retail business is also growing faster than the traditional business. So I don’t know in percentage what the numbers will be, but absolute value of course export, there is a lot of potential for us to grow.
Apoorva — Analyst
Got it. Sir. Send my last question on the revenue and the margin guidance for the FY27.
Gaurav Poddar — Chief Executive Officer
So we have given an FY26 guidance and we’ve upgraded that guidance from 10 to 12% to 12 to 15% revenue guidance and we maintain a 14% approximate EBITDA level with 100150 basis points drop in retail for FY27. We’ll get back to you by next quarter of the next year’s guidance.
operator
Sure sir. Thank you all the discussion. Thank you. Thank you. Thank you. A reminder to all participants, you may press star N1 to ask a question. The next question is from the line of Varun from Bawa Investments. Please go ahead.
Varun — Analyst
Hi sir, thank you for the opportunity. A couple of questions from my end. Like the Q3 revenue grew approximately it’s a 9% yoy and but the fat VC has declined. So could you break down like what are the key factors which has been impacting the bottom line like for the performance of this quarter.
Gaurav Poddar — Chief Executive Officer
So there are two, three major reasons. One is there is a one time cost of this employee cost because of the new labor code and there is some increase in advertising and sales promotion. So this is both these put together is roughly 1012 crores extra. And then there is this retail sales that creates a lot of new retail businesses which is in line with what our expectation is. So these are broadly the main reasons for drop in ebitda.
Varun — Analyst
So like the finance cost has been increased like on a y o y basis. So like should we expect this the same cost in the ballpark like for FY27 like would we like remain elevated?
Gaurav Poddar — Chief Executive Officer
This is largely due to some extra working capital that was deployed throughout this year for Preparing inventory and these all working capital requirements. We are well within a comfort limit in terms of the debt that the company has. So it’s not so significant and not so worrying for us. We are always in endeavor to because it’s a made to stock business. So it is an ongoing effort to keep optimizing inventory and so this keeps varying.
Varun — Analyst
So like can we expect this to reduce or like stay same rather than going up.
Gaurav Poddar — Chief Executive Officer
We hope that the fourth quarter number should be better since it’s the best quarter of the year. We are planning for inventories, we are building up the inventory. So that is the reason for an increased working capital. So hopefully by the end of the fourth quarter we should see a better number.
Varun — Analyst
All right sir, like given Z code and Devo have been like scaled under our own company and like operating model. So how do we like see scaling this like is approach in terms of like capital allocation and the return perspective over the long term?
Gaurav Poddar — Chief Executive Officer
Oh I wouldn’t say it is a scaled model. It is something that we are still building. This is the first year of full operation that we’ll see for this business. Some of the stores are still opening within this period. Right now we have more store openings than the number of stores that we have been running. So it’s still a very nascent business which is still growing. And we want to be very calculated in terms of store openings. We have always mentioned that we are not chasing numbers in terms of store openings but we want to work on efficient operating models and that is what I think as a strategy we will continue to do and use our capital wisely and prove prudently.
Varun — Analyst
All right, so samely margin guidance or any something like that for Q4 we can expect something.
Gaurav Poddar — Chief Executive Officer
We don’t give quarterly guidance because with the seasonal business and that is why we give an annual guidance. So the 14 EBITDA guidance approximate number without the retail calculation is is something that we will stick to.
Varun — Analyst
All right sir. Great. That helps. Thanks a lot sir. All the best.
Gaurav Poddar — Chief Executive Officer
Thank you.
operator
Thank you. A reminder to all participants. You may press Star and one to ask a question. The next question is from the line of Apoorva from Whitestone pms. Please go ahead.
Apoorva — Analyst
I just missed one question. If you can share the store level economics, maybe the revenue per store or the rent.
Gaurav Poddar — Chief Executive Officer
So I think it is still very early in our journey to be sharing these numbers because I mean this is just the first. Hardly a few stores have seen a year or just little over a year. So we are going to wait a few more quarters before we start Releasing these numbers. But in a nutshell, I can tell you that qualitatively we have received excellent feedback in terms of the product, in terms of the pricing markets that we have opened. We have seen in the festive season, better footfall, more repeat customers. So the trend seems to be very positive and we are very encouraged with this response and we want to continue to grow this business and make it a meaningful part for the company’s turnover.
Apoorva — Analyst
Sure. So maybe like if you can share maybe like three, four years down the line, like how much revenue do you see these retailers would contribute?
Gaurav Poddar — Chief Executive Officer
I think that we’ll take it year on year basis. We want to continue to, you know, work on the immediate operations and continue to expand these stores. As I mentioned, our expansion will be very calculated and we won’t chase large numbers to keep opening. And rather than that, work on the efficiency on the model. A fabric business and a traditional business also will grow at the same time. So it’s difficult to say how much as a percentage this would become. But of course, because the base is so small, it will definitely be more meaningful than it is today.
Apoorva — Analyst
Sure, sir, thank you.
Gaurav Poddar — Chief Executive Officer
Thank you.
operator
Thank you. A reminder to all participants, you may press star N1 to ask a question. The next question is from the line of Pratik Shah from Investing Alpha. Please go ahead.
Pratik Shah — Analyst
Hello. Yeah, hi. Am I audible?
operator
Yes, we can hear you. Yes, sir, please continue.
Pratik Shah — Analyst
Yeah, so my question is fabric still contributes more than 75% of the revenue. So how do you see this mix evolving over the period?
Gaurav Poddar — Chief Executive Officer
So fabric traditionally has been a much larger percentage north of 80% since, for a few years ago. It has gone down to 75 to 78% now as other businesses are growing. There is a Indigo business that is also growing in the yarn and other segment. That is about 5, 6% now. And this retail business that we have now, that will start becoming more meaningful as years go by because the number of stores will increase and the turnover, because we have more points of sale, the turnover as a whole in terms of the business will start growing.
So that will take away share from the fabric business in percentage terms.
Pratik Shah — Analyst
Okay, got it. And sir, are there any plans to extend Z Code or Divo into online or even omnichannel formats? And how do you see digital channels complementing your physical retail strategy?
Gaurav Poddar — Chief Executive Officer
So in terms of E commerce right now, zcode and Devo are not on the E commerce channel because business is new and we are focused on the offline format and we will continue to focus on that format for some time because we need to establish a foothold in terms of the number of stores that we open to be able to justify operating costs at an overhead level. But of course, online is a format that is growing and it is a complementing format for physical retail in terms of a retail brand experience for the consumer. So that is something that will be looked at at a later stage.
But of course that is something at the back of our minds.
Pratik Shah — Analyst
Okay, sir, got it. And so one last question. As marketing investment increased to support new brands like zcore and Deebo, so how should investor think about marketing spends as a percentage of revenue over the next few years? And when, when do you expect this spends to be normalized?
Gaurav Poddar — Chief Executive Officer
So marketing is an important part of, you know, something that we continue to do because our traditional business is also a branded business. And advertising for us is more of an investment in terms of building the brand and to be able to continue to be in the mind of the consumer. This activity has been ongoing. We had a little pause during COVID and then restarted maybe year or two ago. This year also we have elaborated our marketing spends and being able to be visible during the festive season. The new brands, zcode and Devo, since they are more regional specific at the moment, the marketing spend spends are more regional and more digital.
The spends as a percentage of turnover, we have indicated between 4 to 5% of revenue. And this is the kind of number that we are comfortable with and will continue this year as well as in the ongoing years. And this includes the new businesses as well as the traditional businesses.
Pratik Shah — Analyst
All right, sir, got it. Thank you.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is from the line of Rajiv Jain from RCAN Investments. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Gaurav Poddar — Chief Executive Officer
Yes.
Unidentified Participant
Thank you for the opportunity, sir. So firstly, could you share your view on how discretionary spending patterns are evolving, particularly when comparing demand for premium fabric offerings versus the mass and value driven categories.
Gaurav Poddar — Chief Executive Officer
We feel that India is a very large country and there is, you know, discretionary spending is something that now in this festive season is always at a high during. In terms of when you look at the overall year, when there is discretionary spending during festive season, there are all kinds of different audiences and therefore premium as well as mass kind of fabrics and all kinds of price points do well. Of course on the value side, the audience is much larger and therefore the numbers are much larger. But there is a good number of customers at the premium end as well.
So it’s more festive driven than price point driven.
Unidentified Participant
Understood. Also secondly, in the current market scenario, are you witnessing any maybe pricing pressures from organized competitors or maybe less unorganized players? And how is the company balancing competitive pricing with margin protection? Could you shed some light on that?
Gaurav Poddar — Chief Executive Officer
So a large part of the business comes from the fabric business where there are not many branded players. And I don’t think there are any pricing pressures as such. This is something that, you know, we stick to what we do. We have a variety of different blends and different markets that we are in terms of the product. In shooting and shirting there is in suiting, for example, from poly viscose to woolen blends. In shirting there are poly cotton, cotton linen blends. So there are variety of different products and at different price points. So it is just about being able to have the distribution, supply chain efficiencies, all of that, rather than looking at pricing pressures.
Unidentified Participant
Understood, sir, understood. That’s all from my side. Thank you for the opportunity and all the best for the future quarters.
Gaurav Poddar — Chief Executive Officer
Thank you so much.
operator
Thank you. A reminder to all participants, you may press star N1 to ask a question. The next question is from the line of Rudhi Vora from SES Capital. Please go ahead. Hello.
Riddhi Vora — Analyst
Am I audible?
Gaurav Poddar — Chief Executive Officer
Yes, we can hear you.
Riddhi Vora — Analyst
Yeah. So the question as the company’s EBITDA margin has like declined to 13.2% which was like 14.1% in Q3FY25. So could you clarify the reason which led to this decline?
Gaurav Poddar — Chief Executive Officer
I think I’ve already mentioned earlier that there are two or three main reasons. One is the employee cost because of the new labor code that was a hit we had to take as well as some increase in advertising and this retail business that we have earlier indicated to drop our ebitda. In any case, I would recommend that we don’t look at quarter on quarter numbers. We have to look at the yearly numbers because of the seasonal nature of business. And in an annual level we indicate and continue to guide with a 14% approximate EBITDA level and then the retail loss that will reduce that further.
Riddhi Vora — Analyst
Okay, and so how do you decide between the opening large format versus small format stores?
Gaurav Poddar — Chief Executive Officer
You mentioning about ZCODE in particular? Yeah, this was an experiment that when we started out in zcode we wanted to experiment with these two size of formats. One was a small format which is about 4 to 6,000 and the larger format which was 6 to 8,000 9,000 square feet. So in the initial stage we did both these formats. But over the course of this year we have experienced that the larger format stores are performing better in terms of consumer experience, in terms of being able to display our products and give our offerings, display it in a better manner.
So we are more focused on the larger format shops, unless it’s a mall or something else where we are forced to select something at about 5,000 square feet. So in general, our store strategy is the sizes are more in the on the larger size, so 6 to 8,000 square feet approximately.
Riddhi Vora — Analyst
Further, like we know the ongoing investment which we have done in retail expansion and brand building, so what EBITDA margin range should we consider as sustainable over a medium term? Once the business reaches a more normalizing operating environment.
Gaurav Poddar — Chief Executive Officer
These are something that we will start sharing a little later on. We are looking at these businesses first in terms of opening the stores, getting them at an operating efficiency level. Even at a small base of stores, sourcing for these stores are still a challenge. So there are gross margin challenges. So these are all initial struggles that everyone has to go through. And we are going through that and hoping to establish that in a year or so. So we will be able to get into more numbers maybe in a few quarters from now.
Riddhi Vora — Analyst
Okay. Okay. Thank you. All the best for the future. Thank you.
operator
Thank you. A reminder to all participants, you may press star N1 to ask a question. The next question is from the line of Kriti Agrawal from SK Associates. Please go ahead.
Kriti Agrawal — Analyst
Yeah, thank you so much for the opportunity. I wanted to know that how is your in house design and R D capability helping, you know, differentiate your fast fashion offerings?
Gaurav Poddar — Chief Executive Officer
Our in house design has already been in place without fast fashion as well. Because we are already in the fabric and apparel business that we have. We have multiple designers and sampling infrastructure that is created in our factories to help us predict and design for the future. We also have a lot of subscriptions to International Forecasts and International trends. Cardini, our Italian brand and subsidiary, also exposes us to a lot of fashion that’s happening in the European segment where actually fashion originates and inspirations are drawn from where we participate in exhibitions, we visit other Fashion Forward designers and other places in Europe through that business.
So there is already a lot of synergy that is there within the business and the product being Fashion Forward and the product being trendy is something that we feel is a USP for the company because of the background of the company being in the fabric business in the first place.
Kriti Agrawal — Analyst
Understood. And are you seeing any better tractions in South India for zcode and Devo in North India as per the strategy?
Gaurav Poddar — Chief Executive Officer
Yeah. So we Had a reason to get into the particular places for each brand and we wanted to stick to a cluster successfully. We’ve been able to stick to that cluster. And of course as the year has gone on and the festive season, we are midway through the festive season now in the wedding season and we’ve seen great traction in this last few months and very encouraging response for both the brands.
Kriti Agrawal — Analyst
Understood. And are there any plans for strategic partnerships or acquisitions in future?
Gaurav Poddar — Chief Executive Officer
We don’t have anything at the moment in mind, but we are always open to discussing new ideas. At the moment we are more focused on the existing challenges that we’ve taken in terms of these two new retail brands. And capital allocation also is being done for these two brands. So anything is available. We are always happy to consider and look at it.
Kriti Agrawal — Analyst
Understood. Yeah. That’s it for my side. Thank you so much.
Gaurav Poddar — Chief Executive Officer
Thank you.
operator
Thank you. The next question is from the line of Deepak Patil from Equintus Wealth Advisory. Please go ahead.
Deepak Patil — Analyst
Am I audible?
Gaurav Poddar — Chief Executive Officer
Yes.
Deepak Patil — Analyst
Okay. So we started this year revenue guidance for retail business stated around I think 70, 80 crores. Would you share the expected revenue trajectory. For next year for the retail business and the key drivers behind this growth outlook?
Gaurav Poddar — Chief Executive Officer
So we have only given guidance for the end of this year which is about 70 to 80 crores. And with the current run rate that you are at, we expect to be comfortably achieve these numbers for the next year. By the next quarter I think we’ll be in a better position to give you guidance. The key reason for the increase in growth will be of course new store openings as well as the main reason will be the better efficiency of the existing stores that we opened. So that is going to help us to get to the next level in the next year.
Okay. And are you on the line to achieve our guided EBITDA margin? Since the beginning of the year and even last year we have always stuck to a guidance of about 14% EBITDA margin approximately plus or minus. And in the end, by the end of the year we are confident of reaching that number. The retail business is going to give a loss that is 100, 150 basis points that will reduce from this EBITDA margin.
Deepak Patil — Analyst
Okay, thank you.
Gaurav Poddar — Chief Executive Officer
Thank you.
operator
Thank you. The next question is from the line of Varun Mishra from Bawa Investments. Please go ahead.
Varun — Analyst
Just a follow up question. So like how do we balance our investments between the legacy business and the new age retail brands? Could you help with that?
Gaurav Poddar — Chief Executive Officer
Legacy business is more of an asset light model and doesn’t need regular Capital investments. It’s more of maintenance capex, which we have indicated in the line of 50, 60 crores, maybe 50, 70 crores in every year. So that is more of a maintenance kind of Capex. And so there is not a huge number and there is sufficient cash flow. And even the retail business is a more calculated approach where we have indicated, I think about 35 to 40 crores that we will spend this year. So it is a calibrated approach which we are confident of for the inflow of funds as well.
Varun — Analyst
All right. And so like exports have contributed to. Approximately 9% of our revenue. So how do you see to like scope, like scale this further?
Gaurav Poddar — Chief Executive Officer
As I mentioned earlier, export environment is very good for India in terms of government initiatives for manufacturing as well as the external environment, the treaties that are being signed. So all in all, India as a manufacturing hub is seeing a big fillip and that’s something that will also help our company. Export as a percentage is something difficult to say how much that will grow because even the rest of the 90% is growing. But as a overall value, this business will grow. And it is something that we are keenly looking at.
Varun — Analyst
The recent European FTA which was signed. So how can we that we see as beneficial for us in terms of increasing our export share?
Gaurav Poddar — Chief Executive Officer
Of course. So we are exporting fabrics as a semi finished product which is going, going to a garment converter to convert into a final garment which will then get used by the brand which is normally a retailer. So the orders come in from the retailer and they nominate us as a fabric supplier. So although it’s not a direct export to the brand, but these FTAs will increase India as a hub and they will encourage brands to look at India as a larger manufacturing hub. And therefore indirectly we will get benefit from these kind of treaties and the export environment helping India.
Additionally, we are also looking at how we can expand our government infrastructure to supply formal trousers rather than just suiting fabrics. And that is something we are working on. Then we can become a direct supplier. But that is some time away and we are working on that as well.
Varun — Analyst
Suppose this, can we see like you guided a margin of 13.5, something like that. So can we see an increase because of these like the good beneficiary environment that you have as of now, I.
Gaurav Poddar — Chief Executive Officer
Think the margin is for the. Looking at just a quarterly margin is not a good indication. We will remain in line with what margin that we have indicated in terms of EBITDA levels for the whole year.
Varun — Analyst
All right, sir, that helps. Thanks a lot, sir.
Gaurav Poddar — Chief Executive Officer
Thank you. Thank you.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand the conference over to Ms. Ayushi Gupta for closing comments. Over to you, ma’. Am.
Ayushi Gupta — Investor Relations
Thank you. I would like to thank the management for taking the time out for this conference call today and also thank all the participants. If you have any queries, please feel free to contact us. We are NUFC Intime India Private Limited Investor Relation Advisors to CRM Silk Mills Limited. Thank you so much.
operator
Thank you. On behalf of CRM Silk Mills Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.