Siyaram Silk Mills Ltd (NSE: SIYSIL) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
Gaurav Poddar — Chief Executive Officer
Surendra Shetty — Chief Financial Officer
Analysts:
Unidentified Participant
Mamta Naira — Analyst
Param Vora — Analyst
Dave — Analyst
Aryan — Analyst
Vikas Gupta — Analyst
Varun Mishra — Analyst
Prerna Janjanwala — Analyst
Raj Patel — Analyst
Presentation:
operator
Ladies and gentlemen, you’ve been connected to the DRM Silk Mills Limited Q1 and FY26 earnings conference call. Please stay connected, the meeting will begin shortly. Ladies and gentlemen, you’ve been connected to CRM^ Ltd. Q1 and FY26 earnings conference call. Please stay connected, the call will begin shortly. Ladies and gentlemen, good day and welcome to the CRM Silk Mills Limited Q1 and FY26 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 Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Ms. Mamta Naira from MUFG in Time Private Limited. Thank you. Over to you, Ms. Mamta.
Mamta Naira — Analyst
Thank you. Good afternoon ladies and gentlemen. I welcome you all to the earnings conference call of CRM Silk Mills Limited to discuss the Q1FY26 business performance. To discuss this quarter’s performance we have from this management. Mr. Gaurav Puddar, President and Executive Director. Mr. Ashok Jalan, Senior Senior President and Director. Mr. Surendra Shetty, Chief Financial Officer and Mr. Prakash Dalnia, President Finance. Before we proceed with this call, I would like to mention that some of the statements made in today’s call may be forward looking in nature and may involve risk and uncertainties. For more detail 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 call to the management for the opening comments and then we will open the floor for Q and A. Thank you. And over to you, Kaura sir.
Gaurav Poddar — Chief Executive Officer
Good afternoon and a warm welcome to everyone joining us today. Thank you for your participation in quarter one FY26 results conference call. I hope you all have had the opportunity to review our financial results and investor presentation. Both of which have been uploaded to the Stock Exchange and our company’s website. CRR is a trusted and renowned name in India’s textile and fashion industry. With a legacy spanning nearly five decades. We have built a strong foundation in fabric manufacturing and are evolving into a key player in modern fashion retail. With bold fashion forward collections and immersive retail experiences, we have ventured into direct to consumer brands.
In quarter one FY26, demand in fashion and apparel segment remained largely flat. Mainly due to the early onset of monsoon disrupting typical seasonal buying patterns. Despite these challenges, we remain optimistic about A gradual recovery as we approach the upcoming festive season, a traditionally strong period for consumer spending which historically drives consumer demand and presents growth opportunities for the sector. While we remain cautious and continue to monitor broader market trends and consumer sentiment closely, we believe CRM is well positioned to benefit from the growing demand environment. With consumer preferences shifting towards quality, value and accessibility, our strong retail presence and diverse product portfolio enables us to effectively meet the evolving needs of today’s modern shopper.
Building on the strategic initiatives outlined in the previous quarter, we are pleased to report steady progress in our expansion beyond the core fabric and apparel business. Our newly launched brands Z Code, focused on fast fashion and Devo, centered around ethnic wear, are gaining good traction reflecting our commitment to adapting to changing consumer preferences and emerging market Trends. During quarter one FY26 we successfully opened four new stores under the Zcode brand and three stores under the Devo brand. This brings the total number of stores launched since inception of these brands to 16 Z code shops and 10 Devo shops.
At the end of quarter one FY26, we are on track to achieve our target of opening approximately 35 stores across both brands in the year FY 2526. Our expansion strategy continues to focus on identifying and evaluating high potential locations that will enable us to strengthen our market presence and better serve our growing customer base. Our total income for quarter one FY26 stood at 400 crores compared to 331 crores in quarter one FY25. Reflecting a year on year growth of 21%. It’s worth noting that Q1 FY25 included 13 crores in government grants under other income which increased the total income for that period as compared to Q1FY26 in which the grant stood at 1 crore.
Although retail demand is currently slow, the long term outlook for the industry remains positive. As the economy improves and people feel more confident, spending is likely to pick up. Factors such as rising disposable incomes, expanding retail infrastructure and increasing consumer awareness are reshaping the landscape and unlocking new opportunities. With ample headroom for growth in the apparel segment, we are focused on building a meaningful presence and contributing to the sustained evolution of this dynamic industry. Thank you once again for your continued trust. Now I would like to invite our CFO Mr. Surendra Shetty to take you through the financial highlights for the quarter.
Thank you.
Surendra Shetty — Chief Financial Officer
Thank you Gauravji. Good afternoon everyone. I will talk about the standalone financial performance for the first quarter of financial year 26. Our total income for the quarter one FY26 stood at INR 400 crores compared to INR 331 crores in quarter one. Financially 25 reflecting a year on year growth of 21%. Our revenue mix for the quarter comprised fabrics at 76%, government at 13% and others at 11%. Continuing to reflect our core strength while expanding into adjacent categories, we recorded an EBITDA of INR 33 crores in Q1 financial year 26 as compared to INR 34 crores in Q1 financial 25 with EBITDA margin for the quarter stood at 8% or profit after tax for the quarter was INR 5 crores compared to INR 12 crores in quarter 1 of financial year 25.
Thank you. That concludes our financial highlights for the quarter. We will now open the floor for the question answer.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and 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 Param Vora from Trinetra Asset Manager Please proceed
Param Vora
. Hi, good afternoon and thank you for taking my question. So what I wanted to ask was that exports contributed 9% to revenues in financial at 25. So are there any plans to grow the international presence and increase the contribution of exports in the coming years?
Gaurav Poddar
So largely the company has remained a branded domestic serving company because of our brands. Traditionally we get a lot of value for this value addition of branded product in the domestic market. While export has been always something that the company has strive to progress in, it has been, as you mentioned correctly, about 10% of the company’s turnover. While we strive to grow that business as well, there is a lot of headroom in the in the branded domestic market as well. So I cannot give you a percentage of as a percentage how much it will grow, but the business will definitely grow in volume and value as an absolute number.
Param Vora
Okay, and my next question is that the company targets of opening 35 stores across both the brands Zcode and Divo by Financial at 26. So could you share the location and strategy for upcoming stores?
Gaurav Poddar
So for both these brands we have followed a cluster approach right from the beginning and that has helped us in concentrating on a few areas in terms of advertising, in terms of manpower and everything else in terms of understanding the consumer preferences. For zcode, we had chosen The Karnataka State and Bangalore as a hub for. For opening the stores. So we continue to focus on that state in this year as well. For Devo, we chose North India. We had selected Delhi, NCR and up and we probably will open some stores in Punjab, but we’ll stick to the north area sector for this year.
Param Vora
Okay, that’s it. From my side.
Gaurav Poddar
Thank you. Thank you.
operator
Thank you. Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Dave from CARE pms. Please proceed.
Dave
Hi, good afternoon. Thank you for the opportunity. My question is, what is the reason behind revenue growth and is it sustainable? And also could you please provide the percentage change in terms of volume growth and value growth in both the fabrics and garment segments separately and also if you can quantify the contribution of Z Code and Devo in readymade garments.
Gaurav Poddar
So in terms of fabrics, the volume growth has been approximately 20%. And in terms of garment, the volume growth has been approximately 18%. And the business has. We have seen, although the market has been relatively subdued and quarter one is generally the weakest quarter of the year, we have seen good performance in both these segments, largely because of the aggressive conferences and promotions and schemes that we have run, which has also impacted the bottom line to a certain extent. But in terms of your question regarding the new retail businesses, it is still a very early stage.
But roughly about 3% of the overall turnover is contributed by this new business.
Dave
3% to the overall revenue. Right. Or the readymade guidelines
Gaurav Poddar
, 3% to the overall company revenue.
Dave
Okay. Okay, thank you so much.
Gaurav Poddar
Roughly, this is an approximate number.
Dave
Okay, thank you.
operator
Thank you. The next question is from the line of Aryan from Arian Capital. Please proceed.
Gaurav Poddar
Yes, we can hear you.
Aryan
Yeah, so my question would be that you said that this year we are planning to open 45 stores throughout India. Right. And as of right now, including the Z Core and the Devo stores, we have open 26 stores in total. My question would be how the completion of opening and establishing these seven stores will affect our revenue and if we are taking on any debt, you know, for the expansion or do we have enough funds to safely proceed with opening of the seven stores for this financial year.
Gaurav Poddar
So out of these 35 stores that we had envisaged to open, we have opened about seven stores in the first quarter. And we feel that we will be able to achieve these 35 stores that are planned for the whole year. Now, the store openings happen in a very gradual manner and there is a lot of subjectivity in how we get possession of the land and how much time it takes to construct the store. So it’s quite volatile as to actually when the store opens. So it’s very difficult to tell you a revenue number. Earlier we had indicated a possible revenue of about 75 to 80 crores from this new retail business that will contribute towards this year.
And these are very broad guidance that we can give and we would like to stick to that number. Sorry, what was the second question that you asked?
Aryan
My second question is. Yeah. Are we going to take on any debt for the establishment of these two or. We have enough funds to proceed the way we are starting off.
operator
So we believe that the free cash flow that the company has been generating consistently for last few years is sufficient to fund this growth in the retail business. And we have seen that last year and we continue to believe that that will be the position this year.
Aryan
Okay. So keeping all these things in mind, it is safe to assume that by the end of this year we are planning to achieve the 35 stores or things might fluctuate.
Gaurav Poddar
See, 35 stores, they are not all signed. We have signed a few. We are in process of signing some. So we are hopeful that we will achieve this number and we can give you a more updated, you know, every quarter we can give you an update of where we have reached.
Aryan
Okay, that’s all from my. Sir. Thank you.
Gaurav Poddar
Thank you.
operator
Thank you. The next question is from the line of Vikas Gupta from RG Investments. Please proceed.
Vikas Gupta
Hello.
operator
Yes, sir.
Vikas Gupta
Am I audible?
operator
Yes, sir.
Vikas Gupta
Yeah. So my first question is given the ongoing trade dynamics between India and United States, do you see the 25% tariff implementation? What impact do you foresee on your sourcing supply chain, cost and pricing strategies?
Gaurav Poddar
So in terms of the India US Tariff, we are still awaiting the final notifications and official communications as to what the final percentages would be and would only be in a position to comment once that is established completely. However, if you look at our business then trade with us is a very small percentage of our overall export business. So it remains to be seen how tariff impacts the overall country because we don’t have exact notifications as yet.
Vikas Gupta
Understood, sir. And my further question is about the revenue guidance. Could you guide us for the upcoming quarter?
Gaurav Poddar
We generally stay away from giving quarterly guidance. We have always been giving an annual guidance because of the seasonality and nature of business and how festivities move around Diwali. This time is little earlier. So it’s difficult to give quarterly guidance. And annual guidance that we always give is with the new business involved now about 10 to 12% kind of growth.
operator
The next question is from the line of Dixit Doshi. You may proceed, sir.
Unidentified Participant
Yes, hello, can you hear me?
Gaurav Poddar
Yes, yes, we can hear you.
Unidentified Participant
Yeah, yeah, thanks for the opportunity. Just couple of questions. When you mentioned that we are expecting around 70, 80 crore kind of top line this year from the new businesses typically what kind of inventory turn you assume? And my second question is if you can elaborate broadly in Q1, let’s say how much we are losing in the retail business or if you can mention a store level, how many of the seven stores we have opened this quarter. But let’s say by Q4 we were having 19 stores. So how many of that would be profitable at the store level? If you can mention something on that front.
Gaurav Poddar
Okay, so your first question was regarding the inventory turn. I think it is a little early to talk about that because most of these stores have been opened in the not even one store has seen 12 months of sale. So the biggest time of sale we assume is to come in the festive period. And most of these shops opened just close to or after Diwali last year. Some of the shops that we started. So we are looking at these numbers because they are very dynamic in nature and we are waiting for these stores to mature and we are doing everything on ground that is possible to get operational efficiencies in place.
So it’s a little premature to talk about inventory turn. Again, you asked about the 19 stores that we opened till March last year. So every store has a different behavior and a different size of store, the different location of each store. So each store behaves differently. Again, it is immature to give early numbers like this, but in our initial assumption we had estimated about 15 to 18 months of EBITDA level of a store. We would like to stick with that. We have seen some stores that have performed better than the others, but they are still very early numbers and we would like for some more time to be able to give proper guidance.
Unidentified Participant
Okay. And let’s say in terms of your own expectation, how it’s been performing.
Gaurav Poddar
So in terms of our expectation at a qualitative level, see retail is a new business for us and both these sectors are also very new for us. We have built strong teams and been able to achieve mind to market very, very quickly in both these industries. So if we stand today, we are very satisfied with what we have achieved. We want to achieve much more. There is a lot of work to be done operationally which we are doing on a day to day basis. We are opening stores. But more than that, we are looking at the existing stores and trying to make them operationally run better.
So where we are, we are very satisfied. Consumer response has been very positive. So in all those parameters, we are qualitatively very satisfied. But there is lots of work to be done and we are cognizant of that fact.
Unidentified Participant
Okay, and last question from my side. It’s been I think 2, 3/4 we have announced that preferential issue. So any guidelines by when we can conclude that.
Gaurav Poddar
So the latest update on that because there’s a long regulatory procedure. So we have received approvals from the stock exchanges and sebi. And now the next procedure is that we are filing the application with NCLT Post which we will be able to give further updates.
Unidentified Participant
Okay, so you expect it to conclude in this year?
Gaurav Poddar
We are hopeful that within this financial year we will be able to complete the process.
Unidentified Participant
Okay. Okay, fine. That’s it. From my side. Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Varun Mishra from SK Ventures. Please proceed.
Varun Mishra
Yeah, hi sir, thank you for the opportunity. I had a couple of questions from my end. So could you share in some key performance metrics on like Z Code and Devo? Like specifically what are the total square foot currently in operations and how are we performing in terms of sales for stores? And like sales per square foot.
operator
The total square foot for both these retail put together is roughly about 1.25 lakh square feet that we operate as of June end. In terms of the numbers per square feet, I think it is very, very early to look at revenue per square feet. It is a function of time and maturity of a store. You know, we are not only a new store but also a new brand. So once the brand gets some recognition with over time and, and even these stores mature then these numbers we see gradually moving up. So it’s. And the festive season is in front of us.
So we are very excited about how we perform during that time. So I think that it is a little premature to talk about those numbers.
Varun Mishra
All right, so under stores like which we have opened as of now, so what has been the footfall like amongst like if we wanted to rate it, where are the regions which have seen the highest footfall as of now?
Gaurav Poddar
So it’s difficult to rate because every market is different and every store is different. Timing of the store opening also has been very different. So I mean we are still in very, very early days of this business, I think that in zcode we are seeing a trend of the larger stores that we open, seeing not only I’m not just talking about footfall, but I’m talking about an overall operational performance. The larger stores we have been able to display our product merchandise much better and have been able to create a better consumer ambience. And therefore we feel that these larger sized stores have performed better and going forward we want to focus more on that segment.
So these are some kind of indications, but giving numbers is a little premature at this stage.
Varun Mishra
All right, so anything sir, like have we seen any traction in terms of online orders like except for the stores if we are willing to have a B2C market. So have we tried like is there any traction in terms of the online.
Gaurav Poddar
Directly B2C at the moment for these Z code and devo? We have not initiated the online channel as yet. We are in process of just starting these stores and getting them operationally efficient and that is where our focus is right now. So we haven’t initiated that as yet.
Varun Mishra
Okay. All right, answer. The stores like which we have opened in this quarter, so are these consistent with the sizes like as per the expectations, like what we had previously in the quarter? So are there any adjustments to that or are we in line with that?
Gaurav Poddar
So in Zcode particularly we had, you know, we tried out with two sizes of stores. One was a 4 to 5,6000 square feet and there was a larger size that was between 6 to 10,000 square feet. And the stores that we opened in this quarter and increasingly going forward we feel as I mentioned, that the larger size stores are yielding better results in terms of consumer experience and in terms of how we are able to display our merchandise. So they have been all in the 6 to 10,000 square foot range.
Varun Mishra
All right, so and I had a final question regarding the financials. So like we have been seeing a revenue growth in double digits whereas the REBIT and the pat margins have been declining. I know like this is the weakest quarter amongst the entire the full year. So like can we see this improving like anything Would you like we would.
Gaurav Poddar
Add on, I think that looking at the quarter performance in our business since it’s seasonal is not very accurate. We would like to stick to our original guidance for the whole year. So in terms of that I don’t see any difference and I see that we are putting all efforts to match that guidance and we continue to believe in that guidance.
Varun Mishra
So anything like I’m sorry I joined a bit late, anything that you would suggest the guidance for the entire year.
Gaurav Poddar
So including the new business, our overall revenue guidance is about 10 to 12%.
Varun Mishra
Okay, fine, sir. I’ll join the Q button. Thank you, sir.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of apur, an individual investor. Please proceed.
Unidentified Participant
Yeah. Thank you, sir, for the opportunity. I just want to understand according to you which brand is doing better or Z code and which brand would be able to break even faster.
Gaurav Poddar
I think it’s very difficult to compare two brands like this. Both brands are in different industries with different markets, with different seasons, and they are completely different from each other. So I don’t think that that is how we are looking at it. For us, both these brands are important and they have their own journey and we’re looking at both of them independently. There are separate teams working on them. So I don’t think it’s right for us to compare one with the other.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Prerna Janjanwala from Alara securities. Please proceed. Ms. Prerna. Hello.
Prerna Janjanwala
Am I audible?
operator
Yes, mam
Prerna Janjanwala
Am. Yeah. Okay. So I thank you for the opportunity. I just wanted to understand how was the demand in the quarter and how is it shaping up? Like is this a good demand year for the wedding season and how is it playing out?
Gaurav Poddar
So generally quarter one is the weakest quarter and we have seen that kind of demand and sentiment in the first quarter. But with interactions with our dealers and the market that we have done since Diwali is little earlier, we have started interacting much earlier and we see a strong demand going forward. And we hope for the kind of estimate that we have given, we see consumer sentiment picking up. So the next six months should be better than what we had last year.
Prerna Janjanwala
Okay. Given the 26% growth in the first quarter, do you think this 10% growth target that you’ve given is conservative?
Gaurav Poddar
We are stuck to our original guidance. This 20% growth you are seeing is on a very small base. Whereas we are giving an overall guidance for the whole year and it is too early to change that guidance. We would continue to work towards the guidance and better it if the opportunity arises.
Prerna Janjanwala
Okay, so my second question is on readymade garments business. Given the aggressive expansion that you are planning in the business, where do you see the business reaching in the next two to three years?
Gaurav Poddar
So we have not really established a kind of a number that we want to reach or we are Estimating a certain percentage contribution. What is obvious is that zcode and Devo both are going to expand. And if we are able to do this operationally, right, as we hope to do, then the percentage contribution to revenue from apparel will increase and that will become a more significant proportion of the business than it is today. So that is what we are hoping at. We are not looking at a particular number because we are looking at it quarter on quarter, year by year and right now working on the ground with making this business sustainable for us.
Prerna Janjanwala
Okay. And right now in apparel business you have only these two brands or there are other brands as well which are striving for growth, driving for growth.
Gaurav Poddar
So the core business of fabric and apparel, they have the traditional brands that we used to run, but those brands are running in the traditional distribution channel or direct to multi brand retail channel. So those brands still exist and but they are only focused on through the channel business. These two brands that we have started, zcode and Devo, they are direct retail company owned shops at the moment. So they are, you know, brand is servicing direct to consumer. There is no middleman involved in terms of a channel.
Prerna Janjanwala
Okay, okay. And you’re looking forward to establish this brand on E Commerce and Quick Commerce and all these platform as well or right now is focusing on physical distribution.
Gaurav Poddar
At this moment in zcode and Devo we are looking at these stores that we have opened. We have a target of opening more stores in this year and that is our current focus. Maybe E Commerce and all those things we can consider a little later on.
Prerna Janjanwala
Okay, understood sir. Thank you. And all the best, sir.
Gaurav Poddar
Thank you.
operator
Thank you. The next question is from the line of Raj Patel from RK Securities. Please proceed.
Raj Patel
Hello. Am I audible?
operator
Yes sir.
Raj Patel
Yeah. So I have just two quick question. So first one is since it’s getting harder to open a lot of new store quickly, so how are you changing your plans to focus more on improving the performance of the stores you are already have? And what steps are you going to take to make sure that those stores are doing well and helping the business grow instead of just relying on the new ones.
Gaurav Poddar
So the stores that we have are also not even 12 months old. We started opening the end of October last year. So they opened in a phase wise manner since then. So even the old stores that we have are very new in that sense and they have not been matured. So there is a lot of potential to grow even in those stores as the season progresses. As the festive season comes in, we hope to perform much better in those stores. Than we have been doing. And the stores also gained popularity and we are able to create awareness of those stores and these brands that we have launched and these new stores that we want to open.
We have signed a few and we remain committed to the target of 35 for the whole year.
Raj Patel
Okay, and my next question was, what steps is CRM taking to strengthen its presence in Omni Channel space? And are there any specific strategy or initiative being implemented to integrate online and offline channels effectively and enhance the customer’s experience?
Gaurav Poddar
I believe this question relates more to the retail business that we have started. And because the traditional business is largely through trade distribution channels, in terms of the new business where we are directly in our own stores, Omnichannel is a segment that we have not yet looked at. At the moment, we are focused on, as you asked in your first question, the stores that we’ve already opened to get them at an operationally level that we are satisfied with, as well as opening these new stores that we have targeted. So that is the immediate focus for us.
Raj Patel
Okay, that was all from my side. Thank you.
operator
Participants who wish to ask a question may please press RN1 at this time. Due to time constraints. That was the last question. I now hand the conference over to Ms. Mamta Nehra for the closing comments. Over to you, ma’.
Mamta Naira
Am. Thank you. I would like to thank the management for taking the time out for this conference call today and also thanks to all the participants. If you have any queries, please feel free to contact us. We are MUFD Investment 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.