SSDL - Saraswati
📢 Recent Corporate Announcements
Saraswati Saree Depot Limited (SSDL) reported a weak Q3 FY26 with revenue declining 20.7% YoY to ₹144.47 crore, attributed to a high base effect and softening wholesale demand. Profitability was significantly impacted as PAT fell 59.2% YoY to ₹3.21 crore, while EBITDA margins contracted from 7.04% to 3.29% due to input cost pressures. Despite the quarterly slump, the 9M FY26 revenue grew 4.3% YoY to ₹497.63 crore, reflecting underlying business resilience. The company is diversifying into the retail segment, which currently contributes approximately 1% of total sales.
- Q3 FY26 Revenue fell 20.7% YoY to ₹144.47 crore vs ₹182.14 crore in Q3 FY25.
- EBITDA for the quarter plummeted 63% YoY to ₹4.75 crore with margins shrinking to 3.29%.
- Net Profit (PAT) for Q3 FY26 declined 59.2% YoY to ₹3.21 crore from ₹7.88 crore.
- 9M FY26 Revenue showed a modest growth of 4.3% YoY reaching ₹497.63 crore.
- Maintained a strong balance sheet with a Debt/Equity ratio of 0.0 as of H1 FY26.
Saraswati Saree Depot Limited (SSDL) held a board meeting on February 14, 2026, to approve the unaudited financial results for the quarter and nine-month period ending December 31, 2025. The meeting was brief, lasting 35 minutes, and concluded with the approval of the financial statements and the Limited Review Report. This filing confirms compliance with SEBI Regulation 33 regarding periodic financial disclosures. Investors should now examine the detailed financial tables to evaluate the company's performance during the critical Q3 festive and wedding season.
- Board approved unaudited financial results for the quarter ended December 31, 2025.
- Financial results for the nine-month period ending December 31, 2025, were also reviewed and approved.
- The board meeting commenced at 04:00 PM and concluded at 04:35 PM on February 14, 2026.
- The submission includes a Limited Review Report from statutory auditors as per IND AS requirements.
Saraswati Saree Depot Limited (SSDL) has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the period ended December 31, 2025. The company's Registrar and Share Transfer Agent, Bigshare Services Pvt Ltd, confirmed that no rematerialization requests were received during this quarter. Notably, the company maintains 100% of its shareholding in dematerialized form. This is a standard regulatory filing confirming the integrity of the company's shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar Bigshare Services confirms zero rematerialization requests were processed during the period.
- 100% of the company's shares are currently held in dematerialized form.
- The filing adheres to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018.
Saraswati Saree Depot Limited (SSDL) has announced the successful completion of its postal ballot process, where shareholders approved the alteration of the Objects Clause in the Memorandum of Association. The voting process was conducted between December 2, 2025, and January 1, 2026, with the results officially declared on January 3, 2026. The resolution was passed with the requisite majority, indicating strong shareholder support for the proposed structural changes. Such alterations typically allow a company to diversify its business activities or enter new market segments.
- Shareholders approved the alteration of the Objects Clause of the Memorandum of Association via postal ballot.
- The remote e-voting period spanned 31 days, from December 2, 2025, to January 1, 2026.
- The resolution was passed with the requisite majority as confirmed by the Scrutinizer's Report.
- Official results were declared on January 3, 2026, and submitted to NSE and BSE.
Saraswati Saree Depot Limited (SSDL) has notified the exchanges regarding the closure of its trading window for all designated persons and their relatives starting January 1, 2026. This move is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the financial results for the quarter ending December 31, 2025. The trading window will remain closed until 48 hours after the board meeting where the results are declared. The specific date for the board meeting to approve these results has not yet been announced.
- Trading window closure effective from Thursday, January 1, 2026.
- Closure pertains to the financial results for the quarter ending December 31, 2025.
- Restriction applies to all designated persons and their immediate relatives as per the company code.
- Window will reopen 48 hours after the official declaration of the Q3 financial results.
Financial Performance
Revenue Growth by Segment
The company generates over 90% of its revenue from sarees, with the remaining portion coming from other women's apparel like kurtis and dress materials. Total Revenue from Operations grew 19.67% YoY in H1 FY26 to INR 353.16 Cr from INR 295.12 Cr, while Q2 FY26 revenue surged 26.5% YoY to INR 208.39 Cr, driven by volume-led growth and an early festive season.
Geographic Revenue Split
Revenue is heavily concentrated in the West region, which contributed 85.2% in H1 FY26 (up from 84.6% in FY25). The South region contributed 14.5% in H1 FY26 (down from 15.4% in FY25), while the North and East regions combined contributed less than 0.3%. This concentration makes the company susceptible to local economic disruptions in Maharashtra and Goa.
Profitability Margins
Net Profit Margin (PAT Margin) for H1 FY26 stood at 4.77%, a decline of 54 bps from 5.31% in H1 FY25, primarily due to higher depreciation accounting. For FY25, the PAT margin was 4.98%, a slight improvement of 15 bps from 4.83% in FY24, reflecting disciplined cost controls despite competitive pricing pressures.
EBITDA Margin
EBITDA Margin for H1 FY26 was 6.52%, down 31 bps from 6.83% in H1 FY25. Q2 FY26 EBITDA margin moderated to 6.75% from 7.48% YoY. Despite the margin compression, absolute EBITDA for H1 FY26 rose 14.24% to INR 23.04 Cr, indicating that top-line volume growth is currently outpacing margin expansion.
Capital Expenditure
In FY25, the company reported a net cash outflow from investing activities of INR 8.08 Cr, compared to INR 0.23 Cr in FY24. For H1 FY26, investing activities resulted in an outflow of INR 1.69 Cr. These investments are directed toward strengthening the supply chain and enhancing retail presence to support long-term growth.
Credit Rating & Borrowing
Interest expenses decreased significantly from INR 2.47 Cr in FY24 to INR 1.04 Cr in FY25, and stood at INR 0.28 Cr for Q2 FY26. This reduction in finance costs suggests improved capital structure or debt repayment following the IPO, though specific credit ratings and interest rate percentages are not disclosed.
Operational Drivers
Raw Materials
The company primarily functions as a B2B wholesaler; 'Purchase of Stock In Trade' represents the largest cost component, amounting to INR 548.55 Cr in FY25 (approximately 89.4% of revenue). Specific fabric types or raw fibers are not named as the company procures finished or semi-finished apparel.
Import Sources
Not disclosed in available documents; however, the company procures from a vast supplier base to maintain a catalogue of over 300,000 SKUs.
Key Suppliers
Not disclosed in available documents. The company depends on third-party suppliers without long-term contracts, which introduces supply chain uncertainty but allows for flexibility in product variety.
Capacity Expansion
The company focuses on 'profitable scale-up' and 'enhancing product availability.' While specific MT or unit capacity is not listed for wholesale operations, net sales per sq. ft. area in use stood at INR 33,147 in FY25, up from INR 33,000 in FY24.
Raw Material Costs
Raw material costs (Purchase of Stock In Trade) were INR 185.13 Cr in Q2 FY26. The company uses bulk buying to achieve economies of scale, which helps mitigate the higher costs associated with smaller order sizes in the unorganized segment.
Manufacturing Efficiency
As a wholesaler, efficiency is measured by inventory turnover. The company maintains a massive catalogue of 300,000+ SKUs to cater to diverse customer preferences, which requires high operational discipline in inventory handling.
Logistics & Distribution
The company serves over 13,000 unique customers. Distribution is primarily focused on southern and western regions including Maharashtra, Goa, Karnataka, and Tamil Nadu.
Strategic Growth
Expected Growth Rate
6.70%
Growth Strategy
Growth will be achieved through a volume-led strategy, expanding the retail footprint, and increasing product availability. The company is focusing on 'Utsav' and festive categories to drive top-line growth, while implementing disciplined cost controls and ERP-driven operational efficiencies to stabilize margins.
Products & Services
Sarees (over 90% of revenue), kurtis, dress materials, blouse pieces, lehengas, bottoms, and other women's apparel accessories.
Brand Portfolio
Saraswati Saree Depot (SSDL).
New Products/Services
The company is expanding into new 'value-accretive opportunities' and 'Utsav' categories, though specific revenue contribution percentages for new launches are not disclosed.
Market Expansion
Plans include expanding beyond the core Western and Southern strongholds into new regions, supported by a roadmap for growth and healthy cash flows from operations (INR 2.46 Cr in FY25).
Market Share & Ranking
SSDL is identified as a 'prominent organized player' in the INR 515 billion saree industry, though its specific market share percentage is not explicitly ranked.
External Factors
Industry Trends
The Indian saree industry is evolving from unorganized to organized, with a projected CAGR of 6.7% through 2033. Post-pandemic recovery saw a 44% rebound in FY22, and the industry is currently valued at INR 515 billion as of FY24.
Competitive Landscape
The market is fragmented with heavy competition from unorganized players who compete on price. SSDL positions itself as an organized wholesaler with better reliability and scale.
Competitive Moat
The company's moat is built on a 50-year legacy, a massive database of 13,000+ customers, and a catalogue of 300,000+ SKUs. Bulk buying abilities provide a cost advantage over smaller unorganized competitors, though this moat is challenged by low switching costs for B2B buyers.
Macro Economic Sensitivity
The business is highly sensitive to the wedding season and festive cycles (Utsav). Broader economic factors like inflation impact the cost structure and consumer demand for traditional apparel.
Consumer Behavior
There is a shift toward organized retail and a consistent demand for traditional sarees for weddings and festivals, which SSDL capitalizes on through its 'Utsav' collections.
Geopolitical Risks
Minimal direct impact as operations are domestic, but changes in national textile policies (like the PLI scheme for MMF fabrics) could influence the broader industry landscape.
Regulatory & Governance
Industry Regulations
The company must comply with the Companies Act 2013 and SEBI Listing Regulations. It is also subject to textile-specific regulations and labor laws for its 247 employees.
Taxation Policy Impact
The company paid INR 10.24 Cr in taxes in FY25 on a PBT of INR 40.82 Cr, representing an effective tax rate of approximately 25%.
Legal Contingencies
The company stated it does not have any pending litigations that would impact its financial position as of the March 31, 2025 audit report.
Risk Analysis
Key Uncertainties
Material weaknesses in internal controls regarding inventory and the reconciliation of trade receivables/payables (qualified audit opinion) pose a significant risk to financial reporting integrity.
Geographic Concentration Risk
85.2% of revenue is derived from the West region (Maharashtra, Goa), creating high vulnerability to regional economic or regulatory shifts.
Third Party Dependencies
Heavy reliance on third-party suppliers without long-term contracts creates supply chain uncertainty and potential volatility in procurement costs.
Technology Obsolescence Risk
The company uses ERP for operations and has implemented data security frameworks (firewalls, encryption) to mitigate digital risks and improve efficiency.
Credit & Counterparty Risk
Auditors identified a material weakness in obtaining confirmations and reconciliations for trade receivables and payables, suggesting potential risks in managing counterparty credit and adjustments.