Siyaram Silk Mills reports strong growth in Q2 FY25, eyes expansion amid festive demand

Siyaram Silk Mills Limited, one of India‘s leading fabric and apparel producers, announced impressive results for the second quarter of FY25, reflecting a 5% year-over-year revenue growth driven by steady consumer demand in the domestic market. The company recorded total income of ₹629 crores for Q2, surpassing ₹597 crores in the same quarter last year, supported by robust festival-season spending and strategic inventory management. The launch of new retail brands, ZECODE and DEVO, marks a pivotal expansion into both fast fashion and ethnic wear, indicating Siyaram Silk Mills’ commitment to capturing a broader market segment.

Financial data reveals a 10% rise in EBITDA, reaching ₹110 crores with an improved margin of 17.5%, up from 16.7% in Q2 FY24. Profit after tax also grew by 11%, totaling ₹68 crores, with a PAT margin of 10.9%. Executive Director Gaurav Poddar attributed the positive results to consumer spending in the festive season and enhanced operational efficiency. He expressed optimism about the year’s second half, driven by continued demand growth and favorable economic conditions.

The company’s latest initiative includes opening 30 new retail outlets under the ZECODE and DEVO brands, which will be instrumental in its retail strategy to meet urban shoppers’ demand for trendy, affordable fashion and ethnic styles that resonate with India’s cultural heritage. Twelve stores are slated to open by December 2024, with the remaining locations expected by March 2025, emphasizing the company’s ambition to establish a significant foothold in the high-growth retail sector.

Siyaram Silk Mills’ diversified revenue streams include fabrics, which make up 80% of Q2 earnings, garments at 15%, and yarn and other items at 5%. This diversified portfolio, along with its established distribution network and manufacturing capacity, has positioned Siyaram Silk Mills as a trusted brand in the Indian market. With interim dividends set at ₹4 per equity share, investors may see continued momentum in share performance.

Industry analysts observe that Siyaram Silk Mills’ shift toward retail with the ZECODE and DEVO brands indicates an evolving strategy aimed at tapping into fast-growing segments within urban and culturally driven markets. By aligning with current trends in fast fashion and ethnic wear, the company aims to appeal to a broader consumer base. Experts believe that if Siyaram’s expansion aligns with expected market growth, the company is well-positioned to maintain steady revenue gains and strong EBITDA margins. Investors, drawn by the stability of Siyaram Silk Mills’ core business, may view this retail push as a progressive step towards sustainable growth.