Siyaram’s margin expands as revenue growth outpaces costs
Seasonal demand supported Q2, while other income remained a notable contributor to pre-tax profit and management said its retail expansion remains on track.
Filed 27 Oct 2026, 15:51 IST · after market close · Siyaram Silk Mills Ltd (SIYSIL)
Key takeaways
- Revenue growth of 82.56% QoQ outpaced expense growth of 63.12%, lifting operating margin by 10.22 percentage points.
- Other income contributed 14.75% of profit before tax, making reported profit quality an important watchpoint.
- The 14.27% operating margin was 2.05 percentage points above the 12.22% median for 65 Consumer Discretionary peers.
Price around the results
Seasonal demand drove a sharp sequential rebound
This consolidated quarter saw revenue rise 82.56% QoQ, with expenses growing more slowly at 63.12%; that operating leverage lifted operating margin by 10.22 percentage points to 14.27%. Management said consumption around Raksha Bandhan and Onam supported retail activity in Q2 FY27. The company told investors that its retail network had reached 61 stores, comprising 38 ZECODE and 23 DEVO outlets.
Margin improved, but other income remains material
Costs did not grow as fast as revenue, which explains the sharp margin expansion despite interest expense increasing 63.44% QoQ. Other income accounted for 14.75% of profit before tax, so reported earnings included a meaningful non-operating contribution. The tax rate rose by 1.01 percentage points QoQ, indicating that the sequential increase in net profit was not driven by a lower tax rate.
Operating margin was above the peer median
Siyaram’s 14.27% operating margin stood 2.05 percentage points above the 12.22% median among 65 Consumer Discretionary peers that had reported the same quarter. The available quarter trend shows a sharp improvement from the 4.05% margin in Q1FY27, but does not establish a longer multi-quarter direction.
Management retains a retail expansion focus
Management said it remains on track to reach 70 stores across both formats by FY27. It also said the outlook for coming quarters remains encouraging because more of the festive season falls in the second half, and that it remains confident about sustaining growth momentum. Separately, the company said its installed solar capacity had reached 6,792 kWp and that it targets renewable energy to provide 15% of electricity consumption by 2030.
Results were filed after market close
The consolidated results were filed after market close, so there is no market reaction to assess in this update. The next response will need to be read against the company’s operating margin, the contribution from other income and progress in the retail network.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹814 cr | ₹446 cr | +82.56% |
| Other income | ₹15 cr | ₹22 cr | -32.84% |
| Expenses | ₹697 cr | ₹428 cr | +63.12% |
| Operating profit | ₹116 cr | ₹18 cr | +542.86% |
| Operating margin (%) | 14.27% | 4.05% | — |
| Interest | ₹12 cr | ₹7 cr | +63.44% |
| Depreciation | ₹20 cr | ₹18 cr | +10.77% |
| Profit before tax | ₹99 cr | ₹14 cr | +585.56% |
| Tax | ₹24 cr | ₹3 cr | +614.45% |
| Net profit | ₹75 cr | ₹11 cr | +576.66% |
| EPS (₹) | ₹16.42 | ₹2.43 | +575.72% |
Operating margin of 14.27% compares with a Consumer Discretionary sector median of 12.22% across 65 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Seasonal consumption during Raksha Bandhan and Onam supported retail activity during Q2 FY27.
Guidance & outlook
- The company remains on track to reach 70 stores across both formats by FY27.
- The company expects an encouraging outlook for the coming quarters as the festive season is weighted toward the second half.
- The company remains optimistic about demand and confident of sustaining growth momentum ahead.
- The company targets renewable energy to account for 15% of electricity consumption by 2030.
Expansion
- The retail network has reached 61 stores, comprising 38 ZECODE and 23 DEVO outlets.
- The company has installed 6,792 kWp of solar capacity across its manufacturing facilities.
New initiatives
- The company is expanding renewable energy use and implementing energy-efficient practices to reduce its carbon footprint.
- Infrastructure upgrades include LED lighting and high-efficiency motors to reduce overall energy consumption.
What to watch
- Whether operating margin holds above 14.27% after the seasonal Q2 rebound.
- Whether other income stays below or above its 14.75% share of profit before tax.
- Whether the retail network moves beyond 61 stores against management’s stated 70-store FY27 target.