How much did Saraswati Saree Depot's profit fall, and why?

Net profit fell 23.5% to ₹23.41 crore. Revenue grew 4.6%, so the decline was driven by margin pressure, not a sales drop. EBITDA margin contracted 209 basis points to 5.07%.

What is the management's outlook?

Management cited a challenging environment and said it expects weaker demand ahead. The filing gives no specific guidance on revenue or margin recovery.

Is this a large company?

Saraswati Saree Depot reported Q4 revenue of ₹631.16 crore. It is a mid-sized apparel retailer. The net profit margin is thin at around 3.7%.

What does the margin compression signal?

A 209 bps drop in EBITDA margin on modest revenue growth indicates the company either faced higher costs or discounted prices to maintain sales. In a consumer retail business, this often means competitive pressure.

Earnings · Trading · Micro cap

Saraswati Saree Depot's profit drops 24% as margins compress

The apparel retailer's Q4 net profit fell to ₹23.41 cr on 4.6% revenue growth. EBITDA margin narrowed 209 basis points.

SSDL By Tipsheet Editorial 2 Jun 2026 · 9:22 PM IST Verify on BSE · NSE

Mkt cap₹231 cr

P/E9.85×

ROE17.19%

Debt / eq.0.02

Div yld3.90%

23.5% Decline in net profit for Q4 FY26.

What's new

Net profit fell 23.5% to ₹23.41 cr despite 4.6% revenue growth to ₹631.16 cr.
EBITDA margin contracted 209 bps to 5.07%.
Management flagged a challenging environment and expects weaker demand ahead.

Why this matters

Revenue grew but profit did not, meaning the business is working harder for less money. The 209 bps margin compression is the story; it points to pricing pressure or cost inflation that the top line didn't offset. Management's outlook for weaker demand suggests the squeeze could continue.

What we're watching

Whether input costs ease or pricing power returns in H1 FY27.
The trajectory of EBITDA margin in the next two quarters.
How management adjusts inventory and store spend in a weaker demand environment.

The full read

Saraswati Saree Depot's top line grew 4.6% to ₹631.16 crore in Q4. Profit dropped 23.5% to ₹23.41 crore. The gap is margin. EBITDA margin fell 209 bps to 5.07%. In plain terms, the retailer sold more but made less on each sale. Management called the environment challenging and said demand looks weaker ahead. That is a concerning signal for a business already running on thin margins. The open question is whether the margin hit is a one-quarter cost spike or the start of a trend. Management's soft guidance suggests the latter. A tough quarter.

Questions answered

How much did Saraswati Saree Depot's profit fall, and why?: Net profit fell 23.5% to ₹23.41 crore. Revenue grew 4.6%, so the decline was driven by margin pressure, not a sales drop. EBITDA margin contracted 209 basis points to 5.07%.
What is the management's outlook?: Management cited a challenging environment and said it expects weaker demand ahead. The filing gives no specific guidance on revenue or margin recovery.
Is this a large company?: Saraswati Saree Depot reported Q4 revenue of ₹631.16 crore. It is a mid-sized apparel retailer. The net profit margin is thin at around 3.7%.
What does the margin compression signal?: A 209 bps drop in EBITDA margin on modest revenue growth indicates the company either faced higher costs or discounted prices to maintain sales. In a consumer retail business, this often means competitive pressure.

Mentioned: Q4 FY26 · ₹631.16 cr revenue · ₹23.41 cr net profit

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.