Crisil Ratings affirms ratings of Siyaram Silk Mills at 'AA-/A1+' with 'stable' outlook

Crisil Ratings stated that the business risk profile remains strong, as reflected in healthy revenue growth and improving operating performance.

The group reported revenue of Rs 2,576 crore in fiscal 2026, as against Rs 2,226 crore in fiscal 2025, driven by sustained demand across its traditional business segments and steady expansion of its retail footprint. The healthy revenue momentum has sustained during fiscal 2027 as well, indicated by revenue of Rs 446 crore in the first quarter, vis-?-vis Rs 389 crore in the corresponding period of the previous fiscal.

Revenue growth for the full fiscal 2027 will be driven by stable performance in the fabric business and growing contribution of the retail segment. Established brand presence, vast distribution network and strong market position of the group in the domestic textile industry lend stability and revenue visibility.

Operating profitability has been on an improving trajectory, benefiting from ramp up in scale, better operating leverage, and a favourable product mix. The margin has moderated in the first quarter of fiscal 2027, but is likely to remain healthy over the medium term, in line with levels reported in previous fiscals.

Sustenance of the margin, amidst the competitive industry scenario, reflects the strength of the group?s brands, its established clientele and efficient operational structure.

The financial risk profile remains healthy, supported by large networth of Rs 1,458 crore and a comfortable capital structure. The group's strong cash generation ability and healthy networth should support its credit profile over the medium term.

The ratings continue to reflect the group's strong business risk profile, supported by established brands, and healthy market position in the domestic textile industry.

These strengths are partially offset by susceptibility to volatility in raw material prices, intense competition in the textile and apparel industries, and economic downturns.

Siyaram Silk Mills (SSML) company manufactures suiting and shirting fabrics, home furnishing fabrics, and garments in addition to indigo dyed yarn and knitted fabrics.

The scrip fell 3.98% to currently trade at Rs 565.20 on the BSE.

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