Summary
Silky Overseas Limited - Q3 FY26 Earnings Call Summary Wednesday, January 21, 2026 4:00 PM IST
Event Participants
Executives 2 Amalendu Kumar (Financial Advisor), Ananya Goyal (Whole-Time Director & CFO)
Analysts 1 Bhumika Maheshwari (Moderator/IR Head - Finportal)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (FY25) | ₹124 crores | Full-year FY25 performance; driven primarily by B2B distribution (97%). |
| PAT (FY25) | ₹10 crores | Reported for FY25 with a focus on transitioning to a brand-led digital story. |
| EBITDA Margin | ~15% | Historically stable over 3-4 years; managed through advance raw material procurement. |
| Capacity Utilization | 68% | Relates to FY25; current installed capacity is approximately 6,000 tons. |
| Receivable Days | 77 days | Increased from 60 days due to North India floods and US reciprocal tariffs affecting exporters. |
| Production Cycle | 10-15 days | Time from raw material procurement to finished goods packing. |
| Inventory Holding | 60-90 days | Necessary due to the seasonal nature of the blanket industry. |
Geographic & Segment Commentary
- B2B Distribution: Accounts for 97% of total revenue. The company maintains a PAN-India network including Ludhiana, Raipur, Siliguri, and Guwahati, with 40-50% of revenue coming from the top 5 clients.
- E-commerce (B2C): Currently contributes 3% of sales through Flipkart, Myntra, and riandecor.com. Management targets increasing this to 10% via “Fulfillment by Flipkart” (FBF) expansion into Jaipur, Ahmedabad, and Lucknow.
- Exports: Currently a small portion of revenue (one shipment to UAE in 2024). Strategic focus is on Middle Eastern and African markets to capture duty drawbacks and incentives.
Company-Specific & Strategic Commentary
- Product Expansion: Moving beyond core mink blankets (1.3kg to 8kg) into semi-finished goods, Holland fabric, and trading in comforters/bedsheets to leverage Panipat’s textile hub status.
- Operational Efficiency: Utilized IPO proceeds to construct sheds on 2.5 acres of land to manage the high volumetric storage requirements of raw materials and finished goods.
- Infrastructure & Sustainability: Installed a 750kW solar power plant to reduce energy costs and invested in ETP/UFRO plants, eyeing a 70% state government capital subsidy.
- Strategic Partnerships: Pursuing a strategic partnership with Myntra’s in-house brand and expanding the FBF model to six Indian states to reduce delivery turnaround times.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Potential | ₹150 - ₹170 crores | Estimated maximum revenue at 100% capacity utilization. |
| E-commerce Mix | 10% of total sales | Target for the “next couple of years” through FBF enrollment and new state entries. |
| Export Strategy | Expansion via Trade Shows | Aiming to connect with global buyers to leverage 7.5% - 10.3% global CAGR for blankets. |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Volatility | Fluctuations in crude and polyester prices; mitigated by providing advances to suppliers like Reliance and Alok Industries to fix rates. |
| Working Capital Stress | High debtor days (77) and long inventory cycles (60-90 days) due to seasonality. Floods in North India recently exacerbated dispatch delays. |
| Competition | Unorganized players in Panipat/Ludhiana with low compliance costs. Silky relies on its 40,000+ Flipkart ratings and integrated manufacturing to compete. |
| External Factors | US reciprocal tariffs on textiles have pushed export-quality goods into the domestic market, increasing local competition. |
Q&A Highlights
Operations & Capacity
- Question: Why prioritize storage over demand generation if utilization is under 70%? (Bhumika Maheshwari)
- Answer: Blankets are highly volumetric. Expanded storage was essential just to handle existing raw material and semi-finished goods flow which previously hindered production (Ananya Goyal).
Financials & Receivables
- Question: What caused the stretch in receivable days to 77? (Bhumika Maheshwari)
- Answer: August/September floods in North India delayed dispatches. Additionally, US tariffs forced other exporters to dump stock in the domestic market, slowing collections (Ananya Goyal).
- Answer: The B2B model relies on a distributor-to-retailer chain where recovery takes time, necessitating working capital (Amalendu Kumar).
E-commerce Strategy
- Question: How do you manage high return rates and logistics costs in B2C? (Bhumika Maheshwari)
- Answer: Total returns are 10-12% (customer returns only 3-4%). Reverse logistics costs are already incorporated into the online selling price based on historical data (Ananya Goyal).
Raw Material Sourcing
- Question: How has the removal of BIS (Bureau of Indian Standards) affected you? (Bhumika Maheshwari)
- Answer: The removal of BIS on polyester yarn has allowed for trial imports from China, which has significantly reduced raw material prices (Ananya Goyal).
Key Takeaway
Silky Overseas Limited reported a steady FY25 with ₹124 crore revenue and ₹10 crore PAT, maintaining its position as India’s only listed mink blanket manufacturer. While 97% of business remains B2B-led, the company is aggressively pivoting toward a digital-first model, targeting a 10% e-commerce contribution via the FBF (Fulfillment by Flipkart) program across six states. Strategically, the company has utilized IPO proceeds to resolve volumetric storage bottlenecks and is diversifying into fabric trading and premium blankets. Despite a recent stretch in working capital (77 debtor days) caused by environmental factors and trade tariffs, management remains confident in achieving ₹150-170 crore revenue at full capacity. The focus remains on leveraging Panipat’s hub advantage and potential raw material cost savings from Chinese imports following regulatory changes.
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