Analysts/Institutional Investor Meet/Con. Call Updates

Date: 23.07.2026 To To Corporate Rela�ons Department Lis�ng Compliance Department, BSE Limited Na�onal Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1 Block G Dalal Street, Bandra Kurla Complex, Bandra (E) Mumbai – 400 001, India Mumbai – 400 051, India Scrip Code: 543989 Symbol: KALAMANDIR Dear Sir / Madam Sub: Transcript of the Conference call held to discuss the results Q1 FY 2026-27 With reference to the above-men�oned subject, we wish to inform that, 1. The Copy of Transcript of the conference call held on Thursday, July 16, 2026 to discuss the results of the Quarter ended June 2026 is enclosed herewith. 2. The Transcript also uploaded on the Company’s website and the website link of the same is: htps://sskl.co.in/wp-content/uploads/2026/07/Q1FY27Transcript.pdf 3. The list of management atendees is stated in the Transcript. 4. No unpublished price sensi�ve informa�on was discussed in the call. This is for your informa�on and records. For Sai Silks (Kalamandir) Limited M.K.Bhaskara Teja Company Secretary & Compliance officer M.No: A39542 “Sai Silks Kalamandir Limited Q1 FY27 Earnings Conference Call” July 16, 2026 MANAGEMENT: MR. BHARADWAJ RACHAMADUGU – CHIEF EXECUTIVE OFFICER – SAI SILKS KALAMANDIR LIMITED MR. K.V.L.N. SARMA – CHIEF FINANCIAL OFFICER – SAI SILKS KALAMANDIR LIMITED Page 1 of 14 Sai Silks Kalamandir Limited July 16, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Sai Silks Kalamandir Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Mr. Bharadwaj, Chief Executive Officer. Thank you, and over to you, sir. B. Rachamadugu: Thank you, Steeve. Good evening, ladies and gentlemen. Thank you for joining us today to discuss the financial and operational performance of Sai Silks Kalamandir Limited for the first quarter ended June 30, 2026. I am Bharadwaj Rachamadugu, CEO of Sai Silks Kalamandir Limited. I'm joined today by Mr. K.V.L.N. Sarma, our Chief Financial Officer. On behalf of the management team, I extend a warm welcome to all our shareholders, investors, analysts and stakeholders participating in the call today. I hope everybody got a chance to go through the financial reports updated on both the company website as well as on the stock exchanges. Let me start with the market overview and the broader market scenario. Consumption during the quarter 1 FY26-'27 was shaped by Adhik Maas that fell from May 17 till June 15, almost 1 full month inside our quarter. Adhik Maas, as you all know, is traditionally treated as inauspicious for weddings, griha praveshams and other major purchases that contributed to weak consumption trends across our markets. As a result, footfall and spends during the quarter remains measured. Customers continue to display value conscious and discretionary purchasing approach. This reflects broader weakness in the overall consumer demand across the discretionary retail and consumption space. A trend, we believe, is being felt industry-wide and not specific to Sai Silks or ethnic wear alone. Additionally, the retail environment remained challenging due to passive discretionary spending and cautious consumer sentiment across markets. We expect this cautious sentiment to ease as we move into the festive and wedding-heavy second half of the year. For the first quarter ended June 30, 2026, the company reported a revenue from operations of INR375 crores compared to INR379 crores in quarter 1 '25-'26, which is almost flat. The same- store sales saw a degrowth of up to 7.5% during the quarter, reflecting the cautious demand environment I just spoke about. EBITDA margins declined by about 1%, largely on account of the same-store sales degrowth given that the fixed cost base spread over softer like-to-like volumes. That said, I'm happy to report that gross margins held up well, remaining close to 42% despite the challenging environment, which is a reflection of continued pricing discipline and merchandise mix management. We expect the EBITDA margins to improve through the course of the year, supported by SSSG improvement and by the operating leverage that follows as this quarter's new stores mature. Page 2 of 14 Sai Silks Kalamandir Limited July 16, 2026 The company continues to be debt-free. This reflects our continued focus on financial discipline and prudent capital management even as we invest in continued expansion. As per our original plan back in 2023 during the IPO, we had envisaged adding up to 1,42,500 square feet of retail space. I am pleased to share that through disciplined execution and efficient capital allocation; we were able to approximately add 90,000 to 1,00,000 square feet of additional retail area over and above this original target using the same fund allocation. This reflects efficient capital allocation, utilization and implementation on the ground and gives us a higher store area, and this higher store area will translate into higher productivity for the company. With this additional retail space, our overall inventory levels are naturally expected to be higher in absolute terms. However, I'd like to highlight that we continue to see a consistent reduction in inventory per square foot, which reflects the growing efficiencies of our cluster-based expansion strategy. As store density improves within a cluster, our inventory planning and replenishment becomes more efficient. I'd also like to note that the entire inventory is owned by the company as all our stores operate under the company-owned company-operated model. Our focus during the quarter remained on strengthening our market presence, enhancing customer experience and improving operational efficiencies and driving sustainable long-term growth. We continued our expansion journey, adding approximately 30,000 square feet of retail space during the quarter, taking our total store count to 83. These additions further strengthens our presence in our key growth market, Karnataka, and reflect our confidence in the long-term potential of the organized ethnic wear retail segment. As of June 30, 2026, the company's total retail footprint stood at approximately 8,14,000 square feet across 83 stores and 4 states. Looking ahead, we are targeting a net retail space addition of approximately 1,00,000 square feet for this financial year. As part of our ongoing efforts, we have planned to rationalize 1 KLM Fashion Mall store that has shown sustained degrowth despite dedicated efforts towards revival, including downsizing initiative that has been undertaken in the previous quarter. This action reflects our commitment to disciplined capital allocation, ensuring resources remain focused on our best-performing locations. We will continue to monitor performance closely and take necessary actions as warranted. I'd like to take a moment to address how we believe a business like ours should be evaluated. Given the inherently seasonal nature of the ethnic wear retail industry, companies like ours are best assessed on a yearly basis rather than purely on a quarter-to-quarter basis. As seasonal shifts are imminent and structural to how this business performs, our revenue and profitability are closely tied majorly around the festive and wedding calendar. Events like Adhik Maas can shift demand meaningfully from one quarter into another without any change in the underlying health of the business. A quarter that looks soft in isolation may Page 3 of 14 Sai Silks Kalamandir Limited July 16, 2026 simply reflect a calendar-driven timing shifts with the corresponding demand showing up strongly in the adjacent quarter. We would, therefore, encourage investors and a [Showing first 8,000 characters — download PDF for full document]