Crisil Ratings has reaffirmed its 'Crisil AA-/Stable/Crisil A1+' ratings on the bank facilities of Siyaram Silk Mills (SSML). According to reports from Business Standard, the rating agency cited the company's strong business risk profile as the primary factor for maintaining these high credit ratings. The reaffirmation reflects the company's healthy revenue growth and improving operating performance across its textile operations, with the ratings continuing to reflect the group's strong business risk profile supported by established brands and healthy market position in the domestic textile industry.
The group reported revenue of ₹2,576 crore in fiscal 2026, compared to ₹2,226 crore in fiscal 2025, driven by sustained demand across traditional business segments and steady retail expansion. As reported by Business Standard, this growth momentum has continued into fiscal 2027, with the company achieving revenue of ₹446 crore in the first quarter, versus ₹389 crore in the corresponding period of the previous fiscal. The healthy revenue trajectory is expected to be sustained by stable fabric business performance and growing retail segment contribution, with revenue growth for the full fiscal 2027 being driven by stable performance in the fabric business and growing contribution of the retail segment.
Operating profitability has shown an improving trajectory, benefiting from scale ramp-up, better operating leverage, and favorable product mix. According to Business Standard, while margins moderated in the first quarter of fiscal 2027, they are expected to remain healthy over the medium term, aligning with previous fiscal levels. The margin sustainability reflects the strength of the company's brands, established clientele, and efficient operational structure despite competitive industry conditions, with the company's established brand presence, vast distribution network and strong market position in the domestic textile industry lending stability and revenue visibility.
The financial risk profile remains healthy, supported by a large networth of ₹1,458 crore and comfortable capital structure. As reported by Business Standard, the group's strong cash generation ability and healthy networth should support its credit profile over the medium term. These financial strengths are partially offset by susceptibility to raw material price volatility, intense competition in textile and apparel industries, and potential economic downturns.
The stock price declined 3.98% to currently trade at ₹565.20 on the BSE following the rating announcement. According to Business Standard, Siyaram Silk Mills manufactures suiting and shirting fabrics, home furnishing fabrics, garments, indigo dyed yarn, and knitted fabrics, positioning it well in the domestic textile industry with established brand presence and vast distribution network.
