Sanathan Textiles (SANATHAN) Q1 25/26 earnings summary

Executive summary

• Achieved steady operational performance in Q1 FY26, with high capacity utilization, robust demand, and improved EBITDA margin at 9.33% compared to 8.76% for FY25 annualized.

• Expanded manufacturing capacity with a new greenfield facility in Punjab, targeting commercial operations from August 27, 2025, expected to more than double polyester filament yarn capacity.

• Maintains a diversified product portfolio serving apparel, technical textiles, automotive, and industrial sectors.

• Unaudited standalone and consolidated financial results for Q1 FY26 were reviewed and approved by the Board and Audit Committee, with a limited review by statutory auditors.

Financial highlights

• Q1 FY26 consolidated revenue from operations was INR 745.34 crore, up from INR 732.18 crore in Q4 FY25, but down from INR 781.13 crore in Q1 FY25.

• EBITDA for Q1 FY26 was INR 70 crore (margin 9.3%), with PAT at INR 40 crore (margin 5.4%).

• Sales volume reached 59,000 metric tons in Q1 FY26.

• Basic and diluted EPS for Q1 FY26 were ₹4.79 (consolidated).

• Gross margins improved year-over-year due to robust demand, while EBITDA margin was impacted by higher power, fuel, and wage costs.

Outlook and guidance

• Confident of achieving annual revenue of around INR 4,500 crore and double-digit EBITDA margin (10–11%) for FY26.

• Punjab facility expected to ramp up to 700 tons/day within 2–2.5 months of commercial launch, contributing significantly to top line.

• Sales price expected to stabilize at INR 114–115/kg for the year.

• Export share projected at 6–7% for the year, with focus on domestic market due to strong local demand.

• Commissioning of the Punjab greenfield facility in August 2025 is expected to drive the next phase of growth, margin improvement, and long-term value creation.