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 increased scale and sustainability, expected to more than double polyester filament yarn capacity.

• Maintained strong customer retention and diversified product portfolio, serving both domestic and international markets.

• 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.

• Both standalone and consolidated results were prepared in compliance with Ind AS 34 and SEBI regulations.

Financial highlights

• Q1 FY26 consolidated revenue from operations was ₹745.34 crore, up from ₹732.18 crore in Q4 FY25 but down from ₹781.13 crore in Q1 FY25; standalone revenue was ₹749.88 crore.

• EBITDA for Q1 FY26 stood at ₹70 crore with a margin of 9.3%, a 1.8% increase QoQ but a 9% decrease YoY.

• PAT for Q1 FY26 was ₹40.43 crore (consolidated) and ₹47.19 crore (standalone), with a PAT margin of 5.4%.

• Basic EPS for Q1 FY26 was ₹4.8 (consolidated) and ₹5.59 (standalone), both down YoY.

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

Outlook and guidance

• Annual revenue guidance maintained at around INR 4,500 crore, with double-digit EBITDA margin targeted for FY26.

• Punjab facility expected to commence commercial production on August 27, 2025, with ramp-up to 700 tons/day in the first phase and total capacity addition of 3.46 lakh MTPA in two phases.

• 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.