Sanathan Textiles (SANATHAN) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 was marked by significant volatility in raw material prices due to geopolitical tensions and supply chain disruptions, impacting both polyester and cotton yarn markets, with early signs of demand recovery from June.

• Despite industry-wide challenges, both manufacturing facilities operated without interruption, demonstrating operational resilience and strong supplier relationships.

• Standalone EBITDA rose 35.52% year-on-year to INR 94.93 crore, driven by disciplined procurement and diversification.

• Consolidated results benefited from the Punjab facility ramp-up, with both plants operating uninterrupted.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, after review by the Audit Committee and statutory auditors.

Financial highlights

• Standalone revenue for Q1 FY 2027 was INR 813.13 crore, up 8.01% sequentially and 8.43% year-on-year; standalone EBITDA was INR 94.93 crore, up 35.52% year-on-year; PAT grew 37.64% year-on-year to INR 64.95 crore.

• Standalone EBITDA margin improved to 11.67% (up 233 bps YoY); PAT margin at 7.99%.

• Consolidated revenue increased 79.08% year-on-year to INR 1,334.74 crore; consolidated EBITDA up 55.38% to INR 108.08 crore.

• Consolidated PAT was INR 23.82 crore, with a margin of 1.78%.

• Standalone and consolidated EPS for Q1 FY27 were INR 7.7 and INR 2.82, respectively.

Outlook and guidance

• Guidance for FY 2027 EBITDA maintained at INR 520–540 crore.

• Focus on improving operational efficiencies, increasing value-added product share, and ramping up new capacities, including Punjab Phase II and technical textiles at Silvassa.

• Greenfield cotton spinning project in Madhya Pradesh to leverage favorable ecosystem and support vertical expansion.

• Expecting improved demand in the July–September quarter, especially from late August onward.