Sanathan Textiles (SANATHAN) Q2 24/25 earnings summary

Executive summary

• The company operates across polyester, cotton, and technical textile segments, with a fully integrated facility in Silvassa and a major expansion underway in Punjab.

• Unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2024 were approved and reviewed by the Board and auditors.

• The company completed its IPO and listed on NSE and BSE on 27 December 2024, issuing 17,133,956 shares at ₹321 per share.

• The business serves over 20,000 customers and 900 distributors, with a strong export presence and a focus on sustainability and innovation.

Financial highlights

• Q2 FY25 revenue from operations was INR 742.17 crores, marginally down from INR 745.61 crores in Q2 FY24 due to a 1.92% decline in sales volume.

• Q2 FY25 EBITDA rose to INR 58.22 crores from INR 51.84 crores YoY, driven by better gross margins.

• Q2 FY25 PAT was INR 32.56 crores, up from INR 30.24 crores YoY.

• H1 FY25 revenue was INR 1,523.30 crores, up from INR 1,420.96 crores in H1 FY24, with EBITDA at INR 136.70 crores (vs. INR 84.67 crores) and PAT at INR 82.63 crores (vs. INR 47.34 crores).

• Standalone revenue from operations for Q2 FY25 was ₹74,337 lakhs, with total income at ₹78,113 lakhs; consolidated revenue was ₹74,217 lakhs, total income ₹78,113 lakhs.

• Standalone profit after tax for Q2 FY25 was ₹3,502 lakhs, up from ₹3,208 lakhs YoY; consolidated profit after tax was ₹3,256 lakhs, up from ₹3,024 lakhs YoY.

• For H1 FY25, standalone profit after tax was ₹8,728 lakhs, consolidated profit after tax was ₹8,263 lakhs.

• Standalone EPS for Q2 FY25 was ₹4.87 (basic), consolidated EPS was ₹4.53 (basic).

Outlook and guidance

• FY25 revenue guidance is INR 3,000–3,100 crores with an EBITDA margin target of 9%.

• FY26 revenue is projected at INR 5,200–5,500 crores, with an EBITDA margin of 10–11%.

• At peak capacity post-expansion, revenue could reach INR 6,200 crores (phase 1) and INR 7,700 crores (phase 2).

• The company expects to beat the industry’s 10% CAGR after FY26.

• Updates on IPO proceeds utilization will be provided in the next reporting period based on actual fund usage.