Sanathan Textiles (SANATHAN) Q2 24/25 earnings summary

Executive summary

• Achieved Q2 FY25 revenue of INR 742.17 crores, marginally down from Q2 FY24 due to a 1.92% decline in sales volume, but EBITDA and PAT improved year-over-year due to better gross margins and lower operating expenses.

• H1 FY25 revenue rose to INR 1,523.30 crores, up 7.2% year-over-year, with EBITDA at INR 136.70 crores and PAT at INR 82.63 crores, reflecting higher volumes and improved margins.

• 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, with 17,133,956 shares issued at ₹321 per share.

• Major capacity expansions underway, including a new polyester filament yarn facility in Punjab and cotton yarn expansion at Silvassa, expected to drive significant growth from FY26.

Financial highlights

• Q2 FY25 EBITDA increased to INR 58.22 crores from INR 51.84 crores in Q2 FY24.

• Q2 FY25 PAT was INR 32.56 crores, up from INR 30.24 crores in Q2 FY24.

• 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.

• H1 FY25 EBITDA margin improved due to higher sales volume and lower operating expenses.

Outlook and guidance

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

• FY26 revenue expected between INR 5,200–5,500 crores, with EBITDA margin targeted at 10–11%.

• Peak capacity post-expansion could support a top line of INR 7,700 crores.

• Technical textile segment expected to grow at a 13–15% CAGR.

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