Sanathan Textiles (SANATHAN) Q2 25/26 earnings summary

Executive summary

• Achieved strong operational performance in Q2 and H1FY26, with Silvassa plant at full capacity and Punjab facility commencing operations in August 2025, driving efficiency and margin improvements.

• Board approved unaudited financial results for Q2 and H1 FY26; new Executive President - Finance and Sustainability appointed.

• Expansion of cotton yarn capacity underway in Madhya Pradesh, leveraging the local ecosystem for future growth.

• Risk Management Committee renamed to include sustainability oversight for BRSR compliance.

Financial highlights

• Standalone Q2 FY26 revenue: ₹767.1 Cr (up 3.2% YoY); EBITDA: ₹71.2 Cr (up 22.2% YoY); PAT: ₹50.6 Cr (up 44.6% YoY).

• Consolidated Q2 FY26 revenue: ₹818 Cr (up 10.2% YoY); EBITDA: ₹63.2 Cr (up 8.5% YoY); PAT: ₹20.1 Cr (down 38.2% YoY due to Punjab start-up costs).

• H1 FY26 standalone revenue: ₹1,517 Cr; EBITDA: ₹141.2 Cr; PAT: ₹97.8 Cr.

• H1 FY26 consolidated revenue: ₹1,563.3 Cr; EBITDA: ₹132.7 Cr; PAT: ₹60.6 Cr.

• Standalone EPS for Q2 FY26: ₹6.00; H1 FY26: ₹11.59. Consolidated EPS for Q2 FY26: ₹2.38; H1 FY26: ₹4.79.

Outlook and guidance

• Targeting FY26 revenue of ₹4,100–4,300 Cr with double-digit EBITDA margin; FY27 guidance: revenue ₹5,800–6,000 Cr, EBITDA margin 11%; FY28: revenue ₹7,300–7,400 Cr, EBITDA margin 12%.

• Punjab facility expected to reach full 700 tons/day by January 2026 and 100% utilization from last quarter FY26.

• New greenfield cotton facility in Madhya Pradesh to be commissioned Q1 FY28, expected revenue ₹450–500 Cr.