Sanathan Textiles (SANATHAN) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue rose 35.2% QoQ to ₹1,803.97 crore; EBITDA increased 43.2% to ₹154.7 crore and PAT rose 157.1% to ₹61.23 crore.

• Punjab ramp-up, improved utilisation, stronger domestic demand and better realisations supported quarterly growth; Punjab turned PAT positive.

Financial highlights

• Consolidated Q2 revenue was ₹1,803.97 crore versus ₹817.99 crore in Q2 FY26; PBT was ₹80.59 crore versus ₹33.27 crore.

• Consolidated Q2 PAT was ₹61.23 crore; H1 revenue was ₹3,138.71 crore and net profit ₹85.05 crore, versus ₹1,563.33 crore and ₹60.55 crore in H1 FY26.

• Standalone Q2 revenue was ₹992.11 crore, up 22.0% QoQ and 29.3% YoY; EBITDA was ₹83.8 crore, down 11.7% QoQ and up 17.7% YoY.

• Standalone Q2 net profit was ₹58.69 crore; H1 revenue was ₹1,805.24 crore and net profit ₹123.64 crore, versus ₹1,516.97 crore and ₹97.83 crore in H1 FY26.

• Consolidated finance costs were ₹42.03 crore in Q2 and ₹80.66 crore in H1, versus ₹18.48 crore and ₹23.10 crore in the corresponding prior-year periods.

Outlook and guidance

• FY27 revenue is expected to exceed INR 6,000 crore, with EBITDA targeted above INR 560 crore, subject to no major international realisation disruption.

• Revenue guidance is INR 7,200–7,300 crore for FY28 and INR 7,700–8,000 crore for FY29; management affirmed a 10%–15% growth trajectory.

• Punjab Phase 2 commissioning is planned to begin in part around Dec/Jan; full ramp-up to 900 TPD is targeted by June/July next year.

• Management plans continued efficiency improvements and capacity expansion, with a focus on margins; Punjab utilisation target is 95%–96% over the next two quarters.