Sanathan Textiles (SANATHAN) Q3 24/25 earnings summary

Executive summary

• Q3 and nine-month periods saw stable demand and consistent gross margins, with year-to-date EBITDA and PAT up 30% year-over-year.

• December 2024 marked the successful completion of the IPO, enabling new growth benchmarks and expansion plans.

• All three yarn segments showed improved performance year-over-year, with EBITDA up 30% for 9MFY25 compared to 9MFY24.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved and reviewed by the Board and Audit Committee on February 10, 2025.

• Expansion includes a new Punjab plant, increasing polyester filament capacity and overall installed capacity to 5.50 lakh MTPA by FY28.

Financial highlights

• Q3 FY25 revenue: INR 743.13 crores, marginally up from INR 742.17 crores in Q2 FY25.

• 9M FY25 revenue: INR 2,266.43 crores (9M FY24: INR 2,201.37 crores); EBITDA: INR 195.17 crores (9M FY24: INR 147.48 crores); PAT: INR 116.80 crores (9M FY24: INR 81.59 crores).

• EBITDA for 9MFY25 reached ₹195 crore, a 32.3% increase year-over-year, with margins improving by 191 bps to 8.61%.

• PAT for 9MFY25 was ₹117 crore, up 43.2% year-over-year, with PAT margin rising to 5.15%.

• Basic EPS for 9MFY25 was ₹16.15, compared to ₹11.34 in 9MFY24.

Outlook and guidance

• Punjab plant phase one to be operational by Q1 FY 2026, with full ramp-up within one quarter.

• After Punjab, cotton and industrial yarn capacity additions planned for FY 2027; phase two of polyester in FY 2028.

• Anticipates sustained growth driven by normalized industry consumption, strong demand, and favorable government policies.

• EBITDA margin for FY25 expected to be close to 9%.

• Plans to enhance cotton yarn production by 11,490 MTPA and technical textiles yarn by 9,000 MTPA.