Sanathan Textiles (SANATHAN) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 was marked by industry volatility, global trade disruptions, regulatory changes, and shifting demand, but operational resilience enabled stable performance, with Silvassa at full capacity and Punjab ramping up from 350 to 450 TPD, targeting 700 TPD by Q4.

• Technical Textile Yarn expansion at Silvassa is progressing, set to double capacity in Q1 FY27, and expansion of the cotton division in Madhya Pradesh is planned.

• Strategic focus remains on disciplined capacity scaling, technical textile growth, and integrated yarn portfolio enhancement, benefiting from new trade agreements and government support.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, and re-appointed Mrs. Rupal Vora as Additional Director for three years from April 1, 2026.

Financial highlights

• Q3 FY26 consolidated revenue was INR 1,078.7 crore, up 45.2% YoY, with normalized EBITDA at INR 59.9 crore (5.6% margin); standalone revenue was INR 768.1 crore, with PAT of INR 38.1 crore (5% margin).

• Q3 FY26 consolidated PAT was negative at INR -4.77 crore, impacted by one-time costs; standalone PAT was INR 38.09 crore.

• 9M FY26 consolidated revenue was INR 2,642 crore, up 16.6% YoY, with EBITDA at INR 192.6 crore and PAT at INR 55.8 crore.

• One-time costs in Q3 included INR 2.7 crore (labor code gratuity) and INR 3.5 crore (Punjab scale-up).

• Basic and diluted EPS (consolidated) for Q3 FY26 was INR (0.57); for nine months, INR 6.60.

Outlook and guidance

• Q4 FY26 guidance: consolidated revenue INR 1,200 crore, EBITDA INR 90–100 crore; FY27 guidance: consolidated revenue ~INR 5,700 crore, double-digit EBITDA margin expected.

• Full earnings potential expected in FY27 as new capacities stabilize and demand visibility improves.

• Technical Textile expansion at Silvassa to be commissioned in Q1 FY27, with full revenue impact from Q2; Punjab phase II and Madhya Pradesh cotton facility to be operational in FY28.

• Full Phase I capacity at Punjab (700 TPD) expected by end of Q4 FY26, with full potential in Q1 FY27.