Sanathan Textiles (SANATHAN) Q2 25/26 earnings summary

Executive summary

• Achieved strong operational performance in Q2 and H1FY26, with standalone EBITDA up 22% and PAT up 45% year-over-year, driven by Silvassa's efficiency and Punjab facility commissioning.

• Commissioned new Punjab facility in August 2025, starting at 350 tons/day and ramping to 700 tons/day, boosting consolidated revenue by 10% year-over-year.

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

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY26, and appointed a new Executive President - Finance and Sustainability.

• Risk Management Committee renamed as 'Risk Management and Sustainability Committee' to oversee 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 (down 0.5% YoY); EBITDA: ₹141.2 Cr (up 3.3% YoY); PAT: ₹97.8 Cr (up 12.1% YoY).

• H1 FY26 consolidated revenue: ₹1,563.3 Cr (up 2.6% YoY); EBITDA: ₹132.7 Cr (down 2.9% YoY); PAT: ₹60.6 Cr (down 26.7% YoY).

• 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

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

• Punjab facility to reach 700 tons/day by January 2026, with full capacity utilization expected from Q4 FY26.

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

• Expansion in the cotton division is expected to leverage Madhya Pradesh's textile ecosystem, supporting future growth.