Sanathan Textiles (SANATHAN) Q4 24/25 earnings summary

Executive summary

• FY 2025 was transformative, marked by strong demand, operational efficiency, innovation, and a successful IPO that raised INR 400 crores, strengthening the balance sheet and supporting expansion plans.

• Strategic focus on customer centricity and leadership changes, including the appointment of a new Executive Director, position the company for future growth.

• Major greenfield expansion in Punjab to double polyester filament yarn capacity, with commissioning in Q1 FY 2026.

• India-UK FTA and favorable policy environment expected to boost export demand and support sector growth.

• Audited standalone and consolidated financial results for FY25 were approved with unmodified opinions from statutory auditors.

Financial highlights

• FY 2025 revenue: INR 2,998.61 crore (standalone: ₹3,02,649 lakhs; consolidated: ₹3,01,610 lakhs), up 1.39% year-over-year.

• FY 2025 EBITDA: INR 262.78 crore, up 15.98% year-over-year; PAT: INR 160.45 crore, up 19.87% year-over-year.

• Q4 FY 2025 revenue: INR 732.18 crore; EBITDA: INR 67.61 crore; PAT: INR 43.65 crore.

• EBITDA margin improved by 110 bps to 8.8%; PAT margin improved by 82 bps to 5.4% year-over-year.

• Basic EPS for FY25: INR 21.6 (standalone: ₹23.17; consolidated: ₹21.30).

Outlook and guidance

• FY 2026 revenue expected at INR 4,600–4,800 crore, with EBITDA margin guidance of 10–11%.

• Punjab plant to be fully operational by Q1 FY 2026, with full ramp-up by Q2 FY 2026 and full capacity impact in FY 2027.

• Normalized EBITDA margin target of 12% post full commissioning of Punjab phases.

• Total capacity targeted to reach 5.50 lakh MTPA by FY28; technical textile yarn capacity to double by FY 2027.