Sanathan Textiles (SANATHAN) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a transformative year with major expansion, notably the commissioning and ramp-up of phase I at the Punjab facility, driving strong operational and financial performance despite global trade volatility and geopolitical disruptions.

• Operational stability was maintained across both Punjab and Silvassa, with Silvassa acting as the operational anchor and Punjab strengthening presence in North India.

• Consolidated revenue for Q4 FY26 grew 59.7% YoY to ₹1,169.2 crore; EBITDA rose 38.1% to ₹94.4 crore.

• Standalone PAT grew 10% to ₹191.9 crore, while consolidated PAT declined due to higher depreciation and finance costs from the Punjab facility.

• Audited standalone and consolidated financial results for the year ended 31 March 2026 were approved and published, with unmodified audit opinions from statutory auditors.

Financial highlights

• Standalone Q4 FY26 revenue: INR 752.8 crores, up 3% YoY; EBITDA: INR 82.5 crores, up 16.9% YoY; PAT: INR 56 crores, up 12.3% YoY.

• Standalone FY26 revenue: INR 3,037.9 crores (up 1.4% YoY); EBITDA: INR 277.1 crores; PAT: INR 191.9 crores, up 10% YoY.

• Consolidated Q4 FY26 revenue: INR 1,169.2 crores, up 59.7% YoY and 8.4% QoQ; EBITDA: INR 94.4 crores, up 38.1% YoY and 65% QoQ; PAT: INR 21.6 crores.

• Consolidated FY26 revenue: INR 3,811.2 crores, up 27.1% YoY; EBITDA: INR 284.4 crores; PAT: INR 77.3 crores, down 51.8% YoY.

• Consolidated EPS for FY26 was ₹9.16, down from ₹21.30 in FY25; standalone EPS was ₹22.74, down from ₹23.17.

Outlook and guidance

• FY27 revenue guidance: INR 5,600–5,700 crores consolidated (Silvassa: INR 3,100 crores, Punjab: INR 2,600 crores).

• EBITDA expected to exceed INR 500 crores for FY27, with margins targeted at double digits as Punjab stabilizes.

• Technical yarn capacity at Silvassa to double by end of Q1 FY27; cotton yarn expansion in MP to commence post-monsoon.

• Capacity utilization at Punjab expected to reach 80–85% in the current quarter, aiming for full utilization.

• Management has accounted for the impact of new Indian labour codes, with an incremental financial impact of ₹2.86 Cr at the group level.