StockWatch
·

Sanathan Textiles Ltd

BSE: 544314

P/L Snapshot

Q1 FY27 · standalone

vs Q4 FY26·vs Q1 FY26
Revenue
828.81
+8.0%+9.3%
Expenditure
742.46
+7.0%+6.6%
Net Profit
64.95
+16.0%+37.6%
OPM %
11.67%
+0.71pp+2.33pp

Shareholding

Pattern breakdown

P/L Trends

(in crores)

RevenueExpenditureNet Profit
0.00232.07464.13696.20928.27Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Price Chart
Reports

Strong volume, margin pressure from capacity commissioning

capacity utilization · margin compression · operational resilience

TranscriptDeep diveQ1 FY2717 Aug 20266 minConsumer & Retail

Sanathan Textiles consol PAT falls 41% YoY to ₹23.8 Cr despite 79% revenue growth

yarn manufacturing · capacity expansion · margin compression

ResultsQ1 FY2703 Aug 20263 minConsumer & Retail
Latest
Board Meeting3 Aug, 6:10 pm

Sanathan Textiles consol PAT falls 41% YoY to ₹23.8 Cr despite 79% revenue growth

On a consolidated basis (primary), Sanathan Textiles posted revenue of ₹1,334.74 Cr, up 79.1% YoY (₹745.34 Cr) and 14.2% QoQ (₹1,169.18 Cr), but consolidated PAT fell 41.1% YoY to ₹23.82 Cr even as it rose 10.4% QoQ (₹21.57 Cr). This is a sharp basis divergence worth flagging: standalone (parent-only) PAT actually grew 37.6% YoY to ₹64.95 Cr on modest 8.4% revenue growth (₹813.13 Cr vs ₹749.88 Cr) — the entire consolidated profit shortfall traces to the two subsidiaries, Sanathan Polycot Private Limited and Universal Texturisers Private Limited, which together generated ₹573.39 Cr of revenue this quarter but a combined net loss of ₹41.26 Cr, per the auditor's review report. There are no exceptional items on either statement, so this is an operating-cost story, not a one-off. The margin bridge confirms a capex-ramp narrative rather than demand weakness: consolidated finance costs jumped to ₹38.63 Cr from ₹4.62 Cr a year ago (8.4x) and depreciation rose to ₹34.72 Cr from ₹11.71 Cr (3x), while consolidated other income shrank to ₹3.59 Cr from ₹2.11 Cr. Consolidated OPM held roughly flat sequentially at 8.10% (Q4 FY26: 8.08%) but compressed from 9.33% a year ago, and NPM fell to 1.79% from 5.41% YoY. This lines up with management's own framing from the prior (Q4 FY26) concall, where it guided FY27 consolidated revenue of ₹5,600-5,700 Cr and EBITDA above ₹500 Cr, explicitly flagging that margin improvement would accelerate only "as the Punjab facility stabilizes and product mix diversifies." This quarter's subsidiary losses and the finance-cost/depreciation surge are consistent with that stabilization phase rather than a deviation from it — consolidated EBITDA (PBT + finance costs + depreciation − other income) came to ₹108.08 Cr, about 21.6% of the full-year ₹500 Cr target, against revenue of ₹1,334.74 Cr, roughly 23.6% of the ₹5,650 Cr guidance midpoint. On that basis the quarter reads as on-track rather than a miss, though double-digit EBITDA margins guided for the year are not yet visible. No specific Street/consensus estimate for this quarter could be located in available previews, so vs-Street is unknown rather than assumed. Separately, the Board also approved doubling Technical Textiles yarn capacity at the Silvassa facility (9,000 to 18,000 MTPA), targeted for commercial commissioning in August 2026, adding to the capacity pipeline alongside the Punjab expansion already underway. Going into Q2 FY27, the read-through is that consolidated profitability should track the pace at which the loss-making subsidiaries stabilize and the new Silvassa capacity starts contributing, while the standalone yarn business continues to compound profitably on its own.

3 Aug 2026, 06:10 pm