Transcript of earnings call held on Monday, May 18, 2026.
SANATHAN · price
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Sanathan Textiles reported strong Q4 FY26 consolidated revenue of INR 1,169.2 crores (up 59.7% YoY) with EBITDA of INR 94.4 crores (margins at 8.1%). The company successfully commissioned and ramped up Phase 1 at its Punjab facility, which contributed to consolidated growth. For FY27, management guided consolidated revenue of INR 5,600-5,700 crores with EBITDA targeted north of INR 500 crores, driven by Punjab contributing INR 2,600 crores and Silvassa INR 3,100 crores. Phase 2 at Punjab is expected to be commissioned by end of FY27, targeting INR 4,000 crores revenue from Punjab alone. A new cotton yarn facility in Dhar, MP (72,000 spindles) is planned with land possession expected Q4 2026. Technical textile capacity doubling to 18,000 MTPA at Silvassa is in progress. Gross debt stands at INR 1,325 crores as of March 2026, which management indicated as peak level with planned repayments of INR 100-125 crores annually.
The successful ramp-up of Punjab operations and clear FY27 guidance signals strong execution capability. Management's EBITDA margin improvement trajectory from 8.1% to double digits reflects operating leverage as Punjab stabilizes and product mix improves. However, geopolitical volatility and raw material cost pass-through remain key monitorables.