Sanathan Textiles Limited submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, detailing significant improvements in resource efficiency and environmental compliance. The integrated yarn manufacturer reported a reduction in energy intensity to 5.03 GJ/tonne of production, down from 5.20 GJ/tonne in FY25, marking a 3.27% decline. Water intensity also fell by 6.10% to 0.77 KL/tonne from 0.82 KL/tonne.

These operational gains were underpinned by a substantial increase in capital expenditure directed toward sustainability initiatives. The company invested ₹73 crore in FY26 on technologies designed to improve environmental performance, a sharp rise from ₹6.89 crore in the previous year. This spending primarily funded the commissioning of its new Punjab facility, where environmental systems were integrated into the plant design rather than retrofitted.

Environmental Impact and Infrastructure

The capital allocation focused on four key areas: energy efficiency, waste heat recovery, water stewardship, and fuel transition. At the Silvassa unit, the replacement of power-intensive screw compressors with centrifugal turbo compressors significantly lowered energy requirements. Additionally, cooling water pumps were upgraded, reducing daily consumption from 5,340 units to 4,282 units.

Water management remains a critical priority, with the Punjab facility operating as a Zero Liquid Discharge (ZLD) site. Investments included an Effluent Treatment Plant, Reverse Osmosis systems, and Mechanical Vapour Recompression Evaporators to recover and reuse water. The company also initiated a river water project at Silvassa to reduce reliance on groundwater.

Emissions and Waste Management

Total energy consumption rose to 2,480,754 GJ from 1,787,876 GJ in FY25, driven largely by the inclusion of the new Punjab operations. Consequently, Scope 1 and Scope 2 greenhouse gas emissions increased to 3,44,738 metric tons of CO2 equivalent, up from 2,69,849 metric tons. However, emission intensity per tonne of physical output decreased to 0.70 metric tons, improving from 0.79 metric tons in the prior year.

The company maintained compliance with all applicable environmental regulations, reporting no fines or penalties. Waste generation totaled 198.66 metric tons, with 10.22 metric tons recycled and 155.39 metric tons disposed of through landfilling or incineration. Sanathan Textiles also met its Extended Producer Responsibility targets for plastic waste recycling and end-of-life processing.

Social Governance and Workforce

Sanathan Textiles employs a workforce of 1,843 permanent employees and 6,053 non-permanent workers. The company reported zero safety-related incidents, fatalities, or lost-time injuries during FY26. Training programs covered 100% of permanent employees and 94% of workers on health, safety, and skill upgradation topics.

Gender diversity remains limited, with women constituting only 3% of permanent employees and 6% of workers. Female representation on the Board of Directors stands at 12.5% (one out of eight members), while Key Management Personnel and Senior Managerial roles have minimal female participation. The company reported no complaints regarding sexual harassment, discrimination, or child labor.

Sanathan Textiles Limited submitted its Annual Report for FY2025-26 to the stock exchanges on August 19, 2026, pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report covers the company's 21st year of operations and is themed "One Yarn, Many Things: Rooted in Values, Weaving a Better Tomorrow." The 21st Annual General Meeting is scheduled for Friday, September 11, 2026, via video conference.

Financial Performance

Consolidated revenue from operations reached a record ₹3,811.18 crore in FY2025-26, growing 27.10% over ₹2,998.61 crore in FY2024-25. This was driven principally by the commissioning and ramp-up of the Punjab facility operated through wholly owned subsidiary Sanathan Polycot Private Limited. Consolidated EBITDA increased 7.90% to ₹284.35 crore from ₹263.53 crore. However, consolidated profit after tax declined to ₹77.35 crore from ₹160.45 crore, as higher depreciation and finance costs accompanied the capitalisation of the greenfield Punjab plant assets.

The following table summarises consolidated and standalone financial results:

On a standalone basis, revenue from operations grew to ₹3,037.86 crore from ₹2,996.80 crore, with standalone EBITDA margin expanding to 9.12% from 8.87% and standalone profit after tax rising to ₹191.91 crore from ₹174.47 crore — the fourth consecutive year of margin improvement at the standalone level.

During the year, Capital Work-In-Progress of ₹1,971.05 crore was capitalised, reducing the closing CWIP balance to ₹252.00 crore from ₹1,586.95 crore, and increasing net Property, Plant and Equipment to ₹2,804.36 crore from ₹930.87 crore. The company stated that the decline in consolidated profit is explained almost entirely by the higher interest and depreciation that accompany a greenfield project, and that the company reached its annual peak net debt in this investment cycle.

Vertical-Wise Revenue Contribution

Polyester filament yarns remained the dominant business vertical. The following table shows product-wise revenue for FY2025-26:

Polyester filament yarns grew 35.3% to ₹3,118.31 crore, while cotton yarns recorded growth of 3% to ₹583.00 crore.

Manufacturing and Operational Highlights

The company's installed capacity reached 479,250 MTPA across three business verticals. The Wazirabad, Punjab manufacturing facility — operated through Sanathan Polycot Private Limited — commissioned its continuous polymerisation line on August 27, 2025 and ramped up to 700 MTPD by March 2026. The Punjab plant is described as the only integrated polyester filament yarn plant of this scale in North India. The Silvassa facility maintained a capacity utilisation of 96% during the year.

The capacity structure as at year-end is summarised below:

Sustainability and ESG

The company invested ₹73.00 crore in FY2025-26 in technologies and infrastructure to improve environmental performance, compared to ₹6.89 crore in FY2024-25. Key sustainability metrics showed improvement:

Both the Silvassa and Punjab facilities operate Zero Liquid Discharge systems. The Punjab facility uses rice husk biomass as a renewable heating fuel. Sanathan Polycot Private Limited entered into a Power Supply and Consumption Agreement for sourcing 32 MW of renewable power as a captive consumer. The company also presented its first Business Responsibility and Sustainability Report for FY2025-26.

Workforce and CSR

As at March 31, 2026, the Sanathan Textiles Group had 1,843 permanent employees and 6,053 contract workers on a consolidated basis, totalling a workforce of 7,896. Employee benefits expense stood at ₹125.28 crore for FY2025-26. The average percentage increase in employee salaries during the year was 8%.

The company's CSR obligation for FY2025-26 was ₹4.05 crore, of which ₹0.32 crore was spent during the year. The remaining ₹3.73 crore was transferred to the Unspent CSR Account. CSR activities included healthcare support, fire safety infrastructure at the Punjab community, cervical cancer awareness and vaccination initiatives, food distribution, and renovation of K. M. Haji Bachooali ENT Hospital.

Board and Governance

The Board comprised eight directors as at March 31, 2026 — four Executive Directors and four Independent Directors including one woman director. Mr. Sammir Dattani was appointed as Executive Director with effect from May 26, 2025. Mrs. Rupal Vora was reappointed as Independent Director for a second term from April 1, 2026 to March 31, 2029. The Board met five times during FY2025-26. No dividend was recommended for the year in view of ongoing capacity expansion.

ICRA reaffirmed the company's credit ratings: long-term fund-based term loans and limits at [ICRA]A (Positive) and short-term non-fund-based limits at [ICRA]A2+. Walker Chandiok & Co LLP served as statutory auditors and the Board has proposed their reappointment for a second term of five years from the conclusion of the 21st AGM.