Sanathan Textiles Q1FY27: Standalone PAT rises 37.5%, Punjab facility scales up
Sanathan Textiles reported strong standalone Q1FY27 results with PAT up 37.5% YoY to ₹64.9 crore and EBITDA margins expanding 240 bps to 11.7%, while consolidated PAT declined 41.1% YoY to ₹23.8 crore amid surging finance costs. The Punjab Phase I facility is fully operational, with Phase II and technical textiles expansion at Silvassa among near-term growth drivers.
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Sanathan Textiles reported a standalone net profit of ₹64.9 crore for Q1FY27, marking a 37.5% year-on-year increase from ₹47.2 crore in Q1FY26. Standalone revenue from operations rose 8.4% year-on-year to ₹813.1 crore, while standalone EBITDA expanded 35.4% to ₹94.9 crore, with EBITDA margins widening by 240 basis points to 11.7%. On a sequential basis, standalone revenue grew 8.0% from ₹752.8 crore in Q4FY26, with EBITDA up 15.0% and PAT up 15.9%. On a consolidated basis, revenue surged 79.1% year-on-year to ₹1,334.7 crore, driven by the continued scale-up of the Punjab facility, though consolidated PAT attributable to owners fell 41.1% to ₹23.8 crore, weighed down by a sharp rise in finance costs and depreciation.
Standalone Financial Performance
Stanathan Textiles' standalone operations delivered consistent improvement across key metrics in Q1FY27. Revenue from operations grew to ₹813.1 crore from ₹749.9 crore in Q1FY26 and ₹752.8 crore in Q4FY26. EBITDA stood at ₹94.9 crore against ₹70.1 crore in Q1FY26 and ₹82.5 crore in Q4FY26. Profit before tax rose to ₹86.3 crore from ₹62.2 crore in Q1FY26, while PAT margin expanded to 8.0% from 6.3% a year ago. Basic EPS improved to ₹7.7 from ₹5.6 in Q1FY26.
| Particulars (₹ Cr) | Q1FY27 | Q4FY26 | QoQ | Q1FY26 | YoY |
|---|---|---|---|---|---|
| Revenue from Operations | 813.1 | 752.8 | +8.0% | 749.9 | +8.4% |
| Total Expense | -718.2 | -670.3 | +7.1% | -679.8 | +5.6% |
| EBITDA (excl. Other Inc) | 94.9 | 82.5 | +15.0% | 70.1 | +35.4% |
| EBITDA Margin (%) | 11.7% | 11.0% | +70bps | 9.3% | +240bps |
| Other Income | 15.7 | 14.6 | +7.5% | 8.5 | +84.7% |
| Depreciation | -12.8 | -12.5 | +2.4% | -11.6 | +10.3% |
| Finance Cost | -11.5 | -11.3 | +1.8% | -4.8 | +139.6% |
| PBT | 86.3 | 73.3 | +17.7% | 62.2 | +38.7% |
| Tax | -21.4 | -17.3 | +23.7% | -15.0 | +42.7% |
| PAT | 64.9 | 56.0 | +15.9% | 47.2 | +37.5% |
| PAT Margin (%) | 8.0% | 7.4% | +60bps | 6.3% | +170bps |
| Basic EPS (₹) | 7.7 | 6.6 | — | 5.6 | — |
Standalone production stood at 0.54 lakh MTPA in Q1FY27, compared to 0.59 lakh MTPA in Q1FY26, while sales volumes were also at 0.54 lakh MTPA versus 0.61 lakh MTPA in the year-ago period.
Consolidated Financial Performance
On a consolidated basis, the ramp-up of the Punjab integrated polyester facility drove a significant expansion in top-line performance, with revenue from operations rising to ₹1,334.7 crore from ₹745.3 crore in Q1FY26 and ₹1,169.2 crore in Q4FY26. Consolidated EBITDA grew to ₹108.0 crore from ₹69.5 crore in Q1FY26, though the EBITDA margin contracted by 120 basis points year-on-year to 8.1%. A near eightfold increase in finance costs to ₹38.6 crore and a sharp rise in depreciation to ₹34.7 crore weighed on the bottom line, resulting in consolidated PAT of ₹23.8 crore against ₹40.4 crore in Q1FY26. Consolidated basic EPS fell to ₹2.8 from ₹4.8 in the year-ago period.
| Particulars (₹ Cr) | Q1FY27 | Q4FY26 | QoQ | Q1FY26 | YoY |
|---|---|---|---|---|---|
| Revenue from Operations | 1,334.7 | 1,169.2 | +14.2% | 745.3 | +79.1% |
| Total Expense | -1,226.7 | -1,074.8 | +14.1% | -675.8 | +81.5% |
| EBITDA (excl. Other Inc) | 108.0 | 94.4 | +14.4% | 69.5 | +55.4% |
| EBITDA Margin (%) | 8.1% | 8.1% | 0bps | 9.3% | -120bps |
| Other Income | 3.6 | 6.0 | -40.0% | 2.1 | +71.4% |
| Depreciation | -34.7 | -32.2 | +7.8% | -11.7 | +196.6% |
| Finance Cost | -38.6 | -36.9 | +4.6% | -4.6 | +739.1% |
| PBT | 38.3 | 31.3 | +22.4% | 55.3 | -30.7% |
| Tax | -14.5 | -9.7 | +49.5% | -14.9 | -2.7% |
| PAT | 23.8 | 21.6 | +10.2% | 40.4 | -41.1% |
| PAT Margin (%) | 1.8% | 1.8% | 0bps | 5.4% | -360bps |
| Basic EPS (₹) | 2.8 | 2.6 | — | 4.8 | — |
Consolidated production rose to 1.05 lakh MTPA in Q1FY27 from 0.59 lakh MTPA in Q1FY26, reflecting the progressive ramp-up of the Punjab facility across preceding quarters.
Management Commentary and Operational Updates
Chairman and Managing Director Paresh Dattani noted that the global yarn industry navigated a quarter of unprecedented price volatility. Geopolitical tensions in West Asia disrupted PTA and MEG feedstock markets, driving polyester yarn prices sharply higher, while cotton prices also rose steeply, prompting the Government to temporarily waive the 11% cotton import duty effective June 1, 2026. Downstream buyers deferred purchases amid rapid price rallies, though conditions began normalising from June as demand and utilisation showed early signs of recovery. The company maintained operational stability through disciplined raw material procurement and deep supplier relationships.
Regarding the Punjab facility, Phase I was fully operationalised and stabilised during the quarter, with strong product placement and new customer acquisitions in the North Indian market. The focus now shifts to improving operational efficiencies, increasing the share of value-added products, and commissioning Phase II, which will take total polymerisation capacity at Punjab to 950 TPD (346,750 MTPA).
| Punjab Facility Details | Phase I | Phase II | Total |
|---|---|---|---|
| Product | Polyester Yarn | Polyester Yarn | — |
| Capacity per day (tonnes) | 700 | 250 | 950 |
| Capacity per annum (MTPA) | 255,500 | 91,250 | 346,750 |
Upcoming Projects and Business Overview
On the expansion front, installation of plant and machinery for the Technical Textiles capacity expansion at Silvassa is complete, doubling installed capacity from 9,000 MTPA to 18,000 MTPA, with commercial production expected to commence shortly. The company also remains committed to its planned greenfield cotton spinning project at Dhar, Madhya Pradesh, aimed at leveraging the state's favorable cotton ecosystem. Overall installed capacity across all three verticals stands at 488,250 MTPA — comprising Polyester (456,250 MTPA), Cotton (14,000 MTPA), and Technical Textiles (18,000 MTPA). The company serves over 7,000 customers pan-India and across 27 international locations, with a 92% customer retention rate, and offers 50,000 SKUs and 3,200 yarn products through 700 distributors globally.
Historical Stock Returns for Sanathan Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.63% | -4.81% | -3.99% | +8.95% | -11.01% | +15.54% |
How will the commissioning of Phase II at the Punjab facility impact consolidated EBITDA margins given the current pressure from high finance costs and depreciation?
What is the projected timeline for the Silvassa technical textiles expansion to reach full capacity utilization, and how will this diversification affect the company's revenue mix?
Given the recent government waiver on cotton import duties, how might this influence Sanathan Textiles' pricing strategy and competitiveness in the cotton spinning segment?
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