Sangam (India) Limited reported a net profit of ₹41 crore for the quarter ended June 30, 2026 (Q1 FY27), a sharp increase from ₹2 crore in Q1 FY26. The textile manufacturer achieved an 8.1% year-on-year growth in revenue, which reached ₹867 crore, driven by healthy demand and steady execution across its business segments. Profitability improved significantly due to better realisations, a favourable product mix, operating leverage and disciplined cost management.

Operational Performance

Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 59.6% to ₹112 crore from ₹70 crore in the prior year. The EBITDA margin expanded by 418 basis points to 12.9%. Gross margin increased by 640 basis points to 43.6%. The company maintained high capacity utilisation, with denim fabric operating at 98% and PV fabric at 97%.

Financial Results

Strategic Expansion

To address growing demand, the company is undertaking a capital expenditure plan of approximately ₹1,500 crore, scheduled for completion by March 2029. The initiative aims to complete the integration from fibre to garment across cotton and synthetic value chains, including a new entry into garmenting. The project is fully funded through internal accruals and term debt.

Sustainability and Outlook

The company continues to invest in renewable energy to structurally lower costs. Existing renewable capacity stands at 36 MW, with an additional 40.7 MW under implementation. Upon completion, the total renewable capacity is expected to generate annual savings of ₹48 crore.

Sangam (India) Limited shareholders approved a dividend of ₹2 per equity share for the financial year ended March 31, 2026, and authorised the Board to borrow up to ₹3000 crore at its 40th Annual General Meeting (AGM) held on June 29, 2026. The meeting, conducted via video conferencing, also saw the re-appointment of Mr. R.P. Soni (DIN: 00401439) as Director, liable to retire by rotation. All six resolutions were passed with the requisite majority, as detailed in the scrutinizer's report submitted to the exchanges.

Brij Kishore Sharma of M/s. B K Sharma and Associates, Practicing Company Secretaries, served as the scrutinizer for the remote e-voting and e-voting processes conducted through the Central Depository Services (India) Limited (CDSL) portal. The remote e-voting period commenced on June 25, 2026, and concluded on June 28, 2026. A total of 99 members participated via video conferencing, including 14 from the promoter group and 85 public shareholders.

The statutory auditors, R. Kabra & Co. LLP and O.P. Dad & Co., attended the meeting alongside the Company Secretary and the Chief Financial Officer. The proceedings confirmed there were no qualifications, reservations, or adverse remarks in the Statutory and Secretarial Audit Reports for the financial year 2025-26. Shri Anurag Soni, Managing Director, chaired the meeting after the Chairman conveyed his inability to attend due to unavoidable circumstances.

Resolutions Passed at the 40th AGM

The scrutinizer's report noted that the electronic data and records relating to the voting process will remain in safe custody until the Chairman approves and signs the Minutes of the 40th AGM. The voting results have been hosted on the company's website and the CDSL e-voting portal.