Sangam (India) Ltd has scheduled an Extra-Ordinary General Meeting (EGM) on Wednesday, August 12, 2026, to seek shareholder approval for the preferential allotment of 18,00,000 warrants to promoters and promoter group entities. The issue price is fixed at ₹555.56 per warrant, aggregating up to ₹100,00,08,000. The company reported a standalone net profit of ₹3,935 lakh for Q1FY27, a significant increase from ₹427 lakh in the corresponding period of the previous year, alongside robust revenue growth.

The Board of Directors, in its meeting held on July 18, 2026, approved the proposal to issue warrants convertible into equity shares. The relevant date for determining the issue price is July 13, 2026. The proceeds from the issue, totaling ₹100 crore, are intended to finance capital expenditure for expansion and modernization of manufacturing facilities, meet working capital requirements, and support general corporate purposes. The capital expenditure plan includes setting up capacities in cotton yarn, denim fabric, and recycled polyester fibre, with completion targeted by March 31, 2029.

Warrant Allotment Details

The warrants will be issued to seven identified allottees, including promoters and promoter group entities such as Sangam E-com Limited and Nidhi Mercantiles Limited. Allottees must pay at least 25% of the warrant issue price upon allotment, with the balance payable upon conversion. The warrants are convertible into an equal number of equity shares within 18 months from the date of allotment. If the option is not exercised within this period, the warrants will lapse, and the amount paid will be forfeited.

Shareholding Pattern and EGM Details

Post-allotment, the promoter and promoter group holding will increase to 71.53% from 70.52%, while public holding will decrease to 26.68% from 27.63%. The warrants and the equity shares arising upon conversion will be subject to lock-in periods as specified under the SEBI ICDR Regulations. The EGM will be held through Video Conferencing/Other Audio-Visual Means (VC/OAVM). Remote e-voting will be available from August 8, 2026, at 9:00 A.M. IST to August 11, 2026, at 5:00 P.M. IST, with the cut-off date for voting eligibility being August 5, 2026.

Financial Performance

For the quarter ended June 30, 2026, Sangam (India) Ltd reported a standalone net profit of ₹3,935 lakh, compared to ₹427 lakh in Q1FY26. Revenue from operations stood at ₹84,554 lakh, up from ₹78,576 lakh in the prior year. EBITDA rose to 1.1B rupees from 576M, with the EBITDA margin expanding to 12.3% from 7.3%. On a consolidated basis, net profit after tax was ₹4,102 lakh, up from ₹213 lakh in the same period last year.

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.