Sanathan Textiles Limited , a prominent player in the Indian textile industry, has reported full compliance with its stated objectives for the utilization of funds raised through its Initial Public Offer (IPO). The company's monitoring agency report for the quarter ended September 30, 2025, confirms that there has been no deviation from the planned use of IPO proceeds.

IPO Details and Fund Allocation

Sanathan Textiles raised INR 550.00 crore through its IPO in December 2024, with net proceeds of INR 370.95 crore after deducting issue-related expenses. The funds were earmarked for specific purposes:

1. Repayment of borrowings: INR 160.00 crore
2. Investment in subsidiary Sanathan Polycot Private Limited for debt repayment: INR 140.00 crore
3. General corporate purposes: INR 70.95 crore

Fund Utilization Status

As of September 30, 2025, the company has reported the following utilization:

The report indicates that the company has fully utilized the funds allocated for repayment of borrowings, investment in its subsidiary, and general corporate purposes. A small portion of the issue-related expenses remains unutilized, with the company awaiting invoices and supporting documents from service providers.

Monitoring Agency's Observations

ICRA Limited, the appointed monitoring agency, has confirmed that the fund utilization is in line with the disclosed objects of the issue. The agency reported no deviations or delays in the implementation of the stated objectives.

Management Commentary

The monitoring agency report was reviewed by Sanathan Textiles' Audit Committee at its meeting held on November 5, 2025. The company has not provided specific management comments in the disclosed report.

Investor Implications

For investors, this report provides reassurance that Sanathan Textiles is adhering to its commitments made during the IPO. The full utilization of funds for debt repayment and investment in its subsidiary may potentially strengthen the company's financial position and support its growth strategies.

As Sanathan Textiles continues to execute its business plans, investors and market observers will likely keep a close watch on how these investments translate into operational and financial performance in the coming quarters.

The company's transparent reporting and compliance with regulatory requirements demonstrate its commitment to good corporate governance practices, which is often viewed positively by the investment community.

Sanathan Textiles Limited , a leading Indian yarn manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, marked by significant growth in profitability and the successful commissioning of its new Punjab facility.

Strong Standalone Performance

On a standalone basis, Sanathan Textiles delivered impressive growth, with EBITDA increasing by 22% and Profit After Tax (PAT) surging by 45% year-over-year. The company's Silvassa plant continued to operate at full capacity, maintaining strong operational efficiency supported by robust business momentum.

Financial Highlights (Standalone)

The company's revenue from operations grew by 3.2% year-over-year, driven by improved production efficiency and higher sales volume. The EBITDA margin expanded significantly from 7.84% to 9.28%, reflecting enhanced operational performance.

Punjab Facility Commissioning

A key highlight of the quarter was the commencement of commercial operations at Sanathan Textiles' newly commissioned Punjab facility in August 2025. This strategic expansion is expected to bolster the company's manufacturing capabilities and improve its cost competitiveness in the long run.

Consolidated Performance

On a consolidated basis, Sanathan Textiles reported:

• Revenue from operations increased by 10% year-on-year to ₹818.00 crores
• EBITDA grew by 8.5% to ₹63.20 crores
• PAT stood at ₹20.10 crores

The company incurred a start-up cost of approximately ₹11.00 crores related to the new Punjab facility, which impacted the consolidated profitability for the quarter.

Future Outlook

Paresh Dattani, Chairman & Managing Director of Sanathan Textiles, expressed confidence in the company's growth trajectory, stating, "We remain confident that the strategic addition of the Punjab facility, combined with the sustained high performance of our Silvassa plant, will further strengthen Sanathan Textiles' manufacturing base, improve cost competitiveness, and enhance long-term profitability."

The company is also expanding its cotton yarn capacity through its wholly-owned subsidiary, Sanathan Polycot, with a new manufacturing facility planned in Madhya Pradesh. This expansion aims to leverage the state's rich cotton textile heritage and favorable ecosystem.

Conclusion

With a disciplined execution strategy and a focus on operational excellence, Sanathan Textiles is well-positioned to achieve its strategic objectives and create sustainable value for shareholders. The company's strong performance in Q2FY26, coupled with its expansion initiatives, signals a positive outlook for future growth and profitability.

Investors and stakeholders will be keenly watching how the new Punjab facility ramps up to optimal capacity in the coming quarters and its impact on the company's overall performance.