Sangam (India) Limited , a prominent textile manufacturer, continues to strengthen its commitment to sustainable energy by entering into a new EPC contract for solar power generation. The company has signed an agreement with IB Vogt Solar India Private Limited for the installation of a 27.00 MWp solar power plant, further expanding its renewable energy portfolio following its earlier strategic acquisition in the green energy sector.

Latest Solar Power Development

Sangam (India) Limited has entered into an EPC Contract with IB Vogt Solar India Private Limited for setting up a 27.00 MWp solar power plant with a variation of ± 5%. The solar installation will be located at Village Sangarh, Tehsil Fatehgarh, District Jaisalmer in Rajasthan, designed specifically for captive consumption to support the company's manufacturing operations.

Strategic Renewable Energy Initiatives

This latest development builds upon Sangam's earlier renewable energy initiatives. The company had previously acquired a stake in CGE II Hybrid Energy Private Limited through strategic agreements approved by its Investment and Borrowing Committee. The earlier acquisition involved:

• Power Consumption Agreement with CGE II Hybrid Energy Private Limited
• Share Purchase & Shareholders Agreement with CGE II Hybrid Energy Private Limited and Continuum Green Energy Limited

Comprehensive Energy Strategy Benefits

Regulatory Compliance

The company has maintained full regulatory compliance by informing stock exchanges about both renewable energy initiatives under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notifications were made in accordance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Sangam (India) Limited's dual approach to renewable energy—through strategic partnerships and direct solar installations—demonstrates a comprehensive commitment to sustainable manufacturing. This multi-faceted strategy positions the textile manufacturer to achieve significant energy independence while contributing to environmental sustainability goals in the industry.

Sangam India Limited , a leading textile manufacturer, has reported a strong financial performance for the second quarter of fiscal year 2026, with significant growth in both revenue and profitability.

Key Financial Highlights

• Revenue reached INR 785.00 crores, marking a 16% year-on-year growth
• EBITDA increased by 32% year-on-year to INR 76.00 crores
• EBITDA margin expanded by 120 basis points to 9.6%
• Net profit for the quarter stood at INR 23.00 crores

Drivers of Growth

The company's impressive performance was attributed to several factors:

1. Higher Volumes: Increased production across various segments contributed to revenue growth.
2. Improved Product Mix: A strategic shift towards higher-margin products boosted profitability.
3. Operational Efficiencies: Better cost control measures helped expand margins.
4. Capacity Utilization: The company reported improved capacity utilization across its divisions.

Segment-wise Performance

Future Outlook

Sangam India Limited has expressed optimism about its future performance:

• The company expects 12-15% annual revenue growth in the coming quarters.
• Management anticipates a 1-2% expansion in margins.
• The garment division's capacity utilization is projected to reach 60-65% by next quarter.

Strategic Initiatives

1. Renewable Energy: A 12-megawatt captive renewable power tie-up in Rajasthan is expected to generate annual savings of about INR 10.00 crores, starting from December.
2. Depreciation Policy Revision: The company has revised its depreciation policy to align with actual economic life and industry benchmarks, which may impact profitability representation.
3. Debt Reduction: Plans to reduce debt by approximately INR 350.00 crores over the next three years, subject to no new major capex.

Market Dynamics

• The company maintains a balanced mix of domestic and export sales, with exports accounting for about 37% of revenue.
• Management noted that yarn prices have bottomed out, potentially stabilizing the market.
• Sangam India is relatively insulated from U.S. tariff impacts due to its limited direct exposure to the American market.

Sangam India Limited's strong Q2 FY26 performance demonstrates the company's resilience and strategic positioning in the textile industry. With a focus on operational excellence, cost efficiency, and sustainable growth, the company appears well-positioned to capitalize on market opportunities and drive shareholder value in the coming quarters.

Cautionary Statement

The company's future projections and strategic plans may be subject to market conditions, regulatory changes, and other external factors that could impact actual results.