Sanathan Textiles Reports Mixed Q2 FY2026 Results: Revenue Up, Profit Down
Sanathan Textiles announced Q2 FY2026 results with consolidated revenue up 10.2% to ₹818.00 crore, driven by higher volumes from new Punjab facilities. However, net profit declined 38.2% to ₹20.10 crore. EBITDA increased 8.5% to ₹63.20 crore, but EBITDA margin contracted slightly to 7.7%. The Silvassa plant operated at full capacity, while the Punjab facility started operations on August 27, 2025. The company plans to expand its cotton division capacity in Madhya Pradesh. Management remains confident about long-term profitability despite current challenges.
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Sanathan Textiles , a leading integrated yarn manufacturer in India, has announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with revenue growth but a decline in profitability.
Revenue Growth Amid Challenging Environment
For Q2 FY2026, Sanathan Textiles reported a consolidated revenue from operations of ₹818.00 crore, marking a 10.2% increase compared to ₹742.17 crore in the same quarter last year. This growth was primarily driven by higher volumes, attributed to the commissioning of new facilities in Punjab.
Profitability Under Pressure
Despite the revenue increase, the company's profitability faced headwinds:
- Net profit for Q2 FY2026 stood at ₹20.10 crore, down 38.2% from ₹32.60 crore in Q2 FY2025.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 8.5% to ₹63.20 crore, compared to ₹58.20 crore in the corresponding quarter of the previous year.
- EBITDA margin, however, contracted slightly to 7.7% from 7.8% year-over-year.
Key Financial Highlights
| Particulars (in Crore Rupees) | Q2 FY2026 | Q2 FY2025 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 818.00 | 742.17 | +10.2% |
| EBITDA | 63.20 | 58.20 | +8.5% |
| EBITDA Margin | 7.7% | 7.8% | -12 bps |
| Net Profit | 20.10 | 32.60 | -38.2% |
| Net Profit Margin | 2.5% | 4.4% | -193 bps |
Operational Highlights
- The Silvassa plant continued to operate at full capacity, showcasing strong operational efficiency.
- The newly commissioned Punjab facility commenced commercial operations on August 27, 2025, incurring one-time start-up costs of approximately ₹11.00 crore.
- The company plans to expand its cotton division capacity through its wholly-owned subsidiary, Sanathan Polycot Private Limited, with a new manufacturing facility in Madhya Pradesh.
Management Commentary
Mr. Paresh Dattani, Chairman and Managing Director of Sanathan Textiles Limited, commented on the results: "Sanathan Textiles delivered a strong operational performance on a standalone basis during Q2 FY26. The continued strength in volumes underscores our robust execution capabilities and ability to optimize performance. 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."
Looking Ahead
Sanathan Textiles is focusing on disciplined execution and operational excellence to achieve its strategic objectives. The company's integrated operations and diversified portfolio position it well to capture emerging opportunities in both domestic and international textile markets.
As the textile industry navigates through various challenges, Sanathan Textiles' expansion plans and operational improvements may help in strengthening its market position. However, investors should keep an eye on how the company manages its profitability amidst rising costs and competitive pressures in the coming quarters.
Historical Stock Returns for Sanathan Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.36% | +2.67% | -1.29% | +13.85% | +26.90% | +26.90% |
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