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.

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

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.