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.

Sangam India Limited , a leading textile manufacturer, has reported strong financial results for the second quarter of fiscal year 2026, with significant improvements in profitability and operational efficiency.

Key Financial Highlights

For the quarter ended September 30, 2025, Sangam India reported:

• Revenue from operations of Rs 775.92 crore, up 15.9% year-over-year
• Profit after tax (PAT) of Rs 23.78 crore, a substantial increase from Rs 4.82 crore in the same period last year
• EBITDA of Rs 75.76 crore, up 32.4% year-over-year
• EBITDA margin improved to 9.6%, up from 8.4% in Q2 FY25

Revised Asset Life Estimates

A significant development during the quarter was the company's decision to revise the estimated useful life of certain plant and machinery from 9.19 years to 15 years, and solar power plants from 18 years to 25 years, effective April 1, 2025. This revision was based on a detailed technical evaluation of operating conditions, maintenance practices, and expected usage patterns.

The impact of this change includes:

• Lower depreciation charges of Rs 24.07 crore for the half-year
• Higher profit before tax by Rs 24.07 crore
• Increased profit after tax by Rs 18.01 crore

Performance-Linked Sweat Equity

The Board of Directors has approved the issuance of performance-linked sweat equity shares to promoter group members. This initiative aims to align management interests with company performance and shareholder value creation. Key details include:

• Up to 10,00,000 equity shares to be issued (5,00,000 each to two promoter group executives)
• Performance milestones set for FY 2026-27 through FY 2029-30, with targets including:
  • PAT of Rs 100 crore and EBITDA of Rs 375 crore for FY 2026-27
  • Scaling up to PAT of Rs 225 crore and EBITDA of Rs 600 crore for FY 2029-30

Financial Performance Table

Mr. R.P. Soni, Chairman of Sangam India Limited, commented on the results: "Our robust Q2 FY26 performance reflects strong domestic demand and operational efficiency improvements. The revision in asset life estimates aligns our depreciation policy with true economic usage and industry benchmarks. We remain committed to our integrated textile business strategy, focusing on innovation, agility, and sustainable margin improvement."

The company's focus on cost control, innovation, and strategic initiatives positions it well to capture emerging opportunities in both domestic and export textile markets. Sangam India continues to advance its customer-centric, integrated growth strategy in the evolving textile industry landscape.