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.

Sangam (India) Limited , a prominent player in the Indian textile industry, has reported a remarkable financial performance for the second quarter of the fiscal year 2025-26. The company's results showcase significant growth across key financial metrics, reflecting a robust recovery and strong market positioning.

Financial Highlights

Sangam (India) has delivered an impressive performance in Q2, with net profit soaring to ₹238.00 million, marking a substantial 395.00% increase from ₹48.00 million in the same period last year. This remarkable growth in profitability underscores the company's operational efficiency and strategic initiatives.

Revenue for the quarter grew to ₹7,800.00 million, up from ₹6,750.00 million in the corresponding period, representing a healthy 15.56% year-over-year growth. This increase in top-line performance indicates strong demand for the company's products and effective market penetration strategies.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed significant improvement, rising to ₹752.00 million from ₹509.00 million in the previous year, a robust 47.74% increase. This growth in EBITDA outpaced revenue growth, suggesting enhanced operational efficiency and cost management.

Notably, the EBITDA margin expanded to 9.69% from 7.54% in the same quarter last year, an improvement of 215 basis points. This margin expansion reflects the company's ability to manage costs effectively while growing its revenue, contributing to improved profitability.

Management Initiatives

The company's board of directors has approved several key initiatives that may contribute to future growth and shareholder value:

1. Revision of Asset Useful Life: Sangam (India) has revised the estimated useful life of certain classes of Plant and Machinery from 9.19 years to 15 years, and Solar Power Plant from 18 years to 25 years, effective April 1, 2025. This change is expected to result in lower depreciation charges and potentially higher profitability in the coming quarters.

2. Performance-Linked Sweat Equity: The board has approved the issuance of performance-linked sweat equity shares to members of the promoter group, subject to shareholder approval. This initiative aims to align management interests with company performance and shareholder value creation.

Outlook

Sangam (India)'s strong Q2 performance positions it well in the competitive textile industry. The company's ability to significantly improve profitability while growing revenue suggests effective execution of its business strategies. The initiatives approved by the board, including the revision of asset useful life and the proposed performance-linked equity plan, indicate a focus on long-term value creation and operational optimization.

As the textile sector continues to evolve, Sangam (India)'s robust financial performance and strategic initiatives may provide it with a solid foundation for sustained growth in the coming quarters.

Investors and market observers will likely keep a close watch on how the company leverages its current momentum to navigate future challenges and opportunities in the dynamic textile market.