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.

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.