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, has made a significant move towards sustainable energy consumption by acquiring a stake in CGE II Hybrid Energy Private Limited. This strategic acquisition aims to secure renewable energy under captive status for Sangam's manufacturing units in Rajasthan, marking a notable step in the company's commitment to sustainable operations.

Key Agreements

The Investment and Borrowing Committee of Sangam (India) Limited has approved and executed two crucial agreements:

1. Power Consumption Agreement: Signed with CGE II Hybrid Energy Private Limited
2. Share Purchase & Shareholders Agreement: Executed with CGE II Hybrid Energy Private Limited and Continuum Green Energy Limited

Transaction Details

Implications and Benefits

This acquisition is expected to bring several advantages to Sangam (India) Limited:

1. Sustainable Energy Source: Access to renewable energy for manufacturing operations
2. Cost Efficiency: Potential reduction in energy costs through captive power arrangement
3. Environmental Responsibility: Alignment with global sustainability trends and reduced carbon footprint
4. Operational Stability: Enhanced control over energy supply for manufacturing units

Regulatory Compliance

The company has duly informed the stock exchanges about this acquisition, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was made in accordance with the SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

This strategic move by Sangam (India) Limited reflects a growing trend among Indian manufacturers to adopt sustainable practices and secure long-term energy solutions. As the textile industry continues to evolve, such initiatives may become increasingly common, potentially reshaping the sector's approach to energy consumption and environmental responsibility.