Sumeet Industries Reports Q3FY26 Results, Announces INR200 Crore Rights Issue
Sumeet Industries Limited reported Q3FY26 consolidated total income of INR267.74 crores with EBITDA of INR16.66 crores and profit after tax of INR9.04 crores during its February 13, 2026 earnings call. The company announced a INR200 crore rights issue and operates at over 95% capacity utilization with plans for 30-40% expansion.
*this image is generated using AI for illustrative purposes only.
Sumeet Industries Limited conducted its Q3FY26 earnings conference call on February 13, 2026, presenting financial results and strategic updates to investors and analysts. The integrated polyester manufacturer, taken over by the Eagle Group in 2024, demonstrated steady performance despite challenging market conditions.
Financial Performance Overview
The company delivered consistent results across key financial metrics during the quarter and nine-month period.
| Metric: | Q3 FY26 | Nine Months FY26 |
|---|---|---|
| Consolidated Total Income: | INR267.74 crores | INR786.83 crores |
| EBITDA: | INR16.66 crores | INR46.09 crores |
| EBITDA Margin: | 6.22% | 5.86% |
| Profit After Tax: | INR9.04 crores | INR26.88 crores |
| Earnings Per Share: | 0.18 | 0.51 |
Managing Director Pratik R. Jaju highlighted that profit from continuous operations increased by 205% compared to the previous year, excluding the exceptional profit of INR170 crores recorded in 2025 related to liability waivers during the company takeover.
Operational Efficiency and Capacity Utilization
Sumeet Industries operates at over 95% capacity utilization across its manufacturing facilities in Surat. The company's integrated polyester manufacturing setup produces diversified products including PET chips, Partially Oriented Yarn, Fully Drawn Yarn, and poly-texturized yarn for apparel, home textiles, and industrial applications.
The management announced plans for capacity expansion of 30-40% through machinery upgrades and additional equipment installation. This expansion strategy aligns with the company's focus on improving production efficiency and serving growing market demand.
Strategic Initiatives and Market Expansion
The company outlined several strategic priorities for sustainable growth:
- Product Diversification: Focus on value-added products to improve margins
- Export Market Entry: Targeting Asian countries including Malaysia and Vietnam, plus African markets for polyester texturized yarn
- Renewable Energy: Installed 14 megawatt solar power plant with plans for further expansion to achieve 50% renewable energy usage
- Cost Optimization: Targeting 25% reduction in power costs through renewable energy initiatives
Rights Issue and Capital Allocation
Sumeet Industries announced a rights issue of approximately INR200 crores, expected to complete within three months. While specific utilization details await regulatory filing, management indicated the proceeds will support balanced objectives including financial strengthening and expansion initiatives.
| Parameter: | Details |
|---|---|
| Rights Issue Amount: | INR200 crores |
| Expected Timeline: | Within 3 months |
| Current Net Margin: | 3.5% |
| Target Net Margin: | 5% |
Market Outlook and Growth Strategy
The company benefits from favorable trade dynamics and increasing demand in both domestic and international markets. Management expects 10-20% growth in export opportunities due to trade deals involving India, the US, and European Union, primarily through indirect exports via domestic customers.
Key focus areas for the next 12 months include cost reduction, new product introduction, machinery upgrades, and expanding the marketing team to capture new market segments. The company's integrated manufacturing setup and flexible production capabilities position it to respond effectively to changing customer requirements and market cycles.
Historical Stock Returns for Sumeet Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.66% | -12.12% | -17.62% | -78.47% | -57.24% | +3,759.68% |
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