Integrated manufacturer of polyester filament yarn, cotton yarn and technical textiles yarn, Sanathan Textiles Ltd. reported a standalone net profit of Rs 64.95 crore (US $6.80 million) for the quarter ended June 30, marking a 37.5% increase from Rs 47.2 crore (US $4.94 million) in Q1FY ’26.
The improvement was driven by an 8.4% year-on-year rise in standalone revenue from operations to Rs 813.13 crore (US $85.07 million) and significant expansion in standalone EBITDA margins, which widened by 240 basis points to 11.7%.
In contrast, consolidated net profit attributable to owners fell sharply by 41% to Rs 23.82 crore (US $2.49 million), down from Rs 40.43 crore (US $4.23 million) in the prior year period, even as consolidated revenue surged 79% year-on-year to Rs 1,334.74 crore (US $139.65 million).
Standalone revenue from operations grew to Rs 813.13 crore (US $85.07 million) in Q1FY ’27, compared to Rs 749.88 crore (US $78.46 million) in Q1FY ’26.
Standalone EBITDA rose 35.5% year-on-year to Rs 94.93 crore (US $9.93 million) from Rs 70.05 crore (US $7.33 million), reflecting improved operational efficiency at the Silvassa plant.
Profit before tax stood at Rs 86.35 crore (US $9.03 million), up from Rs 62.20 crore (US $6.51 million). Basic earnings per share (EPS) were Rs 7.70, compared to Rs 5.59 in the corresponding quarter of FY ’26.
On a consolidated basis, revenue from operations surged 79% year-on-year to Rs 1,334.74 crore (US $139.65 million) from Rs 745.34 crore (US $77.98 million), benefiting from increased utilization at the Punjab plant.
Consolidated EBITDA grew to Rs 108.08 crore (US $11.31 million) from Rs 69.56 crore (US $7.28 million); however, the consolidated EBITDA margin contracted to 8.12% from 9.39% in the year-ago period, reflecting the impact of higher costs at the group level.
Consolidated profit before tax dropped to Rs 38.32 crore (US $4.01 million) from Rs 55.34 crore (US $5.79 million), driven by a substantial increase in finance costs to Rs 38.63 crore (US $4.04 million) from Rs 4.62 crore (US $0.48 million), and other expenses rising to Rs 261.82 crore (US $27.39 million) from Rs 138.45 crore (US $14.49 million). Consolidated basic EPS fell to Rs 2.82 from Rs 4.79.
Paresh Dattani, Chairman and Managing Director, said that geopolitical tensions in West Asia disrupted feedstock markets during the quarter, resulting in higher polyester yarn prices. Cotton prices also increased, prompting the Government to temporarily waive the 11% cotton import duty effective June 1.
He noted that while downstream customers initially deferred purchases amid price volatility, demand and capacity utilisation improved towards the end of the quarter.
The company also said it is progressing with the expansion of its technical textiles capacity at Silvassa, which is expected to commence commercial production shortly. This will be followed by Phase II expansion at the Punjab facility and cotton capacity expansion in Madhya Pradesh.
