Sanathan Textiles Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sanathan Textiles Ltd filed with BSE on 21 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sanathan Textiles reported consolidated Q4 FY26 revenue of Rs 1,169.2 crores, up 59.7% year-on-year, aided by the ramp-up of the Punjab facility, while standalone revenue grew 3% to Rs 752.8 crores. Consolidated EBITDA for FY26 stood at Rs 284.4 crores against Rs 263.5 crores in FY25, and consolidated PAT for FY26 was Rs 77.3 crores, impacted by higher depreciation and finance costs following the Punjab facility capitalization. Management said Phase 1 at Punjab was fully ramped up by the end of March 2026 and outlined revenue and margin targets for FY27 during the call.
Numbers mentioned
Standalone revenue from operations: INR 752.8 crores (Q4 FY26)
p. 6
“revenue from operations for Q4 FY26 stood at INR 752.8 crores compared to INR 731.2 crores in Q4 FY25, reflecting a growth of 3% year-on-year”
Sanjay Shah, page 6 of the filed PDF · View the filing
Standalone EBITDA: INR 82.5 crores (Q4 FY26)
p. 6
“Standalone EBITDA for the quarter stood at INR 82.5 crores compared to INR 70.6 crores in the corresponding previous period, representing a growth of 16.9% year-on-year”
Sanjay Shah, page 6 of the filed PDF · View the filing
Standalone EBITDA margin: 11% (Q4 FY26)
p. 6
“EBITDA margins improved to 11% during the quarter compared to 9.7% in Q4 FY25 and 7% in Q3 FY26”
Sanjay Shah, page 6 of the filed PDF · View the filing
Standalone profit after tax: INR 56 crores (Q4 FY26)
p. 6
“Standalone profit after tax for Q4 FY26 stood at INR 56 crores compared to INR 49.9 crores in Q4 FY25, representing a growth of 12.3% year-on-year”
Sanjay Shah, page 6 of the filed PDF · View the filing
Standalone revenue from operations: INR 3,037.9 crores (FY26)
p. 6
“standalone revenue from operations stood at INR 3,037.9 crores compared to INR 2,996.8 crores in FY25”
Sanjay Shah, page 6 of the filed PDF · View the filing
Standalone EBITDA margin: 9.1% (FY26)
p. 6
“Standalone EBITDA for FY26 stood at INR 277.1 crores with EBITDA margins improving to 9.1% compared to 8.9% in the previous financial year”
Sanjay Shah, page 6 of the filed PDF · View the filing
Standalone profit after tax: INR 191.9 crores (FY26)
p. 7
“Standalone profit after tax increased 10% year-on-year to INR 191.9 crores”
Sanjay Shah, page 7 of the filed PDF · View the filing
Consolidated revenue from operations: INR 1,169.2 crores (Q4 FY26)
p. 7
“revenue from operations for Q4 FY26 stood at INR 1,169.2 crores compared to INR 732.2 crores in Q4 FY25 reflecting a strong growth of 59.7% year-on-year and 8.4% sequentially”
Sanjay Shah, page 7 of the filed PDF · View the filing
Consolidated EBITDA: INR 94.4 crores (Q4 FY26)
p. 7
“Consolidated EBITDA for the quarter stood at INR 94.4 crores compared to INR 68.4 crores in Q4 FY25 and INR 57.2 crores in Q3 FY26, representing a growth of 38.1% year-on-year and 65% quarter-on-quarter”
Sanjay Shah, page 7 of the filed PDF · View the filing
Consolidated EBITDA margin: 8.1% (Q4 FY26)
p. 7
“Consolidated EBITDA margins improved to 8.1% during Q4 FY26 compared to 5.3% in Q3 FY26, reflecting progressive operational stabilization at the Punjab facility”
Sanjay Shah, page 7 of the filed PDF · View the filing
Consolidated profit after tax: INR 21.6 crores (Q4 FY26)
p. 7
“Consolidated profit after tax for Q4 FY26 stood at INR 21.6 crores”
Sanjay Shah, page 7 of the filed PDF · View the filing
Consolidated revenue from operations: INR 3,811.2 crores (FY26)
p. 7
“consolidated revenues from operations stood at INR 3,811.2 crores compared to INR 2,996.6 crores in FY25, reflecting a growth of 27.1%”
Sanjay Shah, page 7 of the filed PDF · View the filing
Consolidated EBITDA: INR 284.4 crores (FY26)
p. 7
“Consolidated EBITDA for FY26 stood at INR 284.4 crores compared to INR 263.5 crores in FY25”
Sanjay Shah, page 7 of the filed PDF · View the filing
Consolidated PAT: INR 77.3 crores (FY26)
p. 7
“Consolidated PAT for FY26 stood at INR 77.3 crores”
Sanjay Shah, page 7 of the filed PDF · View the filing
Net debt: close to INR 1,325 crores (March 2026 exit)
p. 9
“It was close to INR 1,325 crores.”
Sanjay Shah, page 9 of the filed PDF · View the filing
Silvassa production volume: 2.31 lakh metric tons (FY26)
p. 5
“the facility achieved production volumes of 2.31 lakh metric tons per annum and a sales volume of 2.28 lakh metric tons per annum”
Sammir Dattani, page 5 of the filed PDF · View the filing
Cost of debt: 7.25%
p. 15
“No, it's close to 7.25%.”
Sanjay Shah, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Silvassa revenue — INR 3,100 crores · FY27
stated conditionally by Paresh Dattani
p. 8
“With the commencement of the yarns for technical textiles which we will commission by the end of the first quarter, expect and aim that we should do about INR 3,100 crores at Silvassa for FY27”
Paresh Dattani, page 8 of the filed PDF · View the filing
Punjab revenue — INR 2,600 crores · FY27
stated as an aspiration by Paresh Dattani
p. 9
“From the next quarter onwards everything being up and running like the Silvassa facility, we expect to do about INR 2,600 crores at Punjab.”
Paresh Dattani, page 9 of the filed PDF · View the filing
Consolidated revenue — INR 5,600 to INR 5,700 crores · FY27
stated as an aspiration by Paresh Dattani
p. 9
“So a consol revenue of about INR 5,600 to INR 5,700 crores.”
Paresh Dattani, page 9 of the filed PDF · View the filing
Consolidated EBITDA — north of INR 500 crores · FY27
stated as an aspiration by Paresh Dattani
p. 9
“We are looking at north of INR 500 crores for the FY27 EBITDA margins.”
Paresh Dattani, page 9 of the filed PDF · View the filing
Gross debt repayment — INR 100 to INR 125 crores every year
stated firmly by Sanjay Shah
p. 13
“This is our peak gross debt level and we are expecting a payouts of close to INR 100 to INR 125 crores every year.”
Sanjay Shah, page 13 of the filed PDF · View the filing
Consolidated finance cost — north of INR 125 crores · FY27
stated firmly by Sanjay Shah
p. 14
“It'll remain north of INR 125 crores, the consolidated finance cost.”
Sanjay Shah, page 14 of the filed PDF · View the filing
Consolidated PBT — INR 225 crores, INR 230 crores or INR 250 crores · FY27
stated as an aspiration by Paresh Dattani
p. 14
“your PBT would be in the range of about INR 225 crores, INR 230 crores or INR 250 crores”
Paresh Dattani, page 14 of the filed PDF · View the filing
Consolidated EBITDA margin — double-digit
stated as an aspiration by Paresh Dattani
p. 17
“We aim to do that double-digit EBITDA. There's no doubt on that.”
Paresh Dattani, page 17 of the filed PDF · View the filing
Phase 2 Punjab commissioning — FY27 end
stated as an aspiration by Paresh Dattani
p. 10
“we aim to complete what we had predicted earlier in FY27, end of FY27”
Paresh Dattani, page 10 of the filed PDF · View the filing
Peak revenue after Phase 2 and cotton facility — 7,500 to 7,700 · end of FY28
stated as an aspiration by Paresh Dattani
p. 15
“about 7,500 to 7,700 will be the peak revenue.”
Paresh Dattani, page 15 of the filed PDF · View the filing
Peak revenue timeline — end of FY28
stated as an aspiration by Paresh Dattani
p. 15
“I think by the end of FY28 we should be there.”
Paresh Dattani, page 15 of the filed PDF · View the filing
Technical textile capacity commissioning — end of Q1 FY27
stated firmly by Paresh Dattani
p. 19
“Technical textiles will be commissioned by the end of Q1 this year.”
Paresh Dattani, page 19 of the filed PDF · View the filing
Solar power benefit — next year
stated firmly by Paresh Dattani
p. 18
“It will be very negligible this year, but mainly it will come we'll see the entire benefit next year.”
Paresh Dattani, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the delay in ramping up Silvassa to full capacity, completed only by end of March instead of earlier plans, was the reason.
Answered by Paresh Dattani
Asked by Harsh Mittal: Why have Sanathan Polycot (Silvassa textile) gross margins not shown the same buoyancy as Sanathan Textiles?
p. 8
“we were a quarter late in ramping up. So what we had expected to ramp up in December, we finished the ramping up in March of this year.”
Paresh Dattani, page 8 of the filed PDF · View the filing
Management said demand was briefly disrupted by crude volatility but has normalized.
Answered by Paresh Dattani
Asked by Harsh Mittal: What is the current demand scenario and how have spreads behaved post-war outbreak?
p. 8
“they are back to base and we see very robust demand coming in now also.”
Paresh Dattani, page 8 of the filed PDF · View the filing
Management gave segment-wise revenue targets and an EBITDA target for FY27.
Answered by Paresh Dattani
Asked by Harsh Mittal: What is the FY27 revenue/margin guidance?
p. 8
“we are looking at, see Silvassa we clocked INR 3,000 crores normally as we did in this FY27.”
Paresh Dattani, page 8 of the filed PDF · View the filing
Management said Punjab products are tuned to North Indian market needs and value addition is at an early stage compared to Silvassa's over 40%.
Answered by Paresh Dattani
Asked by Aman Agrawal: Is the Punjab facility's product mix and value-addition similar to Silvassa?
p. 9
“we have more than 40%, we have achieved more than 40% value addition at Silvassa.”
Paresh Dattani, page 9 of the filed PDF · View the filing
Management attributed part of the gap to product mix differences and to passing on some freight arbitrage benefit to customers.
Answered by Paresh Dattani
Asked by Aman Agrawal: Why is the Punjab facility's sales price at a discount to Silvassa?
p. 10
“once we take the arbitrage of the freight into consideration, we do leave a small portion on the table there for the customer.”
Paresh Dattani, page 10 of the filed PDF · View the filing
Management said the benefits of full ramp-up and product realignment would show from Q2 FY27.
Answered by Paresh Dattani
Asked by Aman Agrawal: When will Punjab gross margins improve to Silvassa levels?
p. 10
“the entire operational full operation of first phase plus the line-up of all the products will be definitely visible from FY27 quarter two, and you will see the results of that.”
Paresh Dattani, page 10 of the filed PDF · View the filing
Management said they are focused on Phase 2 and targeting completion by end of FY27, with an announcement on equipment supply forthcoming.
Answered by Paresh Dattani
Asked by Aman Agrawal: What is the plan and timeline for Phase 2 capex at Punjab?
p. 10
“we aim to complete what we had predicted earlier in FY27, end of FY27.”
Paresh Dattani, page 10 of the filed PDF · View the filing
Management said realizations were broadly similar with a marginal increase in cotton due to price moves from Q4.
Answered by Paresh Dattani
Asked by Aradhana Jain: How did sales realizations move this year across polyester, cotton and technical textile?
p. 12
“it's somewhat similar but a marginally higher realization, particularly on the cotton front.”
Paresh Dattani, page 12 of the filed PDF · View the filing
Management attributed the rise to the Punjab ramp-up and raw material in transit, and said the ratios would normalize as full quarter revenues from Punjab come through.
Answered by Sanjay Shah
Asked by Aradhana Jain: What drove the increase in inventory and payable days, and is it sustainable?
p. 12
“there was raw material in transit of close to INR 180 crores, on account of which the inventory numbers as well as the sundry creditors numbers looks higher.”
Sanjay Shah, page 12 of the filed PDF · View the filing
Management confirmed this is peak debt and expects annual repayments with no major new borrowing planned.
Answered by Sanjay Shah
Asked by Aradhana Jain: Is the current gross debt level the peak, and will it reduce going forward?
p. 13
“This is our peak gross debt level and we are expecting a payouts of close to INR 100 to INR 125 crores every year.”
Sanjay Shah, page 13 of the filed PDF · View the filing
Management said interest costs would decline quarter-on-quarter as term loan instalments are repaid, but consolidated finance cost would still remain north of INR 125 crores due to Phase 2 capex.
Answered by Sanjay Shah
Asked by Ashish Upganlawar: Will interest costs decline in FY27 as debt reduces?
p. 14
“as we repay the instalments on the term loans, our interest cost would go down quarter-on-quarter basis.”
Sanjay Shah, page 14 of the filed PDF · View the filing
Management said supply chain challenges had been navigated through diversified sourcing and existing contracts, minimizing raw material risk.
Answered by Paresh Dattani
Asked by Ashish Upganlawar: Are there risks to raw material availability, pricing or demand for FY27?
p. 15
“We have planned our raw material arrangement in such a way that one facility we have a lot of dependence on imports and one facility we have practically nil dependence on exports.”
Paresh Dattani, page 15 of the filed PDF · View the filing
Management confirmed the aim for double-digit consolidated EBITDA margin but said guidance was kept conservative given the global situation.
Answered by Paresh Dattani
Asked by Dhiral Shah: Given the FY27 revenue and EBITDA guidance implies only ~9% margin, will Punjab reach double-digit margins as utilization improves?
p. 17
“we are a little conservative in stating what we aim to do. But we aim to definitely do a double-digit EBITDA at on a consol basis.”
Paresh Dattani, page 17 of the filed PDF · View the filing
Management said the payback period for the solar investment is about three years.
Answered by Paresh Dattani
Asked by Dhiral Shah: What payback is expected from the solar power investment?
p. 18
“Payback is about three years on this.”
Paresh Dattani, page 18 of the filed PDF · View the filing
Management said both plants had not yet commissioned, with GAIL delayed by raw material issues from the West Asia crisis and targeting July supply, while Indian Oil was targeting year-end.
Answered by Paresh Dattani
Asked by Harsh Mittal: What is the status of new PTA capacity commissioning (GAIL and Indian Oil)?
p. 19
“Gail, which was ready for commissioning, had issues of their raw material because of this West Asia crisis, so they could not line up on contractual basis for their paraxylene.”
Paresh Dattani, page 19 of the filed PDF · View the filing
Risks flagged
Volatility in crude-linked raw material prices affecting polyester filament yarn margins
p. 6
“Short-term volatility can impact margins; however, over a reasonable period the industry usually adjusts prices in line with raw material movement and we're seeing the same.”
Sammir Dattani, page 6 of the filed PDF · View the filing
Uncertainty in raw cotton prices and availability due to global disruption and climate-related risks
p. 6
“raw cotton prices and availability in the upcoming season will be a key area to watch for, particularly given the ongoing global disruption and emerging climate-related risks”
Sammir Dattani, page 6 of the filed PDF · View the filing
Fluid geopolitical environment affecting demand, logistics, energy prices and supply chains
p. 4
“the global geopolitical environment continues to remain fluid and the full impact on demand, logistics, energy prices and supply chains remains difficult to assess”
Paresh Dattani, page 4 of the filed PDF · View the filing
Rising gas prices increasing heating costs at the Silvassa facility
p. 16
“the cost of gas has gone up by about 60%, 50% to 60% of the cost of gas. So that is affecting our cost of heating at Silvassa but not at the Punjab facility.”
Paresh Dattani, page 16 of the filed PDF · View the filing
Uncertainty over reinstatement of import duty on PTA
p. 20
“We hope it remains the way it is now, but it's anybody's guess.”
Paresh Dattani, page 20 of the filed PDF · View the filing
Delay in commissioning of new domestic PTA capacity due to West Asia crisis affecting raw material supply
p. 19
“Gail, which was ready for commissioning, had issues of their raw material because of this West Asia crisis, so they could not line up on contractual basis for their paraxylene.”
Paresh Dattani, page 19 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.