Sanathan Textiles eyes FY27 growth on Punjab ramp-up

Sanathan Textiles is seeing demand traction despite volatile raw material prices.

Sanathan Textiles expects strong growth in 2026-27, supported by the ramp-up of its newly commissioned Punjab facility and improving operational efficiencies. Sammir D Dattani, Executive Director, Sanathan Textiles, said better capacity utilisation is expected from the coming quarters, with the Punjab plant likely to become a key growth driver.

The company had earlier guided for around Rs 40 billion revenue in FY26, but closed slightly below the target due to delays in commissioning the large greenfield facility. Dattani said the project has revenue potential of nearly Rs 40 billion from phase one and phase two combined over the coming years.

The Punjab facility is now fully operational. The company could not utilise much of the installed capacity in Q4FY26, but FY27 will focus on stabilising operations, improving product mix and increasing efficiencies. Dattani said the full potential of the Punjab facility should become visible during FY27.

Sanathan Textiles is also seeing demand traction despite volatile raw material prices. The company expects India’s new trade agreements with the United Kingdom and European Union to strengthen export opportunities. It is targeting over Rs 5 billion EBITDA in FY27 and preparing for the second phase expansion of the Punjab facility.

For Q4FY26, the Mumbai-based company reported a 60 per cent year-on-year rise in revenue to Rs 11.69 billion from Rs 7.32 billion, supported by the Punjab facility ramp-up. EBITDA increased 38 per cent to Rs 940.4 million from Rs 680.3 million.

However, EBITDA margin narrowed to 8 per cent from 9 per cent due to higher raw material costs and initial operational expenses related to the new plant. Profit after tax declined 51 per cent year-on-year to Rs 210.6 million from Rs 430.7 million.