Sanathan Textile Q2 FY27 Results (NSE: SANATHAN)
Signal: Growth reaccelerated
The read
Q2FY27 marks a sharp consolidated earnings recovery: revenue rose 120.8% YoY to ₹1,803.97 Cr and PAT rose 204.4% to ₹61.23 Cr, helped by a 356bps gross-margin expansion, but the ₹42.03 Cr finance charge and consolidated PAT remaining below standalone PAT show that scale-up is not yet translating cleanly into group profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,803.97 Cr | +120.8% | +29.3% |
| Net profit | ₹61.23 Cr | +204.4% | |
| EPS | ₹7.26 | +205.0% | |
| EBIT margin | 8.6% |
P&L walk
Consolidated revenue increased to ₹1,803.97 Cr, +120.8% YoY and +29.3% QoQ, while the margin recovered to approximately 8.6% from the prior-year 8% level as raw-material intensity fell to 70.2% from 73.8%; PAT rose to ₹61.23 Cr from ₹20.12 Cr.
Segments
The filing identifies Yarn Manufacturing as a single operating segment; the key divergence is between the ₹68.69 Cr standalone PAT and ₹61.23 Cr consolidated PAT, implying subsidiaries and group-level costs dragged reported earnings despite consolidated revenue of ₹1,803.97 Cr.
Key positives
- Consolidated revenue rose 120.8% YoY and 29.3% QoQ to ₹1,803.97 Cr, accelerating from ₹1,394.74 Cr in Q1FY27.
- Gross margin expanded approximately 356bps YoY as raw-material cost declined to 70.2% of revenue from 73.8%.
- Consolidated PAT recovered to ₹61.23 Cr from ₹20.12 Cr a year ago and ₹23.82 Cr in Q1FY27.
- Standalone operating cash flow was ₹217.59 Cr in Q2FY27 and consolidated H1 operating cash flow was ₹384.74 Cr versus ₹67.24 Cr in H1FY26.
- Consolidated net debt declined to approximately ₹1,192.05 Cr from approximately ₹1,308.20 Cr at 31 March 2026.
Key concerns
- Finance cost rose 397.1% YoY to ₹42.03 Cr on the consolidated basis, absorbing a substantial portion of operating profit.
- Consolidated PAT of ₹61.23 Cr was ₹7.46 Cr below standalone PAT of ₹68.69 Cr despite consolidated revenue being ₹1,803.97 Cr.
- Depreciation rose 132.5% YoY to ₹36.56 Cr, increasing the earnings burden as the expanded asset base comes on stream.
- Consolidated borrowings remained high at ₹1,405.54 Cr at 30 September 2026.
Research and educational content only. Not investment advice.