Sangam India Q2 FY27 Results (NSE: SANGAMIND)
Signal: Margin expansion
The read
The trajectory remains constructive on YoY growth: consolidated revenue rose 32.9% to ₹1,04,532 lakh and EBITDA margin expanded 181bps to 11.6%, extending the margin recovery seen in recent quarters, but sequential margin slipped 65bps and H1 operating cash flow was negative ₹4,084 lakh as the capex and working-capital cycle intensified.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,045.32 Cr | +32.9% | +21.5% |
| EBIT | ₹94.96 Cr | +42.8% | |
| Net profit | ₹53.4 Cr | +130.9% | |
| EPS | ₹10.63 | +131.1% | |
| EBIT margin | 11.6% |
P&L walk
Consolidated revenue increased to ₹1,04,532 lakh, while EBITDA rose to ₹12,122 lakh and margin expanded to 11.6% YoY; PAT reached ₹5,340 lakh despite ₹166 lakh of exceptional cost and sharply higher depreciation.
Segments
The company reports a single Textile Business segment; the consolidated result was modestly lifted by wholly owned subsidiary Sangam Ventures, which contributed ₹2,055 lakh of quarterly revenue and ₹195 lakh of PAT, explaining most of the ₹195 lakh consolidated-over-standalone PAT gap.
Key positives
- Consolidated revenue reached ₹1,04,532 lakh, up 32.9% YoY and 21.5% QoQ, accelerating from ₹78,618 lakh a year earlier.
- EBITDA margin expanded to 11.6% from approximately 9.8% YoY, while finance costs rose only 3.9% against 32.9% revenue growth.
- PAT increased 130.9% to ₹5,340 lakh and EPS increased 131.1% to ₹10.63, with EPS tracking PAT closely.
- PPE of ₹1,63,238 lakh and CWIP of ₹9,288 lakh indicate that the disclosed expansion plan is progressing and the depreciation increase is supported by a higher asset base.
Key concerns
- H1FY27 operating cash flow was negative ₹4,084 lakh versus positive ₹925 lakh in H1FY26, driven primarily by a ₹21,186 lakh increase in trade receivables and a ₹6,569 lakh inventory outflow.
- Net debt increased to ₹1,46,736 lakh from ₹1,21,014 lakh at 31 March 2026 while capex outflow reached ₹23,045 lakh in H1FY27.
- Other expenses rose 60.1% YoY to ₹14,020 lakh, materially faster than revenue, and sequential EBITDA margin declined 65bps to 11.6%.
- Trade receivable days increased to approximately 79.7 from 74.0 days at 31 March 2026, increasing working-capital intensity.
Research and educational content only. Not investment advice.