February 6, 2025
Financial Results

Sanathan Textiles Posts Strong Results, Plans Expansion

Sanathan Textiles Ltd, a leading yarn manufacturer in India operating across polyester filament yarn, cotton yarn and technical textiles, has announced its unaudited financial results for the second quarter (Q2) and half year (H1) FY 2025. The company reported strong growth in profitability and outlined plans for significant capacity expansion.

For Q2 FY25, Sanathan Textiles recorded revenue from operations of Rs 742.17 crore, marginally lower by 0.46% compared to Rs 745.61 crore in Q2 FY24, primarily due to a 1.92% decline in sales volumes.

Despite this, EBITDA for the quarter rose by 12.31% to Rs 58.22 crore, supported by better gross margins. The profit after tax (PAT) for the quarter stood at Rs 32.56 crore, reflecting a 7.67% increase from Rs 30.24 crore in the same period last year.

During H1 FY25, revenue grew by 6.77% to Rs 1,523.30 crore, compared to Rs 1,420.96 crore in H1 FY24, driven by higher sales volumes. EBITDA surged by 61.45% to Rs 136.70 crore, while PAT increased significantly by 74.54% to Rs 82.63 crore, attributed to higher volumes, improved margins and lower operating expenses.

Commenting on the results, Paresh Dattani, Chairman and Managing Director of Sanathan Textiles, expressed satisfaction with the company’s performance. He highlighted growth across all three yarn segments—polyester filament yarn, cotton yarn and technical textiles—fueled by demand from both new and existing customers.

“Our EBITDA growth has been driven by stabilizing and improving pricing as well as operational efficiencies. Demand across the industry is normalizing, supported by strong tailwinds and favourable government policies. Factors such as increased discretionary spending, growth in online retail, fast fashion trends and a shift from cotton to value-added polyester filament yarn have further propelled this growth,” Dattani said.

To meet the rising demand, Sanathan Textiles is significantly increasing its production capacity. The company’s upcoming plant in Punjab, expected to be operational by Q1 FY26, will enhance polyester filament yarn capacity from 550 tonnes per day (TPD) to 1,500 TPD. This expansion will raise the total installed capacity to 4.5 lakh metric tonnes per annum (MTPA).

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *