Sanathan Textiles Q2 FY27 Net Profit Surges 204% YoY to ₹61.2 Crore

Key numbers

RSI	54.31Neutral Zone
P/E Ratio	75.46xSector 33.16x
Promoter Holding	78.58%No Pledge
Market Cap	₹4583.14 CrTextiles Sector

Key highlights

• Consolidated revenue from operations grew 120% YoY to ₹1,804 crore
• Net profit surged 204.5% YoY to ₹61.2 crore from ₹20.1 crore in Q2 FY26
• Operating margins improved to 4.5% from 2.9% in the preceding June quarter
• Total income for the quarter stood at ₹1,808 crore vs ₹825 crore YoY
• Board approved the re-appointment of key promoter-directors for a 5-year term

Revenue Scale and Profitability Gains

Sanathan Textiles reported consolidated revenue from operations of ₹1,804 crore for the quarter ended September 30, 2026, representing a 120% increase over the ₹818 crore recorded in the corresponding period of the previous year. This growth trajectory was also evident sequentially, with revenue rising 35% from ₹1,335 crore in Q1 FY27. Profitability saw a significant uplift as net profit climbed to ₹61.2 crore, a 204.5% year-on-year surge.

The operating margin improved to 4.5% during the quarter, up from 2.9% in the preceding quarter, indicating enhanced operational efficiency as the company scales its production and manages raw material costs effectively.

Strategic Expansion and Commissioning Milestones

• Targeted commissioning of Phase II expansion at the Punjab facility by March 2027
• Punjab expansion is expected to add 250 tonnes per day to reach a total capacity of 950 tonnes
• Estimated capital expenditure for the Punjab project ranges between ₹125 crore and ₹150 crore
• Land possession for the greenfield cotton yarn facility in Dhar, Madhya Pradesh, expected in Q4 CY26
• Dhar project involves a ₹400 crore investment under the PM MITRA scheme for 72,500 spindles

Leadership Continuity and Director Appointments

The Board of Directors, at its meeting on November 04, 2026, approved the re-appointment of key leadership figures subject to shareholder approval. Mr. Paresh Dattani will continue as Chairman and Managing Director, while Mr.

Ajaykumar Dattani and Mr. Anilkumar Dattani have been re-appointed as Joint Managing Director and Executive Director, respectively. These appointments are set for a five-year term commencing from December 01, 2026, and extending through November 30, 2031.

This move ensures management continuity as the company progresses with its significant capital expenditure plans across its yarn manufacturing hubs in Punjab and Madhya Pradesh.

Market Valuation and Ownership Structure

Sanathan Textiles currently maintains a market capitalization of ₹4,583.14 crore, with the stock trading at a price-to-earnings ratio of 75.46. This valuation remains above the industry average of 33.16. The company exhibits a high promoter holding of 78.58%, which has remained stable over recent quarters, while mutual fund holdings have seen a marginal increase to 12.79%.

Technical indicators place the stock's Relative Strength Index at 54.31, positioning it in a neutral zone. Over the past year, the stock has delivered a 12.88% price return, supported by steady volume and institutional interest as the company executes its capacity expansion roadmap.

What to watch next

• Commissioning of Punjab facility Phase II expansion targeted by March 2027
• Land possession for Dhar, Madhya Pradesh greenfield facility in Q4 CY26
• Shareholder approval for re-appointment of executive directors in upcoming meeting
• Earnings conference call scheduled for November 05, 2026

Sanathan Textiles · financial snapshot

Share price	₹543
Market capitalisation	₹4,583.14 Cr
Revenue (annual)	₹3,811.18 Cr
Net profit (annual)	₹77.35 Cr
Revenue (latest quarter)	₹1,334.74 Cr+14.16% vs previous quarter
Net profit (latest quarter)	₹23.82 Cr+10.43% vs previous quarter
P/E (TTM)	75.46×Sector 33.33×
Promoter holding	78.58%0.00% QoQ
FII holding	1.35%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.