Leading yarn manufacturer Sanathan Textiles remains unaffected by the United States tariff impacts. The company’s exports to the US are under 1% and account for less than 4% of its revenue. Executive Director Sammir Dattani said that the company maintains its strong focus on domestic demand. He added that the company continues to uphold its FY26 revenue guidance of Rs 4,600 to Rs 4,800 crore.
Speaking to NDTV Profit, Dattani explained that over the past few years, the company has strategically shifted its focus to the growing domestic market, which has helped offset any potential impact.
“If you look over the last three years, our exports went down. And because we saw more opportunity in the domestic market…it was a very conscious and calculated decision. See, selling our product because of the growing demand is not a challenge. We pivot between domestic and export sales depending on the net back and profitability. And we have pivoted accordingly. So March FY25, our revenue from exports is less than 4%,” he explained.
Addressing the Q1FY26 decline in revenue on a year-on-year basis, Dattani said that it was due to lower selling prices, which followed a drop in raw material costs.
“Typically, our selling prices are somewhere in sync with our raw material pricing. And since the raw material cost went down, we passed on that benefit to the customer. If you see the quantity of sales, the volume of sales on a quarter-on-quarter basis, it’s been quite consistent. Last year, our Ebitda margins were approximately 8.7%. Whereas this quarter and the previous quarter, they are consistent at about 9.3%,” he explained.
He confirmed that the company’s strategy prioritises maintaining high volume and optimal asset utilisation and has a current capacity usage of around 95%.
On FY26 revenue guidance, he said that Sanathan Textiles expects its new facility in Punjab to boost capacity, which will help in growth.
“Our FY25 revenue last year was about Rs 3,000 crores. We have a new facility that’s starting up in Punjab, where we’ll be more than doubling our capacity and our revenues in the coming years. This year, since we get about half the year’s production from that facility, we are hoping to do a revenue of around Rs 4,500 to Rs 4,700 crores by March 2026,” he said, adding that the commercial production at the unit is expected to commence in a couple of weeks.
On Ebitda margin targets of 10–11%, he noted that despite Q1 margins at 9.3%, June alone saw margins above 10%. According to Dattani, this indicates strong momentum for the company, and the upcoming festive and wedding season will further support the margin expansion in the coming quarters.
Sanathan Textiles reported a 4.6% year-on-year decline in revenue at Rs 745 crore in Q1FY26, compared to Rs 781 crore in Q1FY25. Ebitda (excluding other income) stood at Rs 70 crore, down 9% from Rs 76 crore, while Ebitda margin slipped slightly to 9.3% from 9.8%. Profit after tax (PAT) also declined by 19.3% to Rs 40 crore from Rs 50 crore in the same period last year.
On Aug. 9, Sanathan Textiles shares closed at Rs 471.80, down 0.99% on NSE. The Nifty 50 also declined by 232.85 points, ending at 24,363.30, down 0.95% on the day.
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