Textile stock that is expected to deliver a revenue increase of 50% in FY27 to keep on your radar

Synopsis:- Yarn manufacturer targets ₹6,000 crore scale by FY27 with 10–11% EBITDA margin guidance, supported by capacity expansion. Punjab facility may add ₹700–800 crore, while polyester costs rose 20–25%. Margins weakened with OPM at 5.30%, though strong volumes and global presence across 27 countries support growth.

India’s textile products sector remains a key growth engine, contributing around 9% of manufacturing output and employing roughly 45 million people directly. Exports are projected to touch about 65 billion dollars by FY 2025–26, with the total textile and apparel market size expected to expand at a double‑digit CAGR towards 350 billion dollars by 2030.

With a market capitalization of Rs 3,568 crore, the shares of Sanathan Textiles Ltd closed at Rs 415.55 per share, increased around 7 percent as compared to the previous closing price of Rs 389.55 apiece.

Guidance

Sanathan Textiles is on track to achieve revenue of around Rs 4,000 crore in FY26 and has guided for Rs 6,000 crore in FY27, indicating strong growth visibility. Moreover, the company expects EBITDA margins of 10–11% in FY27, supported by operational scale-up and improved efficiencies across its expanding textile business.

Furthermore, despite rising raw material costs, with polyester prices up 20–25% and others by 8–10%, the company has implemented price hikes to offset pressures. Additionally, the Punjab facility is expected to contribute Rs 700–800 crore in FY26, while limited export exposure of 5% reduces global risk impact.

For FY 2025, the company reported sales of ₹2,999 crore with operating profit at ₹270 crore and OPM at 9%. However, higher interest and depreciation costs impacted profitability, leading to net profit rising to ₹160 crore, indicating pressure on overall earnings despite stable operating performance.

Financial & Other Highlights

The company reported a sharp 45% rise in revenue from Rs 743.13 crore to Rs 1,078.67 crore, reflecting strong growth momentum. However, despite this robust top-line performance, profitability deteriorated significantly as it shifted from a profit of Rs 34.17 crore to a loss of Rs 4 crores, indicating margin pressures and higher costs impacting overall earnings.

Over the period from Dec 2024 to Dec 2025, Sanathan Textiles Ltd witnessed pressure on operating performance. Operating profit slightly declined from Rs 58.47 crore to Rs 57.21 crore. Moreover, OPM dropped from 7.87% to 5.30%, indicating margin compression likely due to rising costs, despite stable operational execution during the year.

Sanathan Textiles stands among India’s leading yarn manufacturers, operating across polyester filament yarn, cotton yarn, and technical textiles. The company has an installed capacity of 479,250 MTPA and offers a diverse product portfolio. Moreover, it serves over 7,000 customers across 27 countries, supported by a strong distribution network and a high customer retention of 92%.

Sanathan Textiles Ltd is an Indian yarn manufacturing company engaged in polyester filament yarn, cotton yarn, and technical textiles. It caters to diverse industries with a wide product portfolio and a strong distribution network. The company focuses on innovation, capacity expansion, and global market presence to drive consistent growth and competitiveness.

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