Sanathan Textiles Ltd

Meeting Details

• Date: September 1, 2026; Meeting: Ashwamedh Elara India Dialogue 2026; Mode: In-person.
• Participants: Company officials interacting with Analysts/Investors.
• Purpose: Investor interaction; discussions based on information already available.
• Schedule availability: Copy placed on company website; UPSI not intended for discussion.

Meeting Details

• Date: August 26, 2026; time not disclosed.
• Meeting type: analysts/institutional investor interaction.
• Mode: not disclosed.
• Organizer: Sanathan Textiles Limited.

Participants

• Key company participant: Company Secretary and Compliance Officer.

Purpose

• Purpose: investor interaction; UPSI not to be discussed; based on company/exchange websites.

Additional Notes

• Schedule available on the company website.

Commercial production milestone

• Expanded Technical Textiles yarn capacity at Silvassa doubled to 18,000 MTPA.
• Total installed capacity across Silvassa and Punjab now 488,250 MTPA.
• Commercial production commenced in line with July 23, 2026 timeline.
• Expansion strengthens the integrated manufacturing platform and capacity for evolving market requirements.

Overview

• Consolidated BRSR for FY2025-26; primary activity is integrated yarn manufacturing across polyester, cotton, and technical yarns.
• Exports to 21 countries; domestic presence in 17 states; two plants and multiple offices; 3% export share.

Key ESG Risks & Opportunities

• Climate change poses operational risk and opportunities from energy efficiency and renewables.
• Water stress risk mitigated by ZLD, rainwater harvesting, and water reuse; Better Cotton sourcing opportunity.
• Waste management risk from hazardous waste; mitigated by source segregation and TSDF disposal.
• OHS risk from high-speed machinery; mitigated by ISO 45001 framework and safety training.
• Value chain sustainability risk from fossil inputs; opportunity via proximate sourcing and circular supply.
• Product stewardship risk from end-of-life concerns; opportunity in recycled yarns and traceability.

Governance & Policy Highlights

• Board-level ESG oversight by Chairman/MD; Risk Management & Sustainability Committee guides sustainability.
• Anti-corruption policy with Vigil/Whistle-blower mechanism; Audit Committee oversight; policies web-hosted.
• No penalties or regulatory actions reported; consolidated reporting boundary.
• Policies aligned with ISO-based certifications; independent audits referenced for policy areas.

Social Responsibility & Workforce

• Total workforce: 1,843 permanent and 6,053 workers; female representation 3% among permanent staff.
• Board female representation 12.5%; senior management 10%; KMP female 0%.
• Permanent employee turnover 14.54%; LTIFR zero for both employees and workers.
• 100% maternity benefits; 100% health/accident insurance coverage for permanent employees.
• Extensive training: 35 worker, 40 employee, and 5 top-management sessions; safety focus.
• Formal Grievance Redressal mechanism with Audit Committee oversight; multilingual channels for reporting.

Environmental Performance

• Energy intensity improved to 5.03 GJ/tonne; water intensity to 0.77 KL/tonne; baseline established.
• Renewable energy share: 2.52 million GJ; rooftop solar 2.35 MW; Punjab to deploy 32 MW hybrid project.
• Zero Liquid Discharge implemented at Punjab and Silvassa; water recovered via RO/MEE and reuse.
• Scope 1 emissions 39,164 tCO2e; Scope 2 emissions 305,574 tCO2e; total 344,738 tCO2e.
• Waste total 198.66 MT; plastic 16.82 MT; hazardous 165.61 MT; landfilled 155.39 MT; some recycled.
• EPR: plastics targets met in 2024-25; 2025-26 targets set for 140 MT recycled and 224 MT end-of-life.

Stakeholder Engagement & Complaints

• Engagement with shareholders/investors quarterly; customers and communities engaged as needed; employees via open channels.
• No material complaints outstanding; cyber/privacy and POSH complaints reported as Nil.
• Data privacy policy aligns with ISO 27001; data breaches reported as Nil.

Other Notable Metrics

• Capex: ₹73 Crore in FY2025-26 to enhance energy, water, and environmental systems.
• RPTs: related-party transactions not disclosed; top purchasing and sales concentration noted.
• R&D/capex focus includes energy efficiency, waste heat recovery, ZLD, and circular product development.
• Certifications: ISO 14001, ISO 9001, ISO 45001; independent auditing by global certifiers.

Financial snapshot

• Consolidated revenue: 3811.18 Cr, up 27.1% YoY.
• Consolidated EBITDA: 284.35 Cr, up 7.9% YoY.
• PAT: 77.35 Cr, down from 160.45 prior year due to high start-up costs.
• Standalone revenue: 3037.86 Cr; EBITDA: 277.10 Cr; PAT: 191.91 Cr.
• Standalone EBITDA margin: 9.12%; Standalone EPS: 22.74.
• Consolidated EPS: 9.16; Revenue mix: India 2928.46 Cr, outside India 109.40 Cr.
• Installed capacity: 479,250 MTPA; Punjab plant ramped to 700 MTPD.
• Gearing: 80.77%; Debt: 1512.08 Cr; Equity: 1872.07 Cr.
• Net operating cash flow: Consolidated 322.41 Cr; Standalone 194.73 Cr.

Operations and capacity

• Punjab greenfield polyester plant commissioned Aug 27, 2025; ramped to 700 MTPD by Mar 2026.
• Silvassa capacity at 223,750 MTPA; Punjab at 255,500 MTPA; total 479,250 MTPA.
• Polyester yarn revenue 3,118.31 Cr (82% of total); cotton yarn 583 Cr; technical textiles growing.
• Technical textiles capacity expanded at Silvassa to 18,000 MTPA; MP cotton yarn plant planned.
• Total employees: 1,843; total workers: 6,053; combined workforce 7,896.
• Exports to 21 countries; 7,000+ agents; 50,000+ SKUs.

Capital allocation & key investments

• No dividend for FY2025-26; profits reinvested for capacity expansion.
• IPO proceeds fully utilized as planned; subsequent expansion funded from internal accruals.
• FY2025-26 capex around 73 Cr focused on energy, water, automation.
• Punjab Phase 1 asset capitalisation; Phase 2 and Silvassa upgrades under plan.
• Subscribed to 14,24,00,000 7% redeemable preference shares in Sanathan Polycot (SPPL) totaling Rs 1,424 Cr.
• SPPL equity investments and related party balances disclosed; SPPL debt and equity components noted.

Governance & controls

• Board of eight with Sammir Dattani appointed Executive Director May 26, 2025; reappointed Aug 2025.
• Mrs. Rupal Vora re-appointed Independent Director for 2026-2029; approved by shareholders June 2026.
• 5 Board meetings held in FY2025-26; five board committees active.
• Walker Chandiok & Co LLP re-appointed as Statutory Auditor for second five-year term.
• Jude Patrick D'souza (Company Secretary) and Sanjay Shah (CFO) listed as KMP; internal controls robust.
• Valuable governance: Vallabhdas Dattani tribute; governance continuity maintained.

Audit & compliance flags

• Statutory audit: no qualifications; no fraud reported (FY2025-26).
• Secretarial audit: SPPL and STL compliant; no qualifications noted.
• BRSR introduced; STL's first Business Responsibility and Sustainability Report published for FY2025-26.
• CFO certification obtained; governance disclosures align with SEBI LODR.
• Independent Directors meet separately to review Board performance.

ESG and sustainability

• Zero Liquid Discharge implemented at Punjab and Silvassa; 100% wastewater treatment and reuse.
• Rice husk biomass used for heating; Punjab plant uses ZLD with renewable energy mix.
• R&D in recycled polyester (rPET), dope-dyed yarns; GRS and OEKO-TEX certified lines.
• Punjab plant targets ~70% renewable power; 32 MW Hybrid Solar-Wind planned via SPPL.
• Energy intensity improved to 5.03 GJ/tonne; water intensity to 0.77 KL/tonne.
• CSR highlights include healthcare support, disaster preparedness, and hunger alleviation; CSR spend Rs 0.32 Cr in FY26.

ESG governance and risk

• Risk Management and Sustainability Committee oversees ESG risks; proactive risk mitigation implemented.
• Cyber security measures in place; no breaches reported; ISO-27001 aligned framework.
• Policy framework: governance, insider trading, ethical conduct; familiarization for Directors ongoing.
• Energy & water governance: ZLD, biomass heating, and circular packaging practices advanced.

Outlook and risks

• Outlook: domestic demand and export growth supported by policy reforms and India’s fiber shift to MMF.
• Risks: raw material and energy cost volatility; global trade and tariff developments; supply chain disruptions.
• Phased capacity expansion: Phase 2 Punjab, Silvassa 18,000 MTPA Tech Textiles, MP cotton yarn project to lift long-term capacity.
• Management remains focused on absorbing Punjab Phase 1 costs while driving operating leverage with higher utilization.

agm details

• AGM on 11 September 2026 at 04:00 PM IST via VC/OAVM.
• Cut-off date for attendance: 04 September 2026.
• Venue deemed at registered office; attendance via VC/OAVM.
• Remote e-voting: 08 Sep 2026 09:00 to 10 Sep 2026 17:00 IST.

key resolutions

• Item 1 Ordinary: adopt standalone financial statements for FY 2025-26.
• Item 2 Ordinary: adopt consolidated financial statements for FY 2025-26.
• Item 3 Ordinary: re-appoint Sammir Dattani, Executive Director, liable to retire by rotation.
• Item 4 Ordinary: re-appoint Walker Chandiok & Co LLP as statutory auditor for five years at ₹72,00,000.
• Item 5 Ordinary: ratify cost auditor remuneration of ₹1,70,000 for FY 2026-27.

dividend

• No dividend proposal indicated.

auditors and directors

• Statutory auditor: Walker Chandiok & Co LLP; five-year term.
• Cost auditor: Saroj K Babu & Co; remuneration ₹1,70,000.

governance notes

• AGM held virtually; no proxy attendance; e-voting via NSDL.

Meeting Details

• Date: August 13, 2026.
• Mode: in-person.
• Event organiser: Emkay Confluence 2026, Mumbai.

Participants

• Key company participants: Company Secretary and Compliance Officer.

Purpose

• Purpose: Analyst/institutional investor interaction; discussions based on publicly available information.

Documentation

• Schedule copy posted on the company website.

Meeting Details

• Earnings call scheduled for Aug 04, 2026 at 04:00 PM IST.
• Group earnings conference call; virtual teleconference.
• Event: Earnings Conference Call; organiser: Sanathan Textiles Limited.
• Key management: Chairman & MD; Executive Director; CFO; Company Secretary & Compliance Officer.
• To discuss Q1 FY27 operational and financial performance.