Sangam (India) LimitedQ1 FY27 Results & Financial Update
Sangam (India) Limited: Q1 FY27 consolidated results and company financials – revenue ₹860.35 Cr, PAT ₹41.02 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Sangam (India) Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Sangam (India) Limited delivered a robust financial performance for the quarter ended June 30, 2026 (Q1 FY27), driven by healthy demand and steady operational execution across its core segments.
Total consolidated revenue inclusive of other income reached Rs. 867.28 crore, reflecting an 8.1 percent increase compared to Rs. 803 crore reported in the corresponding period of the previous year.
Profitability expanded significantly, with Profit After Tax (PAT) surging to Rs. 41.02 crore from Rs. 2 crore in Q1 FY26, underpinned by enhanced realisations, a favourable product mix, and better operating leverage.
Earnings per share (EPS) for the quarter stood at Rs. 8.16, compared with Rs. 0.42 in Q1 FY26, highlighting the marked earnings recovery.
Operational efficiency was supported by high capacity utilisation across key divisions, notably denim fabric operating at 98 percent and PV fabric at 97 percent during the quarter.
EBITDA for Q1 FY27 reached Rs. 112 crore, representing a 59.6 percent year-on-year increase and lifting the EBITDA margin by 418 basis points to 12.9 percent.
Management announced a comprehensive capital expenditure plan of approximately Rs. 1,500 crore slated for completion by March 2029, aimed at completing integration across both cotton and synthetic value chains and establishing formal entry into garmenting.
01 · Business model
What does Sangam (India) do?
Sangam (India) Limited is an integrated textile manufacturer operating across the entire textile value chain from fibre and yarn to fabric and garments, backed by over four decades of industry leadership.
The company operates six manufacturing plants located in the state of Rajasthan, supported by a workforce of over 10,000 employees directly employed across operations.
Its product portfolio spans polyester-viscose (PV) yarn, cotton yarn, denim fabric, PV processed fabric, seamless garments, and green recycled polyester fibre, serving customers across more than 50 countries.
The operational footprint balances a two-thirds domestic market presence with one-third export exposure, mitigating single-market and single-product reliance.
02 · Historical context
What shaped the business before this quarter
Founded over 40 years ago by Chairman Mr. R. P. Soni, Sangam has evolved into one of India's leading integrated textile companies.
The company has been officially recognized as a four-star export house by the Directorate General of Foreign Trade, Government of India, reflecting its established export presence across more than 50 countries.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹860.35 Cr |
| Total income | ₹867.28 Cr |
| Profit before tax | ₹55.15 Cr |
| Profit after tax | ₹41.02 Cr |
| EPS | ₹8.16 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
For Q1 FY27, revenue contribution was led by denim fabric at 31 percent, cotton yarn at 25 percent, woven fabric with processing at 22 percent, PV yarn at 20 percent, and garments at 2 percent.
Domestic sales accounted for 67 percent of total revenue in Q1 FY27, while exports represented 33 percent, providing a balanced geographic distribution.
Management noted that top-line expansion was aided by favourable product realisations and a higher proportion of value-added fabric and yarn sales.
What drove margins
Gross margin expanded by 640 basis points year-on-year to 43.6 percent (Rs. 378 crore), benefiting from improved input cost management and favourable selling prices.
EBITDA margin improved by 418 basis points year-on-year to 12.9 percent (Rs. 112 crore), driven by operating leverage as fixed manufacturing overheads were absorbed over higher production volumes.
Finance costs stood at Rs. 29.83 crore for Q1 FY27, reflecting steady debt servicing, while depreciation was reported at Rs. 25.66 crore.
05 · Demand, customers & order book
Where demand is coming from
The company supplies leading global and domestic brands including Walmart, Primark, Zudio, Nykaa Fashion, Gap, Lee Cooper, Jockey, H&M, John Players, and Westside.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Maintained exceptionally strong operational momentum with capacity utilisation reaching 98 percent during Q1 FY27 on a production volume of 144 lakh meters.
Recorded high utilisation of 97 percent during the quarter, producing 194 lakh meters of fabric.
Yarn production reached 22,853 MT in Q1 FY27, operating at a capacity utilisation of 85 percent.
Recycled polyester fibre production stood at 3,565 MT during the quarter, reflecting a capacity utilisation of 93 percent.
Produced 14 lakh pieces of seamless garments in Q1 FY27, representing a 50 percent capacity utilisation rate based on machine run-time hours.
Geography and market mix
Domestic operations generated 67 percent of total Q1 FY27 revenue, anchored by long-standing relationships with leading Indian retail brands and apparel chains.
Export markets contributed 33 percent of Q1 FY27 revenue, serving major international brands across more than 50 countries under the company's four-star export house status.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Installed capacities include 3,06,864 ring spindles (85,140 MT p.a.), 4,584 open-end rotors (19,080 MT p.a.), 32 knitting machines (5,400 MT p.a.), 298 denim weaving looms with 5 indigo lines and 1 rope dyeing line (60 million meters p.a.), 304 PV fabric looms with 7 stenters (76 million meters p.a.), 114 seamless knitting machines (10.74 million pieces p.a.), and a green fibre plant in Bhilwara with a capacity of 45 TPD (16,020 MT p.a.).
Projects, capex and execution
The company is executing a Rs. 1,500 crore capital expenditure program scheduled for completion by March 2029 with phased commissioning starting in FY28, funded through internal accruals and term debt.
The capex plan encompasses modernising 80,000 spindles across 2 mills, adding 2,700 open-end rotors, installing 2 new denim fabric lines (expanding capacity to 48–65 lakh meters/month), adding 40 TPD of recycled polyester fibre capacity (consuming 50,000 MT of plastic waste annually), upgrading PV yarn machinery, and expanding PV fabric capacity by 15 lakh meters/month to reach 60–75 lakh meters/month total capacity.
Existing renewable capacity stands at 36 MW (19 MW solar, 5 MW wind, 12 MW hybrid). An additional 40.7 MW is under implementation (18 MW solar starting Q2 FY27, 2.7 MW solar in August 2026, and 20 MW hybrid in April 2027), targeting expected annual savings of Rs. 48 crore at full operation.
08 · Strategy & new businesses
How the company is trying to change its growth mix
The company is entering garment manufacturing to complete both the cotton chain (cotton to yarn to denim fabric to denim garments) and the recycled synthetic chain (plastic bottles to recycled fibre to yarn to PV fabric to PV garments).
The garmenting initiative involves building capacity for 10 lakh pieces/month of denim garments and 5 lakh pieces/month of PV garments, designed with high automation to reduce reliance on skilled labour and targeting an estimated annual EBITDA of ~Rs. 300 crore at full utilisation.
09 · Reported developments
What changed operationally
PAT increased sharply to Rs. 41.02 crore in Q1 FY27 from Rs. 2 crore in Q1 FY26, driven by stronger operational efficiencies and lower relative depreciation charges.
Expansion of renewable energy capacity to 76.7 MW upon completion of projects under implementation is projected to yield Rs. 48 crore in annual power cost savings.
10 · Items worth noticing
The line items that can distort a quick read
The financial results reflect exceptional items of Rs. 2 crore during Q1 FY27, consistent with the Rs. 2 crore reported in Q1 FY26.
11 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
Management maintains a firm internal leverage discipline, funding the ongoing capital expenditure plan through a combination of internal accruals and term debt, with net debt-to-equity standing at 1.1x as of FY26.
Scheduled long-term debt repayments are structured at Rs. 83 crore in FY27, Rs. 148 crore in FY28, Rs. 168 crore in FY29, Rs. 168 crore in FY30, Rs. 173 crore in FY31, and Rs. 147 crore in FY32.
12 · Management guidance & targets
What management is targeting from here
Management estimates that the full execution of the ~Rs. 1,500 crore capex plan by March 2029 will unlock an incremental annual EBITDA potential of ~Rs. 300 crore upon full capacity utilisation.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
Sustainability and Certifications
The company holds global accreditations including ISO 9001 (Quality Management Systems), OEKO-TEX Standard 100, Global Recycled Standard (GRS), Social Accountability Standards (SA8000), Organic Material Verification, and GOTS certification.
Reported update
Community Welfare Initiatives
Sangam operates educational institutes, a university, and an NABH-certified hospital serving the Bhilwara region as part of its corporate social responsibility.
14 · Key Q&A
The quarter, answered directly
What does Sangam (India) do?
Sangam (India) Limited is an integrated textile manufacturer operating across the entire textile value chain from fibre and yarn to fabric and garments, backed by over four decades of industry leadership.
What is the clearest takeaway from Q1 FY27?
Sangam (India) Limited delivered a robust financial performance for the quarter ended June 30, 2026 (Q1 FY27), driven by healthy demand and steady operational execution across its core segments.
What drove revenue or demand?
For Q1 FY27, revenue contribution was led by denim fabric at 31 percent, cotton yarn at 25 percent, woven fabric with processing at 22 percent, PV yarn at 20 percent, and garments at 2 percent.
What mattered most for margins or profitability?
Gross margin expanded by 640 basis points year-on-year to 43.6 percent (Rs. 378 crore), benefiting from improved input cost management and favourable selling prices.
What changed operationally beyond the headline numbers?
Installed capacities include 3,06,864 ring spindles (85,140 MT p.a.), 4,584 open-end rotors (19,080 MT p.a.), 32 knitting machines (5,400 MT p.a.), 298 denim weaving looms with 5 indigo lines and 1 rope dyeing line (60 million meters p.a.), 304 PV fabric looms with 7 stenters (76 million meters p.a.), 114 seamless knitting machines (10.74 million pieces p.a.), and a green fibre plant in Bhilwara with a capacity of 45 TPD (16,020 MT p.a.).
What is management guiding or targeting from here?
Management estimates that the full execution of the ~Rs. 1,500 crore capex plan by March 2029 will unlock an incremental annual EBITDA potential of ~Rs. 300 crore upon full capacity utilisation.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Execution of Rs. 1,500 Crore Capex Plan: Monitor the phased commissioning of spinning, fabric, green fibre, and garmenting capacities leading up to the March 2029 completion target.
- 02
Renewable Energy Milestones: Track the scheduled commercialisation of the 18 MW solar project in Q2 FY27, 2.7 MW solar in August 2026, and 20 MW hybrid capacity in April 2027 to verify projected power cost savings.
- 03
Garmenting Segment Ramp-Up: Observe customer adoption and initial production scaling as the new denim and PV garment manufacturing units come on stream.
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