Sanathan Textiles lifts FY27 EBITDA outlook as Punjab plant ramps up
Sanathan Textiles raised its FY27 EBITDA guidance to ₹530-550 crore from ₹500 crore, citing higher Punjab plant utilisation and doubled technical-textile capacity at Silvassa. A ₹200 crore Punjab phase-two expansion is targeted for Q1 FY28.
What happened
Sanathan Textiles raised FY27 EBITDA guidance to ₹530-550 crore, driven by Punjab plant utilisation and expanded Silvassa technical-textile capacity. It plans
Key facts
- FY27 EBITDA guidance raised to ₹530-550 crore from ₹500 crore
- FY28 EBITDA target: ₹800-900 crore
- Silvassa technical-textile capacity doubled from 9,000 tonnes to 18,000 tonnes
- Silvassa facility annualised revenue potential: ₹300 crore
- Punjab plant utilisation: 78-79% in Q1, targeted at 90% this quarter and 95% by October-December 2026
- Punjab phase one revenue potential: ₹2,700-2,800 crore
- Punjab phase two capex: about ₹200 crore
- Punjab expansion adds about ₹1,000 crore revenue potential, to ₹3,700-3,800 crore
- Phase two expected to add over ₹100 crore EBITDA
- Net debt: ₹1,300 crore
- Market capitalisation: about ₹3,932.81 crore
Why this matters
Sanathan’s planned ₹200 crore Punjab expansion strengthens its technical-textiles scale and raises the strategic bar for capacity, regional manufacturing access, and partnership opportunities in the segment.
What to watch
- Quarterly Punjab capacity-utilisation trend and incremental EBITDA contribution.
- Technical-textile volume growth, realization per kg, and segment margin progression at Silvassa.
- Order-book growth and customer wins sufficient to underpin the stated ₹1,000 crore phase-two revenue potential.
- Punjab phase-two commissioning schedule, capex spend versus the ₹200 crore budget, and Q1 FY28 start confirmation.
- Cotton, polyester, yarn, energy, and freight-cost movements relative to selling-price pass-through.
- Net debt, interest expense, operating cash conversion, and working-capital days during the expansion cycle.
- Any revision to FY27 EBITDA guidance or commentary on demand in domestic and export markets.
- Increase Punjab plant utilisation through customer onboarding and order migration from existing facilities.
- Prioritise higher-margin technical-textile contracts to fill doubled Silvassa capacity.
- Finalize capex funding, approvals, equipment orders, and construction milestones for the ₹200 crore Punjab phase-two project.
- Use improved guidance to strengthen lender, supplier, and investor confidence and potentially optimize financing costs.
- Manage working-capital needs as larger production volumes raise inventory and receivables requirements.