Sanathan Textiles Revises FY26 Revenue Guidance Despite New Punjab Facility

Sanathan Textiles has revised its revenue guidance for FY26 to ₹4,000–4,300 crore, down from an earlier estimate of ₹4,500 crore, despite the commencement of commercial production at its new greenfield facility in Punjab. The company remains confident about profitability, citing operational efficiencies at the Punjab plant, lower operating costs, and proximity to key textile hubs. On September 12, 2025, the stock closed up 0.58%.

Punjab Plant Commences Operations

The Punjab facility, focused on producing polyester filament yarn (PFY), began commercial operations in late August 2025 with an initial capacity utilisation of 50%, around 350 tonnes per day, against Phase One capacity of 700 tonnes per day (2,55,000 tonnes annually). The company expects to reach full capacity within the next three to four months.

Phase Two will eventually increase total designed capacity to 3,55,000 tonnes per annum. From Phase One alone, the Punjab plant is expected to contribute roughly ₹1,300 crore to FY26 revenues, while the Silvassa facility continues to contribute around ₹3,000 crore, similar to last year.

Management Optimism

Sanathan Textiles’ management remains positive on profitability at the new plant. Sammir Dattani, Executive Director, told CNBC TV18, “We are very confident of having a much higher EBITDA margin at the new Punjab facility.” Key advantages include lower operating costs, agri-waste-based heating, and proximity to major textile hubs such as Delhi NCR, Panipat, Ludhiana, and Amritsar, enabling just-in-time deliveries to long-standing customers.

Dattani also welcomed the recent GST rate cut across the textile value chain, calling it a “fantastic improvement” for the industry. However, he highlighted challenges from the inverted duty structure, with petrochemical raw materials still taxed at 18% compared to yarn at 5%.

Exports and US Tariff Impact

Exports remain a minor part of Sanathan’s revenue, accounting for about 4%, with less than 1% exposure to the US. Dattani noted that the recently announced 50% US tariff would have minimal impact on operations. He added, “If there are tariff relaxations in favour of India, the textile industry does stand to gain further.”

Sanathan Textiles Share Price Performance

On September 12, 2025, Sanathan Textiles share price opened at ₹517.95, compared to the previous close of ₹515.15. During the session, the stock touched a high of ₹551.95 and a low of ₹511.60 before closing at ₹518.15, up by 0.58%.

The stock recorded a traded volume of 4.44 lakh shares and a traded value of ₹23.67 crore on the NSE. The market capitalisation stood at ₹4,373.40 crore. Over the past 52 weeks, Sanathan Textiles has hit a high of ₹560.20 and a low of ₹286.95. P/E ratio data is currently not available.

Read More: India-Japan Textile Trade Collaboration Advances with $354 Million Exports and Investment Opportunities 

Conclusion

Despite revising FY26 revenue guidance downward, Sanathan Textiles’ new Punjab PFY facility is expected to boost profitability and operational efficiency. The management’s optimism, combined with strategic location advantages and favourable GST reforms, underpins the company’s long-term growth potential.

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