Overview
Sangam (India) Limited reported exceptional financial performance for FY26 with standalone revenue growing 12.18% to ₹3,189.50 crore and net profit surging 212% to ₹857 crore from ₹274.7 crore in FY25. The Board recommended a dividend of ₹2 per equity share (20%) subject to shareholder approval at the AGM scheduled for June 29, 2026.
Financial Performance
Standalone financials showed robust improvement with EBITDA margin expanding to 9.85% (from 8.02%) and ROCE improving to 9.92% (from 6.80%). Consolidated performance was equally strong with revenue growth of 13.22% to ₹3,234.53 crore and net profit of ₹82.60 crore. The company revised estimated useful life of certain plant & machinery and solar power assets, reducing depreciation expense by ₹433 crore and increasing profit after tax by ₹324 crore.
Operational Highlights
The company completed significant expansion projects including a 38.16 MW solar power plant (cost: ₹167.18 crore), PV yarn modernization (₹207 crore), and acquisition of a recycled polyester staple fiber unit for ₹54.51 crore enabling backward integration. Exports contributed 36% of revenue (₹1,167 crore) with operations spanning 52+ countries. Product mix comprised PV Yarn (23%), Cotton Yarn (27%), Denim Fabric (28%), Woven Fabric with Processing (19%), and Garments (3%).
Capital Structure & Investments
Total debt stood at ₹580.47 crore with debt-to-equity ratio of 1.14x. Investments included ₹2.40 crore in Clean Max Kenai Private Limited (associate), ₹0.01 crore in Goldenseams Sangam Private Limited (joint operation), and ₹392.2 crore in wholly-owned subsidiary Sangam Ventures Limited. The company maintained authorized share capital of ₹82.50 crore with paid-up capital of ₹50.24 crore.
Risk Management & Disclosures
The company disclosed comprehensive financial risk management framework addressing currency risk (1% USD movement affects P&L by ₹293 lakhs), interest rate risk (100 bp change affects P&L by ₹803 lakhs), and credit risk. Trade receivables stood at ₹65,404 lakhs with loss allowance provision of ₹1,692 lakhs. Contingent liabilities included bank guarantees of ₹53.4 crore and corporate guarantees of ₹809 crore.
ESG & Regulatory Compliance
ESG initiatives included 24 MW renewable energy capacity, diversion of 38,400 MT plastic waste from landfills, zero liquid discharge compliance, and CSR spend of ₹1.19 crore impacting 2 lakh+ lives. The company maintained full regulatory compliance with SEBI and stock exchanges, filed all necessary documents, and reported no material complaints from regulators or instances of fraud.
Forward Outlook
The company completed its major capex cycle and is shifting focus to 'Asset Sweating' and deleveraging. Forward-looking statements indicate continued growth trajectory subject to market conditions and regulatory environment, with emphasis on operational efficiency and sustainable practices.