Company Overview

Sangam (India) Limited (CIN: L17118RJ1984PLC003173), an integrated textile company, submitted its investor presentation for Q2 & H1 FY27 results pursuant to Regulation 30 of SEBI Listing Regulations. The document was dated 4th November 2026 and signed by Arjun Agal, Company Secretary & Compliance Officer.

Financial Performance Highlights

Q2 FY27 Performance (Quarter ended 30th September 2026)

  • Revenue from operations: ₹1,045 Cr, up 33.0% YoY from ₹786 Cr in Q2 FY26
  • Gross margin: ₹434 Cr (41.5% margin), up 37.4% YoY, improving 134 bps
  • EBITDA: ₹127 Cr (12.1% margin), up 67.6% YoY, improving 250 bps (includes ₹5 Cr other income)
  • Depreciation: ₹26 Cr, increased 160.0% YoY
  • Finance cost: ₹30 Cr, decreased 3.4% YoY
  • Exceptional items: ₹2 Cr (unchanged YoY)
  • Profit before tax: ₹68 Cr, up 100.1% YoY
  • Tax: ₹15 Cr, increased 36.4% YoY
  • PAT: ₹53 Cr (5.1% margin), up 130.9% YoY, improving 217 bps
  • EPS: ₹10.63, up 131.1% YoY

H1 FY27 Performance (Half year ended 30th September 2026)

  • Revenue from operations: ₹1,906 Cr, up 20.9% YoY from ₹1,576 Cr in H1 FY26
  • Gross margin: ₹805 Cr (42.2% margin), up 33.8% YoY, improving 407 bps
  • EBITDA: ₹239 Cr (12.5% margin), up 63.7% YoY, improving 328 bps (includes ₹12 Cr other income)
  • Depreciation: ₹52 Cr, increased 13.0% YoY
  • Finance cost: ₹60 Cr (unchanged YoY)
  • Exceptional items: ₹3 Cr (unchanged YoY)
  • Profit before tax: ₹123 Cr, up 236.9% YoY
  • Tax: ₹29 Cr, increased 163.6% YoY
  • PAT: ₹94 Cr (5.0% margin), up 273.8% YoY, improving 335 bps
  • EPS: ₹18.79, up 273.6% YoY

Historical Financial Trends (TTM ended September 2026)

  • Revenue: ₹3,564 Cr (FY24: ₹2,628 Cr, FY25: ₹2,857 Cr, FY26: ₹3,235 Cr)
  • EBITDA: ₹422 Cr with 11.8% margin (FY24: ₹228 Cr/8.7%, FY25: ₹260 Cr/9.1%, FY26: ₹329 Cr/10.2%)
  • PAT: ₹152 Cr with 4.3% margin (FY24: ₹41 Cr/1.6%, FY25: ₹32 Cr/1.1%, FY26: ₹83 Cr/2.6%)
  • EPS: ₹30.20 (FY24: ₹8.21, FY25: ₹6.33, FY26: ₹16.44)

Operational Metrics

Production Volumes & Capacity Utilization (Q2 FY27)

  • Yarn: 24,763 MT produced at 93% capacity utilization
  • Green fibre: 3,948 MT produced at 97% capacity utilization
  • PV fabric: 188 lakh metres produced at 95% capacity utilization
  • Denim fabric: 145 lakh metres produced at 97% capacity utilization
  • Garments: 8 lakh pieces produced at 37% capacity utilization

Capacity Utilization Trend

Division-wise utilization showed improvement across most segments compared to previous quarters, with garments division showing volatility (Q2 FY26: 22%, Q3 FY26: 42%, Q4 FY26: 61%, Q1 FY27: 50%, Q2 FY27: 37%)

Balance Sheet Position (as of September 2026)

  • Fixed assets (incl. CWIP): ₹1,739 Cr (Mar-24: ₹1,229 Cr, Mar-25: ₹1,457 Cr, Mar-26: ₹1,593 Cr)
  • Inventories: ₹652 Cr (Mar-24: ₹669 Cr, Mar-25: ₹576 Cr, Mar-26: ₹587 Cr)
  • Trade receivables: ₹830 Cr (Mar-24: ₹448 Cr, Mar-25: ₹518 Cr, Mar-26: ₹637 Cr)
  • Cash, bank balances and current investments: ₹127 Cr (Mar-24: ₹38 Cr, Mar-25: ₹131 Cr, Mar-26: ₹195 Cr)
  • Total assets: ₹3,671 Cr (Mar-24: ₹2,729 Cr, Mar-25: ₹2,955 Cr, Mar-26: ₹3,315 Cr)
  • Total equity: ₹1,191 Cr (includes ₹25 Cr received against share warrants)
  • Borrowings: ₹1,500 Cr (Mar-24: ₹1,065 Cr, Mar-25: ₹1,135 Cr, Mar-26: ₹1,276 Cr)
  • Trade payables: ₹671 Cr (Mar-24: ₹427 Cr, Mar-25: ₹603 Cr, Mar-26: ₹698 Cr)
  • Net debt: ₹1,373 Cr (Mar-24: ₹1,027 Cr, Mar-25: ₹1,004 Cr, Mar-26: ₹1,081 Cr)

Cash Flow Statement (H1 FY27)

  • Operating profit before working capital changes: ₹229 Cr (H1 FY26: ₹142 Cr)
  • Changes in working capital: -₹263 Cr (H1 FY26: -₹131 Cr)
  • Taxes paid: -₹7 Cr (H1 FY26: -₹2 Cr)
  • Net cash from operating activities: -₹41 Cr (H1 FY26: ₹9 Cr)
  • Purchase of fixed assets (net): -₹229 Cr (H1 FY26: -₹104 Cr)
  • Investments and interest received (net): ₹58 Cr (H1 FY26: -₹11 Cr)
  • Borrowings (net): ₹224 Cr (H1 FY26: ₹155 Cr)
  • Proceeds from share warrants: ₹25 Cr (H1 FY26: ₹0 Cr)
  • Finance cost paid: -₹61 Cr (H1 FY26: -₹60 Cr)
  • Dividend paid: -₹10 Cr (H1 FY26: -₹10 Cr)
  • Net change in cash and cash equivalents: -₹34 Cr (H1 FY26: -₹21 Cr)

Key Ratios

  • ROE: 13.7% (FY24: 4.4%, FY25: 3.2%, FY26: 7.9%)
  • ROCE: 12.8% (FY24: 7.0%, FY25: 6.9%, FY26: 10.4%)
  • Net debt/EBITDA: 3.25x (FY24: 4.50x, FY25: 3.86x, FY26: 3.29x)
  • Net debt/equity: 1.15x (FY24: 1.04x, FY25: 1.00x, FY26: 1.00x)
  • Inventory days: 105 days (FY24: 139, FY25: 132, FY26: 109)
  • Receivable days: 77 days (FY24: 56, FY25: 63, FY26: 67)
  • Payable days: 111 days (FY24: 77, FY25: 109, FY26: 122)
  • Cash conversion cycle: 71 days (FY24: 118, FY25: 86, FY26: 54)

Debt Profile & Credit Rating

  • Long-term borrowings: ₹884 Cr (Mar-26: ₹719 Cr)
  • Short-term borrowings: ₹615 Cr (Mar-26: ₹557 Cr)
  • Gross debt: ₹1,500 Cr (Mar-26: ₹1,276 Cr)
  • Average cost of debt: 6.21% (Mar-26: 6.57%)
  • Credit rating upgraded by India Ratings to IND A / IND A2+ in October 2026 from IND A- / IND A2+, covering bank facilities of ₹2,770 Cr

Term Loan Repayment Schedule (₹ Cr)

  • H2 FY27: ₹42 Cr
  • FY28: ₹148 Cr
  • FY29: ₹216 Cr
  • FY30: ₹220 Cr
  • FY31: ₹229 Cr
  • FY32: ₹207 Cr

Growth Strategy & Capex

Commissioned in Q2 FY27

  • Solar power plant, 18 MW: ₹105 Cr capex, expected annual generation of 4.50 Cr units, annual savings of ₹22 Cr

Ongoing Projects

  • Hybrid power – 5 MW (2.22 Cr units): ₹4.76 Cr equity, expected completion Q3 FY27, annual EBITDA benefit ₹5.86 Cr
  • Hybrid power – 20 MW (9.29 Cr units): ₹24.00 Cr equity, expected completion Q1 FY28, annual EBITDA benefit ₹26.00 Cr
  • Cotton yarn (Capacity Addition + Cost Saving Measures): ₹620.00 Cr project cost, expected completion Q2 FY28, annual EBITDA benefit ₹130.00 Cr
  • PV yarn (Capacity Addition + Cost Saving Measures): ₹207.00 Cr project cost, expected completion Q4 FY28, annual EBITDA benefit ₹50.00 Cr

Company Capacity Overview (as of 30 September 2026)

  • Spinning (ring): 3,06,864 spindles, 85,140 MT p.a. capacity
  • Spinning (open-end): 4,584 rotors, 21,600 MT p.a. capacity
  • Knitting: 32 knitting machines, 5,400 MT p.a. capacity
  • Denim fabric: 298 looms, 5 indigo lines, 1 rope dyeing line, 60 million metres p.a. capacity
  • PV fabric: 304 looms, 7 stenters, 76 million metres p.a. capacity
  • Seamless garments: 108 seamless knitting machines, 9.57 million pieces p.a. capacity
  • Recycled polyester fibre: 16,020 MT p.a. capacity

Management & Board

Leadership team includes Dr. S. N. Modani (Vice Chairman & Managing Director), Mr. V. K. Sodani (Executive Director & CEO - Fabrics and Garments business), Mr. Pranal Modani (CEO - Yarn & Denim Business), and CA S. R. Dakhera (Chief Financial Officer). Independent directors include Mr. Dinesh Chander Patwari, Mrs. Irina Garg, Mr. Upendra Prasad Singh, and Mr. Rajan Jagetia.

Shareholding Pattern (as on 30 Sep 2026, fully diluted)

  • Promoters: 71.54%
  • DIIs: 9.83%
  • FIIs: 2.37%
  • Public and others: 16.26%

Note: Pattern assumes conversion of 18,00,000 warrants allotted to Promoters/Promoter Group on 11th September 2026.

Sustainability Initiatives

  • Renewable energy capacity: Currently 54 MW (Solar 37 MW, Hybrid 12 MW, Wind 5 MW) generating ~39% green share (~14.26 Cr units p.a.)
  • Target: 82 MW by Q1 FY28 (Solar 40 MW, Hybrid 37 MW, Wind 5 MW) targeting ~70% green share (~25.76 Cr units p.a.)
  • Water management: Zero Liquid Discharge across operations with 3,200-3,400 KL of wastewater treated and recycled daily
  • Recycled fibre: 16,020 MT p.a. produced from ~20,000 MT of post-consumer plastic waste