Sanathan Textiles Ltd (NSE: SANATHAN) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Jude Patrick Dsouza — Company Secretary and Compliance Officer
Paresh V. Dattani — Chairman and Managing Director
Sameer D. Duttani — Executive Director
Sanjay Anirudh Shah — Chief Financial Officer
Analysts:
Harsh Mittal — Analyst
Aman Agrawal — Analyst
Aradhana Jain — Analyst
Aashish Upganlawar — Analyst
Dheeraj Thakur — Analyst
Unidentified Participant
Saransh Gupta — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Sanathan Textile Q4 and FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference utem. Sajud d’, Souza, Company Secretary and Compliance Officer.
Thank you. And over to you, sir.
Jude Patrick Dsouza — Company Secretary and Compliance Officer
Good evening, ladies and gentlemen. It is my privilege to welcome you all to the earnings conference call of Sanatan Textiles Ltd. For the fourth quarter and financial year ended March 31, 2026. Before we begin, I would like to remind everyone that certain statements made during this call including comments on outlook, expectations, future plans and business strategy may be forward looking in nature. These statements are based on management’s current assumptions and assessments and are subject to various risks and uncertainties.
Actual results may therefore differ materially from those expressed or implied during the discussion. Joining us today are Mr. Paresh Dattani, the chairman and managing director and Mr. Sameer Duttani, the executive director and Mr. Sanjay Shah, the Chief Financial Officer. The call is being recorded and a transcript of the discussion will be made available on our website. I would now like to invite Mr. Paresh Dattani, the Chairman and Managing Director to share his opening remarks.
Paresh V. Dattani — Chairman and Managing Director
Thank you, Jude and a very good evening to everyone joining us today. FY26 proved to be a defining year for both Sanatan Textiles and the broader textile industry. The year was shaped by a confluence of structural shifts across global trade, changing tariff dynamics, geopolitical disruptions in West Asia, evolving supply chain realignments and important developments on the trade policy front including the India UK and India EU trade agreements. Against this volatile and evolving backdrop, Sanatan Textiles delivered a resilient operational and financial performance supported by disciplined execution, strengthened customer engagement and continued operational optimization across our manufacturing sites.
One of the most important milestones during FY26 was the successful commissioning and ramp up of phase one at our Punjab Manufacturing Facility. The facility witnessed progressive improvement in operational performance during the year enabling a meaningful scale up in consolidated revenues and operational profitability during the year during the Q4FY26. Encouragingly, the Punjab facility has received a positive response from customers across the North India textile market resulting in the addition of several customers who have appreciated the quality, consistency, delivery timelines and technical specifications of the yarns manufactured at the facility.
The successful ramp up validates not only the vision behind the project but also the execution discipline demonstrated by our teams during one of the most significant expansion phases in the company’s journey. At the same time, our Silvasa operations continued to maintain stable output and healthy utilization levels throughout the year despite periods of market volatility and regulatory transitions within the industry. The ability of the company to maintain operational stability across facilities during a period of industry disruption reflects the strength of our integrated business model and diversified yarn portfolios.
For an industry perspective, business sentiments improved progressively during the second half of FY26, particularly across export oriented segments such as garments and home textiles. Supported by easing tariff related uncertainties and improvement in global sourcing activity. The proposed India UK and India EU trade agreements are also expected to create long term opportunities for the Indian textile manufacturers across conventional and value added textile categories. However, the global geopolitical environment continues to remain fluid and the full impact on demand, logistics, energy prices and supply chains remains difficult to assess.
Accordingly, we continue to operate with strategic caution, disciplined execution and prudent capital allocation while remaining focused on our long term growth opportunities. The industry also continued to witness increasing focus towards technical textiles and specialized yarn applications, an area where Sanatan Textiles has been consistently strengthening its presence. As communicated earlier, we are progressing with the doubling of our technical yarn capacity at Silvasa from 9,000 metric tons per annum to 18,000 metric annum which we believe will further strengthen our position in higher value textile applications.
As we move into FY27, our focus will remain on improving operational efficiencies, strengthening fixed cost absorption, improving product mix, enhancing customer engagement and driving long term sustainable growth across our integrated yarn platform. With improving industry sentiment, expanding manufacturing capacities, diversified operations across three yarn segments and a growing customer base, we believe the company remains well positioned to participate meaningfully in the long term growth opportunity within the Indian textile industry.
I will now hand over to Sameer to walk you through our operational performance. Thank you.
Sameer D. Duttani — Executive Director
Thank you Chairman and good evening everyone. I will briefly take you through the operational performance and the progress across our manufacturing facilities. FY26 was an important year for Sanatan Textiles. From an operational perspective, the company moved through a significant phase of capacity expansion, customer onboarding and manufacturing ramp up, particularly at our Punjab facility. At Silvassa, operations remained stable through the year with sustained capacity utilization. The facility continued to act as the operational anchor for the company supported by product flexibility, execution discipline and a diversified yarn portfolio.
At Sylvasa, operations remained stable throughout the year with sustained capacity utilization. The facility continued to serve as the operational anchor for the company supported by product flexibility. During FY26, the facility achieved production volumes of 2.21 lakh metric tons per annum and a sales volume of 2.28 lakh metric tonnes per annum. At Punjab, we progressively scaled production, improved operating stability and onboarded several new customers. The facility has strengthened our manufacturing footprint and positioned us meaningfully in the growing North India textile market.
The incremental volumes from Punjab have been primarily absorbed in North India Textile market which was the strategic intent behind this new facility. The Punjab facility has strengthened our relationship with customers across key textile clusters in North India, improving responsiveness, logistics efficiency and the market access as our product mix diversifies. We believe the facility provides us with a scalable platform to deepen customer relationships and expand our presence across both conventional and value added yarn categories.
The improvement in Q4 performance was supported by a combination of better capacity utilization, improved operating efficiency, the ramp up of the production at Punjab and sustained utilization at Silvasa and an improvement in spreads across all businesses. As the Punjab facility stabilizes further and the product portfolio diversifies, we expect improved fixed cost absorption and operating efficiencies in the coming months. At a consolidated level, our focus remains on moving towards a sustained improvement in the EBITDA for FY27.
Turning to demand, we remain confident in the long term structural drivers supporting domestic yarn consumption. The ongoing consumer shift towards versatile man made fibers continues to provide a solid foundation for the sustained demand expansion we’re seeing. On the global front, we are encouraged by several positive developments including progress on the free trade agreements and the broader realignment of global supply chains. We believe these trends will further strengthen India’s competitive position and reinforce our country’s emergence as a leading hub for textile manufacturing on the world stage.
On raw materials, especially the crude link inputs for polyester filament yarn volatility remains a key monitorable. Our ability to pass on raw metal cost movement depends on product category, demand environment, inventory position and competitive intensity. Short term volatility can impact margins. However, over a reasonable period, the industry usually adjusts prices in line with raw material movement and we’re seeing the same. We continue to manage this through disciplined procurement, inventory control, customer engagement and the right product mix optimization.
On polyester spreads, we remain cautiously constructive while we continue to monitor crude movement and global geopolitical developments. Moving to cotton yarns, we have witnessed a significant uptick in yarn prices during the quarter driven by a sharp rise in spot raw cotton prices alongside disruption to manufacturing capacities. Encouragingly, demand has held up well despite this price escalation which speaks to the underlying demand of the product. Looking ahead, raw cotton prices and availability in the upcoming season will be a key area to watch for, particularly given the ongoing global disruption and emerging climate related risks on our part.
We continue to navigate this environment prudently through calibrated procurement and disciplined inventory management and we remain well positioned to manage any near term volatility. Overall, the operational priority for FY27 is clear. Stabilize Punjab operations, improve efficiencies, deepen customer relationships, double our yarn for technical textile and ensure that the expanded manufacturing base contributes meaningfully to a sustainable growth. I will now hand over to Mr. Sanjay Shah to take you through the financial performance.
Sanjay Anirudh Shah — Chief Financial Officer
Thank you Sameer and good evening everyone. I will briefly take you through the financial performance for the quarter and financial year ended March 31, 2026. On a standalone basis, revenue from operations for Q4FY26 stood at 752.8 crores compared to 731.2 crores in Q4FY25, reflecting a growth of 3% year on year. Standalone EBITDA for the quarter stood at 82.5 crores compared to 70.6 crores in the corresponding previous period representing a growth of 16.9% year on year. EBITDA margins improved to 11% during the quarter compared to 9.7% in Q4FY25 and 7% in Q3FY26.
The improvement in margins during the quarter were supported by improved efficiency, better operating leverage, ramp up of production and sustained utilization at the Silbasa facility. Standalone profit After Tax for Q4FY26 stood at 56 crore compared to 49.9 crores in Q4FY25 representing a growth of 12.3% year on year. For the financial year ended March 31, 2026, standalone revenue from operations stood at 3,037.9 crores compared to 2,996.8 crores in FY25. Standalone EBITDA for FY26 stood at 277.1 crores with EBITDA margins improving to 9.1% compared to 8.9% in the previous financial year.
Standalone profit after tax increased 10% year on year to 191.9 crore. The sustained improvement in standalone performance reflects optimal utilization and operational resilience at our Silvassa facility amidst periods of volatility across the textile value chain during FY26. On a consolidated basis, revenue from operations for Q4FY26 stood at 1169.2 crores compared to 732.2 crores in Q4FY25 reflecting a strong growth of 59.7% year on year and 8.4% sequentially. Consolidated EBITDA for the quarter stood at 94.4 crore compared to 68.4 crores in Q4FY25 and 57.2 crores in Q3FY26 representing a growth of 38.1% year on year and 65% for quarter.
On quarter. Consolidated EBITDA Margins improved to 8.1% during Q4FY26 compared to 5.3% in Q3FY26 reflecting progressive operational stabilization at the Punjab Facility. Consolidated profit after tax for Q4FY26 stood at 21.6 crore. For FY26, consolidated revenues from operations stood at 3,811 crore compared to 2,996.6 crores in FY25 reflecting a growth of 27.1%. Consolidated EBITDA for FY26 stood at 284.4 crores compared to 263.5 crores in FY25. Consolidated PAD for FY26 stood at 77.3 crores. While the Company delivered strong operational progress during the year, consolidated profitability continued to reflect the impact of higher depreciation finance cost post the capitalization of the Punjab Facility.
As highlighted earlier, FY26 represents a transition year for the Punjab Facility from commissioning towards operational ramp up. Consequentially, the financial performance during the year reflected the impact of higher depreciation finance cost and the capitalization associated with the largest expansion phases undertaken by the company. The ramp up and sustained utilization of our Punjab Facility is expected to drive meaningful operating leverages going forward. We anticipate this will translate into stronger operating margins, better absorption of depreciation and interest cost and healthier free cash flow generation over the coming quarters.
The Company continues to maintain a disciplined approach towards capital allocation, balance sheet management, working capital discipline and operational efficiency. With the expected moderation in macroeconomic volatility, improving demand visibility, stabilization of Punjab operations, expansion in technical textile and and a diversified integrated manufacturing platform. We believe FY27 should progressively reflect the enhanced potential of our expanded manufacturing base. Thank you. We are now open for question and answers.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone if you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harsh Mittal from MK Global Financial Services. Please go ahead.
Harsh Mittal
Yes, thank you for the opportunity. Good evening to the team. I have multiple questions. The first question is that the gross margins particularly at the Sanatan Polycourt business has not shown the similar buoyancy witnessed in Sanatana Textiles. So any reasons for the same, sir?
Paresh V. Dattani
Yeah, the reason. The reason for the same is that as we mentioned earlier by Sameer, we have operated the Silvasa facility, the textile facility at full capacity in spite of the atmosphere that was around with the war and everything else. And there we were, we just ramped up to end of first phase by the end of March. So that Was the reason because we had. We ramped up as we mentioned last time. Yes. We were quarter late in ramping up. So what? We are expected to ramp up in December. We finished ramping up in March of this year.
Harsh Mittal
Okay, second question. Yes, sir. How is the current demand scenario and the spreads, how has the spreads behaved particularly the past two months since the outbreak of the war?
Paresh V. Dattani
See, before the outbreak of the war the spreads were good spreads we had. And once the war broke out and the crude started climbing up and the raw material started spiraling up, as we mentioned, normally the industry passes on the movement of raw materials. But because whenever there is a high volatility it becomes a little difficult to pass on immediately which stabilizes over a period of time. That is exactly what happened. And we have passed on now in the process of passing on the entire height on raw materials.
Harsh Mittal
Sure. And for the demand scenario, how it is faring currently The last quarter after the war?
Paresh V. Dattani
Yes, downstream people also because of the volatility in the crude prices and the raw material prices were a little disturbed. But they are back to base and we see very robust demand coming in now also.
Harsh Mittal
Yeah. So also one more thing since Swami mentioned the rising cotton prices. So is it safe to say that now that yarn blending will increase or is there any precedence of such phenomena happening earlier? When cotton prices move up, the synthetic or the polyester yarn gets more and more blending happens any color on that. Sir,
Paresh V. Dattani
Normally what you are talking about is pun, polyester yarns, where they make polyester cotton yarns. But I mean there is not much of movement on transition from polyester to polyester cotton or polyester, polyester cotton to polyester. I don’t see much of a change happening there.
Harsh Mittal
Okay. Okay. Any revenue margin guidance for this coming year for the FY27 if you want to share.
Sanjay Anirudh Shah
Yeah. We are looking at Silvasa. We cropped 3000 crores normally as we did in this FY27 with the commencement of the Yan for Technical Textiles which we will commission by the end of the first quarter. Expect and aim that we should do about 3100 crores at Silvasa for FI. With the already ramp up of the first phase done at Punjab and realignment of product and manufacturing excellence over there over this quarter. From the next quarter onwards everything will be up and running. Like the Silvasa facility. We expect to do about 2,600 at Punjab. So a console revenue of about 5,600 to 5,700 crores
Harsh Mittal
With an EBITDA margin. Can we expect early double digit kind of a margins by 27?
Sanjay Anirudh Shah
I would look at it differently Ash. I would say that we did console EBITDA of about 280 crores. FY26. We are looking at north of 500 crores for the FY27 EBITDA margins.
Harsh Mittal
Sure. The last question, what was the net debt as on March 26 exit
Sanjay Anirudh Shah
It was close to 13. 25 crore.
Harsh Mittal
Sure sir. Thank you. These were my questions. I’ll fall back in the queue. Thank you.
Operator
Thank you. Next question is from the line of Aman Agrawal from Carnelian. Please go ahead.
Aman Agrawal
Thank you for the opportunity. And first of all congrats on setting up such a large facility and ramping it up. My question was like from the Punjab facility like is the quality of yarn and product mix similar to what we do in Salvasa? And can you talk about value add? Like the value add mix in Punjab is also similar to like are we still in that process? Basically
Paresh V. Dattani
See the products that we make at Punjab facility are tuned in with the requirements of the north Indian market. What we now make at Silvasa is more tuned towards the west than the export markets. So they are slightly different because of the requisite of the industry there. Value added items is concerned here. As we said we are more than 40%. We have achieved more than 40% value addition at Silbasa. There as I mentioned earlier also we have started that journey. Of course it’s a journey. We start with about 10%. But we eventually do intend to scale that up to at the Punjab facility we have the necessity the requisite equipment lined up there to help us do that.
Aman Agrawal
So like my question was basically in the sales price. Right. If I break down your sales price per kg in standalone unit and the subsidiary which is the Punjab facility, the sales price in the Punjab facility is around 1820 rupees discount to the standalone facility. Right. So can you explain why that is the case? Like is it just because of product mix or like are we offering some discounts to even push the volumes in north market?
Paresh V. Dattani
When you’re looking at the standalone pricing you are forgetting that it also includes the cotton yarn pricing and the pricing of the yarns for technical textiles. If you look at just the filament yarn prices, the difference is not exactly what you are saying. Having said that, yes, there will be a small difference because as I mentioned of the product difference, it’s more coarser yarns that get produced and consumed in the north compared from the west. So that difference. But it’s not as large as you’re pointing out because this includes the cotton yarns well as yarns for technical textiles.
Aman Agrawal
Okay, understood. So that clarifies. So like are we offering discounts in Punjab currently like to ramp up the facility and like how do you see the trajectory of discounts? Like since even if I look at like gross margins, our gross margins are also lower. Right. Like in the subsidiary. So like do we expect that to improve? If you can guide on that part, like will it be in Q1 or like more towards second half of next year?
Paresh V. Dattani
See our products are world class over there. We are not in a position and we don’t intend to offer any discounts over there over our Silvasa facility or any other peer facility. Having said that, we always had a plan in place that we are taking the entire arbitrage of freight into our account at the Punjab facility. But once we take the arbitrage of the freight into consideration we do leave a small portion on the table there for the customer. That’s the strategy that we had formed when we set up the unit and we are continuing with that strategy.
Aman Agrawal
Got it sir. And Lexa, in terms of gross margins do you expect it to be similar to the standard unit going forward? Like do we expect an improvement in gross margins there?
Paresh V. Dattani
Yeah. See once we ramp up fully, I mean we are ramped up fully but once we settle the supply chain and the product lineup, everything you will from the second quarter FY27, you will see the substantial change in that. Also we are changing our product mix, adding more value added products and also adding eliminating certain products which we had started with at. When you commission the plant you start with certain products which do not in our fit into our scheme of things, we are eliminating those products and getting into better products. So this alignment will take us through this quarter. That’s why the entire operational full operation of first phase plus the lineup of all the products will be definitely visible From Phase from FY27 Quarter 2. And you will see the results of that.
Aman Agrawal
Thank you, sir. So like now on the CapEx, basically, like now that the first phase is completely utilized, like how are we thinking about phase two? Like when do we want to set it up? And like when can one expect revenue coming from phase two? Basically,
Paresh V. Dattani
Yeah, you’re very right. Now that we are done with phase one, we have now put all our energy and all our focus on the phase two expansion. We are working with the people, the entire project team as well as the operational team on that basis. And very soon we’ll be able to tell you as an announcement regarding the equipment supply according what we require and we aim to complete what we had predicted earlier in 2070. FY27. End of FY27.
Aman Agrawal
Got it. So and so like my final question, like, apart from yarn business, which are which we are currently in, like given a three to five year trajectory of the company, like would we like to forward integrate maybe into fabrics or garments? Like is that in our thinking? Or like after the phase two is done, right, when it gets completely utilized in FY28, how to think about growth for next three to five years, right, like will we set up another large facility of polyester yarn or will we try to forward integrate basically?
Paresh V. Dattani
I mean we have a lot of things on the drawing board at this moment and we are working on that. Yes, IOP can only tell you this at this moment that yes, there are a few things that we are working on very strongly. We are going to have, we have internal, very concrete plans to go ahead with the progress of the company, but it will take us some time to really come down to you all and tell you exactly what we intend to do and how we intend to do it.
Aman Agrawal
Thank you. Thank you for answering my questions and good luck.
Paresh V. Dattani
As such, after the phase two, if you realize, we still have the cotton expansion that is coming up in MP where we should be on the ground post the monsoons. The MP IDC is also working on the land bid there to give us a proper level land which I think they should give us in the last quarter of this calendar year and post that we get onto ground. So these are the two things that we have totally on our mind at this moment. But As I said, yes, there are certain things that we are planning, we are going to execute, but we will come back to you later on.
Aman Agrawal
So my point was that basically if you see this polyester facility which we have set up, right. It gave us a very good growth on the existing facility which we had. The cotton facility and the technical textile facility will obviously help us in growth. But I was trying to understand what would be the next leg of major growth for us. Right. So my question was basically from that point of view.
Paresh V. Dattani
Yeah, I understand. But as I said, yes, I understand your question and we do have this internal question also. Where is the next phase of growth coming for the company? And we are working on that. We have a few plans. Yes, that’s all I can say at this moment. But we will come back to you on those plans shortly.
Aman Agrawal
Okay, perfect. Thank you, sir. Thank you for answering my questions.
Operator
Thank you. Next question is from the line of aradma Jain from 361 Capital. Please go ahead.
Aradhana Jain
Hi. Thank you for the opportunity and congratulations on the good set of numbers. My first question is on the sales realization. If you could throw some light as to how have we seen the sales realization for this year category wise, like for polyester, cotton and technical textile, would it be similar to last year or has it increased because of whatever we are seeing from the West Asia wall front? That’s my first question.
Paresh V. Dattani
It’s somewhat similar, but a marginally higher realization, particularly on the cotton front because from the fourth quarter onwards the prices have moved up. So there is a slight increase, but nothing substantial over there.
Aradhana Jain
Understood. Second, if you could give us some sense on the margin side as well, like for again, can I expect that for polyester, cotton and the technical textile yarn from the margins would again be very similar compared to last year or would it have increased for cotton specifically and for polyester also the EBITDA margin side, if I have to say,
Paresh V. Dattani
Cotton margins have gone up a little bit. Yes, you’re right. Particularly in the last quarter of the year. And polyester was going on the similar route except for this bit about the geopolitical tensions which had it a little in a turmoil. But going forward, yes, we see both, all three verticals having better margins coming in FY27.
Aradhana Jain
Understood. Second, I wanted to understand on the working capital side, I can see that inventory has also gone up meaningfully and your payable days has also improved quite a bit from say 59 days in FY25 to around 104 days. Just wanted to understand, is it like a one off or can we expect the negative working capital cycle to continue from here on? And what was the reason for both inventory days and table days to go up so significantly?
Paresh V. Dattani
See one thing I will tell you that as I mentioned earlier that this is a business. We cannot look at a month on month basis or a quarter quarter. We need to look at at least 2 to 3 quarters consecutively. Having said that, when the inventory does pile up there are various reasons for it. Sometimes it’s the industry reason, sometimes it’s our sales reason. Sometimes when we expecting move prices to move up, we do hold pullback sales. So there are various reasons for that. And that eventually gets nullified in the following quarters. About your other part of the question, Sanjay bhai will answer the same to you.
Sanjay Anirudh Shah
Yeah. As far as the increase in inventory of country creditors are concerned, if you compare with the last year’s financial during the current year the Punjab facility has come up. And as the ramp up of Punjab facility increase the material requirements FG inventory requirements requirements also increase. In addition there was raw material in transit of close to 180 crores. On account of which the inventory numbers as well as the sundry greatest number looks higher. Coming onto the stock levels at Punjab. Frankly speaking, the stock levels are on the lower side as compared to the Silvasa facility on account of proximity to the supplier.
Aradhana Jain
Okay. So can we expect that the kind of table days that we are currently seeing we’ll be able to sustain that and inventory days also might go even higher from these levels. Is that what you’re saying?
Sanjay Anirudh Shah
No. Fact of the matter is you must be comparing that with cogs. Now cogs is only partial in case of Punjab facility. Whereas the inventory level could be close at the optimum level since we had ramped up the raw material requirements based on the optimum level. So once you see a full quarter revenues or a full year revenues, the base of C will go up and the number of days payable days as well as inventory will go down.
Aradhana Jain
Understood? Understood. Lastly, I wanted to understand on gross debt we are close to around 1500 crores of gross debt. Can we say that this is the peak debt levels for us and from here onwards we’ll be able to reduce these debts going forward or do we expect.
Sanjay Anirudh Shah
Sure. This is peak and we are expecting a payout of close to 100 to 125 crores every year. And we don’t plan to take any big debt in the near future.
Aradhana Jain
Understood. Lastly, in the Punjab facility what would be the current mix of our new versus existing customers? There
Paresh V. Dattani
See, we have our existing customers which were linked to us through our Kalvasa facility who are already with us and we have added many new customers there because now, as I said earlier, they also seen the advantage in terms of delivery timeline, in terms of some pricing advantage to them in terms of product quality. So they are new and new customers every day are aligning and lining up and we are adding new customer base every day. So we are well said there that the entire phase one and phase two, we don’t see a challenge on placement of material there.
Aradhana Jain
Understood. And anything on the export side, I mean Exports is up 5% for us right now. But any plans of, you know, significantly increasing that number over the next two to three years or we are going to continue focusing on the domestic market.
Paresh V. Dattani
See this 5% exports, what you’re talking about is on the Silvasa volume, you. Yes. On the Silvassa volume, the export numbers will definitely be up. On the console volume will be more or less at the same level because the exports will be more from the west rather than the north.
Aradhana Jain
Sure. If I could just squeeze in one last question on the capacity utilization level at a blended level. If I were to see this year, we would have closed the polyester. If I just see the polyester category, that would be at around 60, 62%. And please correct me if I’m wrong. And going forward for the next year, can we expect that 60, 62% of capacity utilization at a blended level to reach closer to 80, 90%. And how are we looking?
Paresh V. Dattani
I would like to have one clarity. When you come to your number of 60, 62, you are taking the 100% cap capacity of the Punjab facility and then saying this number.
Aradhana Jain
Yes.
Paresh V. Dattani
Ah, that’s right. Because we have ramped up only in the end of March to full capacity.
Aradhana Jain
Yeah, yeah. So
Paresh V. Dattani
Capacity. Yes. But if you, if that’s the way you’re looking at it, then this year definitely we’ll see a much higher number than what we talked about because we’ll be up and running fully and we aim to run flat out over there like we do at Asilwasa facility.
Aradhana Jain
Understood? Yeah. Thank you so much. That’s the
Paresh V. Dattani
Reason that we have said that we will do at least 2600 top line in Punjab.
Aradhana Jain
Understood. Thank you. Thank you so much for answering the questions and all the best.
Operator
Thank you. Ladies and gentlemen, before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star N1. We will take our next question from the line of ashish Ubganwar from InvestQ, please go ahead.
Aashish Upganlawar
Yeah, some questions have been actually answered in the call but I just wanted some clarity that. Do you see the interest cost overall coming down? Because probably the debt will start coming off now. So I’m just trying to read the PNDL for FY27. You said 500 crores of EBITDA. That is the target below that we have I think about 35 odd crores of quarterly interest that we are paying right now, which is like 150 odd crores that will go to and then depreciation is there. 120 odd crores will for the year. So is there any change that is expected? 27 on these numbers?
Sanjay Anirudh Shah
Yeah. As we repay the installments on the term loans our interest cost would go down quarter on quarter basis.
Aashish Upganlawar
Yes, that’s true but any quantification possible, roughly a trajectory of that because then we’ll towards the end of next year we’ll start the capex again on the next phase probably.
Sanjay Anirudh Shah
Yeah, but that CAPEX would be capitalized till the commissioning.
Aashish Upganlawar
Yeah, true, but the debt will be coming in phases when the Ktech starts again.
Sanjay Anirudh Shah
The consolidated.
Aashish Upganlawar
So roughly basically PBT will go to maybe around 230 to 40 crores next year max. Is that right way to understand things?
Paresh V. Dattani
See the right way to understand would be that we have the interest in depreciation. If you let that for Punjab and your PBD would be in the range of about 225, 230 crores or 250 crores. Yes,
Aashish Upganlawar
That’s, that’s okay. And so given the international scene right now, is it, I mean are we absolutely at no risk of anything hitting us in the performance of the business? Maybe the prices or availability of raw materials or demand side issues. You don’t think anything can be a moderation for the next year? Because
Paresh V. Dattani
We are seeing supply Chain
Aashish Upganlawar
Challenges being very, very difficult to tackle. Now
Paresh V. Dattani
I agree with you. Supply chain was a big challenge. We have seen a very rough time but we have been successful in sailing through it properly. We have planned our raw material arrangements in such a way that one facility we have a lot of dependence on imports and one facility we have practically nil dependence on exports. So that helps us balance that out. The other part is that our contracts internationally as well as locally are well in place to give us a consumer consistent supply. And I don’t see any challenge as far as our raw material is concerned.
Aashish Upganlawar
Okay. And nothing on the currency side that affects us. Just to understand the modalities as you Said import, export. That
Paresh V. Dattani
Really affects us because we have an ECB which is in euros. But we have been hedged for the entire loan tenure of that ecb. So we don’t need to worry there. And as far as our any other imports are concerned we have a policy in place to book as soon as we get the consignment in. And as far as the exports also we take view on that and then take the book the currency accordingly. So there is no major impact on us as far as currency fluctuation is concerned.
Aashish Upganlawar
Okay. And the cost of debt roughly on an average would be what nine and a half percent of it because I see it’s
Sanjay Anirudh Shah
Close to 7.25%.
Aashish Upganlawar
Okay. So because 1500 crores is the overall debt including working capital I think. And we have about what 35 crores quarterly outflow on interest. That comes to nine and a half I think. So does it have something else apart from this?
Sanjay Anirudh Shah
Yeah. So you need to also need to take into consideration the the LC for towards PTA and MEG on which interest has to be paid beyond 68 day. So we also need to take that trade payables into consideration. Then these payables are considered. The average interest rate would come down to 7.25.
Aashish Upganlawar
Finally sir, I think we had a trajectory of growth that was planned. First phase is over. So I think we were expecting some 7000 odd crores to be the target in the next two, three years to be the top line after phase two goes. So that is. That is where we stand today also
Sameer D. Duttani
As we move up the cycle. As we said we will be at about 5600, 700 for 27. In 28 we’ll have the full Punjab facility expected which will give us after phase two close to about 4000 crores of revenue. This will be at about 3200. And plus the cotton facility coming in which will give us about 400 and odd crores of top line. So all put together after all this is done. About 7,500. 7,700 will be the peak revenue.
Aashish Upganlawar
Almost half of FY28. Maybe mid of FY28 will hit this or FY29. Maybe it goes.
Paresh V. Dattani
I think by the end of FY28 we should be there.
Aashish Upganlawar
Okay sir. Thank you. And all the best.
Operator
Thank you. Next question is from the line of Dheeraj Thakur from Alara Capital. Please go ahead.
Dheeraj Thakur
Hello.
Paresh V. Dattani
Yeah, good evening
Dheeraj Thakur
Sir. Thank you for the opportunity. I just wanted to understand what are our plans for the land allotted in Dhar under PM MITRA scheme. Like what? How much capacity we are planning to expand for the cotton yarn.
Paresh V. Dattani
Yeah. See we have bought about 50 acres of land there which is paid for. And they will give us position post probably in the last quarter. Calendar year. This year. As far as the capacity that we are adding we are at this moment adding 72,000 spindles of Cotmian over there. But we have a lot more spare land there left for whatever we want to do there in the future.
Dheeraj Thakur
Got it. And what will be the amount of capex for this land?
Paresh V. Dattani
We have paid about 26 crores.
Dheeraj Thakur
Got it. Got it. And sir, one more question which is what is the impact of gas prices on the our current operations?
Paresh V. Dattani
The gas prices have. For one, we don’t use any gas at the Punjab facility there we are using agri waste. So that does not get affected as far as Silvasa is concerned. Yes, we use gas for heating there. Definitely the cost of gas has gone up by about 60%. 50 to 60% of the cost of gas. So that is affecting our cost of heating actually. But not at the Punjab facility.
Dheeraj Thakur
And what would be the percentage of. From percentage of raw material? Gas is a percentage of raw material at Silvasa.
Paresh V. Dattani
See it’s. It’s not a very big percentage as such. It’s just a part of the operational cost which is about 10% or little say about 6 to 7% of the operational cost there. About 30, 40, 50% has gone up in cash prices.
Dheeraj Thakur
Got it. And since our Silvasa facility has end up at the. At the year end. So what would be the current utilization for this new facility? Phase one.
Paresh V. Dattani
Which one current?
Dheeraj Thakur
The phase one facility. What would be the utilize capacity utilization rate for the phase one facility?
Paresh V. Dattani
In Punjabi you’re talking about?
Dheeraj Thakur
Yeah. Phase one for which year?
Paresh V. Dattani
For FY27.
Dheeraj Thakur
For the current year. For the current quarter.
Paresh V. Dattani
For the current quarter there we will be utilizing about maybe about 80, 85% or close to that.
Dheeraj Thakur
Got it. Got it. Thank you sir.
Paresh V. Dattani
We are still realigning products and realigning other systems in place.
Dheeraj Thakur
Got it. Got it. Thank you for the opportunity.
Operator
Thank you. Next question is from the line of Dheeraja from Pirate Capital pct. Please go ahead.
Unidentified Participant
Yeah. Good afternoon sir. Thanks for. So my question is pertaining to the Punjab facility. Because if I look at your FY27 guidance where you are talking about 5,600 crore revenue and maybe north of 500 cr kind of an EBITDA. But even if I look at transfer into the EBITDA margin it is something at just 9% or something. But you know maybe earlier we guided we want to achieve a double digit kind of a margins. And now when Punjab will be hitting 80, 85% utilization, maybe 100% utilization in the coming quarters. So definitely their margins will also increase level market. Right sir,
Paresh V. Dattani
That’s true. What you’re saying is true. We aim to do that double digit ebitda. There is no doubt on that. But we are confident at this moment to say looking at the current global situation we are a little conservative in stating what we aim to do. But we aim to definitely do a double digit EBITDA on a console basis.
Unidentified Participant
Okay. So maybe whatever PBT that we have guided or maybe the number that is coming around 230 to 250 crore. There is a possibility of inching up further if we achieve the double digit margin. And that is possible once you know, war related situation settles out. Right.
Paresh V. Dattani
That is one thing. The other thing you must keep in mind here is that we have. We always track our numbers by EBITDA per ton. So if the prices go up then your percentage will come down but your EBITDA per ton will not go down.
Unidentified Participant
Okay. Okay, got your point. On the power side also we are you know doing initiatives like entering into solar segment. So how this will, you know also help to reduce our cost of production.
Paresh V. Dattani
Yes, it will help our cost, reduce our cost of production. We have got into an arrangement for 32 megawatts of hybrid solar from Cellentica. They will be giving us that power over three phases starting from maybe July and then December Jan and then the corresponding July. So in the next one year or 15 months they will give us the entire thing there. This will help us reduce our substantial reduction in power cost there.
Unidentified Participant
So what kind of paybacks are we are expecting from this kind of an investment that we are doing in the solar space?
Paresh V. Dattani
Plf, you’re talking about
Unidentified Participant
Payback. Payback.
Paresh V. Dattani
Payback is about three years on this.
Unidentified Participant
Okay. So maybe we’ll. We’ll see some kind of a cost reduction on the power side also for this year also.
Paresh V. Dattani
Come again. I. I could hear you.
Unidentified Participant
So we will also see the reduction in the cost of power for the current year also starting let’s say for maybe August or September Q2 onwards.
Paresh V. Dattani
It will be very negligible this year. But mainly they to come, we’ll see the entire benefit next year.
Unidentified Participant
Okay. Okay. Thank you so much sir.
Operator
Thank you. Next question is from the line of Saran Gupta from Swan Investments. Please go ahead.
Saransh Gupta
Yeah, thank you for the opportunity, sir. Am I audible?
Paresh V. Dattani
Yeah, you are
Saransh Gupta
Congratulations on commissioning of the Punjab Phase 1 facility and a good set of quarter. So I just had few clarities that I wanted. So firstly I wanted to understand like by when will be commissioning our phase two in Punjab.
Paresh V. Dattani
I just answered that that we are already focusing on now that we are done with phase one. We are already onto that job and soon we’ll be making an announcement. Once we have placed our orders for all the equipments we will place an announcement as to to how. But having said that yes, we keep our aim that by FY28 then we should commission phase two.
Saransh Gupta
If you can just help me with the bifurcation of our standalone.
Paresh V. Dattani
Sorry, not 28.
Saransh Gupta
Yes. And just if you can help me with the bifurcation of our standalone numbers. Like how much was contributed by cotton yarn and how much was by a technical textile.
Paresh V. Dattani
I don’t have the exact numbers as far as bifurcation of numbers of verticals because we don’t track it individually. So I cannot give you that at this moment in time.
Saransh Gupta
If you can help me with the utilization that we were working at or probably at what utilization was it running at the A end
Paresh V. Dattani
As far as the polyester cotton or the yan. So technical textiles at Silvasa, we have all operated that through the year at about 95%.
Saransh Gupta
95% for all across the country.
Paresh V. Dattani
Yes. And this is the optimal level that we reached. So whatever we are doing at Silvasa is actually stressed on the assets.
Saransh Gupta
And what is the potential revenue that we can do? I guess I did a. From Punjab facility. I. I know that you did mention but I guess there was some connectivity issue at mine.
Paresh V. Dattani
No. Once we commission phase two we are looking at about north of 4000 crores at Punjab facility.
Saransh Gupta
Answer for the same for cotton yarn and technical textile that we are expanding.
Paresh V. Dattani
Yeah. The technical textile should give us about 150 crores. Close to that and cottonian will give us about 400 to 450 crores of revenue.
Saransh Gupta
This is an incremental from the new capacity that is coming up, right? Absolutely.
Paresh V. Dattani
Absolutely.
Saransh Gupta
All right. So sir, if we like this. I was just doing math. So if we add this up. You said that our technical excellent cotton yarn will be commissioned by Q1 end of FY27.
Paresh V. Dattani
Technical textiles will be commissioned by the end of Q1 this year. So from July onwards we will be getting into production for the second phase of technical takes. As. As far as your cotton is concerned. Yes. We will be setting on ground by the year end. So from there probably about 10 months, 11 months, 12 months. We should be into production.
Saransh Gupta
Okay. So from second half of FY28 we’ll be getting the revenue. That’s
Paresh V. Dattani
Right.
Saransh Gupta
That’s it. For all the best. All the best for your future endeavor. Thank you so much.
Operator
Thank you. Next question is from the line of Harsh Mittal from MK Global. Please go ahead.
Harsh Mittal
Yes, thank you for the follow up. So my first question is on the PTA capacity which were to come commission in the first half of this calendar year 2026. Which is approximately two and a half million tons. Can you give any color, is it commissioned or about the commission?
Paresh V. Dattani
Both have not been commissioned, Harsh. For the simple reason that Gale which was ready for commissioning had issues of their raw material because of this West Asia crisis. So they could not line up in contractual basis for their paraxylene. What? They have told me in fact just few days back that now they are in the process of lining up that. And they are saying that we will supply the material from July onwards. As far as Indian oil is concerned, they are talking about the year end startup.
Harsh Mittal
Even if let’s say Gale commissions in July. Do we see immediate benefit in terms of PTA prices from July itself Or it will take up. Let’s say that plant ramps up. It takes a quarter or two. And then probably we will get the benefit in H2 of FY27. Is that a fair assumption?
Paresh V. Dattani
Ramp up their production.
Harsh Mittal
Okay. Okay. And lastly, how do you see the waving off of the import duty on the pt? Do you in the current scenario, do you see that the current status, the status quo to remain the same or it getting reinstated to 5% very soon. Any color on the same term.
Paresh V. Dattani
We hope it remains the way it is now. But it’s anybody’s guess. I think only madam can answer that.
Harsh Mittal
Got it. Thank you. These are my questions. Thank you.
Operator
Thank you. We will take that as the last question for today. I would now like to hand the conference back to the management for closing comments.
Paresh V. Dattani
Yeah. Good evening. Once again and as we look ahead towards FY27 our confidence continues to be anchored around three important pillars. First, operational stabilization and disciplined execution. Here over the last quarters, last several quarters, we have successfully executed the largest expansion phase in the company’s history. While continuing to maintain stable operations across our existing business. Which is very very critical. Because we have seen a lot of times that when people go in for a very large expansion the current operations do stagger a little bit.
But our current operations were rock solid even during the phase of this commissioning of the Punjab facility. Secondly, improving industry and demand environment, recovery in export sentiment, improving customer inquiries, supportive trade agreements and increasing global sourcing diversification towards India create a constructive long term outlook for the textile industry and the third pillar a clear and scalable growth roadmap. With phase one of Punjab ramped up visibility on phase two expansion growth in technical textiles and our proposed cotton yarn expansion in Madhya Pradesh we believe we are well positioned to create long term sustainable value.
Importantly our focus continues to remain on operational excellence, prudent capital allocation, product diversification and building a resilient integrated and diversified yarn manufacturing facilities. I would like to sincerely thank all our employees across all locations for their commitment and dedication throughout this transformal and challenging year. I also extend my gratitude to our shareholders, customers, lenders and business partners for the continuous trust and support. Thank you all of you for your participation today.
Thank you.
Operator
Thank you on behalf of Sanatan Textiles. That concludes this conference. Thank you all for joining us today and you may now disconnect your lines.