Sumeet Industries Ltd (NSE: SUMEETINDS) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Pratik Rajesh Jaju — Managing Director
Analysts:
Unidentified Participant
Suman Gupta — Analyst
Raj Shah — Analyst
Parth Acharya — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Sumit Industries Ltd. Q3 and 9 months FY26 results conference call hosted by Kirin Advisors Pvt Ltd. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Parth Acharya from Kirin Advisors Ltd. Thank you. And over to you sir.
Parth Acharya — Analyst
Thank you. Good morning everyone. On behalf of Kirin Advisors, I welcome you all to the conference call of Sumit Industries Limited. From the management team we have Mr. Pratik R Jaju, Managing Director, Mr. Rohan Muth, Executive Director. With that, now hand over the call to Mr. Pratik R Jaja Raju for the opening remarks. Over to you sir. Thank you.
Pratik Rajesh Jaju — Managing Director
Thank you. Good morning everyone and a very warm welcome to all the participants joining us today for the quarter three and nine months financial 26 earnings conference call of Sumit Industries Limited. I sincerely thank all our investors, analysts and stakeholders for taking the time to join us and for your continued trust and support. At Sumit Industries, we have built a strong legacy as an integrated polyester manufacturer. Since our incorporation 1988, we manufacture diversified range of polyester products including pad chips, partially oriented yarn, fully drawn yarn and poly texturized yarn. Catering to apparel, home textile and industrial applications.
Our manufacturing facility is in Sura, one of India’s largest synthetic textile hubs. Provides us a strategic advantage through proximity to customers, efficient logistics and faster delivery capabilities. One of our key strengths in our end to end integrated manufacturing setup. This integration allows us to maintain strong control over quality, cost structure and delivery timeline. Our flexible production configuration enables us to respond quickly to changing customer requirements and varying order sizes helping us build long standing relationships across segments. Our operations are supported by disciplined waste control, in house recycling initiatives and continuous process optimization. We stand then cost stability and margin resilience.
In 2024, Sumit Industries was taken over by the Eagle Group, a textile focused promoter group with more than four decades of industrial experience. Since the takeover, we have focused on strengthening operational discipline, improving planning efficiencies and aligning the company with a long term strategic growth vision. The Eagle Group sector expertise, execution capabilities and industry relationships are helping enhance growth, visibility and build a stronger, more sustainable business platform from Sumit Industries. Now coming to our financial performance, we delivered a steady and resilient performance during the quarter. Despite a dynamic operating environment for QE3FY26 we reported consolidated total income of 267.74 crore.
Our EBITDA stood at 16.66 crores with EBITDA margin at 6.22%. Profit after tax for the quarter stood at 9.04 crores and earnings per share was 0.18 0.18. We are proud to announce the profit from continuous operations has gone up by 205% as compared to the last year ending 2025. In 2025 year ending we had an exceptional profit of 170 cr which is not considered as a profit and raw from continuous operations and hence there is a good jump. The improvement in profitability reflects our continuous focus on operational efficiency, cost optimization and better capacity utilization. For the nine month period of FY26 we reported consolidated total income of 786.83 crore.
EBITDA stood at 46.09 crore with EBITDA margin at 5.86%. Profit after time stood at 26.88 crores and EPS stood stood at 0.51 0.51. Overall the performance demonstrates our ability to maintain operational stability, improve efficiencies and deliver consistent executions. Along with maintaining stable financial performance, we remain focused on strengthening our platform for long term growth. Our strategy is aligned towards calibrated capacity expansions, improved product mix and increasing the share of value added products. We are working in a phased and disciplined manner to enhance manufacturing capabilities while simultaneously upgrading machineries and automation to improve productivity and quality.
Consistency, cost optimization and sustainability remain important focus areas. We are taking steps to improve energy efficiencies and increase the share of renewable energy usage in our operations which will support long term cost competitiveness. We are also strengthening our presence in specific specialty and premium yarn segments to enhance realization and improve margin over time. We continue to deepen our customer relationships while exploring new market opportunities. Our integrated setup and flexible production allows us to serve customers efficiently across cycles, enhancing repeat business and stickiness. At the same time we are building capabilities to support export readiness and diversify revenue streams.
Our long term vision is to build a scalable, efficient and future ready pollista platform while maintaining financial discipline and strong governance standards. We remain confident about the growth potential of the business and our ability to create sustainable value for all the stakeholders. I would like to thank our employees for the dedication, our customers and partners for the continued association and our investors and lenders for the unwavering support. With this I now open the floor for questions and answer sessions thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants may press star and one to ask a question. The first question is from the line of Dhandaj D from an individual investor. Please go ahead. Sir. You may unmute your lines. Standard so. You may unmute your line please.
Unidentified Participant
Am I audible?
operator
Yes.
Unidentified Participant
Okay, so I have a couple of questions with me. I’ll just start with the first one. So I just wanted to know the divergence between the top line growth and the margin performance. So how do you see this margin profile as structurally sustainable? You can say going forward.
Pratik Rajesh Jaju
I’m sorry, I was not able to hear you. Can you repeat your question?
Unidentified Participant
I’m saying I just wanted to know the interpretation between the like diversion, divergent divergence between the top line growth and margin growth. So how do you see this margin profile as structurally sustainable going forward.
Pratik Rajesh Jaju
And the bottom line are very much sustainable. We are focused on the bottom line of our production, of our finances and we are focusing by diversification everything to maintain our top line and increase our bottom line.
Unidentified Participant
The current margin of sustainable or the performance we are seeing like the previous margin, what will be the sustainable margin?
Pratik Rajesh Jaju
The current margins are sustainable and we are keen to increase our current margins. Our net margin after tax is approximately 3.5% presently and we are targeting it to increase it to 5%.
Unidentified Participant
Okay. Okay. And also are we doing in like, do we have any internal benchmarks or you can say operating metrics to track this improvement? Like this. This should be durable across different industry cycles.
Pratik Rajesh Jaju
In the textile industry, this margins are very. These margins are up to the industry standards. And as we have just taken over this unit a year back, we are still upgrading and changing the dynamics so as to improve our top margin as well as the bottom margins. As well as the bottom margins. Okay. Also I want to note the demand trends we are seeing with the FDI and how the customer requirements are evolving in terms of specifications, quality or even value added features.
Unidentified Participant
Yes.
Pratik Rajesh Jaju
The demand is constantly increasing in the Indian market as well as the international market. Till now we were catering only to the Indian market. And now we are focused to diversify into foreign markets as well. And that is why we are focusing on our exports as well in the Indian market. Also due to the FBI and due to the trade deal between various countries, the exports of our finished products have increased a lot and which will help us to diversify into more value added products and a better margin products.
Unidentified Participant
Okay. Okay. And also I could see in the Last financial year FY25 the company has reported over 170 crore of exception item and the provider loss. So this has a significant impact on the reported profitability for the year. So I just wanted to know the nature of this exception item, whether it is cash.
Pratik Rajesh Jaju
As I just informed in the my. Opening speech, the 170 crore exceptional items. Is the amount when we took over the difference. All the liabilities of the previous owners were waived off. We took over at a certain amount from the. From the banks and the difference in the books when all the liabilities were waived off. So that is the profit of 170cr. It’s not operational profit. It is the liabilities are waived off when it was given to us. The previous liabilities. When you take over company from ncmt. All the previous liabilities are waived off and that turns into the profit.
Unidentified Participant
Okay. And also what is the current capacity utilization? Right now
Pratik Rajesh Jaju
current capacity utilization is over 95%.
Unidentified Participant
And this is a like maximum capacity we can expect in the future.
Pratik Rajesh Jaju
No, we are expanding. Yes. With the current. Infrastructure this is the maximum capacity. But we are on the. We are already expanding our capacities. So yes, we will be expanding our production as well as sales.
Unidentified Participant
So how like we are already at the like highest level of the utilization. So how can we increase our volume? Like let’s say we have 100 base and we are already utilizing 95%. So what is the maximum utilization and maximum capacity? We can increase it in the medium term.
Pratik Rajesh Jaju
As I told you we are expanding in. We are adding more capacities by adding more machineries. And after that we can expand our capacity by at least 30 to 40%.
Unidentified Participant
30 to 40%. Okay.
Pratik Rajesh Jaju
Yes.
Unidentified Participant
Okay. Got it. Thank you sir. That’s all.
Pratik Rajesh Jaju
Thank you.
operator
Thank you. A reminder to all participants to test RN1 to ask a question. The next question is from the line of Anushree Nair, an individual investor. Please go ahead.
Unidentified Participant
Thank you for this opportunity. So sir, could you please share management’s medium term plans for exports including the key market you are targeting, the product segment you intend to focus on and how exports fit into your overall growth and margin strategy.
Pratik Rajesh Jaju
Okay. There is a product that we make which is called Polysa Texturized yarn. And there is a good scope of export of that yarn in all of the Asian countries. As well as African countries. And we have targeted the Asian countries like Malaysia and militia Vietnam as well as African countries for the same product. Presently we have started exports, not direct export but we have started deem exports to these countries via agents from local India.
Unidentified Participant
Okay. So with ongoing discussions and developments around trade arrangement involving India, the US and the European Union. There is increasing focus on sourcing, diversification and man made fiber exports.
Pratik Rajesh Jaju
Yes, but we are a B2B company. So our direct exports to this country will be difficult. But yes, due to this trade deal our customers would have requirement of exports. And indirectly we would have good requirements and good opportunities.
Unidentified Participant
Okay. So how does management view the potential impact of trade dynamics on export opportunities for polysteryaan?
Pratik Rajesh Jaju
We expect the rise of at least 10 to 20% in the current exports due to these trade deals. Overall, the whole industry.
Unidentified Participant
Okay. So sir, like specifically which geography or product categories do you believe could see incremental demand and company taking to position itself to benefit from any favorable trade outcome while managing risks such as pricing pressure, compliance requirement and currency volatility?
Pratik Rajesh Jaju
As I told you, we are not with this trade deal. We won’t be affected directly exports but we would be affected indirectly. We will get opportunities directly as our customers who are making the finished fabrics in synthetic market. They would be having opportunities to export. And indirectly they would be taking quality raw materials from us to make those fabrics. Due to the trade deal with the EU as well as the trade deal with the us Many finished products which were getting exported from other Asian countries like China, Vietnam, Bangladesh, Philippines. Now India will also have the opportunity to export the same finished products to these countries.
Unidentified Participant
Okay, sir. Okay. Thank you. Thank you so much.
Pratik Rajesh Jaju
Thank you.
operator
Thank you. Ladies and gentlemen, you may press Star and one to ask a question. The next question is from the lion of Suman Gupta from Oakland Capital. Please go ahead.
Suman Gupta
Okay. Thank you for the opportunity. Sir, A renewable energy currently contributes a good portion of your power consumption. And sir, with your plans to increase this further through solar and wind, can you just help me understand the direct impact of renewable sourcing on power costs and margins? Like how is this advantage? How does this advantage evolve as energy prices fluctuate?
Pratik Rajesh Jaju
As per the government rules, we are allowed to install 50% of our current usage of power through renewable energy. That is what we are planning to do. We have already installed a 14 megawatt power plant, solar power plant and we are planning to install further more. It will help to reduce our power cost overall by at least 25%.
Suman Gupta
Okay. Okay.
Suman Gupta
And sir, beyond energy, where do you see the next leg of cost optimization coming from. So. So will it be from raw material sourcing, logistics, automation or waste reduction? And how material can these savings be over the medium term?
Pratik Rajesh Jaju
See, we have identified several factors to reduce our cost of production. First comes power which I’ve already informed you. Second, one of the major cost factor is the interest cost which we are already optimizing by adding our reserves and negotiating. Negotiating from our suppliers financial terms by including the credit limit they provide us. And the. Another. Another point to reduce the power cost. Sorry. Another point to reduce the cost of production is to increase the efficiency and upgrade the machinery flow. Get more production from the same setup. That is what we are planning to do the next quarter by upgrading our machines.
Suman Gupta
Okay. Okay. So one last couple of questions. So. So the company recently announced a fundraise which is an important development from a strategic and capital allocation perspective. So if you could just elaborate on the primary objectives of the fundra including how could you, how the proceeds are intended to be utilized across growth initiatives, capacity expansions, working capital or balance sheet strengthening.
Pratik Rajesh Jaju
Yes, we have recently announced a right issue of approximately 200 crores. I’m very sorry to say the intent of the same could not be disclosed right now as we have not filed in yellow yet. That yellow will be filed very soon and then the object clause of this amount will be disclosed. But it is a balanced object which will be used in running of analysis as well as expansion as well as everything else.
Suman Gupta
Okay.
Suman Gupta
And sir, if you could just also you know share the current status of the fundraiser and the expected timeline for completion.
Pratik Rajesh Jaju
Yes, we are expecting to complete this right issue as soon as possible. Maybe within the next three months.
Suman Gupta
Okay. Okay. Yeah. Thank you so much sir. I’ll join back in the queue.
Pratik Rajesh Jaju
Thank you.
operator
Thank you. Participants may press Star and one to ask the next question is from the line of Raj Shah from Star Insurance. Please go ahead.
Raj Shah
Yeah. Hi. Good morning. So my first question is could you explain the key factors that helped improve margins during this quarter? Which of those factors you believe can continue in the coming quarters? Like what would be your approach?
Pratik Rajesh Jaju
Yes, one key factor after we took over is that the first of the factor is that we were able to negotiate good deals from our suppliers. Secondly, we have changed quite a bit of product mix which enabled us to capture different segments of the market if we were not there. And this helped us improve our margins. Also another cost factor is as you told, power cost by implementing renewable power and which we have done and we are going to do in the next couple of quarters and coming to the how to how we expect to increase our margin in the future.
We are upgrading our machineries, we are doing expansions which will help us to cater more markets. And we are converting our product mix more to value added products.
Raj Shah
Okay. And sir, how are your customer demand trends shaping up currently and are you seeing any changes in order ordering behavior compared to last year?
Pratik Rajesh Jaju
The current demand is very good in the market and as I told you, we have introduced many new products in the last couple of quarters. Due to that, we are having a good demand from all the sectors and we are expecting a good demand also in the future.
Raj Shah
Okay. Okay. And what are the main like major focus areas for management over the next 12 months in terms of operations and growth?
Pratik Rajesh Jaju
Reduce our costs as much as possible, introduce new products, convert our existing and introduction of new value added products to improve our margins as well as reduce our power cost and other cost.
Raj Shah
Okay, great. And as the company moves towards more value added products, what changes are you making on the production and marketing side to support this shift.
Pratik Rajesh Jaju
On the production side? As we told you, we are modifying, upgrading and adding capacities to increase our value added products. As for the marketing, we have set up marketing as well as the research team who is constantly researching in the market for new products as well as the marketing. We are funding a marketing team to cater to all the markets.
Raj Shah
Okay. And how do you see like capacity utilization trending over the last few quarters?
operator
Capacity utilization was optimum in the last few quarters as well and it will be optimum in the coming few quarters as well. So in terms of utilization, we have always been above 95%.
Raj Shah
Okay. Okay, great. Sir. Thanks. That’s all from my side. Yes. Thank you sir. Have a great day.
Pratik Rajesh Jaju
Thank you.
operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all participants to press star and run if they want to ask a question. Participants may press star and one to ask a question. Should I close? Okay, ladies and gentlemen, we take that as the last question of the day. And now I would like to hand the conference over to Mr. Parth Acharya for closing comments. So you need to unmute your line. Sir, can you hear me? Sir, can you hear me? Am I audible?
Parth Acharya
But I. Yes, Mr. Park. Hello?
operator
Yes sir, I can hear you.
Parth Acharya
Hello.
operator
Yes sir, I can hear you now.
Parth Acharya
Yeah. Thank you everyone for joining the conference call of Sumit Industries limited. If you have any further queries, you can write us@researchadvisors.com Once again, thank you everyone for joining the conference.
Pratik Rajesh Jaju
Thank you, everyone.
operator
Thank you. On behalf of Kiran Advisors Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.