China Dumping Impact on Pricing
Post-QCO removal, cheaper material flowed from China causing FDY prices to drop 10-12%; current prices remain down 6-7% despite partial recovery. DGTR anti-dumping investigation outcome uncertain.
SANATHAN / bear-case history
Track the concerns that keep returning.
Sanathan Textiles · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
Working Capital Pressure from Inverted Duty Structure
GST reduction from 12% to 5% increased inversion (previously 18% to 12%, now 18% to 5%), causing larger fund blockage. Government working on faster refunds but near-term working capital impact persists.
Punjab Facility Ramp-Up Execution Risk
Facility operating at 60-65% utilization with high depreciation and finance costs weighing on consolidated PAT. Full fixed cost absorption only when 700 MTPD Phase 1 capacity reached by Q4 FY26.
Export Demand Uncertainty
US tariffs impacted orders from export-oriented customers (indirect exports ~25% of business; US ~5-7%). While India-US tariff settlement expected to revive demand from Q1 FY27, EU trade agreement benefits will take additional months.