Yarn capacity utilization
95%
+5pp YoY
Yarn segment operating near full capacity, driving volume growth.
SANGAM
Other
15 May 2026
Sangam Ltd — Q4 FY26
Sangam delivered a strong Q4 FY26 with 880 cr revenue, 98 cr EBITDA, and 33 cr PAT, nearly matching full-year FY25 PAT.
✓ Verified against BSE filing
2-Min Summary
Sangam delivered a strong Q4 FY26 with 880 cr revenue, 98 cr EBITDA, and 33 cr PAT, nearly matching full-year FY25 PAT. The standout was PAT doubling to 83 cr for the full year, driven by high capacity utilization (yarn at 95%), operational efficiencies, and a sharp working capital improvement from 80 to 55 days. Management aspires to double PAT again in FY27, supported by renewable energy savings (targeting 70%+ power from renewables by mid-FY27, adding 50-60 cr annual EBITDA benefit) and backward integration (50% polyester fiber in-house). Key risk: volatility in crude oil and raw material prices from geopolitical tensions could pressure margins if cost pass-through lags.
Key Numbers
Working capital cycle
55 days
-25 days YoY
Improved from 80 days, reflecting better inventory and receivables management.
In-house polyester fiber
50%
+10pp YoY
Backward integration reduces raw material cost and improves quality control.
Garmenting capacity utilization
50%
+10pp YoY
Improved from lows; management expects further ramp-up to 70%.
Management Guidance
Double PAT in FY27
Management aspires to double PAT again in FY27, building on FY26's doubling, driven by operational efficiencies and energy cost savings.
growth70%+ renewable power by mid-FY27
Renewable energy share to increase from 15% to 70%+ within five quarters, with cumulative annual EBITDA benefit of 50-60 cr once fully commissioned.
marginsMaintain or improve margins in Q1 FY27
Management expects to maintain or better Q4 FY26 EBITDA margins in the June quarter, despite near-term uncertainties.
marginsCapex for capacity expansion under planning
New capex cycle being planned to address high utilization; benefits expected to flow from FY28 onwards. Focus on energy, backward integration, and incremental capacity.
capexKey Risks
Crude oil price volatility impacting margins
Rising crude prices increase raw material and freight costs; management notes dynamic situation and limited visibility on pass-through.
high · analyst_questionGeopolitical disruptions to export shipments
Delays in March shipments due to Iran-US tensions; 10-15% of yarn exports affected, though management deems impact immaterial.
medium · analyst_questionGarmenting segment utilization still low
At 50% utilization, garmenting remains underperforming; scaling to 70%+ is key to margin expansion but faces execution risk.
medium · data_observationPLI benefits uncertain
Management does not factor in PLI incentives; eligibility and timing of benefits remain unclear, limiting potential upside.
low · analyst_questionNotable Quotes
We've crossed 3200 cr in revenue. We more than doubled our PAT to 83 crores. Our domestic business remains strong and our exports hit an all-time high.
The investment cycle that we undertook to build capacity is now largely behind us and those assets are running at very high utilizations across all our segments.
We are not really factoring in any benefits that may flow from that front. If anything comes in, it is great but our business model is based without PLI incentives.