Sanathan Textiles’ New Capacity Runs at 94%-95% Utilisation

Sanathan Textiles Limited said its newly expanded Silvassa technical-textiles capacity was running at 94%-95% utilisation on November 5, 2026, after commencing production on August 20, 2026. Management expects the 9,000-tonnes-a-year addition to generate Rs 80 crore to Rs 90 crore of incremental revenue in FY 2027.

What is Sanathan Textiles’ utilisation at the expanded plant?

Sanathan Textiles said the newly added technical-textiles capacity was operating at about 94%-95% utilisation as of the November 5, 2026 earnings call. Management said production had stabilised and the material had been placed with customers, indicating that the capacity had moved beyond its initial commissioning stage after the August 20, 2026 production start.

The expansion doubled Silvassa technical-textiles capacity to 18,000 tonnes a year from 9,000 tonnes a year. This utilisation level differs from the Punjab plant’s ramp-up: management said Punjab ran at about 76%-77% in Q1 of FY 2027, improved to close to 90% in Q2, and is targeted to reach about 95%-96% over the next two quarters.

How much FY 2027 revenue can the addition generate?

Sanathan Textiles expects the technical-textiles addition to contribute Rs 80 crore to Rs 90 crore of incremental revenue in FY 2027. Management linked that estimate to the August 2026 start date, which provides a partial-year contribution rather than a full year from the newly added 9,000 tonnes a year of capacity.

For a typical full year, management estimated incremental revenue of about Rs 150 crore to Rs 160 crore from the same addition. The FY 2027 estimate is lower because management referred to about half a year of capacity contribution, while it separately said the business would add about seven months of output from the additional 9,000 tonnes during FY 2027.

When did Sanathan Textiles commission the expanded capacity?

Sanathan Textiles commenced production at the expanded Silvassa technical-textiles capacity on August 20, 2026. By the November 5, 2026 call, management described production as fully stabilised and reported 94%-95% utilisation of the new capacity, rather than setting out a further utilisation ramp-up schedule for that unit.

The commissioning date also determines the FY 2027 revenue timing. Management said cotton yarn and filament yarn were stable at Silvassa, while technical yarns had doubled; the added 9,000 tonnes of technical-textile capacity is the part expected to supply roughly seven months of additional production in FY 2027.

How large is technical textiles in Sanathan Textiles’ revenue mix?

Technical textiles contributed close to 3% of Sanathan Textiles’ consolidated revenue in the reported quarter, compared with close to 87% from polyester and close to 10% from cotton. The capacity expansion is therefore in a smaller disclosed revenue segment than the polyester and cotton businesses, despite its 9,000-tonnes-a-year increase at Silvassa.

At Silvassa on a standalone basis, management said polyester represented about 77% of revenue, cotton around 18%, and technical textiles about 6%. Management said the expanded technical-textiles capacity would add to earnings before interest, tax, depreciation and amortisation, or EBITDA, as it ramps up, but did not disclose a segment-specific EBITDA figure, margin, or revenue per tonne.

What other production changes is Sanathan Textiles planning?

Sanathan Textiles said the Punjab facility was operating at 700 tonnes per day and was moving towards a 900-tonnes-per-day second phase. Management expects the next portion to commence by the end of December or the beginning of January, providing one quarter of partial production, and expects to complete the 900-tonnes-per-day level by June or July of the following year.

Separately, management said the proposed Rs 400 crore MP cotton-yarn project was on track with its plan. It aims to start work on the ground by early January, enter production by the end of the calendar year, and achieve full stabilisation by the end of the financial year; management did not disclose the project’s capacity or a specific commissioning date on the call.

Conclusion

Sanathan Textiles has reported near-full use of its doubled Silvassa technical-textiles capacity shortly after its August 20, 2026 commissioning. The 94%-95% utilisation and the stated placement of material support management’s expectation of Rs 80 crore to Rs 90 crore of incremental FY 2027 revenue, against a typical full-year estimate of Rs 150 crore to Rs 160 crore.

The next disclosed milestones are the Punjab second phase, expected to start partly by the end of December or beginning of January and reach 900 tonnes per day by June or July of the following year. Management also plans to begin work on the Rs 400 crore MP cotton-yarn project by early January, with production targeted by the end of the calendar year.