Sanathan Textiles Limited sees FY29 revenue up to Rs 8,000 crore

Sanathan Textiles is targeting FY2029 revenue of about Rs 7,700 crore to Rs 8,000 crore, after management said on November 5, 2026 that FY2027 revenue was on course to exceed Rs 6,000 crore. The outlook includes Punjab’s capacity ramp-up and output from Silvassa’s expanded technical-textiles unit.

What revenue is Sanathan Textiles targeting through FY29?

Sanathan Textiles is targeting more than Rs 6,000 crore of revenue in FY2027, followed by about Rs 7,200 crore to Rs 7,300 crore in FY2028 and about Rs 7,700 crore to Rs 8,000 crore in FY2029. Management had previously targeted Rs 5,600 crore to Rs 5,700 crore for FY2027, but said during the November 5, 2026 call that the company was on course to exceed Rs 6,000 crore.

The current FY2027 outlook is at least Rs 300 crore above the upper end of the earlier Rs 5,700 crore target. In response to an analyst’s question on whether growth of roughly 10% to 15% was expected over the foreseeable future, management said that assessment was true while setting out the FY2028 and FY2029 revenue ranges.

These are management targets, not reported revenue figures. The call did not provide a segment-by-segment bridge from FY2027 to FY2029, but management discussed Punjab phase two, the Silvassa technical-textiles expansion and the proposed Madhya Pradesh cotton-yarn project alongside the revenue outlook.

What is expected to support Sanathan Textiles' revenue growth?

Sanathan Textiles expects Punjab to move from 700 tonnes per day, or TPD, toward 900 TPD, while its expanded Silvassa technical-textiles capacity has commenced production. Management said the next Punjab phase would commence around the end of December or beginning of January, with full 900-TPD capacity expected by June or July of the following year.

At Silvassa, technical-textiles capacity increased to 18,000 metric tonnes per annum, or MTPA, from 9,000 MTPA. The expanded capacity commenced production on August 20, 2026, and management said it was operating at about 94% to 95% utilisation at the time of the call.

Management estimated that the 9,000-MTPA technical-textile addition could generate Rs 150 crore to Rs 160 crore of revenue in a full year. Because production began in August, Sanathan Textiles expected an additional Rs 80 crore to Rs 90 crore in FY2027, reflecting about half a year of capacity availability from September onward.

The revenue mix shows that the capacity additions affect businesses of differing scale. On a consolidated basis, polyester contributed close to 87% of revenue, cotton close to 10% and technical textiles close to 3%; at standalone Silvassa, polyester contributed 77%, cotton about 18% and technical textiles about 6%.

How is Sanathan Textiles ramping Punjab and technical textiles?

Sanathan Textiles said Punjab was operating at about 90% utilisation in the second quarter of FY2027, compared with around 76% to 77% in the first quarter. Management’s target is to take Punjab to about 95% to 96% utilisation in the next two quarters.

Silvassa, by comparison, was operating at about 95% utilisation, according to management. Silvassa was therefore already near management’s stated operating level, while Punjab retained scope for higher volumes through utilisation gains and its planned move from 700 TPD to 900 TPD.

The technical-textiles expansion differs from the Punjab ramp because capacity has doubled from 9,000 MTPA to 18,000 MTPA and the additional output had been placed with customers. Management said it was seeing higher demand for low-shrinkage yarn, but did not identify fibre optics or another single application as the principal driver because the product serves multiple applications.

Management said cotton yarn and filament yarn at Silvassa were stable, while technical yarns had doubled through the new 9,000-tonne addition. It also expected about seven months of production from that addition during FY2027, making technical textiles an identified incremental contributor despite representing close to 3% of consolidated revenue.

What could affect Sanathan Textiles' delivery against the targets?

Sanathan Textiles said its revenue and earnings expectations assumed no major international disruption to realisations. Management said it did not see a major disturbance on the realisation front, barring an international hiccup, while raising its FY2027 earnings before interest, taxes, depreciation and amortisation, or EBITDA, expectation from Rs 520 crore to Rs 540 crore to more than Rs 560 crore.

Raw-material capacity additions were another issue raised during the call. Management said about 5 million tonnes of purified terephthalic acid, or PTA, capacity was expected from GAIL, Indian Oil Corporation Limited and Reliance, with GAIL expected in 2026, Indian Oil Corporation Limited in the first half of the following year and Reliance probably sometime in 2028.

Management did not quantify the margin impact from those PTA additions, but said lower raw-material costs would increase margins. It also said it did not see substantial new yarn capacity being added over the next two and a half years, noting that a newly announced yarn project typically takes about two and a half years from kickoff to production.

Export demand could influence product allocation at Silvassa. Management said exports had historically ranged from 4% to 5% at the low end and 16% to 17% at the high end, depending on relative netbacks between domestic and export markets, and expects Silvassa exports to move into double digits in coming months with the European Union free-trade agreement.

Conclusion

Sanathan Textiles has set out a medium-term revenue framework that moves from more than Rs 6,000 crore in FY2027 to Rs 7,200 crore to Rs 7,300 crore in FY2028 and Rs 7,700 crore to Rs 8,000 crore in FY2029. The disclosed operating basis is Punjab’s move toward 900 TPD, higher Punjab utilisation and the Silvassa technical-textiles expansion that began production on August 20, 2026.

The next operational markers are the Punjab phase-two start around the end of December or beginning of January and completion of 900 TPD by June or July of the following year. Management also said the proposed Madhya Pradesh cotton-yarn project was on track, with on-ground work targeted for early January, production by the end of the calendar year and full stabilisation by the end of the financial year.