Sanathan Textiles Ltd

- Rs. 420-445 crores planned for cotton expansion in Madhya Pradesh (greenfield project), expected commissioning in Q1 FY ‘28; land (50 acres) acquired at subsidized rates under PM MITRA Park policy. CAPEX spending to begin post-March FY ‘27. - Punjab facility has pending CAPEX of Rs. 70 crores related to post-production automation; Phase 2 expansion CAPEX estimated at Rs. 150 crores, to be incurred starting end FY ‘27 with full operation in FY ‘28. - Total Punjab plant CAPEX approx Rs. 2,150 crores; Rs. 1,750 crores incurred till start FY ‘26, Rs. 300 crores incurred this year, Rs. 75-100 crores pending. - Maintenance CAPEX for new plant expected to be very low next 2-3 years due to warranties and latest equipment. - Funding options include healthy cash flows, potential small debt, or QIP for expansions. - Technical textiles expansion shifted to Sanathan Textiles plant leveraging backward integration at Silvassa.

- FY 2026: Revenue expected around Rs. 4,100 to Rs. 4,200 crores, targeting double-digit EBITDA margin (~10%). - FY 2027: Revenue projected close to Rs. 6,000 crores with EBITDA around 11%. - FY 2028: Revenue forecasted at Rs. 7,300 to Rs. 7,400 crores, aiming for EBITDA north of 12%. - Punjab facility ramp-up: Expected full utilization (700 tonnes/day) by last quarter of FY 2026, increasing revenues significantly. - New greenfield cotton facility in Madhya Pradesh: Commissioning planned by Q1 FY 2028, supporting cotton vertical growth. - Continued strong operational performance at Silvassa and expanding capacity in Punjab and Madhya Pradesh supports volume growth. - Confident about achieving revenue and margin targets with efficient production and expanded capacity.

- FY ‘26 revenue expected around Rs. 4,100 to Rs. 4,200 crores with close to double-digit EBITDA (~10%). - FY ‘27 revenue projected near Rs. 6,000 crores with EBITDA target of 11%. - FY ‘28 revenue guidance is Rs. 7,300 to Rs. 7,400 crores with EBITDA north of 12%. - EBITDA growth seen supported by ramp-up of Punjab facility to full capacity and operational efficiencies. - Strong operating cash flows projected, with Rs. 660 crores EBITDA and Rs. 400 crores cash post financial obligations in FY ‘27. - Gradual improvement in margins expected from 10% in FY ‘26 to 12%+ by FY ‘28. - Confident outlook on meeting growth numbers, supported by healthy demand and strategic expansion projects. - EPS likely to improve in line with better profitability and revenue scale-up over FY ‘26 to FY ‘28.

The transcript provided from Sanathan Textiles Limited's earnings call on November 7, 2025, does not explicitly mention the current or expected order book or pending orders details. However, from the overall discussion, the following can be inferred: - The company is confident about its production ramp-up and revenue growth, indicating a healthy order inflow. - Punjab facility commissioning and expansion plans (cotton vertical in Madhya Pradesh) suggest strong demand and future secured orders. - Revenue guidance: Rs. 4,100-4,200 crores in FY ‘26, Rs. 6,000 crores in FY ‘27, and Rs. 7,300-7,400 crores in FY ‘28 reflects expected strong order execution. - No mention of order cancellations or weak demand; the company is maneuvering well around tariff and market challenges. - Operational smoothness and full utilization of capacities (Punjab at 350 tonnes/day currently) further indicate steady order flows. No specific numerical order book or pending orders were disclosed in the transcript.

- The company is considering various funding options for upcoming CAPEX, including debt, QIP (Qualified Institutional Placement), or using healthy cash flows. - For the Rs. 450 crore cotton vertical expansion next year, they may take on small debt depending on cash flow assessments. - They have not committed to new debt yet and will decide on a quarter-on-quarter basis based on requirements. - Current debt is at a healthy 0.76x debt-to-equity ratio, and management expects strong operating cash flows to support funding needs. - Post financial obligations, expected cash flows around Rs. 400 crores could support funding decisions. - No clear immediate plan for fresh equity fundraising was mentioned, but QIP remains an option if needed.