Transcript of Earnings Call held on August 04, 2026.

Date: August 06, 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai-400051. Mumbai-400001. Trading Symbol: SANATHAN Scrip Code: 544314 Ref. No: - 2026-2027/Aug26/134 Dear Sirs/Madam, Sub: Earnings Call Transcript pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. We hereby submit, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the transcript of the earnings call held on Tuesday, August 04, 2026, at 04:00 PM IST regarding the Un-audited Standalone and Consolidated Financial Results of the Company for the quarter ended June 30, 2026. The transcript has been uploaded on the website of the Company within the prescribed timeline and can be accessed at the following weblink: https://www.sanathan.com/investor-relations/financial-performance . We request you to take the same on your record. Thanking You, Yours Sincerely, For Sanathan Textiles Limited Jude Patrick Dsouza Company Secretary and Compliance Officer Encl: As above “Sanathan Textiles Limited Q1 & FY27 Earnings Conference Call” August 04, 2026 MANAGEMENT: MR. PARESH DATTANI – CHAIRMAN AND MANAGING DIRECTOR – SANATHAN TEXTILES LIMITED MR. SAMMIR DATTANI – EXECUTIVE DIRECTOR – SANATHAN TEXTILES LIMITED MR. SANJAY SHAH – CHIEF FINANCIAL OFFICER – SANATHAN TEXTILES LIMITED MR. JUDE DSOUZA – COMPANY SECRETARY AND COMPLIANCE OFFICER – SANATHAN TEXTILES LIMITED Page 1 of 10 Sanathan Textiles Limited August 04, 2026 Moderator: Ladies and gentlemen, good day and welcome to Q1 FY27 earnings conference call of Sanathan Textiles Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance in the conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jude DSouza. Thank you, and over to you, sir. Jude DSouza: Good evening, ladies and gentlemen. It is my privilege to welcome you all to the earnings conference call of Sanathan Textiles Limited for the first quarter of financial year 26-27. Before we begin, I would like to remind everyone that certain statements made during this call, including comments on our outlook, expectations, future plans, capacity expansion, and business strategy, may be forward-looking in nature. These statements are based on management's current assumptions and assessments, and are subject to various risks and uncertainties. Actual results may, therefore, differ materially from those expressed or implied during the discussion. Joining us today are Mr. Paresh Dattani, Chairman and Managing Director; Mr. Sammir Dattani, Executive Director; and Mr. Sanjay Shah, Chief Financial Officer. The results, the press release, and the investor presentation for the quarter have already been uploaded on the stock exchange. The call is being recorded and a transcript of the discussion will be made available on the website of the stock exchange and the company. I would now like to invite Mr. Paresh Dattani, Chairman and Managing Director, to share his opening remarks. Paresh Dattani: Thank you, Jude. And a very good evening to everyone joining us today. The first quarter of FY27 was, by any measure, an unusual one for the global yarn industry. It was a quarter defined less by demand and more by price. Geopolitical tensions in West Asia disrupted the PTA and MEG feedstock markets, and the polyester yarn prices moved up sharply as a result of this. Cotton moved in the same direction, but for entirely separate reasons, firming spot raw cotton and disrupting manufacturing capacity globally. The rise in cotton was steep enough that the government stepped in and temporarily waived the 11% customs duty on raw cotton imports with effect from June 1st, 2026, to ease input pressure across the value chain. When two independent raw material chains rally at the same time and at that speed, the downstream reaction is fairly predictable. Buyers waited. They deferred purchases in anticipation of a correction, and the industry operating rates moderated through the first two months of the quarter. Encouragingly, conditions began to normalize from June, with demand and utilization showing early signs of recovery as the quarter closed. Against that backdrop, I would describe our quarter as one of steady operating performance. Our standalone results, anchored by the Silvassa plant, improved both sequentially and year-on-year, with standalone EBITDA rising 35.52% year-on-year. That outcome was underpinned by disciplined and strategic raw material procurement and by a deliberate diversification across Page 2 of 10 Sanathan Textiles Limited August 04, 2026 natural and man-made fibers, which allowed us to manage input cost volatility far more effectively than would otherwise have been possible. At the consolidated level, performance benefited further from the steady scale-up in the utilization at our Punjab facility. And I want to make one point here that I think matters more than any single number. Both our facilities operated seamlessly and without interruption through a period of significant global and local supply chain disruption. In a quarter where raw material availability was generally uncertain, that continuity is a direct testament to the resilience of our operations and to the strength of the supplier relationships we have built over the decades. Consolidated revenue grew 79.08% on account of higher selling price, and consolidated EBITDA grew 55.38% from INR69.56 crores to INR108.08 crores, which was driven by better spreads across our businesses, while PAT stood at INR23.8 crores. In the June quarter last year, the Punjab facility was still under construction. There was no depreciation on it, and the interest was being capitalized, not charged to the profit and loss account. Today, that plant is commissioned and running, so the full charge has come into the P&L. Depreciation rose from INR11.7 crores to INR34.7 crores, and the finance costs from INR4.62 crores to INR38.6 crores. That difference is the entire story. I would also point out that, sequentially, consolidated profit after tax is up 10.4% over the March quarter, and our standalone profit after tax is up INR37.6 crores year-on-year to INR64.95 crores. We continue to make progress across our yarn businesses. We have recently completed the installation of the plant and machinery for the expansion of our technical textile capacity at Silvassa, taking the installed capacity from 9,000 metric tons per annum to 18,000 metric tons per annum. The commencement of commercial production is expected very shortly and will be announced in due course. I would also like to call out that, at Punjab, our polymerization capacity is at 700 metric tons per day, and we have achieved a capacity utilization for the quarter at about 80%. We are also progressing on the renewable energy front through our captive arrangement of 32 megawatts of hybrid wind-solar power, which will be commissioned in phases and expected to deliver a meaningful reduction of our power costs as it comes online. The global geopolitical environment remains fluid, and the full impact on demand, logistics, energy prices, and supply chains continues to be difficult to assess with any precision. We therefore continue to operate with strategic caution, disciplined execution, and prudent capital allocation, while staying firmly focused on our long-term growth opportunities. Our near-term focus remains squarely on strengthening operational efficiency and margins across all three business verticals. I will now hand over to Sammir, to walk you through the operational performance. Thank you. Page 3 of 10 Sanathan Te [Showing first 8,000 characters — download PDF for full document]