1. Opening Hook
Just when textile bears were declaring “demand winter is permanent”, Sangam walked into Q3FY26 wearing margin-expansion sneakers. While peers are still blaming cotton prices, geopolitics, and Mercury retrograde, Sangam quietly delivered a quarter that screams operating leverage. Revenue growth? Meh. Profit growth? Borderline offensive. EBITDA margins jumped like someone finally switched on the factory lights properly. And PAT? It didn’t just recover—it respawned.
Management says this is about execution, mix, and discipline. Markets say it’s about believing the numbers this time. Somewhere in between sits an integrated textile platform betting big on value-added products, renewable energy, and exports that finally cooperate.
Stick around. Because the real story isn’t Q3—it’s what Sangam is quietly setting up for FY27, while everyone else is still counting yarn spindles.
2. At a Glance
- Revenue ₹775 Cr (+3.2% YoY) – Growth walked in late, but at least it showed up.
- EBITDA ₹85 Cr (+39.3% YoY) – Margins hit the gym, skipped leg day excuses.
- EBITDA Margin 10.9% – From 8.1% last year; operating leverage finally clocked in.
- PAT ₹24 Cr (+899% YoY) – Last year’s ₹2 Cr looks like a rounding error now.
- Gross Margin 42.8% – Mix upgrade doing what cost-cutting couldn’t.
- EPS ₹4.87 – From ₹0.49; optics matter, and these are loud.
3. Management’s Key Commentary
“Revenue grew 3.2% YoY supported by resilient demand and
disciplined execution.”
(Translation: Demand wasn’t great, but we didn’t mess up.) 😏
“EBITDA increased 39.3% YoY driven by operating efficiencies and improved business mix.”
(Translation: We sold smarter stuff, not just more stuff.)
“Margins expanded to 10.9% versus 8.1% last year.”
(Translation: Yes, this is the slide we want you to screenshot.)
“PAT improved sharply to ₹24 crore from ₹2 crore last year.”
(Translation: Please don’t annualise last year.) 😌
“We remain well positioned across domestic and export markets.”
(Translation: No guarantees, but vibes are positive.)
“Renewable energy initiatives will drive sustainability and cost savings.”
(Translation: Power bills were getting scary.) ⚡
“We are building an integrated textile platform focused on value-added products.”
(Translation: Yarn alone won’t pay the bills anymore.)
4. Numbers Decoded
| Metric | Q3FY26 | YoY | Decoded Take |
|---|---|---|---|
| Revenue | ₹775 Cr | +3.2% | Volume meh, pricing/mix saved the day |
| Gross Margin | ₹331 Cr | +20.5% | Real hero of the quarter |
| EBITDA | ₹85 Cr | +39.3% | Operating leverage finally visible |
| EBITDA Margin | 10.9% | +283 bps | Structural, not accidental |
| PAT | ₹24 Cr | +899% | Base effect, but still impressive |
| Net Debt/Equity | ~1.1x | Stable | Manageable, not stress-inducing |
