Sangam India Ltd Reports Surge in Q1 FY27 Net Profit to ₹4,102 Lakhs

Sangam (India) Limited has released its consolidated unaudited financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The company delivered a strong operational performance, showcasing significant growth in profitability driven by higher revenue and robust comprehensive income, despite facing elevated raw material and power costs.

Income and Revenue Growth

For the quarter ended June 30, 2026, Sangam (India) posted a Total Income of ₹86,728 lakhs. This marks an 8.1% increase year-on-year (YoY) from the ₹80,251 lakhs recorded in the corresponding quarter of the previous fiscal year (Q1 FY26). The total income also grew marginally by 1.5% on a sequential basis, compared to the ₹88,031 lakhs achieved in the fourth quarter ended March 31, 2026 (Q4 FY26).

Core operations led the expansion:

Revenue from Operations: Stood at ₹86,035 lakhs, reflecting an 8.9% YoY increase from ₹78,977 lakhs, though normalizing slightly from the sequential quarter's high base of ₹88,392 lakhs.

Other Income: Rebounded to ₹693 lakhs, reversing a negative impact of ₹(361) lakhs in Q4 FY26.

Operational Expenditures and Core Pressures

The company's total expenses for Q1 FY27 came in at ₹81,047 lakhs, relative to ₹79,832 lakhs in the parallel period last year and ₹83,356 lakhs in Q4 FY26. While overall spending remained highly controlled, specific manufacturing components saw structural increases.

Key breakdown of operational outlays:

Material Sourcing: Cost of materials consumed grew to ₹49,623 lakhs, up from ₹43,902 lakhs in Q1 FY26 and ₹45,279 lakhs in Q4 FY26.

Purchases of Stock-in-Trade: Amounted to ₹4,474 lakhs.

Inventory Valuation: The company recorded a positive adjustment in inventories of finished goods, work-in-progress, and stock-in-trade of ₹(5,166) lakhs, indicating robust inventory building compared to the inventory liquidation of ₹5,957 lakhs in the previous quarter.

Power & Fuel: Rose to ₹8,828 lakhs over the ₹6,849 lakhs spent annually.

Overhead Channels: Employee benefits required ₹8,101 lakhs, finance costs stood at ₹2,983 lakhs, depreciation/amortization settled at ₹2,566 lakhs, and other miscellaneous expenses accounted for ₹9,638 lakhs.

Key Earnings and Share Capital Milestones (Q1 FY27)

- Profit Before Tax (PBT): ₹5,515 lakhs (Massive jump from ₹253 lakhs in Q1 FY26)

- Profit After Tax (PAT): ₹4,102 lakhs (Massive jump from ₹213 lakhs in Q1 FY26)

- Total Comprehensive Income: ₹4,548 lakhs (Up from ₹174 lakhs in Q1 FY26)

- Paid-up Equity Share Capital: ₹5,025 lakhs (Face Value of ₹10 per share)

Profitability and Shareholder Value Expansion

Profit before exceptional items and tax for the quarter grew dramatically to ₹5,681 lakhs, compared to just ₹419 lakhs in Q1 FY26. After accounting for regular exceptional items of ₹166 lakhs, the Profit Before Tax (PBT) reached ₹5,515 lakhs, marking an outstanding multi-fold growth over the ₹253 lakhs recorded in the same period last year. On a sequential quarter basis, PBT advanced by 22.3% from ₹4,509 lakhs.

Total tax provisions for the quarter came to ₹1,413 lakhs, consisting of a current tax charge of ₹591 lakhs and a deferred tax adjustment of ₹822 lakhs.

Net Profit After Tax (including share in associate company) concluded the quarter at ₹4,102 lakhs, soaring significantly over the small base of ₹213 lakhs in Q1 FY26. Sequentially, PAT accelerated by 24.8% from ₹3,287 lakhs in Q4 FY26.

Factoring in a positive turnaround in Other Comprehensive Income (OCI)-which posted a net gain of ₹446 lakhs driven by items that will be reclassified to profit or loss-the company's Total Comprehensive Income reached ₹4,548 lakhs for the three-month period.

Reflecting this significant shift in operating strength, the corporate earnings per share (EPS) metrics improved considerably. The basic and diluted EPS before exceptional items jumped to ₹8.49 for the quarter, up from ₹0.75 in Q1 FY26 and ₹6.87 in Q4 FY26. Basic and diluted EPS post exceptional items concluded the quarter strong at ₹8.16, reinforcing solid value additions for shareholders.

Shares of Sangam (India) Limited was last trading in BSE at Rs. 634.70 as compared to the previous close of Rs. 627.10. The total number of shares traded during the day was 3846 in over 194 trades.

The stock hit an intraday high of Rs. 646.50 and intraday low of 612.50. The net turnover during the day was Rs. 2418352.00.

Source : Equity Bulls

Keywords

SangamIndia INE495C01010 Textiles Q1FY27 Q1FY2027 ResultUpdate