Sangam's Q2 profit came with margins below the sector median
Operating earnings drove profit, while the company highlighted new power capacity and planned projects for future cost savings.
Filed 04 Nov 2026, 12:31 IST · Sangam (India) Ltd (SANGAMIND)
Key takeaways
- Standalone Q2FY27 net profit of Rs 51.45 cr was supported mainly by operating earnings, with other income at Rs 4.52 cr.
- Sangam's operating margin of 11.22% was 0.95 percentage points below the Consumer Discretionary median across 196 reported peers.
- Management said the commissioned 18 MW solar plant required Rs 105 cr of capex and is expected to deliver annual savings of Rs 22 cr.
Price around the results
Operating earnings, not other income, drove profit
Sangam reported standalone Q2FY27 revenue of Rs 1,030.2 cr and operating profit of Rs 115.6 cr, which formed the main base of its Rs 65.85 cr profit before tax. Other income was Rs 4.52 cr, so reported profit was not dependent on a large non-operating contribution. Interest of Rs 29.45 cr and depreciation of Rs 24.82 cr reduced the conversion from operating profit to pre-tax profit.
Margin trails the Consumer Discretionary median
The 11.22% operating margin was 0.95 percentage points below the 12.17% median for 196 Consumer Discretionary peers that had reported the quarter. The 21.87% tax rate converted Rs 65.85 cr of pre-tax profit into Rs 51.45 cr of net profit, with EPS at Rs 10.24. No quarter-on-quarter or year-on-year comparison is available here to establish the direction of margin or cost movement.
Power projects are the main management focus
The presentation reported Q2 production of 24,763 MT of yarn, 3,948 MT of green fibre, 188 lakh metres of PV fabric and 145 lakh metres of denim fabric. Management said the 18 MW solar plant was commissioned in Q2FY27 at a capex of Rs 105 cr, with expected annual savings of Rs 22 cr. The company said its 5 MW hybrid project is expected in Q3FY27 with an annual EBITDA benefit of Rs 5.86 cr, while the 20 MW hybrid project and PV yarn project are expected in Q1FY28 and Q4FY28 with annual EBITDA benefits of Rs 26 cr and Rs 50 cr, respectively.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹1,030 cr |
| Other income | ₹5 cr |
| Expenses | ₹915 cr |
| Operating profit | ₹116 cr |
| Operating margin (%) | 11.22% |
| Interest | ₹29 cr |
| Depreciation | ₹25 cr |
| Profit before tax | ₹66 cr |
| Tax | ₹14 cr |
| Net profit | ₹51 cr |
| EPS (₹) | ₹10.24 |
Operating margin of 11.22% compares with a Consumer Discretionary sector median of 12.17% across 196 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- In Q2 FY27, the company produced 24,763 MT of yarn, 3,948 MT of green fibre, 188 lakh metres of PV fabric and 145 lakh metres of denim fabric.
Expansion
- An 18 MW solar power plant was commissioned in Q2 FY27 at a capex of ₹105 crore, with expected annual savings of ₹22 crore.
- The 5 MW hybrid power project is expected to be completed in Q3 FY27, with an expected annual EBITDA benefit of ₹5.86 crore.
- The 20 MW hybrid power project is expected to be completed in Q1 FY28, with an expected annual EBITDA benefit of ₹26 crore.
- The PV yarn capacity addition and cost-saving project is expected to be completed in Q4 FY28, with an annual EBITDA benefit of ₹50 crore.
What to watch
- Whether operating margin holds above 11.22% in the next reported quarter.
- Whether the 5 MW hybrid project is completed in Q3FY27 as management said, alongside the stated Rs 5.86 cr annual EBITDA benefit.
- Whether the 18 MW solar plant delivers the Rs 22 cr annual savings cited by management.