Sanathan Textiles Limited has announced its financial results for the third quarter ended 31 December 2025, reporting a mixed performance marked by modest growth in its standalone operations and a sharp deterioration in consolidated profitability.
On a consolidated basis, the company reported a net loss of Rs. 4.77 crore (US $ 526,000) in Q3 FY ’26, compared with a net profit of Rs. 34.17 crore (US $ 3.77 million) in the corresponding quarter of the previous year. The reversal was primarily attributed to higher operational expenses and a substantial increase in finance costs. Despite the quarterly loss, consolidated revenue rose significantly to Rs. 1,078.67 crore (US $ 119 million) from Rs. 743.13 crore (US $ 82.04 million) year-on-year, indicating strong topline growth during the period.
For the nine months ended December 2025, the consolidated performance remained profitable, with net profit standing at Rs. 55.78 crore (US $ 6.16 million). However, this represented a marked decline from Rs. 116.80 crore (US $ 12.89 million) reported in the same period last year, reflecting sustained cost pressures across the business.
The company’s consolidated cost structure showed notable increases across several expense categories. Cost of materials consumed rose sharply to Rs. 769.29 crore (US $ 84.93 million) in Q3 FY ’26 from Rs. 517.74 crore (US $ 57.16 million) a year earlier, reflecting higher input costs and increased production volumes. Finance costs increased significantly to Rs. 35.83 crore (US $ 3.95 million), compared with Rs. 5.22 crore (US $ 576,000 million) in Q3 FY ’25, pointing to higher borrowing levels or increased interest costs.
Employee benefits expenses also rose to Rs. 35.70 crore (US $ 3.94 million) from Rs. 24.75 crore (US $ 2.73 million) year-on-year, driven by workforce expansion and wage-related increases. In addition, the company recorded an incremental financial impact of Rs. 2.70 crore (US $ 298,000) in its consolidated results following the implementation of new Labour Codes, which came into effect on 21st November 2025.
Overall, while Sanathan Textiles delivered strong revenue growth during the quarter, elevated material costs, higher finance expenses and increased employee-related outgo weighed heavily on profitability, resulting in a consolidated loss for Q3 FY ’26.
