Thank you so much. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone who wishes to ask a question may press “*” and “1” on their touchphone. If you wish to remove yourself from the question queue you may press “*” and “2”. Participants are requested to use handset while asking questions. Our first question comes from the line of Sagar Tanna with Alchemie Ventures. Please go ahead.

Hi, sir. If I understood the numbers correctly, we did INR500 crores from Punjab and it would have translated into a 24 crores, 25 crores EBITDA from Punjab. Is my understanding correct?

Yes, the revenue was close to INR550 crores and the EBITDA was close to INR12 odd crores.

INR12 odd crores? Right. So to reach our desired EBITDA margin of 11%, 12%, at what scale of revenues do you think we can hit that margin?

Can you repeat that, please?

To reach our desired EBITDA margin from Punjab at 11%, 12%, what scale of revenues do you think we can hit that, and by when do you think we can hit that scale of revenue?

See. To reach our number of 11%, 12% you're talking about in terms of EBITDA percentage, I would like to emphasize here that let us look at EBITDA per ton, because if you look at last year's numbers, when you're looking at the console EBITDA, it's lower than last year only because of the price rise. So let us look at EBITDA per ton. And we are targeting Punjab to give us next year about close to INR30,000 per ton.

And what would be the EBITDA per ton in Silvassa currently, sir?

In terms of?

PFI segment. Yes, yes. EBITDA per ton, that side?

We have done, let's say, about last year, if I look at the entire year, we have done about INR11,000 and odd per ton at Silvassa.

Got it. Thank you so much.

Thank you. Our next question comes from the line of Charchit Maloo with Genuity Capital. Please go ahead.

Hi, sir. Thanks a lot for the opportunity. Just a few quick questions. Sir, what was the revenue from the technical textiles in Q1, and what was the utilization?

The revenue was close to INR33 crores approximately.

And the utilization was about 94%.

94%. So we are at max. So the 18,000 capacity that we have installed, so this the number will start showing from Q2 onwards, right?

No. See, till the last year, till the June quarter, we had 9,000 tons per annum. We are commissioning the second phase now very shortly. We have installed the equipment. It's in the process of commissioning. We'll commission very shortly. So this year, out of the 9,000 addition, we should do about 7,500 tons additional over last year's capacity.

Understood. So, okay. So the next question is on the Punjab facility. So the phase two that we are targeting to start from FY28, so we are still intact on the guidance?

Yes, that is intact. We are on course with that. Coming first quarter next year, we will be fully commissioned with the second phase also. So what we are at 700 tons per day today, we aim to be at 900 tons per day by then.

So, so this FY27, this 700 will be utilized at full capacity, like at 90%?

Yes. FY27 -- FY28 or FY27?

‘ 27. I'm talking about phase one.

Yes. Phase one, we are today utilization about 80%. In the coming quarter, we aim to be between 85% and 90%, and the quarter after that, we will be at full utilization of 95%, 96%.

Understood, sir. And the phase two that we are operating from Q1, so at what pace will we expand that?

So, that we will be, say, the next 200 tons per day, we will get at an average because we will be commissioning in a phased manner and ramping up in a phased manner. So, we will get about a quarter and a half to two quarters before we come to full capacity of the second phase also.

Understood, sir. Sir, just a quick question on inventory side. So, what is the status of our inventory? Like, do we have piled, like, bought the inventory for the coming quarters, or like we will be planning for coming months?

Can you just repeat that again, please? I couldn't follow.

Just wanted to know the status on the inventory side.

The -- You want the raw material inventory you're talking about?

Yes.

What we are holding as on today or at the end of the quarter?

As of today, and quarter as well.

Yes. At the end of the quarter, we were holding about, let's see, about 8, 9 days of inventory, 10 days max.

Understood, sir. Thank you.

Thank you. Our next question comes from the line of Raman KV with Sequent Investments. Please go ahead.

Yes, we can hear you. Go ahead.

Sir, on the margin front, you mentioned that you're targeting EBITDA per tonne of 30,000 from your Punjab facility, whereas your Silvassa facility is doing around 11,000 metric per tonne. So why is there so much gap between the EBITDA per ton when we compare to both the facilities?

No, when we said INR30,000 plus at Punjab for the next year, we are talking it's only the filament yarn, only the polyester side. When we are looking at about 11,000 at what we are doing at Silvassa, is a consol between polyester as well as cotton and technical yarn.

Understood, sir. Sir, also with respect to the cotton plant which you are planning to planning for a greenfield cotton plant at MP, can you give any idea with respect to how much capex are you planning?

Yes, so we are trying to put in about INR400 crores of capex there at MP to install that 72,500 spindles of cotton yarn.

And how much asset turn are we expecting?

We are expecting an asset turn of about 0.8, 0.85.

Okay, so it will be around INR350 crores of incremental revenue?

Yes, about INR350 crores to INR375 crores of incremental revenue.

Understood, sir. Sir, also with respect to the spreads, can you talk about the polyester and cotton spreads for the quarter, and how was it on a sequential quarter basis?

No, you are asking about the spreads on quarter-wise you're talking about?

Yes, yes, like how was the spreads movement from Q4 to Q1?

Q4 to Q1?

Yes.

It has improved. The spreads have improved across divisions, all three verticals.

So can you give the figure?

Individually, I don't have the figures individually if you ask me.

Okay, understood, sir. And sir, with respect to inventory on polyester yarn side, how many days of inventory are we holding with respect to polyester yarn as well as cotton?

Understood, sir. Thank you.

Thank you. Our next question comes from the line of Parth Sodha with Trinetra Asset Managers. Please go ahead.

Yes, sir. My voice is audible? So first of all, good evening and thank you for the opportunity. So my question is that, how do you see demand in July and August after the June recovery?

Are you asking for the demand?

Yes, yes.

Yes. So July, August, September quarter, we expecting a better demand, particularly going onwards from the end of August till the end of September, yes.

And you had guided for FY27 EBITDA of more than INR500 crores. After reporting INR108 crores in Q1, are you maintaining this guidance or?

We are maintaining the guidance of EBITDA between about INR520 crores to INR540 crores.

Okay, got it. That's all from my side. Thank you.

Thank you. Our next question comes from the line of Amit Kumar with Determined Investor. Please go ahead.

Hi, yes. Thank you so much for the opportunity. Can you hear me?

Yes, we can hear you. Go ahead.

Okay. Sir, these PTA, MEG, the raw materials which are there, what is the availability situation right now?

Availability situation is the same. As a country, we still import about, see about 2 million tonnes of PTA per annum, which we expected it to be reduced due to, but due to the late commissioning of the GAIL facility, which now they are commissioning in the current quarter, so that will reduce the dependence on import. And once IOCL at Paradip comes along towards the end of the year, I think the import will be drastically reduced over there.

All right. So have you tied up with any of them in terms of any sort of long-term contracts or how does it work?

As far as we are concerned, today's thing, we get all our raw material from the IOCL Panipat plant at Punjab. And for Silvassa, we are 50% / 60% on imported PTA and 40% on domestic PTA. 40% domestic PTA we are contracted, and even 60% we have short-term contracts which we keep renewing.

Yes, we are already in contact and we are already in talks with them, once they come into production, how to get more material from them and what terms and what contractual terms. We are already in talks with them.

But not fixed yet, you are still in discussion basically.

No, we cannot finalize that today because they have still not got into production. So we cannot bank on that and do our planning accordingly. So we have to it's a rollover from import to domestic PTA, which we will have to do in a phased manner.

Okay, understood. That's it from my side. Thank you.

Thank you. As there are no further questions from the participants, I would like to hand the conference over to Mr. Paresh Dattani for closing comments. Thank you, and over to you, sir.

Thank you all once again for joining us this evening. As we look at the balance of FY27, our confidence continues to be anchored around three pillars. First, operation resilience. This quarter was a quarter that tested supply chains across the industry, and both our facilities ran without interruption. This is not an accident. It is the outcome of procurement discipline, supplier relationships, and an integrated manufacturing model built over decades. Second, an improving demand environment. The deferral of purchases we saw through April and May was a reaction to price, not to underlying consumption. Conditions began normalizing from June, and the structural drivers the shift towards man-made fibers, supportive trade agreements, and increasing global sourcing diversification towards India remains firmly intact. Third, a clear and scalable growth roadmap. With Phase 1 of Punjab fully ramped up, the technical textile expansion at Silvassa installed and moving towards commercial production, visibility on Phase 2 at Punjab, and a proposed cotton yarn expansion in MP, we believe we are well-positioned to create long-term sustainable value. Our focus continues to remain on operational excellence and margin improvement across all three verticals, prudent capital allocation, product diversification and value addition, and building a resilient, integrated, and diversified yarn manufacturing platform. I would like to sincerely thank all our employees across all locations for their commitment through a demanding quarter. I also extend my gratitude to our shareholders, customers, lenders, and business partners for their continued trust and support. Thank you for your participation today. Thanks.

Thank you so much, sir. Ladies and gentlemen, on behalf of Sanathan Textiles Limited, that concludes today's conference. Thank you for joining us and you may now disconnect your lines.