Sangam (India) Limited — PPTs, 30-05-2025: Investor Presentation

1. Financial Highlights:

Sangam (India) Limited reported revenue of ₹2,872 Cr for FY25, up 9% YoY, driven by volume growth and strong demand. Gross profit margin remained steady at ~40%. EBITDA grew 14% YoY to ₹260 Cr with a 9.1% margin, reflecting operational improvements. PAT declined to ₹32 Cr due to higher depreciation and interest expenses. The balance sheet remains healthy with improving interest coverage at 1.5x and manageable debt, supported by internal accrual-funded repayments.

2. Strategic Initiatives & Growth Drivers:

The company is prioritizing margin expansion over volume by focusing on value-added segments like PV dyed yarn and premium denim. A ₹160 Cr capex is in progress to expand synthetic fabric capacity to 65 MMPA by Q2 FY26, including 340 new weaving machines. A ₹50 Cr joint venture with Goldenseams will establish a forward integration plant to enhance the denim value chain and product mix.

3. Business Developments:

Sangam secured a significant supply order from Gelmart, a Walmart supplier, expanding its global reach. The 50:50 JV with Goldenseams, GoldenseamsSangam Private Limited, targets denim forward integration, enhancing vertical integration and value addition. Participation in the PLI scheme by key subsidiaries is expected to strengthen incentives for man-made fiber apparel.

4. Market Position & Competitive Advantage:

As India’s largest producer of PV dyed yarn and denim fabric, Sangam offers an end-to-end yarn-to-garment model servicing marquee clients including Walmart, Jockey, and Mango. Its 10,000+ skilled workforce, strong export share (39% of revenue), technological leadership, and sustainability initiatives solidify its dominant market position and differentiation.

5. Investor Implications:

With steady revenue growth and margin gains from value-added focus, Sangam shows positive growth potential. Successful execution of capacity expansion and JV milestones will be key to sustaining EBITDA margin improvements. Investors should watch for PAT recovery amid cost pressures and monitor operational efficiency as the company deepens global penetration.