India, Oct. 7 -- Sanathan Textiles has seen a sharp rise in revenue after its Punjab facility began scaling up, but higher depreciation and finance costs have limited the impact on net profit. This article examines whether rising utilization, improving unit economics, and new capacity can help the company convert its expanded revenue base into stronger earnings.

Sanathan Textiles closed at around Rs508.5, with a market capitalization of roughly Rs4,364 crore. Its 52-week range stood at about Rs352-Rs545, while the stock traded at around 33.5*trailing earnings and 1.8*price-to-book.

Revenue Is Rising, But PAT Is Falling Sanathan's consolidated revenue from operations increased 79.1% YoY to Rs1,334.7 crore in Q1 FY27, compared with Rs74...