Sanathan Textiles Limited, a leader in India’s textile manufacturing industry, announced that credit rating agency ICRA Limited has reaffirmed its long-term and short-term ratings while revising the outlook on the long-term rating to ‘Positive’ from ‘Stable’.
ICRA reaffirmed Sanathan Textiles’ long-term rating at ICRA A (Positive) and the short-term rating at ICRA A2+, reflecting the company’s strong fundamentals, diversified product portfolio, and robust operating performance. The revision in outlook is attributed to the company’s ongoing capacity expansion through its subsidiary SPPL, which is expected to double capacity and improve product mix and cost efficiency by the end of Q1 FY2026.
According to ICRA, the commercialisation of the new plant will enable the Group to benefit from operational advantages such as proximity to both raw material sources and key consumption centres. Furthermore, the use of rice husk as fuel is anticipated to drive down energy costs, enhancing operating profit margins.
Commenting on the development, Ajay Dattani, Joint Managing Director of Sanathan Textiles, said, “The positive outlook from ICRA is a testament to our consistent focus on operational excellence, strategic capacity enhancement, and customer-centric innovation. As we gear up to commission our new plant, we remain confident in our ability to further strengthen our position in the market and deliver long-term value to our stakeholders.”
ICRA also noted Sanathan’s established relationships with suppliers and customers, which are expected to aid in optimal capacity utilisation and smooth execution of its expansion plans. The company continues to face sectoral challenges such as margin volatility, forex exposure, and competitive pricing pressures inherent in the textile industry.
