Sangam (India) Ltd Growth Catalysts - SOIC x StockScans Report

as of Jul 2026

  1. Recycled polyester staple fibre (RPSF) plant - The acquired 16,020 MTPA green-fibre plant at Lambia Kalan is running at 97% utilisation and already meets \~50% of daily polyester fibre needs. This backward integration saves an estimated ₹15 Cr annually at the EBIT level while insulating input costs for the core yarn and fabric businesses.
  2. Weaving capacity expansion at Atun - The ₹160 Cr modernisation at Atun is nearing completion, lifting weaving capacity from 48 to 65 million metres per annum with new air-jet looms. PV fabric utilisation already hit 95% in Q4 FY26, so the added 17 MMPA directly feeds unmet demand and the stated shift toward higher-margin fabric sales.
  3. 12 MW hybrid renewable energy commissioned - The 12 MW captive wind-solar hybrid project with CGE II began delivering power in March 2026, covering plants at Atun, Sareri, and Billiya Kalan. At a grid blended cost of ₹7.25 per unit, the projected ₹10 Cr annual saving drops straight to the operating line with no ramp-up lag.
  4. 18 MW solar plant under construction - An EPC contract with IB Vogt Solar India for a 27 MWp solar plant at Jaisalmer was signed in December 2025, with power expected by Q2 FY27. Management projects ₹22 Cr in annual savings once commissioned, adding a second layer of energy-cost reduction on top of the 12 MW already online.
  5. Garment capacity ramp-up - Garment utilisation climbed from 24% in Q4 FY25 to 49% in Q4 FY26, and the segment is backed by PLI scheme selection for seamless MMF apparel through FY30. Revenue from garments grew 3.55x over six years from a small base, and every point of utilisation gain on the ₹254 Cr capacity flows through at high incremental margin.
  6. Deleveraging from a capex holiday - Management has explicitly paused major capex for 12-18 months and targets reducing debt by roughly ₹350 Cr over three years from internal cash generation. With maintenance capex guided at ₹50-70 Cr annually and FY26 EBITDA at ₹329 Cr, the resulting free cash flow directly improves balance-sheet strength and ROCE, which already moved from 6.80% to 9.92% in FY26.
  7. Denim export leadership with no further capex - Denim capacity utilisation reached 98% in Q4 FY26, and the company was recognised as India’s highest exporter of denim fabric by volume. With no additional capex planned and job-work available for outsourced processes, incremental demand converts to revenue at high operating leverage.
  8. 20 MW hybrid captive project with Clean Max Kenai - A share purchase agreement signed in January 2026 gives Sangam a 49% stake in an SPV building a 20 MW wind-solar hybrid project at Jodhpur, targeting commercial operations by April 2027. The projected ₹26 Cr annual saving would bring total renewable-energy cost reductions to roughly ₹58 Cr per year once all three projects are running.