Sangam India Faces Profitability Challenges Amid Record Net Sales Performance

Sangam India, a small-cap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment reflecting significant challenges in its performance metrics. The company reported its highest net sales for the quarter ending June 2025, reaching Rs 789.77 crore. However, this positive aspect is overshadowed by a notable decline in profitability, with profit after tax (PAT) plummeting to Rs 3.53 crore, marking a 61.2% drop compared to the previous four-quarter average.
Key performance indicators reveal further struggles, as the operating profit to interest ratio stands at its lowest at 1.90 times, while interest expenses have surged to Rs 30.30 crore. Additionally, the operating profit to net sales ratio is at a mere 7.30%, and the profit before tax (PBT) less other income is recorded at Rs -8.55 crore. The earnings per share (EPS) has also dipped to Rs 0.42, indicating ongoing financial strain.

In terms of market performance, Sangam India's stock has faced challenges compared to the Sensex, with a year-to-date return of -1.39% against the Sensex's 3.15%. Over the past five years, however, the company has shown remarkable growth with a return of 734.01%, significantly outperforming the Sensex's 114.32%. This juxtaposition highlights the volatility and potential for recovery in the long term, despite current setbacks.