Sutlej Textiles Q1 FY27 Results (NSE: SUTLEJTEX)
Signal: Loss reversed
The read
The operating inflection is meaningful: consolidated revenue rose 15.4% YoY and EBITDA margin reached 6.5% after the recent Q1FY26 trough, while Yarn turned a ₹14.75 crore YoY loss into a ₹24.06 crore profit; however, home textiles remained loss-making at ₹2.05 crore and reported PAT quality is clouded by other income of ₹7.04 crore against PBT of ₹2.32 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹697.84 Cr | +15.4% | +0.7% |
| EBIT | ₹20.65 Cr | N/A | |
| Net profit | ₹0 Cr | N/A | |
| EPS | ₹0.05 | N/A | |
| EBIT margin | 6.5% |
P&L walk
Consolidated revenue rose to ₹697.84 crore, +15.4% YoY and +0.7% QoQ; gross margin expanded to 46.4% despite raw-material cost rising to 62.2% of revenue, EBITDA margin was 6.5%, and reported PAT was ₹0 while the filing face shows a ₹0.85 crore profit reconciliation.
Segments
Yarn drove the recovery with revenue of ₹650.10 crore, +15.6% YoY, and segment result of ₹24.06 crore versus a ₹14.75 crore loss; home textiles remained loss-making at negative ₹2.05 crore despite improving from a ₹9.84 crore loss YoY.
Key positives
- Consolidated revenue increased to ₹697.84 crore, +15.4% YoY, reversing the prior Q1FY26 revenue decline of 8.1% indicated in the company series.
- EBITDA margin was 6.5%, with EBITDA of ₹45.62 crore; employee costs rose 9.3% YoY versus revenue growth of 15.4%, supporting fixed-cost absorption.
- Yarn segment result improved to ₹24.06 crore from a ₹14.75 crore loss YoY, while Yarn revenue rose to ₹650.10 crore from ₹562.48 crore.
- Gross margin expanded by approximately 450bps YoY to 46.4%, although the filing does not disclose whether the improvement reflects pricing, mix, or input-cost effects.
Key concerns
- Home textile remained loss-making at ₹2.05 crore, despite improving from a ₹9.84 crore loss YoY, and its assets increased to ₹251.12 crore from ₹234.53 crore.
- Finance costs rose 6.8% YoY to ₹18.33 crore and absorbed a substantial portion of the ₹22.01 crore consolidated segment result.
- Raw-material cost increased to 62.2% of revenue from 56.8% YoY, so the gross-margin expansion appears dependent on the ₹70.95 crore negative inventory change; the filing does not disclose the underlying cause.
- The Group granted 17,00,000 ESOPs at ₹36.73 per option; paid-up capital is currently unchanged, but future vesting can create dilution.
Earnings quality: includes non-operating other income
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