Sutlej Textiles and Industries Limited — Q3 FY26

Sutlej Textiles reported Q3 FY26 standalone revenue of INR 640 cr, down 2% YoY, but EBITDA surged over 200% YoY to INR 25 cr with margin expansion of 350 bps to 4%. PAT remained negative at INR -11 cr. The improvement was driven by cost optimization initiatives (30-40% of targeted savings achieved), product mix shift towards value-added yarns, and market diversification into Far East and Africa, reducing Bangladesh concentration. Home textiles order book provides visibility through Q1 FY27. Management expects Q4 to show continued sequential improvement, with full benefits of cost savings and renewable energy tie-ups (from Q1 FY27) flowing in over 2-3 quarters. Key risk: raw material price volatility, especially cotton, which rose 7-8% during the quarter and could pressure margins if not passed through.