Yarn division capacity utilization
93%
+4pp YoY
Yarn division operating at over 93% utilization, up from 89% effective spindle utilization.
SUTLEJTEXTILESAND
Other
2026-04-??
Sutlej Textiles and Industries Limited — Q4 FY26
Sutlej Textiles reported Q4 FY26 standalone revenue of ₹699 crore, up 4% YoY, with EBITDA surging 115% YoY to ₹37 crore and margin expanding to 5.3% (from 0.8% in Q1 FY26).
✓ Verified against BSE filing
2-Min Summary
Sutlej Textiles reported Q4 FY26 standalone revenue of ₹699 crore, up 4% YoY, with EBITDA surging 115% YoY to ₹37 crore and margin expanding to 5.3% (from 0.8% in Q1 FY26). The full-year EBITDA grew 25% YoY to ₹85 crore despite a 3% revenue decline, driven by cost rationalization, product mix upgrade, and home textiles turnaround (EBITDA swung from -₹3.5 crore to +₹8.4 crore). Management guided FY27 as an inflection year toward profitable growth and deleveraging, with home textiles order book at 180 days and Sutlej Green Fiber operating at over 100% utilization. Key risks include global tariff uncertainty, raw material price volatility, and the ongoing closure of the US subsidiary (American Silk Mills) incurring inventory losses.
Key Numbers
Home textiles order book
180 days
strongest ever
Home textiles order pipeline at 180 days, the strongest visibility ever.
Sutlej Green Fiber utilization
100%+
breakout year
Sutlej Green Fiber (recycled polyester) operating at over 100% utilization.
Home textiles EBITDA
₹8.4 crore
+₹11.9 crore YoY
Home textiles swung from -₹3.5 crore to +₹8.4 crore EBITDA in FY26.
Management Guidance
FY27 EBITDA expansion on FY26 base
Management expects EBITDA to expand meaningfully in FY27 compared to FY26, driven by yarn margin improvement, home textile scaling, and cost discipline.
marginsHome textiles revenue to double or more in FY27
Based on strong order book and strategic customer commitments, home textiles EBITDA is expected to at least double from ₹8.4 crore in FY26.
growthCapex plan milestone-based, FY26 capex ~₹70 crore
FY27 capex will be milestone-driven; FY26 capex was approximately ₹70 crore. Specific FY27 numbers to be shared in coming quarters.
capexKey Risks
Global tariff uncertainty and raw material volatility
Management acknowledged forex hedging discipline, global tariff uncertainty, and borrowing cost management as key watch areas.
high · management_commentaryUS subsidiary closure and inventory losses
The closure of American Silk Mills in the US is causing inventory losses, though management clarified these are not from Indian operations.
medium · analyst_questionYarn margin recovery dependent on external factors
Management declined to give a timeline for double-digit EBITDA margins, citing dependence on market conditions and raw material prices.
medium · analyst_questionNotable Quotes
Q4 has been the best quarter of the year, both operationally and financially.
The strategic pivot is working and it is working through design not luck.
FY27 will be a year of inflection. Direction of travel is profitability, EBITDA expansion and a clear deleveraging trajectory.