Promises
2 promises
Promise Tracker
0 delivered, 0 close, 2 missed.
View Promises →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).
bullish
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Promises0 met · 2 missedRisks3 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
3 risks
Risk Intelligence
Global tariff uncertainty and raw material volatility
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Yarn division capacity utilization
93%
+4pp YoY
Yarn division operating at over 93% utilization, up from 89% effective spindle utilization.
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.
What Changed vs Last Quarter
NEW
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.
NEW
Home 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.
NEW
Capex 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.
DROPPED
Q4 FY26 sequential improvement in profitability
Management expects Q4 to be better than Q3, with continued momentum in operating margins.
DROPPED
Cost savings target 40% achieved, full benefit in 2-3 quarters
Employee rationalization and process improvements have delivered ~40% of targeted annual savings; remaining benefits expected over next 2-3 quarters.
DROPPED
Renewable energy benefits from Q1 FY27
Tied up for renewable energy; benefits expected to accrue from Q1 FY27, reducing energy cost (40% of yarn conversion cost).
DROPPED
Home textiles order book visibility through Q1 FY27
Order book for home textiles provides visibility of ~120 days, i.e., through Q1 of next fiscal.
NEW RISK
US 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.
NEW RISK
Yarn 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.
RISK GONE
Bangladesh trade disruption
Bangladesh logistical issues have impacted yarn exports; management reduced exposure but uncertainty remains until elected government takes charge.
RISK GONE
Margin pressure in yarn business
Yarn segment EBITDA was only INR 1 cr despite contributing majority revenue; raw material inflation and competition keep margins under pressure.
Fast read
Guidance and risk preview
Management expects EBITDA to expand meaningfully in FY27 compared to FY26, driven by yarn margin improvement, home textile scaling, and cost discip...
Management acknowledged forex hedging discipline, global tariff uncertainty, and borrowing cost management as key watch areas.
View Risks →