Sutlej Textiles Q1 FY27: Returns to Profitability with 17% Revenue Growth
Sutlej Textiles reported Q1 FY27 results with standalone total income up 17% to ₹704 crores. EBITDA surged to ₹47.2 crores, and the company returned to profitability with a profit of ₹2.7 crores. This turnaround is attributed to strategic initiatives like product mix enhancement, cost rationalization, and business integration.
The return to profitability after a prolonged difficult period, coupled with strong revenue growth and margin expansion across all business segments, signifies a major positive development for the company and its stakeholders.
The company has returned to profitability with significant year-on-year growth in revenue and EBITDA, driven by strategic improvements and operational efficiency. This indicates a positive financial turnaround.
Sutlej Textiles and Industries Limited announced its Q1 FY27 results, reporting a return to profitability after a challenging period. The company's standalone total income for the quarter ended June 30, 2026, grew by 17% year-on-year to ₹704 crores. This growth was accompanied by a significant expansion in gross margin to 46.8%, an increase of 370 basis points compared to the previous year.
EBITDA for the quarter stood at ₹47.2 crores, a substantial ninefold increase from ₹5 crores in Q1 FY26, with EBITDA margins improving to 6.7% from 0.8% a year ago. This marks the fifth consecutive quarter of margin expansion for the company. Profit before tax was ₹4.2 crores, a significant turnaround from a loss of ₹38.6 crores in the corresponding quarter last year. After tax, the profit stood at ₹2.7 crores compared to a loss of ₹25.7 crores in Q1 FY26. The company highlighted that this quarter's results were entirely operational, with no exceptional items.
The company's strategic focus on product mix, cost rationalization, and integration from fiber to fabric is now reflecting in its financials. All three business clusters and six manufacturing units delivered positive EBITDA this quarter, indicating a broad-based recovery. The yarn segment saw revenue grow by 16% to ₹640 crores, with EBITDA rising nearly fivefold to ₹34.4 crores. Sutlej Green Fibre, focusing on recycled PET bottles, is highlighted as a key value-addition driver, supported by structural demand in regulated markets.
The home textiles business also turned profitable, with revenue growing 22%. The company is progressing on its strategic priorities of market diversification, value addition (aiming for 30-35% of the yarn portfolio in value-added categories), and cost efficiency. Capital expenditure is being funded through internal accruals and existing facilities, with no additional equity requirement. Looking ahead, Sutlej Textiles remains cautiously optimistic, aiming to maintain or better Q1 FY27 performance in the upcoming quarters.
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