Sutlej Textiles Q4 & FY26: Best Quarter, EBITDA Up 115% YoY, Home Textiles Turn Profitable
Sutlej Textiles reported its best quarter in Q4 FY26, with EBITDA up over 115% YoY to ₹37 crores. For FY26, EBITDA rose 25% YoY to ₹85 crores despite a 3% revenue dip. The home textile business turned profitable, and management expects FY27 to be an inflection point for profitable growth and deleveraging.
Significant improvements in EBITDA, margin expansion, and the turning around of a key business segment (home textiles) indicate a substantial positive impact on the company's financial health and future outlook.
The company reported strong EBITDA growth, improvement in margins, and profitability in its home textile segment, signaling a positive turnaround and future growth prospects.
Sutlej Textiles and Industries Limited has released the transcript of its earnings conference call for the quarter and full year ended March 31, 2026, held on May 6, 2026. The company reported that Q4 FY26 was its best quarter operationally and financially, despite a challenging global economic backdrop characterized by geopolitical tensions and supply chain disruptions.
Financially, for Q4 FY26, the standalone total income was ₹699 crores, a 4% increase year-on-year. Gross margin improved to 45%, up 329 basis points year-on-year. EBITDA surged over 115% year-on-year to ₹37 crores, with a margin of 5.3% for the quarter.
For the full year FY26, standalone income was ₹2,585 crores, a 3% decrease year-on-year. However, the gross margin improved to 45%, up 233 basis points year-on-year. EBITDA increased by over 25% year-on-year to ₹85 crores, with a margin of 3.3% for the year. Notably, the home textile business turned profitable, and the company's debt position is within its comfort zone.
Management highlighted strategic levers driving performance, including market diversification into new geographies, product upgrades from commodity to value-added segments, and the growth of new drivers like home textiles and technical textiles. The company's sustainable fiber business, Sutlej Green Fiber, operated at over 100% utilization. Sutlej Textiles also published its inaugural sustainability report, aiming to align with global brands' increasing demand for traceability and ESG disclosures.
Looking ahead to FY27, the company expects to cross an inflection point from margin recovery to profitable growth and deleveraging. Key focus areas include continued yarn margin expansion through product mix, scaling the home textile business, further development of Sutlej Green Fiber, and maintaining cost discipline. The company plans calibrated, milestone-based capex, prioritizing investments with clear payback, ROCE, and strategic fit.
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