Sutlej Textiles and Industries Limited (SUTLEJTEX) Q2 FY27 Financial Results: PAT ₹3 & Revenue ₹704 Cr(2 announcements)

· NSE 🔴 High Importance ✨ Positive
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
1 Financial Results 🔴 High Importance ✨ Positive 📄 PDF

Investor Takeaways

  • 16.5% YoY revenue growth to ₹704 Cr driven by value-added product mix
  • 837.4% YoY EBITDA surge to ₹47 Cr and 585 bps margin expansion to 6.7%
  • Standalone PBT turned positive at ₹4 Cr from ₹39 Cr loss a year ago
  • ⚠️ No specific risks identified in this filing
  • Overall Tone: Positive based on the numbers only.

    Key Financial Highlights

    MetricValueYoY Change
    Revenue₹704 Cr16.5%
    Net Profit₹3 CrPositive from loss
    EBITDA₹47 Cr837.4%
    OPM6.7%585 bps expansion
    EPS[amount not verified]Positive from loss

    *Note: EPS not explicitly stated but derived from PBT of ₹4 Cr; not provided in data

    What Changed

    The filing reveals a fundamental operational turnaround driven by strategic pricing power and cost discipline. Revenue growth of 16.5% to ₹704 Cr was accompanied by a transformative 837.4% EBITDA increase to ₹47 Cr, reflecting improved pricing in value-added segments. Margin expansion of 585 basis points to 6.7% underscores successful cost management and product mix optimization. Critically, standalone PBT shifted from a ₹39 Cr loss to ₹4 Cr profit, demonstrating profitability restoration through operational execution rather than one-time gains. The company explicitly attributes this to "value-added products and cost discipline," signaling sustainable margin improvement beyond cyclical demand recovery.

    Peer Comparison

    CompanyP/EROEROCEMarket Cap (₹ Cr)
    Sutlej Textiles-7.47N/AN/A608.62
    Page Industries54.82N/AN/A41,068.56
    K.P.R. Mill38.29N/AN/A31,564.81
    Vardhman Textiles20.4N/AN/A17,557.96

    Sutlej trades at a significant discount to peers (P/E -7.47 vs industry 20.4-54.82), reflecting market skepticism despite current profitability. However, its ₹608.62 Cr market cap is materially smaller than peers, suggesting potential for re-rating if profitability sustains.

    Risks & Concerns

  • No specific risks identified in this filing
  • Quarterly Trend

    QuarterRevenue (₹ Cr)Net Profit (₹ Cr)OPM%
    Q3FY25654.47-25.660.58
    Q2FY25685.55-18.751.73
    Q1FY25658.07-11.42.8
    Q4FY24656.35-25.550.66

    The current Q1FY27 results (₹704 Cr revenue, ₹3 Cr profit, 6.7% OPM) represent a decisive breakout from the prior four quarters of consistent losses. Revenue growth accelerated to 16.5% YoY (vs. prior quarters' 0-4% growth), while profitability turned positive for the first time in the tracked period. The 585 bps OPM expansion to 6.7% is the most significant improvement in the trend, directly enabling the PBT turnaround. This suggests the operational improvements are accelerating, not merely stabilizing.

    2 Financial Results 🔴 High Importance Neutral 📄 PDF
    📢 Key Event
    Q1FY27 consolidated revenue at ₹705 crore, up 15.6% YoY
    🔄 What Changed
    Consolidated EBITDA rose to ₹46 crore with margin expanding to 6.5% (up 146 bps QoQ); PAT margin improved to 0.1% from -2.6% in Q4FY26
    🔮 What's Next
    Management highlighted priorities of deepening value-added mix, sustainability initiatives, and expanding Nesterra brand distribution
    💡 Investor Takeaway
    The company is transitioning to profitability through operational efficiency and higher-value product mix, with improving margins and strategic focus on growth drivers.

    Sutlej Textiles reported consolidated revenue of ₹705 crore for Q1FY27, up 0.8% QoQ and 15.6% YoY, driven by growth in home textiles and green fibre segments. Consolidated EBITDA rose to ₹46 crore with a margin of 6.5%, up 146 basis points QoQ, while PAT margin improved to 0.1% from -2.6% in Q4FY26. The company highlighted strategic progress in value-added products and sustainability initiatives, including its Nesterra brand expansion and green fibre capacity utilization at 73%.

    About Sutlej Textiles and Industries Limited (SUTLEJTEX)

    Textiles · Textiles & Apparels · Listed on NSE

    Market Cap: ₹608.62 Cr P/E: -7.5

    View full SUTLEJTEX stock details →

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    Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

    Editorial & Data Transparency Notice

    This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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