Sutlej Textiles and Industries Limited (SUTLEJTEX) Q2 FY27 Financial Results: PAT ₹3 & Revenue ₹704 Cr(2 announcements)
Investor Takeaways
Overall Tone: Positive based on the numbers only.
Key Financial Highlights
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | ₹704 Cr | 16.5% |
| Net Profit | ₹3 Cr | Positive from loss |
| EBITDA | ₹47 Cr | 837.4% |
| OPM | 6.7% | 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
| Company | P/E | ROE | ROCE | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Sutlej Textiles | -7.47 | N/A | N/A | 608.62 |
| Page Industries | 54.82 | N/A | N/A | 41,068.56 |
| K.P.R. Mill | 38.29 | N/A | N/A | 31,564.81 |
| Vardhman Textiles | 20.4 | N/A | N/A | 17,557.96 |
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
Quarterly Trend
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM% |
|---|---|---|---|
| Q3FY25 | 654.47 | -25.66 | 0.58 |
| Q2FY25 | 685.55 | -18.75 | 1.73 |
| Q1FY25 | 658.07 | -11.4 | 2.8 |
| Q4FY24 | 656.35 | -25.55 | 0.66 |
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.
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
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📊 More SUTLEJTEX filings
- 🔴 Financial Results — 11 August 2026 Sutlej Textiles reported Q1 FY27 revenue of **₹704 crores**, up 17% YoY, with EBITDA at **₹47.2 cror...
- 🟡 Board Meeting — 27 July 2026 Sutlej Textiles held its 21st AGM on 27 July 2026 via video conference, with 84 shareholders present...
- 🔴 Announcement — 23 July 2026 No summary available
- 🟡 Board Meeting — 17 July 2026 No summary available
- share transfer — 10 July 2026 Sutlej Textiles and Industries Limited received a SEBI-mandated share transfer agent certificate for...
🔥 Also filed on 6 August 2026
Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.
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