Sutlej Textiles and Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Sutlej Textiles and Industries Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sutlej Textiles reported standalone total income of Rs 704 crore for Q1 FY27, up 17% year-on-year, with EBITDA of Rs 47.2 crore and EBITDA margin of 6.7%, marking the fifth consecutive quarter of margin expansion. The company returned to profit at both standalone and consolidated levels with profit before tax of Rs 4.2 crore, compared with a loss in the same quarter last year, and management said there were no exceptional items in the quarter. Management attributed the results to product mix improvement, integrated fiber operations, cost discipline, and said all three business clusters and six manufacturing units delivered positive EBITDA in the quarter.
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Numbers mentioned
Standalone total income: INR704 crores (Q1 FY27)
p. 3
“Stand-alone total income for the quarter stood at INR704 crores, higher by 17% year-on-year and marginally ahead of Q4, which was itself our strongest quarter of FY26.”
Sachin Karwa, page 3 of the filed PDF · View the filing
Gross margin: 46.8% (Q1 FY27)
p. 3
“Gross margin came at 46.8%, an expansion of approximately 370 basis points over the same last quarter last year.”
Sachin Karwa, page 3 of the filed PDF · View the filing
Raw material consumption as % of revenue: 53.2% (Q1 FY27)
p. 3
“Raw material consumption improved to 53.2% of the revenue from 56.9%, reflecting better product mix, our integrated fiber operations and disciplined procurement through a rising input cost environment.”
Sachin Karwa, page 3 of the filed PDF · View the filing
Employee cost as % of revenue: 16.6% (Q1 FY27)
p. 3
“Employee cost stood at 16.6% of the revenue against 17.7% a year ago.”
Sachin Karwa, page 3 of the filed PDF · View the filing
Power and fuel as % of revenue: 11% (Q1 FY27)
p. 3
“Power and fuel improved to 11% of revenue from 12.2%.”
Sachin Karwa, page 3 of the filed PDF · View the filing
EBITDA: INR47.2 crores (Q1 FY27)
p. 3
“EBITDA for the quarter stood at INR47.2 crores against INR5 crores in Q1 FY26 with EBITDA margins at 6.7% against 0.8% a year ago and 5.3% in the preceding quarter.”
Sachin Karwa, page 3 of the filed PDF · View the filing
Finance cost: INR18.3 crores (Q1 FY27)
p. 4
“Finance cost stood at INR18.3 crores, higher than INR17 crores in the preceding quarter.”
Sachin Karwa, page 4 of the filed PDF · View the filing
Depreciation: INR27.4 crores (Q1 FY27)
p. 4
“Depreciation stood at INR27.4 crores, marginally lower year-on-year.”
Sachin Karwa, page 4 of the filed PDF · View the filing
Profit before tax: INR4.2 crores (Q1 FY27)
p. 4
“This brings us to profit before tax of INR4.2 crores against a loss of INR38.6 crores in Q1 FY26.”
Sachin Karwa, page 4 of the filed PDF · View the filing
Profit after tax: INR1.5 crores (Q1 FY27)
p. 4
“After tax of INR1.5 crores, profit tax stood at INR2.7 crores against loss of INR25.7 crores in the corresponding quarter.”
Sachin Karwa, page 4 of the filed PDF · View the filing
Yarn segment revenue: INR640 crores (Q1 FY27)
p. 5
“Segment revenue of INR640 crores grew 16%, but the more important number is the segment EBITDA of INR34.4 crores against INR6.5 crores a year ago, almost a fivefold improvement on 16% more revenue.”
Ashish Kumar Srivastava, page 5 of the filed PDF · View the filing
Home textiles revenue growth: 22% (Q1 FY27)
p. 5
“Home textiles grew revenue 22% and held profitability against the loss a year ago.”
Ashish Kumar Srivastava, page 5 of the filed PDF · View the filing
Green fiber gross sales: roughly INR400 crores
p. 10
“if you were to look at the gross margin, I mean, the gross sales, it will be roughly about INR400 crores.”
Ashish Kumar Srivastava, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Interest cost — about INR75 crores · FY27
stated firmly by Ashish Kumar Srivastava
p. 10
“And I think this year, we should be at about -- we'll be about INR75 crores.”
Ashish Kumar Srivastava, page 10 of the filed PDF · View the filing
Value-added yarn portfolio share — 30% to 35%
stated as an aspiration by Ashish Kumar Srivastava
p. 5
“Our commitment to move roughly 1/3 of the portfolio into value-added categories, and we are executing to that plan.”
Ashish Kumar Srivastava, page 5 of the filed PDF · View the filing
EBITDA margin — double-digit
stated as an aspiration by Ashish Kumar Srivastava
p. 7
“But at the steady state, I mean, obviously, everybody, all the textile units look at a double-digit EBITDA, and that should be our at least target in times to come.”
Ashish Kumar Srivastava, page 7 of the filed PDF · View the filing
Home textile business scale — doubling · about 2 years
stated as an aspiration by Ashish Kumar Srivastava
p. 10
“we are looking at doubling this in about 2 years, the home textile business.”
Ashish Kumar Srivastava, page 10 of the filed PDF · View the filing
Quarterly performance — better than Q1 · Q2 FY27
stated as an aspiration by Ashish Kumar Srivastava
p. 11
“what we are saying is we will maintain or we'll better the numbers what we have done for Q1.”
Ashish Kumar Srivastava, page 11 of the filed PDF · View the filing
Southeast Asia and Latin America market entry — new market entry · this financial year
stated firmly by Ashish Kumar Srivastava
p. 5
“Further, markets in Southeast Asia and Latin America remain on track for entry this financial year.”
Ashish Kumar Srivastava, page 5 of the filed PDF · View the filing
Capital expenditure funding — no additional equity · FY27
stated firmly by Ashish Kumar Srivastava
p. 6
“Everything we have described is funded from existing facilities with no equity requirement and no dependence on market conditions because we are mostly upgrading assets we already own rather than building new capacity.”
Ashish Kumar Srivastava, page 6 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the value-added mix is currently around 10-15% of the yarn portfolio, with a pipeline of products under evaluation by customers.
Answered by Ashish Kumar Srivastava
Asked by Himanshu Bisani: What is the current mix of value-added products in the yarn portfolio versus the 30-35% target?
p. 6
“At this point of time, possibly 10% to 15% of our products in yarn is on that category.”
Ashish Kumar Srivastava, page 6 of the filed PDF · View the filing
Management attributed about 60% of the improvement to moving up the value chain and the balance to operational efficiency.
Answered by Ashish Kumar Srivastava
Asked by Himanshu Bisani: How much of the EBITDA improvement in yarn came from spread expansion versus value-added products and integration?
p. 7
“I would say that almost 60% is coming -- of that improvement is coming because we are moving the product categories up.”
Ashish Kumar Srivastava, page 7 of the filed PDF · View the filing
Management acknowledged costs are higher than desired, attributed it partly to the complexity of the melange and dyeing business, and said they are working to bring it down.
Answered by Ashish Kumar Srivastava
Asked by Amit Aggarwal: Why has employee cost remained structurally high compared to peers over many years?
p. 8
“So, you are right when you say that we are -- and we are cognizant of the fact that we need to bring down, we are working upon it.”
Ashish Kumar Srivastava, page 8 of the filed PDF · View the filing
Management said interest cost percentage improved by 40 basis points but absolute interest outflow will rise due to capex, estimating about INR75 crores this year versus INR67 crores last year.
Answered by Ashish Kumar Srivastava
Asked by Himanshu Bisani: What is the expected absolute interest cost for the year?
p. 10
“What we have said is that we have reduced our interest cost percentage by about 40 basis points, right?”
Ashish Kumar Srivastava, page 10 of the filed PDF · View the filing
Management said customers are cautious but have begun rebuilding inventories gradually.
Answered by Ashish Kumar Srivastava
Asked by Deepak: How has customer ordering behavior changed compared to Q4?
p. 11
“Now it's primarily -- they are not taking large funds on this, but they are definitely rebuilding it as it goes.”
Ashish Kumar Srivastava, page 11 of the filed PDF · View the filing
Management said cotton prices are expected to stay flat to slightly higher, calling the outlook neutral to bullish, while polyester prices could ease depending on geopolitical conditions.
Answered by Ashish Kumar Srivastava
Asked by Maulik Gandhi: What is the outlook for raw material prices, particularly cotton and polyester, over the next year?
p. 12
“So soft on the synthetics. On cotton, it is neutral to bullish.”
Ashish Kumar Srivastava, page 12 of the filed PDF · View the filing
Risks flagged
Cotton, polyester and viscose price volatility tied to global crude and geopolitical uncertainty
p. 3
“Cotton prices moved upward during the quarter, while polyester and viscose stayed firm on global crude.”
Sachin Karwa, page 3 of the filed PDF · View the filing
Geopolitical uncertainty and evolving trade dynamics affecting the industry
p. 3
“but the industry continued to contend with geopolitical uncertainty, raw material price volatility and evolving trade dynamism.”
Sachin Karwa, page 3 of the filed PDF · View the filing
Raw material prices, geopolitics and global demand remain outside company control
p. 6
“Raw material prices, geopolitics and global demand are outside our control, and we take nothing for granted.”
Ashish Kumar Srivastava, page 6 of the filed PDF · View the filing
Bangladesh export market yet to recover to prior demand levels
p. 11
“It has still not come down -- come up to the levels where it was 2 years back, but it is stable.”
Ashish Kumar Srivastava, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.