Sutlej Textiles and Industries Ltd

Sutlej Textiles and Industries Limited trading window closed from 01st October, 2026 until 48 hours after declaration of financial results for the quarter and half year ended 30th September, 2026

ESOP grant details

• NRC approved grant of 50,000 ESOPs under ESOP 2026 on 18 Sept 2026.
• 50,000 options exercisable into equal number of Re 1 shares.
• Exercise price Rs 38.15 per option, equal to weighted average price on grant date.
• Vesting: Year1 20%, Year2 20%, Year3 30%, Year4 30%.
• Exercisable within 1 year from each vesting date.
• No options exercised yet; no money realized.
• Scheme complies with SEBI SBEB Regulations 2021.
• Total shares arising on exercise: Nil.
• Options lapsed: Nil.
• Annexure A contains detailed terms; available on company website.

Financial Performance

• Standalone income INR 704 crores, up 17% YoY; Q4 FY26 strongest quarter.
• Gross margin 46.8%, up ~370 bps vs Q1 FY26.
• EBITDA 47.2 crores; EBITDA margin 6.7%; vs 5 crores and 0.8% YoY.
• Raw material consumption 53.2% of revenue, down from 56.9%.
• Employee cost 16.6% of revenue; annual wage revision absorbed.
• PBT INR 4.2 crores; PAT INR 1.5 crores; tax 2.7 crores.
• Consolidated results turned positive; working capital comfortable.

Segment Update

• Yarn: revenue 640 crores, up 16%; EBITDA 34.4 crores vs 6.5.
• SGF demand structural; post-consumer PET bottles into certified sustainable material.
• Home textiles revenue up 22%; profitability held; first-half visibility healthy; design-led.
• Market diversification: Far East/Africa moved to repeated orders.
• Value addition: ~1/3 portfolio to value-added; Protech trials progressing.
• Capex funded from existing facilities; all clusters delivered positive EBITDA in Q1.

Outlook and Guidance

• Not declaring turnaround complete; burden of proof rests with us.
• Objective to build durable value; not maximize the quarter.
• Sequential gains expected; Q1 data point; plan on track.
• Maintain or better Q1 numbers in Q2; no fixed outlook yet.
• Home textiles doubling in two years.
• Capex funded from existing facilities; no equity issuance.

Q&A Highlights

• Yarn value-added target 30-35%; current 10-15%; trials 3-6 months.
• Near-term yarn EBITDA margins to be in the two-digit range.
• Home textiles growth doubling in about 2 years.
• Green fiber top line around INR 400 crores; 70-75% consumed in own units.
• Debt: short-term working capital increases to support revenue growth.
• Q2/Q3: aim to better Q1 performance.

Meeting Details

• Date and time: 06 August 2026 at 04:30 p.m. IST.
• Type: earnings conference call with investors.
• Organizer: Sutlej Textiles and Industries Limited.
• Purpose: discuss Q1FY27 results.
• Recording: audio recording of the earnings call is available.

Business Overview

• Core business: yarn manufacturing with Home Textiles and Green Fibre segments.
• Nesterra premium home textiles brand expanding across markets.
• Strategic emphasis on value-added products, operational excellence, and disciplined capex.

Key Operational Highlights

• Q1FY27 standalone revenue ₹704 Cr; consolidated ₹705 Cr; QoQ growth ~0.8%.
• Nesterra revenue ₹48 Cr; 50% export mix; 466 active stores.
• Standalone EBITDA ₹47 Cr; margin 6.7%; Consolidated ₹46 Cr; margin 6.5%.

Financial Performance

• YoY revenue growth: Standalone 16.7%; Consolidated 15.6%.
• Standalone PAT ₹3 Cr; PAT margin 0.4%.
• Consolidated PAT ₹1 Cr; PAT margin 0.1%.

Capital Structure & Liquidity

• No material debt/equity changes disclosed in this update.

Strategic Priorities & Outlook

• Focus on value-led growth, cost optimization, renewables focus.
• Milestone-based capital allocation; forward integration; geographies diversification.
• Sustainability initiatives; Digital Product Passports; Nesterra expansion.

Risks & Mitigation

• External uncertainties in global textiles; mitigated by diversified sourcing and cost discipline.

Governance & Leadership

• Board includes Executive Chairman C.S. Nopany; CFO Sachin J. Karwa; independent directors.