• Event Type: Q1 FY27 Earnings Conference Call held on Thursday, 06th August 2026. The call included a presentation of financial and operational highlights followed by a question-and-answer session.
  • Date and Time: The conference call was held on Thursday, 06th August 2026. The specific time and time zone were not disclosed in the provided transcript.
  • Purpose of Event: The stated purpose was to discuss the key operating and financial highlights for the quarter ended June 30, 2026 (Q1 FY27).
  • Management Participants: The call was led by Mr. Ashish Kumar Srivastava (Whole-Time Director and Chief Executive Officer) and Mr. Sachin Karwa (Chief Financial Officer).
  • Availability of Materials: The company confirmed that the transcript of the call is being filed with the stock exchanges and is also available on the company's website at www.sutlejtextiles.com. The announcement states that the call incorporated information already in the public domain or available on the company's website.
  • UPSI Statement: The company explicitly stated that the conference call incorporated "highlights of financial results... and other related information which is already in public domain and / or made available / uploaded on the Company's website." This indicates that no unpublished price sensitive information (UPSI) was shared during the call.
  • Financial Period Discussed: The call focused exclusively on the results for the quarter ended 30th June, 2026 (Q1 FY27).
  • Forward-Looking Statements: Management provided a strategic business update and outlook. Key forward-looking statements included:
  • The intent to bring absolute finance costs down as operating cash generation strengthens.
  • A goal to move 30-35% of the yarn portfolio into value-added categories.
  • Plans to double the home textiles business in about two years.
  • The expectation that the Protech (technical textiles) business will be an FY28 contributor, not FY27.
  • A target to achieve double-digit EBITDA margins in the future.
  • Guidance that Q1 performance is considered repeatable and that the company will aim to "maintain or better" these numbers in subsequent quarters.

Financial Highlights from Transcript

Standalone Performance for Q1 FY27:

  • Total Income: INR 704 crores (up 17% YoY)
  • Gross Margin: 46.8% (expansion of ~370 basis points YoY)
  • Raw Material Cost: 53.2% of revenue (improved from 56.9% YoY)
  • Employee Cost: 16.6% of revenue (vs. 17.7% YoY)
  • Power and Fuel Cost: 11.0% of revenue (vs. 12.2% YoY)
  • EBITDA: INR 47.2 crores (vs. INR 5 crores in Q1 FY26)
  • EBITDA Margin: 6.7% (vs. 0.8% in Q1 FY26 and 5.3% in Q4 FY26)
  • Finance Cost: INR 18.3 crores
  • Depreciation: INR 27.4 crores
  • Profit Before Tax (PBT): INR 4.2 crores (vs. loss of INR 38.6 crores YoY)
  • Profit After Tax (PAT): INR 2.7 crores (vs. loss of INR 25.7 crores YoY)
  • The quarter had no exceptional items.

Segment-wise Performance:

  • Yarn Business: Revenue of INR 640 crores (up 16% YoY), Segment EBITDA of INR 34.4 crores (vs. INR 6.5 crores YoY).
  • Sutlej Green Fibre (Recycled Polyester): Gross sales of ~INR 400 crores, with 70-75% consumed internally.
  • Home Textiles: Revenue grew 22% YoY and turned profitable versus a loss a year ago.

Strategic and Operational Highlights:

  • This was the first quarter where all three business clusters (yarn, fiber, home textiles) and all six manufacturing units delivered positive EBITDA.
  • The recovery was attributed to product mix repositioning, cost rationalization, and vertical integration, not market tailwinds.
  • Key strategic priorities are market diversification (growth in Far East, Africa; entry into Southeast Asia and Latin America), value addition, and cost efficiency.
  • The company's capital expenditure plans are secured from internal accruals and existing facilities with no additional equity requirement.
  • The average cost of borrowing saw a 40 basis point improvement through FY26.

Additional Notes Section

  • The document provided is the transcript of the earnings conference call, filed as a regulatory disclosure.
  • The transcript includes the full Q&A session with analysts and investors, covering topics such as margin sustainability, growth plans for value-added yarn and home textiles, raw material price outlook, and employee cost structure.
  • No standalone financial data was disclosed for the first time in this announcement; it is a transcript of a discussion based on results already published.