Sutlej Textiles and Industries Limited has informed the Exchange about Transcript
SUTLEJTEX · price
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Sutlej Textiles reported weak Q1 FY26 results with consolidated total income at INR 610 crores, down 8% year-on-year. Gross margin fell 165 basis points to 42.4%, EBITDA was just INR 1 crore (0.2% margin), and the company posted a loss of INR 30 crores. The yarn segment (90% of revenue) was hit hard by over a month of operational disruption at the Kathua (J&K) facility due to the India-Pakistan conflict, which cost roughly 18% of total capacity. Margin pressure came from elevated raw cotton and energy costs, volatile polyester prices linked to crude, and lower yarn selling prices. Management said US tariff exposure is minimal (around 3.5% of total volume), while 65% of sales are domestic and Bangladesh is the largest export market. The company is exploring new areas like technical textiles, industrial yarns, and fire-retardant yarns, and sees opportunity in the India-UK FTA for home textile exports.
The quarter was a washout with a loss, driven by a one-off geopolitical disruption and ongoing margin pressure, but management expects a recovery in coming quarters as the Kathua unit is back to full production and home textile utilization improves. For shareholders, this is a cautious near-term outlook — any bounce depends on cotton/polyester price stability and execution on the value-added yarn shift.