Transcript of Q4 and FY26 Earnings Conference Call
SUTLEJTEX · price
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Sutlej Textiles reported Q4 FY26 standalone total income of INR699 crores (+4% YoY) with EBITDA at INR37 crores (+115% YoY) and a 5.3% EBITDA margin. Full-year FY26 standalone income was INR2,585 crores (-3% YoY) but EBITDA grew 25% to INR85 crores (3.3% margin), with gross margin at 45% (+233 bps). The home textile division swung from a loss of INR3.5 crores to a profit of INR8.4 crores. Management described FY26 as demonstrating that the margin-led strategic pivot is working, with EBITDA margins expanding fourfold from 0.8% in Q1 to 5.3% in Q4. Key growth drivers cited include product upgrade toward value-added yarn, scaling of Sutlej Green Fiber (recycled polyester operating at 100%+ utilization), a 180-day order pipeline in home textiles, and a planned entry into technical textiles (protective gear) targeting 12-15% margins. FY27 is guided as the inflection year where the company moves from margin recovery to profitable growth with improved debt metrics.
The turnaround in margins despite revenue contraction demonstrates execution of the strategic shift toward value-added products; FY27 guidance of meaningful EBITDA expansion and return to profitability after two years of losses is a positive signal for shareholders.