Sarla Performance Fibers Q4 FY26 results: net loss of ₹59.72 crore vs ₹26.37 crore profit, revenue down 49.3%

How did Sarla Performance Fibers perform in Q4 FY26?

Sarla Performance Fibers reported consolidated revenue of ₹102.53 crore in Q4 FY26, down from ₹202.41 crore in Q4 FY25. EBITDA was ₹2.14 crore, with a margin of 2.1%, compared with ₹47.74 crore and 23.6% a year earlier. The company reported a net loss of ₹59.72 crore and basic EPS of ₹7.14 loss, against a net profit of ₹26.37 crore and EPS of ₹3.17 in Q4 FY25.

Against Q3 FY26, revenue rose by ₹13.33 crore to ₹102.53 crore, while EBITDA fell by ₹0.45 crore to ₹2.14 crore and the margin declined by 0.8 percentage points to 2.1%. Profit before tax moved from ₹6.88 crore to a loss of ₹71.66 crore, and the company moved from a net profit of ₹5.02 crore to a net loss of ₹59.72 crore. On the standalone basis, revenue was ₹98.5 crore and profit after tax was a loss of ₹34.8 crore.

What changed in Sarla Performance Fibers' costs and profit?

Total expenses were ₹108.33 crore in Q4 FY26, down from ₹173.93 crore in Q4 FY25. Cost of materials fell by ₹44.96 crore to ₹41.97 crore, employee cost by ₹3.98 crore to ₹6.64 crore, finance costs by ₹4.81 crore to ₹1.79 crore, depreciation by ₹6.52 crore to ₹6.14 crore and other expenses by ₹13.56 crore to ₹50.43 crore. Other income rose by ₹9.07 crore to ₹11.27 crore, while the tax charge moved from ₹4.31 crore to a credit of ₹11.94 crore.

The quarter included an exceptional charge of ₹77.13 crore, against no exceptional item in Q4 FY25. The filing states that the consolidated qualification related to the sale of 11 Non-Cumulative Redeemable Preference Shares held in wholly owned subsidiary Sarla Flex Inc., with a loss of ₹7,713.26 lakhs recognised as an exceptional item. It also says the company had applied to regulators for approvals relating to the sale, write-off and credit of sale proceeds, and that those approvals remained pending.

How did Sarla Performance Fibers do in FY26 as a whole?

For FY26, consolidated revenue was ₹401.23 crore, down ₹25.87 crore or 6.1% from ₹427.1 crore in FY25. Total income was ₹457.88 crore, up ₹5.59 crore or 1.2% from ₹452.29 crore. Profit before tax moved from ₹78.86 crore to a loss of ₹15.41 crore, while profit after tax moved from ₹62.36 crore to a loss of ₹13.32 crore. Basic EPS changed from ₹7.47 to ₹7.14 loss.

What do the balance sheet and cash flow show?

At 31 March 2026, total assets were ₹830.94 crore, compared with ₹777.15 crore at 30 September 2025. Total equity was ₹514.63 crore against ₹514.57 crore, borrowings were ₹191.02 crore against ₹160.47 crore, and cash was ₹2.69 crore against ₹3.32 crore. Inventories were ₹77.36 crore, trade receivables ₹114.7 crore and trade payables ₹36.14 crore.

FY26 operating cash flow was ₹74.21 crore, compared with ₹62.4 crore in FY25. Investing cash flow was a net outflow of ₹80.72 crore against ₹90.16 crore, while financing cash flow was ₹6.72 crore against ₹26.55 crore. Capital expenditure was ₹17.85 crore, compared with ₹20.55 crore a year earlier.

How has Sarla Performance Fibers done over the last 8 quarters?

Revenue reached ₹202.41 crore in Q4 FY25, the highest among the listed quarters, before falling to ₹89.2 crore in Q3 FY26 and recovering to ₹102.53 crore in Q4 FY26. Profit after tax peaked at ₹26.37 crore in Q4 FY25 and turned to a loss of ₹59.72 crore in Q4 FY26. EBITDA margin reached 25.5% in Q3 FY25, declined to 2.9% in Q3 FY26 and was 2.1% in Q4 FY26.

Which businesses drove the quarter?

Yarn reported revenue of ₹101.81 crore and EBIT of ₹26.33 crore for Q4 FY26, with an EBIT margin of 25.9%. Wind Power reported revenue of ₹0.98 crore and EBIT of a loss of ₹5.02 crore, with an EBIT margin of -515.0%. The facts do not provide year-ago segment revenue or EBIT, so growth against Q4 FY25 is not stated.

What else did the company announce?

The board approved the audited standalone and consolidated financial results and financial statements for the quarter and year ended 31 March 2026. It recommended a final dividend of 22 paise per equity share of ₹1 each, subject to shareholder approval; promoters and the promoter group said they would waive their rights to receive it. The board also approved the re-appointment of Ms. Pooja Dharewa as internal auditor and Kasina & Associates as cost auditor for FY27.

A board-meeting intimation also included consideration of a proposal for a buyback of fully paid-up equity shares of ₹1 each. The same-day chairman and managing director note said management had decided to divest its investment in preference shares of Sarlaflex Inc. The 33rd AGM was scheduled for 29 July 2026, with remote e-voting from 24 July to 28 July 2026.

What did the auditors point out?

C N K & Associates LLP issued a qualified opinion on the consolidated audited financial results for the quarter and year ended 31 March 2026. The qualification related to the loss of ₹7,713.26 lakhs on the sale of preference shares held in wholly owned subsidiary Sarla Flex Inc.; the filing says the company had applied to regulators for necessary approvals and that the approvals were still awaited. The auditors also stated that the subsidiary’s financial results were prepared on a ‘Going Concern’ basis despite the suspension of manufacturing operations since December 2017 and negative net worth. They further stated that investments in three joint ventures were not consolidated because of unresolved disputes or non-receipt of financial statements for the year ended 31 March 2026.

How did Sarla Performance Fibers shares react?

How did other Other Textile Products companies do?

Other Textile Products companies that had filed the quarter included 191 companies, with a median revenue growth of 1.4%. Nine grew slower than Sarla Performance Fibers and 182 grew faster. Among 206 peers for which profit was compared, 105 reported higher profit.