Sutlej Textiles and Industries Limited
Quick Take
- • Trading at n/a trailing earnings (5.6× forward)
- • Moderate ROE at -6.8%
- • Leveraged balance sheet (D/E 1.14)
- • No dividend data
- • Operating margin 1.9% · Net margin -2.1%
- • Profit growth — YoY · Beta 0.66
Latest quarter · Jun 2026
| ₹ Cr | Jun 2026 | QoQ | YoY |
|---|---|---|---|
| Revenue | 698 | +0.72% | +15.37% |
| Operating Profit | 46 | +91.67% | +4500.00% |
| Net Profit | 1 | +105.56% | +103.33% |
| EPS (₹) | 0.05 | +104.50% | +102.72% |
Shareholding Pattern
| Sept 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sept 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|
| Promoters | 63.96% | 63.96% | 63.96% | 63.96% | 63.96% | 63.96% | 63.96% | 63.96% |
| FIIs▼0.11 | 1.45% | 1.49% | 1.45% | 1.44% | 1.42% | 1.41% | 1.05% | 0.94% |
| DIIs | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% |
| Government | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Public▲0.11 | 34.57% | 34.53% | 34.57% | 34.58% | 34.60% | 34.61% | 34.97% | 35.08% |
| No. of Shareholders | 29,647 | 28,810 | 28,619 | 27,951 | 27,747 | 27,049 | 26,541 | 25,667 |
* 1. Shareholders under Promoter/Promoter group are 17. Shruti Family Trust, part of Promoter Group has sold its holding in the Company and hence is not reflected in this shareholding pattern, as the XBRL taxonomy is not accepting NIL/0 holding against Shruti family Trust. In view of the same, even though, the total Promoter/Promoter Group has 17 entities/individual, only 16 are reflected in this shareholding pattern due to the above reason. 2. In Table VI - Statement showing foreign ownership limits, we have considered shares held by Foreign Institutions and Non-Resident Indians for the purpose
About the company
From latest AR & concallBusiness overview Sutlej Textiles and Industries Limited is an integrated textile manufacturer in India, producing a diverse portfolio of synthetic, natural, mélange, and blended yarns, recycled polyester fibre, and home furnishings. The company is transitioning from commodity-driven operations to value-added, specialized, and margin-accretive businesses, focusing on speciality yarns, green fibre, home textiles, and technical textiles. It serves a wide range of global and domestic apparel and textile brands, exporting to over 60 countries across the US, Europe, UK, Turkey, China, Hong Kong, Bangladesh, Latin America, and Africa. Key product segments by turnover include cotton, cotton mélange, synthetic and blended yarns (76.4%), recycled polyester staple fibre (13.02%), and weaving fabrics for home textiles (5.44%) for FY 2025-26.
Key facts
- In FY 2025-26, approximately 65% of revenue was from domestic markets and 35% from international sales.
- Yarn business contributed approximately 93% of the consolidated segment revenue and home textiles about 7% in FY 2025-26.
- Installed spinning capacity is 4.11 lakh spindles, with an aggregate production capacity of 270 tonnes per day.
- Operates a green fibre facility with a capacity of 120 metric tonnes per day of recycled polyester fibre, meeting about 70% of internal recycled fibre requirements.
- The company has two wholly-owned subsidiaries in the USA: Sutlej Holdings Inc. and its step-down subsidiary, American Silk Mills, LLC.
- Promoter Group holds 63.96% of shares as of March 31, 2026.
Recent developments (from concall / AR)
- The company is moving 1/3 of its yarn portfolio into value-added segments, with 10-15% already in this category.
- It plans to double its home textile business in approximately two years.
- The technical textiles 'Protech' business is progressing from qualification into sampling and trials, expected to be a contributor by FY28.
- EBITDA for Q1 FY27 increased ninefold to INR 47.2 crores from INR 5 crores in Q1 FY26, with margins at 6.7%, marking the fifth consecutive quarter of margin expansion.
- Capital expenditure of Rs. 63.59 crore was incurred in FY26 for modernization and debottlenecking, with a higher outlay planned for FY27 for strategic investments with short paybacks.
Key risks flagged by management
- Macroeconomic volatility: Global geopolitical tensions, trade disruptions, inflationary pressures, and energy-market uncertainty continue to impact demand, input costs, and trade dynamics.
- Raw material price fluctuations: Volatility in cotton and other fibre prices can affect cost structures and profitability.
- Intense competition: Strong competition from low-cost imports and fragmented unorganized sectors lead to pricing pressure and compressed margins.
- Supply chain disruptions: Global trade disruptions and logistics bottlenecks can affect exports and input availability.
Pros
- Achieved financial turnaround in Q1 FY27 after a challenging period, with broad-based recovery and significant EBITDA margin expansion.
- Strategic shift towards value-added products, green fibre, and technical textiles enhances long-term profitability and reduces cyclicality.
- Strong commitment to sustainability, including a closed-loop model for recycled polyester fibre and investments in renewable energy.
Cons
- Elevated debt-to-equity ratio of 1.12x in FY26, higher than previous fiscal years.
- Reported negative Return on Net Worth of -9.74% in FY26.
- Customer buying patterns remain cautious, indicating persistent demand uncertainty in some markets.
