Sutlej Textiles returns to Rs 7.78 crore quarterly profit

Sutlej Textiles and Industries Limited returned to consolidated profit of Rs 7.78 crore in the quarter ended 30 September 2026, compared with a Rs 21.86 crore loss a year earlier, after both yarn and home textile reported positive results before finance costs and tax. Revenue from operations reached Rs 825.95 crore.

How did Sutlej Textiles return to profit in September 2026?

Sutlej Textiles returned to profit as segment results before tax and finance costs reached Rs 31.74 crore in the September 2026 quarter, against a Rs 12.08 crore loss in the corresponding prior-year quarter. After finance costs of Rs 19.97 crore and deferred tax of Rs 3.64 crore, consolidated profit was Rs 7.78 crore.

The result also improved from profit of Rs 0.85 crore in the preceding quarter ended 30 June 2026. Profit before tax rose to Rs 11.42 crore from Rs 2.32 crore sequentially and from a Rs 30.33 crore loss a year earlier; the September 2026 quarter had no exceptional item, while the prior-year quarter included a Rs 1.29 crore exceptional loss.

Which Sutlej Textiles businesses generated positive results?

Both reported segments generated positive results before tax and finance costs in the September 2026 quarter. Yarn reported Rs 28.37 crore, reversing a Rs 7.28 crore loss a year earlier, while home textile reported Rs 3.37 crore, reversing a Rs 4.80 crore loss.

Yarn remained the larger revenue contributor, with Rs 760.80 crore of quarterly segment revenue versus Rs 596.95 crore a year earlier. Home textile revenue rose to Rs 67.08 crore from Rs 45.81 crore, while its segment result improved from a Rs 2.05 crore loss in the June 2026 quarter.

For the half year ended 30 September 2026, yarn reported a Rs 52.43 crore segment result against a Rs 22.03 crore loss in the corresponding prior-year period. Home textile reported Rs 1.32 crore against a Rs 14.64 crore loss, and consolidated revenue from operations increased to Rs 1,523.79 crore from Rs 1,246.51 crore.

What changed in Sutlej Textiles revenue and costs?

Sutlej Textiles increased consolidated revenue from operations by Rs 184.33 crore year on year to Rs 825.95 crore in the September 2026 quarter. Total income rose to Rs 835.82 crore from Rs 644.90 crore, including other income of Rs 9.87 crore compared with Rs 3.28 crore.

Materials consumed rose to Rs 472.45 crore from Rs 354.32 crore, employee benefits expense reached Rs 120.27 crore from Rs 116.69 crore, and power and fuel expense was Rs 82.85 crore against Rs 78.27 crore. Total expenses of Rs 824.40 crore nevertheless remained below total income, producing Rs 11.42 crore of profit before tax.

Depreciation and amortisation declined to Rs 23.38 crore from Rs 27.58 crore year on year, while other expenses increased to Rs 99.95 crore from Rs 87.11 crore. Changes in inventories reduced expense by Rs 5.24 crore in the September quarter, compared with reductions of Rs 70.95 crore in June 2026 and Rs 12.28 crore a year earlier.

What do Sutlej Textiles cash flow and borrowings show?

Sutlej Textiles used Rs 26.92 crore in operating activities during the half year ended 30 September 2026 despite profit before tax of Rs 13.74 crore. Inventories increased by Rs 102.24 crore and trade receivables rose by Rs 83.47 crore, partly offset by an Rs 86.30 crore increase in trade payables.

Cash and cash equivalents fell to Rs 3.96 crore at 30 September 2026 from Rs 6.91 crore at 31 March 2026. Investing activities used Rs 31.85 crore, including Rs 31.71 crore spent on property, plant and equipment, capital work-in-progress and intangible assets, while financing activities provided Rs 55.82 crore.

Total borrowings were Rs 1,019.12 crore at 30 September 2026, comprising Rs 362.60 crore of non-current borrowings and Rs 656.52 crore of current borrowings. That compared with Rs 929.11 crore at 31 March 2026, while consolidated total assets rose to Rs 2,246.76 crore from Rs 2,050.35 crore.

What exceptional and corporate items affect comparison for Sutlej Textiles?

Sutlej Textiles recorded no exceptional item in the September 2026 quarter, whereas the prior-year quarter included a Rs 1.29 crore loss on disposal of remaining captive co-generation power plant assets. The assets were sold for Rs 3.57 crore excluding goods and services tax during the year ended 31 March 2026.

Exceptional items totalled Rs 13.16 crore for the year ended 31 March 2026, including an Rs 11.39 crore inventory write-down after a decision to curtail operations of a subsidiary. The company also recognised Rs 0.48 crore for the estimated incremental employee-benefit impact of the New Labour Codes.

Shareholders approved the Employee Stock Option Scheme 2026 on 19 April 2026. Sutlej Textiles granted 17 lakh options on 14 May 2026 at an exercise price of Rs 36.73 per option, with vesting over four years; the board approved the September 2026 results on 13 November 2026.

Conclusion

Sutlej Textiles moved from a consolidated loss to profit in the September 2026 quarter as both operating segments returned positive results before finance costs and tax. Revenue growth across yarn and home textile supported the change, although finance costs of Rs 19.97 crore remained a substantial deduction from the Rs 31.74 crore combined segment result.

The next reported periods will show whether the half-year operating cash outflow of Rs 26.92 crore changes as inventories of Rs 607.83 crore and receivables of Rs 451.51 crore are managed, and how borrowings of Rs 1,019.12 crore develop. Sutlej Textiles also said it continues to monitor final Central and State rules and government clarifications on the New Labour Codes for any required accounting effect.