Sutlej Textiles posts Rs 2.69 cr profit as other income tops PBT
Standalone operating margin was 5.73%, while management highlighted a 50% export mix and 466 active stores in Q1FY27.
Filed 06 Aug 2026, 12:47 IST · SUTLEJTEX (SUTLEJTEX)
Key takeaways
- Standalone net profit was Rs 2.69 cr in Q1FY27, with EPS at Rs 0.16.
- Other income of Rs 7.14 cr exceeded profit before tax of Rs 4.16 cr, highlighting weak profit quality.
- Management said the quarter was driven by a 50% export mix and expansion to 466 active stores.
Finance costs left little operating profit for the bottom line
Sutlej Textiles reported standalone net profit of Rs 2.69 cr in Q1FY27, with EPS at Rs 0.16. Interest of Rs 18.29 cr and depreciation of Rs 24.66 cr absorbed much of the Rs 39.97 cr operating profit, leaving profit before tax at Rs 4.16 cr. The result was therefore thin after operating costs and fixed charges.
Other income was larger than reported pre-tax profit
Other income of Rs 7.14 cr exceeded profit before tax of Rs 4.16 cr. That makes the reported profit materially dependent on a non-operating contribution rather than operating earnings alone. The tax rate was 35.34%.
Exports and store expansion were the quarter's stated operating drivers
Management said Q1FY27 was supported by exports accounting for 50% of revenue and network expansion to 466 active stores. The company also said Nesterra launched 11 new premium collections alongside its existing 54 collections. These comments point to a mix of overseas sales and retail expansion behind the quarter's business activity.
Sustainability and distribution initiatives remain in focus
The presentation said Sutlej Textiles has implemented Digital Product Passports to strengthen sustainability reporting. Management also said Nesterra developed a seamless ordering portal for the trade and partnered with more than 15 influencers for Instagram activity. The presentation records the company's green fibre plant as having commenced in March 2021 and its USD 4.5 million investment in a wholly owned US subsidiary.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹697 cr |
| Other income | ₹7 cr |
| Expenses | ₹657 cr |
| Operating profit | ₹40 cr |
| Operating margin (%) | 5.73% |
| Interest | ₹18 cr |
| Depreciation | ₹25 cr |
| Profit before tax | ₹4 cr |
| Tax | ₹1 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹0.16 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1FY27 was driven by a 50% export mix and network expansion to 466 active stores.
Expansion
- The company commenced its green fibre plant in March 2021.
- The company invested USD 4.5 million in its wholly owned subsidiary in the USA.
New products
- Nesterra launched 11 new premium collections in addition to its existing 54 collections.
New initiatives
- The company lists Digital Product Passports among its sustainability and innovation priorities.
- Sutlej Textiles implemented Digital Product Passports to strengthen sustainability reporting.
- Nesterra developed a seamless ordering portal for the trade.
- Nesterra partnered with more than 15 influencers for collaborative Instagram Reels and Story mentions.
Competition
- The company describes itself as one of the leading producers and exporters of home furnishings.
What to watch
- Whether standalone operating margin moves from 5.73% in the next quarter.
- Whether exports remain at 50% of revenue.
- Whether the store network expands beyond 466 active stores.