Sutlej Textiles reports Rs 18 crore net loss in Q2, FY26

Sutlej Textiles & Industries recorded mixed performance in Q2, FY26 with strong margin improvement counteracted by lower sales and a net loss. The company recorded a net loss of Rs 18 crore during the quarter. Their standalone income declined 6 per cent to Rs 642 crore during Q2 FY26, compared to the same period last year. However, the company’s gross margin improved by 350 basis points Y-o-Y to 46 per cent. Their EBITDA increased to Rs 17.48 crore, resulting in an EBITDA margin of 2.7 per cent.

The company’s spinning capacity utilization decreased to 86 per cent in Q2 FY26, from 91 per cent in the corresponding period last year. The yarn segment operated at optimal capacity while the home textiles division showed a strong turnaround during the quarter.

To increase profits, Sutlej Textiles is actively focusing on product mix enhancement, cost optimization, and market diversification. The company plans to replace 33 per cent of its current product mix with value-added segments over the coming years to improve overall realization and margins.