Sarla Performance Fibers Profit Rises 25% Despite Revenue Decline Amid Textile Tariff Pressures

Mumbai: Sarla Performance Fibers Ltd reported a 25.4 percent rise in consolidated net profit before exceptional items to Rupees 78.21 crore in FY26 despite a decline in revenue, supported by steady operating margins and focus on value-added yarn products. Consolidated revenue for FY26 stood at Rupees 401.23 crore compared with Rupees 427.10 crore in FY25, while EBITDA came in at Rupees 99.73 crore against Rupees 114.53 crore in the previous fiscal. EBITDA margin for FY26 stood at 24.86 percent.

During Q4 FY26, consolidated revenue increased sequentially to Rupees 102.53 crore from Rupees 89.20 crore in Q3 FY26, although it remained marginally above Rupees 100.33 crore reported in Q4 FY25. EBITDA for the quarter stood at Rupees 17.94 crore compared with Rupees 14.92 crore in Q3 FY26 and Rupees 24.27 crore in the year-ago quarter. Profit before tax for Q4 FY26 came in at Rupees 5.47 crore against Rupees 14.14 crore in Q4 FY25. PAT before exceptional items stood at Rupees 17.41 crore compared with Rupees 12.62 crore in the corresponding quarter last year.

Tariff challenges impact topline performance

The company said FY26 remained challenging due to the impact of 50 percent tariffs imposed on key Indian sectors, including textiles, gems and jewellery, which affected demand and exports. Despite the pressure, the company maintained EBITDA margins at around 21 percent in its yarn business and expanded its US client base during the year.

Sarla Performance Fibers manufactures polyester and nylon yarns, including textured, twisted, covered, and dyed yarn products used across apparel, sportswear, and industrial applications. According to the investor presentation, the company exports to more than 62 countries and derives a significant portion of revenue from long-term customers. International business contributed 56.42 percent of FY26 revenues compared with 39.47 percent in FY25, reflecting stronger overseas traction.

Buyback underway to improve shareholder value

The company said it is currently undertaking a share buyback programme aimed at improving shareholder value and return on capital employed. Standalone revenue for FY26 stood at Rupees 396.34 crore against Rupees 423.67 crore in FY25, while standalone profit before exceptional items increased to Rupees 80.58 crore from Rupees 49.84 crore.

Sarla also highlighted its focus on specialised yarn categories including high-tenacity nylon products, covered yarns, and dyed yarns, where EBITDA margins range between 20 percent and 26 percent. The company operates manufacturing facilities in Silvassa, Vapi, and Dadra, supported by wind and solar energy generation capacity.

Disclaimer: This report is based on company disclosures and investor presentation data and is not investment advice.