Sarla Performance Fibers Limited (SARLAPOLY)
₹96.38 +0.21% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Sarla Performance's revenue was ₹113 Cr (+10.6% year on year, +10.0% on the previous quarter), and net profit ₹37.3 Cr (+66.9% year on year); the operating margin was 24.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹113 | +10.6% | +10.0% |
| Operating profit | ₹27.5 | +154.9% | — |
| Net profit | ₹37.3 | +66.9% | from loss |
| EPS (₹) | 4.72 | +76.1% | from loss |
| Operating margin | 24.3% | — | — |
SARLAPOLY delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 55.87% of the SARLAPOLY shares traded on NSE were taken to delivery, against the stock's own 20-session average of 68.28%. That is lower than usual for this stock. Turnover was only ₹17 lakh, so a handful of trades can move this figure. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 56.0% · 69.7% · 68.9% · 59.5% · 55.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Sarla Performance Fibers Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by the company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited. It confirms that share certificates received for dematerialisation during the period were duly verified, accepted or rejected, and cancelled within prescribed timelines. This is a regular quarterly administrative filing with no financial or operational impact.
- Compliance certificate submitted for the quarter ended September 30, 2026
- Issued under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 03, 2026
- Filing made to BSE and NSE on October 08, 2026
Sarla Performance Fibers reported a strong standalone performance for Q1 FY27 with a net profit of Rs 31.81 cr on a total income of Rs 131.88 cr. However, the results are overshadowed by a repetitive audit qualification regarding a Rs 77.13 cr consolidated loss on the sale of preference shares in its US subsidiary, Sarlaflex Inc. The auditors highlighted that manufacturing at the US unit has been suspended since 2017 and its net worth is negative. Furthermore, three Joint Ventures remain unconsolidated due to ongoing disputes or lack of financial data, adding layers of reporting uncertainty.
- Standalone Net Profit for Q1 FY27 reached Rs 31.81 cr, exceeding the entire TTM PAT of Rs 27 cr.
- Auditors issued a qualified opinion on a Rs 7,713.26 lakh loss (Consolidated) from the sale of 11% preference shares in Sarlaflex Inc.
- Standalone Total Income for the quarter stood at Rs 131.88 cr, representing ~68.8% of the TTM revenue.
- A recoverable consideration of Rs 111.59 lakhs remains pending due to awaited regulatory approvals for the US transaction.
- Manufacturing operations at the US subsidiary have been suspended for over 8 years (since December 2017).
Sarla Performance Fibers' shareholders approved a final dividend of ₹2 per equity share (200% of face value) at the 33rd AGM held on July 29, 2026. This dividend pertains to the financial year ended March 31, 2026, where the company reported an EPS of ₹3.29. The total payout represents a high dividend payout ratio of approximately 60.8% of FY26 earnings. The record date for determining shareholder eligibility was fixed as July 22, 2026.
- Final dividend of ₹2 per equity share approved for the financial year ended March 31, 2026
- Dividend represents 200% of the face value of ₹1 per share
- Record date for eligibility was July 22, 2026, as fixed by the Board
- Dividend payout ratio is approximately 60.8% based on FY26 EPS of ₹3.29
- Dividend yield stands at approximately 2.02% based on the current price of ₹98.8
Sarla Performance Fibers Limited (SARLAPOLY) held its 33rd Annual General Meeting on July 29, 2026, where shareholders approved all seven resolutions. A final dividend of ₹2.00 per equity share (200% of face value) was ratified for FY26, representing a yield of approximately 2% at current prices. Notably, shareholders passed a special resolution to waive the recovery of excess remuneration paid to Executive Director Ms. Neha Krishna Jhunjhunwala during FY26. The company also received approval for the aggregate remuneration of promoter-group Executive Directors for their remaining tenures.
- Final dividend of ₹2.00 per equity share approved for the financial year ended March 31, 2026.
- Special resolution to waive recovery of excess remuneration for Ms. Neha Krishna Jhunjhunwala passed with 100% of votes cast in favor.
- Approval of aggregate remuneration for promoter-group Executive Directors passed with a 99.11% majority.
- Adoption of FY26 audited standalone and consolidated financial statements approved by 121 voting members.
- Re-appointment of Ms. Neha Jhunjhunwala as Director confirmed with 99.11% support.
Sarla Performance Fibers Limited concluded its 33rd AGM on July 29, 2026, where a final dividend of ₹2 per share (200% of face value) was declared. A significant point of discussion was a qualified opinion from statutory auditors regarding an exceptional loss on the sale of preference shares in its subsidiary, Sarla Flex Inc. Management clarified that regulatory approvals for this transaction are currently in process and they do not anticipate issues. Additionally, shareholders voted on resolutions to waive the recovery of excess remuneration paid to Executive Director Neha Krishna Jhunjhunwala for FY26.
- Final dividend of ₹2 per equity share (Face Value ₹1) approved for FY26.
- Statutory Auditors issued a qualified opinion regarding exceptional loss on sale of preference shares in Sarla Flex Inc.
- Special resolution proposed for the waiver of recovery of excess remuneration paid to Ms. Neha Krishna Jhunjhunwala for FY26.
- The company completed a buyback during the financial year as part of its capital allocation.
- Management reiterated 'Vision 2030' strategy focusing on specialty yarns and expansion into Brazil.
Sarla Performance Fibers Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended June 30, 2026. The certificate, issued by its Registrar and Share Transfer Agent, MUFG Intime India Private Limited, confirms that securities received for dematerialization were processed within prescribed timelines. It further verifies that physical certificates were mutilated, cancelled, and the register of members was updated accordingly. This is a standard administrative filing with no impact on the company's financial performance or operations.
- Compliance certificate issued for the quarter ended June 30, 2026.
- Registrar MUFG Intime India Private Limited (formerly Link Intime) confirmed processing of all demat requests.
- Physical security certificates were mutilated and cancelled after due verification by depository participants.
- Register of members updated to reflect depositories as the registered owners within prescribed timelines.
Sarla Performance Fibers has scheduled its 33rd Annual General Meeting for July 29, 2026, to review the FY2025-26 performance. The company maintains a focus on high-margin specialty yarns, with over 50% of revenue coming from overseas markets. Financial health is supported by a moderate bank limit utilization of 48.98%, providing liquidity for its 'Vision 2030' strategy. However, investors should note that raw material costs comprise 55% of revenue, with significant exposure to global supply chain risks due to 25-30% import dependency.
- 33rd Annual General Meeting scheduled for July 29, 2026, via video conferencing
- Raw material costs account for 55% of total revenue, impacting EBITDA margins
- Imported raw materials represent 25-30% of revenue, creating vulnerability to shipping disruptions
- Average bank limit utilization was 48.98% as of December 2024, indicating operational liquidity
- Overseas clientele contributes over 50% of total revenue, primarily backed by Letters of Credit
Sarla Performance Fibers Limited has announced the closure of its trading window starting July 1, 2026, in compliance with SEBI insider trading regulations. This closure is a standard procedure ahead of the announcement of the company's unaudited financial results for the quarter ending June 30, 2026. The window will remain shut for all designated persons and their relatives until 48 hours after the results are officially declared. The specific date for the board meeting to approve these results will be communicated to the exchanges in due course.
- Trading window closure effective from Wednesday, July 01, 2026.
- Closure is related to the Unaudited Financial Results for the quarter ended June 30, 2026.
- Window will remain closed until 48 hours after the results are declared to the exchanges.
- The restriction applies to all designated persons and their immediate relatives under SEBI (Prohibition of Insider Trading) Regulations, 2015.
Sarla Performance Fibers Limited has successfully completed its buyback program, extinguishing 40,00,000 equity shares at a price of ₹110 per share. The total cash outflow for the buyback amounted to ₹44 crore, executed via the tender offer route. This corporate action has reduced the company's total paid-up equity capital from 8.35 crore shares to 7.95 crore shares. Consequently, the promoter group's shareholding has increased from 57.11% to 59.98%, reflecting a more concentrated ownership structure.
- Extinguished 40,00,000 equity shares of ₹1 face value each on June 5, 2026.
- Buyback price of ₹110 per share represents a total aggregate value of ₹44 crore.
- Total share capital reduced by approximately 4.79%, from 8,35,03,000 to 7,95,03,000 shares.
- Promoter and promoter group shareholding increased from 57.11% to 59.98% post-extinguishment.
- The buyback was conducted through the tender offer route in compliance with SEBI Buy-Back Regulations, 2018.
Sarla Performance Fibers Limited has successfully concluded its buyback of 40,00,000 equity shares through the tender offer route. The buyback was executed at a price of ₹110 per share, resulting in a total capital return of ₹44 crore to shareholders. The record date for eligibility was May 15, 2026, and the company has now issued the mandatory post-buyback public advertisement confirming the completion of the process.
- Buyback of 40,00,000 fully paid-up equity shares of face value ₹1 each completed.
- Offer price finalized at ₹110 per share, totaling an aggregate amount of ₹44 crore.
- The buyback was conducted on a proportionate basis via the tender offer route.
- Post-buyback public advertisements were published on June 05, 2026, in Financial Express, Jansatta, and Janadesh.
Sarla Performance Fibers is executing a buyback of up to 40,00,000 equity shares at a fixed price of ₹110 per share through the tender offer route. The total outlay for this corporate action is ₹44 crore, representing 9.49% of the company's consolidated free reserves. The buyback represents approximately 4.79% of the total outstanding shares. The offer period is set from May 21, 2026, to May 27, 2026, for shareholders who held positions as of the May 15 record date.
- Buyback of 40,00,000 shares at ₹110 per share, totaling ₹44 crore
- Buyback size is 9.49% of consolidated paid-up capital and free reserves
- Entitlement ratio is approximately 1 equity share for every 9 shares held as of record date
- The offer represents 4.79% of the total outstanding equity shares of the company
- Tendering period opens on May 21, 2026, and closes on May 27, 2026
The promoter group of Sarla Performance Fibers Limited has submitted a formal declaration under Regulation 31(4) of SEBI (SAST) Regulations for the financial year ended March 31, 2026. Mr. Krishna Madhusudan Jhunjhunwala, on behalf of the promoter group, confirmed that no shares were encumbered or pledged, directly or indirectly, other than those already disclosed. This is a standard annual regulatory filing aimed at maintaining transparency regarding promoter shareholding. It provides assurance to investors that there are no hidden liens against the promoter's equity stake.
- Annual declaration submitted under Regulation 31(4) of SEBI (SAST) Regulations, 2011.
- Covers the full financial year period ending March 31, 2026.
- Confirmation provided by Promoter Mr. Krishna Madhusudan Jhunjhunwala for the entire promoter group.
- Affirms that no undisclosed encumbrances or pledges were created during the fiscal year.
Sarla Performance Fibers (SPFL) has released its 'Vision 2030' roadmap, highlighting a strategic shift toward high-margin products like Nylon 6 and 66. Despite a flattish topline in the previous year due to 50% tariffs on Indian textiles, the company improved EBITDA margins to 21%, up from 16% three years ago. The company is currently executing a share buyback to enhance shareholder value and ROCE while focusing on acquiring new US clients in FY26. Management aims to sustain EBITDA margins at approximately 20% through value-added product offerings.
- EBITDA margins improved from 16% to 21% over the last three years, with a long-term target of 20%
- Ongoing share buyback program initiated to improve Return on Capital Employed (ROCE) and shareholder value
- Strategic focus on acquiring new US clients in FY26 to drive growth despite global tariff challenges
- First-mover advantage in high-tenacity Nylon 6 and Nylon 66 products serving brands like Nike, Adidas, and Prada
- Transition to next-generation leadership with Neha and Kanav Jhunjhunwala heading Marketing and Operations
Acuité Ratings has reaffirmed Sarla Performance Fibers' long-term rating at 'ACUITE A' with a stable outlook and short-term rating at 'ACUITE A1' for bank facilities totaling Rs. 337 crore. The rating reflects the company's strong financial risk profile and an increase in free investments to Rs. 338.21 crore in FY2026. However, the agency noted a moderation in revenue and a negative PAT margin in FY2026 due to one-time exceptional losses related to its US subsidiary, Sarlaflex Inc. Despite these one-time hits, the company maintains low gearing and comfortable debt protection metrics.
- Long-term rating reaffirmed at 'ACUITE A' with a Stable outlook for Rs. 77 crore facilities.
- Short-term rating reaffirmed at 'ACUITE A1' for facilities worth Rs. 260 crore.
- Free investments increased by Rs. 82.30 crore to reach Rs. 338.21 crore as of FY2026.
- FY2026 saw a negative PAT margin due to one-time impairment and losses at the US subsidiary, Sarlaflex Inc.
- Company maintains a healthy financial risk profile with low gearing and adequate liquidity.
The Board of Sarla Performance Fibers has approved a buyback of up to 40,00,000 equity shares at a price of ₹110 per share, representing 4.79% of the total paid-up equity. The total buyback size is capped at ₹44 crores, which is approximately 9.49% of the company's consolidated net worth as of March 2026. Crucially, the promoters, who hold 57.11% of the company, have opted not to participate in the buyback. This non-participation significantly improves the potential acceptance ratio for public and retail shareholders.
- Buyback of 40,00,000 shares at ₹110 per share via the tender offer route
- Total buyback size of ₹44 crores represents 4.79% of total equity and 9.49% of consolidated net worth
- Promoters holding 57.11% will not participate, leading to a higher acceptance ratio for public shareholders
- Record date for determining eligibility is fixed for May 15, 2026
- 15% of the buyback or the entitlement of small shareholders will be reserved for the retail category
Financial Performance
Revenue Growth by Segment
Foreign exchange earnings (primarily exports) grew by 30.11% YoY, increasing from INR 180.40 Cr in FY24 to INR 234.73 Cr in FY25. Revenue from the BVI subsidiary (Sarla Overseas) was INR 5.77 Cr for FY25.
Geographic Revenue Split
Exports account for 52% of total revenue, indicating a high reliance on international markets. The company operates through wholly owned subsidiaries in the USA (Sarlaflex INC) and BVI (Sarla Overseas Holding Ltd), and Joint Ventures in Turkey.
Profitability Margins
The company maintains a long-term average profit margin of 19-20%. However, operating margins (EBITDA) have shown a downward trend, falling from 24.37% in FY21 to 20.67% in FY22, and further to 15.06% in FY23 due to rising input costs.
EBITDA Margin
EBITDA margin stood at 15.06% in FY23, representing a 5.61 percentage point decline from the previous year, primarily driven by crude oil-linked raw material price volatility.
Capital Expenditure
The company has avoided significant debt-funded capital expenditure recently, which has helped maintain a healthy financial risk profile. Specific INR values for planned FY26 capex are not disclosed in available documents.
Credit Rating & Borrowing
Credit rating was upgraded to 'ACUITE A' (Long-term) and 'ACUITE A1' (Short-term) for INR 112.00 Cr bank facilities. The upgrade reflects migration from 'Issuer Not Co-operative' status and improved profitability expectations for FY25.
Operational Drivers
Raw Materials
Crude oil derivatives (synthetic fiber inputs) are the primary raw materials, with total raw material costs accounting for 55% of revenue in FY23, up from 52% in FY22.
Import Sources
The company imports 25-30% of its raw material requirements to support its specialty yarn production, though specific countries of origin are not disclosed.
Capacity Expansion
Current installed capacity and specific expansion units (MT/MW) are not disclosed, though the 'Vision 2030' strategy implies long-term scaling.
Raw Material Costs
Raw material costs as a percentage of revenue increased from 44% in FY21 to 55% in FY23, reflecting a 25% relative increase in cost burden over two years due to crude oil price fluctuations.
Manufacturing Efficiency
Average bank limit utilization was 48.98% for the five-month period ended December 2024, suggesting significant headroom in operational liquidity.
Strategic Growth
Growth Strategy
Growth is driven by a focus on high-margin specialty yarns and expansion into new geographic 'thrust areas' like Brazil. The company leverages its 100% owned foreign subsidiaries and JVs in Turkey to capture global demand dynamics.
Products & Services
Specialty yarns, performance fibers, and textile filaments used in various industrial and apparel applications.
Brand Portfolio
Sarla Performance Fibers.
Market Expansion
Brazil has been identified as a key thrust area for future market expansion, with initial progress already reported in FY25.
Strategic Alliances
Key Joint Ventures include Sarla Tekstil Filament (Turkey, 45% stake), MRK S.A. De C.V. (33.33% stake), and M/s Savitex, S.A. De C.V. (40% stake).
External Factors
Industry Trends
The industry is shifting toward high-performance and specialty synthetic fibers; SPFL is positioning itself through global subsidiaries to capture this value-added segment.
Competitive Landscape
Competes with global synthetic fiber manufacturers; SPFL differentiates through specialty performance products rather than commodity yarns.
Competitive Moat
Moat is built on 20+ years of promoter experience in specialty yarns and a robust global distribution network through subsidiaries, which is difficult for new entrants to replicate quickly.
Macro Economic Sensitivity
Highly sensitive to global crude oil prices and international trade policies due to the 55% raw material cost link and 52% export revenue share.
Consumer Behavior
Increasing demand for durable and performance-oriented textiles in global apparel and industrial sectors.
Geopolitical Risks
Trade barriers or economic instability in key markets like the USA, Turkey, and Brazil could disrupt the 52% export revenue stream.
Regulatory & Governance
Industry Regulations
Complies with the Sexual Harassment of Women at Workplace Act, 2013 and maintains cost records under Section 148(1) of the Companies Act, 2013.
Taxation Policy Impact
The company provided INR 2.93 Lakhs for taxation for its BVI subsidiary in FY25.
Legal Contingencies
No material qualifications or adverse remarks were reported in the Secretarial Audit Report for FY25. PENDING court case values are not disclosed.
Risk Analysis
Key Uncertainties
Volatility in crude oil prices poses a significant risk to the 55% raw material cost base, potentially impacting profitability by 5-10% during sharp price spikes.
Geographic Concentration Risk
High geographic concentration risk with 52% of revenue coming from exports and significant investments in USA and Turkey-based entities.
Third Party Dependencies
Significant dependency on global suppliers for 25-30% of raw materials, making the company vulnerable to international logistics costs.
Credit & Counterparty Risk
Credit risk is mitigated by using Letters of Credit for 90-120 days for the majority of the overseas clientele, which accounts for over 50% of revenue.
