The Nomination and Remuneration Committee (NRC) of Sutlej Textiles & Industries approved the grant of 17,00,000 (Seventeen Lakhs only) stock options to eligible employees and directors of the company on May 14, 2026. The grant has been made pursuant to the company's Employee Stock Option Scheme 2026 (ESOP 2026), in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the provisions of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Key Details of the ESOP 2026 Grant

The following table outlines the key parameters of the stock option grant as disclosed by the company:

Vesting Schedule

The options granted under ESOP 2026 are subject to a minimum vesting period of one year from the date of grant. The vesting is structured across four years as follows:

• Year 1: 20%
• Year 2: 20%
• Year 3: 30%
• Year 4: 30%

All options shall vest as per the vesting schedule specified in the respective Grant Letter issued to eligible employees and directors.

Exercise Window and Terms

Vested options are exercisable within 1 (one) year from the date of respective vesting. Each option, upon exercise, entitles the holder to one equity share of the company with a face value of Re. 1/- each. There are no variations to the terms of the options, and no subsequent changes, cancellations, or exercises have been reported, as the current disclosure pertains solely to the grant of options under the scheme.

The intimation of this grant has been made available on the company's website at www.sutlejtextiles.com , in accordance with applicable regulatory requirements.

Sutlej Textiles and Industries Limited has filed the transcript of its earnings conference call for the quarter and year ended March 31, 2026. The call, held on May 6, 2026, was led by Whole-Time Director & CEO Ashish Srivastava and CFO Sachin Karwa. The company reported a sharp recovery in operating performance for Q4FY26, with EBITDA more than doubling year-on-year, even as it navigated significant macroeconomic headwinds including geopolitical tensions and trade disruptions.

Financial Performance Overview

The company delivered a mixed set of results for Q4FY26, characterized by strong operational recovery. On a standalone basis, total income rose to Rs 699 crores in Q4FY26, up 4% from Rs 674 crores in Q4FY25. Standalone EBITDA surged 115% YoY to Rs 37 crores, with margins expanding by 276 basis points to 5.3%. However, the standalone net loss for the quarter was Rs 25 crores compared to Rs 28 crores in the previous year.

On a consolidated basis, total income for Q4FY26 stood at Rs 699 crores, a 1.9% increase from Rs 686 crores in Q4FY25. Consolidated EBITDA rose 115.70% YoY to Rs 35 crores, with margins expanding 264 bps to 5%. Despite the operational improvement, the consolidated net loss widened to Rs 18 crores in Q4FY26 from Rs 13 crores in Q4FY25. For the full year FY26, standalone total income came at Rs 2,585 crores, lower by 3% year-on-year, while consolidated total income was Rs 2,594 crores, a decline of 3.9% from the previous year.

The following table summarizes the key financial metrics for Q4FY26:

Segment Performance

Segment performance showed a meaningful recovery in the yarn business, which reported segment revenue of Rs 649 crores. Segment EBIT turned positive at Rs 9 crores in Q4FY26 compared to a loss of Rs 5 crores in the previous year. Sales volume improved to 25,611 tons with capacity utilization at 89%, while the yarn division is currently operating at over 93% utilization. The home textiles segment reported revenue of Rs 45 crores, with segment EBIT improving significantly to a loss of Rs 1 crore from a loss of Rs 9 crores in Q4FY25. At the full-year level, the home textiles division swung from a negative Rs 3.5 crores to a positive Rs 8.4 crores at the EBITDA level. Sutlej Green Fiber, the company's recycled polyester and sustainable alternative fiber business, operated at over 100% utilization during the year.

Strategic Outlook and Technical Textiles

Management outlined three strategic levers driving performance: market diversification into geographies such as Egypt, Africa, Latin America, and Southeast Asia; product upgrades targeting conversion of approximately one-third of the yarn portfolio into value-added segments; and new value drivers including home textiles scaling, Sutlej Green Fiber expansion, and a calibrated entry into technical textiles beginning with protective textiles. The company noted that margins in protective textiles are expected to range from 12% to 15%, targeting industries such as oil and gas and steel.

The company also published its inaugural sustainability report. Management noted that the renewable energy share is targeted to grow from the current 11% to approximately 40%, which is expected to calibrate power costs that constitute roughly 50% of yarn manufacturing costs.

FY27 Outlook

Management indicated that FY27 is expected to be the year the company crosses the inflection point from a margin recovery story to a profitable, growing, and deleveraging business. Key expectations include meaningful EBITDA expansion on the FY26 base, a return to profitability after approximately two years of losses, and material improvement in debt metrics as cash generation strengthens. Planned capex for FY27 was described as milestone-based and calibrated, with specific numbers to be shared in subsequent quarters. Management also highlighted that inventory policy is maintained at 30 to 45 days for cotton and 15 to 20 days for other fibers.