Sarla Performance Fibers Limited (SARLAPOLY) AI Stock Analysis

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Sarla Performance Fibers Limited

(NSE:SARLAPOLY)

Select Model

Rating:55Neutral

Price Target:INR 91.00▼(-0.50% Downside)

Action:reiterated

Date:11/07/26

The score is primarily supported by moderate leverage and consistently positive free cash flow, but is held back by FY2026’s sharp profitability deterioration and a weak technical trend (price below key moving averages with negative MACD and sub-50 RSI). A negative P/E further reflects the current earnings pressure, only partly offset by a modest dividend yield.

Positive Factors

Moderate LeverageDebt-to-equity of roughly 0.27–0.44 and growing equity provide a meaningful capital cushion. This moderate leverage can preserve financing flexibility and help the company absorb volatility in textile demand while continuing to support operations and investment.

Negative Factors

FY2026 Net LossThe FY2026 swing to a net loss materially weakens the company’s earnings base and reduces the reliability of internally generated profit. If the deterioration persists, it could constrain reinvestment, weaken returns on equity, and make financial performance more sensitive to industry conditions.

Sarla Performance Fibers Limited (SARLAPOLY) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 7.15B
Dividend Yield: 2.19%
Average Volume (3M): 4,388
Price to Earnings (P/E): -253.6
Beta (1Y): 1.02
Revenue Growth: 3.15%
EPS Growth: -104.48%
Country: India
Employees: 433
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Sarla Performance Fibers Limited Business Overview & Revenue Model

Company Description

Headquartered in Mumbai, India, Sarla Performance Fibers Limited was established in 1993. The company primarily specializes in the production and global distribution of a diverse range of yarns and threads. Its extensive product portfolio includes te...

Sarla Performance Fibers Limited Financial Statement Overview

Summary

Financials are mixed: income statement quality is weakened by volatile revenue and a sharp profitability breakdown into a net loss in FY2026 (Income Statement Score: 52). Offsetting this, the balance sheet shows moderate leverage with a reasonable equity buffer (Balance Sheet Score: 66) and cash generation remains consistently positive with a strong free-cash-flow rebound in FY2026 despite uneven conversion (Cash Flow Score: 63).

Income Statement

52Neutral

Balance Sheet

66Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.12B	4.01B	4.27B	3.74B	3.83B	4.26B
Gross Profit	1.88B	1.71B	2.36B	1.31B	1.38B	915.78M
EBITDA	120.82M	180.62M	893.35M	787.30M	666.66M	942.82M
Net Income	19.37M	-131.34M	623.57M	329.12M	213.39M	462.75M
Balance Sheet
Total Assets	0	8.31B	7.53B	6.51B	5.80B	6.27B
Cash, Cash Equivalents and Short-Term Investments	865.67M	869.39M	518.62M	485.05M	406.01M	816.07M
Total Debt	0	1.98B	1.81B	1.37B	1.09B	1.35B
Total Liabilities	-5.15B	3.16B	2.63B	2.22B	1.85B	2.39B
Stockholders Equity	5.15B	5.15B	4.90B	4.28B	3.95B	3.88B
Cash Flow
Free Cash Flow	392.40M	521.48M	418.51M	215.40M	554.46M	30.50M
Operating Cash Flow	468.92M	699.96M	624.02M	310.18M	1.02B	366.31M
Investing Cash Flow	-222.46M	-847.43M	-901.62M	-562.57M	-558.05M	-258.47M
Financing Cash Flow	-238.07M	149.58M	265.53M	238.44M	-455.05M	-176.23M

Sarla Performance Fibers Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price91.46

Price Trends

50DMA96.11Negative

100DMA97.90Negative

200DMA91.90Negative

Market Momentum

MACD-1.61Positive

RSI46.25Neutral

STOCH57.75Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SARLAPOLY, the sentiment is Negative. The current price of 91.46 is below the 20-day moving average (MA) of 92.79, below the 50-day MA of 96.11, and below the 200-day MA of 91.90, indicating a bearish trend. The MACD of -1.61 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 57.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SARLAPOLY.

Sarla Performance Fibers Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SARLAPOLY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CENTENKA	73Outperform	INR 9.95B	7.24	―	2.32%	14.88%	145.16%
IN:GARFIBRES	72Outperform	INR 71.38B	30.52	―	1.22%	17.37%	16.78%
IN:FILATEX	70Outperform	INR 41.64B	23.28	―	0.30%	0.22%	34.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SARLAPOLY	55Neutral	INR 7.12B	-253.56	―	2.19%	3.15%	-104.48%
IN:INDORAMA	51Neutral	INR 20.33B	9.77	―	―	-4.69%	48.44%
IN:GANECOS	50Neutral	INR 23.27B	27.68	―	0.40%	19.07%	26.45%

* General Sector Average

Performance Comparison

IN:SARLAPOLY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SARLAPOLY	Sarla Performance Fibers Limited	91.46	3.26	3.70%
IN:CENTENKA	Century Enka Limited	475.05	25.36	5.64%
IN:FILATEX	Filatex India Ltd	99.94	43.37	76.68%
IN:GANECOS	Ganesha Ecosphere Limited	879.30	-83.99	-8.72%
IN:GARFIBRES	Garware Technical Fibres Limited	733.15	-9.98	-1.34%
IN:INDORAMA	Indo Rama Synthetics (India) Limited	78.93	20.55	35.20%

Sarla Performance Fibers Limited Corporate Events

Sarla Performance Fibers Announces Postal Ballot

Nov 4, 2026

Sarla Performance Fibers Limited has issued a postal-ballot notice seeking shareholder approval through special resolutions, in compliance with applicable SEBI and Companies Act requirements. The process will be conducted exclusively through NSDL’s r...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026

Sarla Performance Fibers Limited AI Stock Analysis