Sarla Performance Fibers Limited (SARLAPOLY) AI Stock Analysis

Sarla Performance Fibers Limited

(NSE:SARLAPOLY)

Select Model

Rating:62Neutral

Price Target:INR 97.00▲(2.61% Upside)

Action:reiterated

Date:08/06/26

Mixed financial performance weighs down the score due to recent net loss and revenue inconsistency, while positive technical trends provide upside momentum; valuation is tempered by negative P/E.

Positive Factors

Consistent Cash GenerationPositive operating and free cash flow across the periods shown indicates that the business has generated internal funding despite earnings volatility. This supports ongoing operations, debt servicing, and selective investment without relying entirely on external financing, although conversion has not been uniform.

Negative Factors

FY2026 Profitability BreakdownThe FY2026 swing to a net loss is a significant weakness in earnings durability after the unusually strong FY2025 result. Lower operating margins reduce retained cash from each sale, constrain reinvestment capacity, and make the company more vulnerable if soft profitability persists.

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

Market Cap: INR 7.75B
Dividend Yield: 2.16%
Average Volume (3M): 3,949
Price to Earnings (P/E): 202.5
Beta (1Y): 1.38
Revenue Growth: -1.58%
EPS Growth: -94.39%
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...

How the Company Makes Money

Sarla Performance Fibers Limited primarily makes money by manufacturing and selling speciality synthetic yarns to business customers (B2B) in the textile value chain. Revenue is generated mainly from: (1) sale of polyester-based speciality yarns—cust...

Sarla Performance Fibers Limited Financial Statement Overview

Summary

Mixed financials with weak income statement (score 45) due to revenue decline and net loss, moderate balance sheet (score 60) with stable equity but negative ROE, and strong cash flow (score 70) showing improvement in operating cash.

Income Statement

45Neutral

Balance Sheet

60Neutral

Cash Flow

70Positive

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 Price94.53

Price Trends

50DMA97.36Negative

100DMA98.28Negative

200DMA91.65Positive

Market Momentum

MACD-1.23Negative

RSI45.81Neutral

STOCH60.37Neutral

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 94.53 is above the 20-day moving average (MA) of 94.15, below the 50-day MA of 97.36, and above the 200-day MA of 91.65, indicating a neutral trend. The MACD of -1.23 indicates Negative momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 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	74Outperform	INR 9.97B	6.94	―	2.41%	14.88%	145.16%
IN:GARFIBRES	72Outperform	INR 72.43B	31.07	―	1.20%	17.37%	16.78%
IN:SARLAPOLY	62Neutral	INR 7.40B	202.54	―	2.16%	-1.58%	-94.39%
IN:FILATEX	58Neutral	INR 39.54B	20.76	―	0.34%	0.22%	34.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:INDORAMA	51Neutral	INR 19.11B	9.05	―	―	-4.69%	48.44%
IN:GANECOS	50Neutral	INR 26.79B	47.32	―	0.35%	6.96%	-41.41%

* 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	93.04	3.28	3.65%
IN:CENTENKA	Century Enka Limited	456.40	1.80	0.40%
IN:FILATEX	Filatex India Ltd	89.05	24.74	38.47%
IN:GANECOS	Ganesha Ecosphere Limited	999.65	-198.08	-16.54%
IN:GARFIBRES	Garware Technical Fibres Limited	741.75	-10.48	-1.39%
IN:INDORAMA	Indo Rama Synthetics (India) Limited	73.20	2.56	3.62%

Sarla Performance Fibers Limited Corporate Events

Sarla Performance Fibers Publishes Q1 FY27 Financial Results in Newspapers

Aug 6, 2026

Sarla Performance Fibers Limited has published its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, via newspaper advertisements. The results were carried in the English-language Financial Express and the G...

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: Aug 06, 2026

Sarla Performance Fibers Limited AI Stock Analysis