Sarla Performance Fibers Shares Crumble 7% After Quartely Loss of ₹60 Cr

Synopsis: Sarla Performance Fibers faced a dual blow on Thursday as its stock tanked over 7% following a dismal quarterly loss of Rs. 59.64 crore and a “Qualified Opinion” from auditors regarding a massive Rs. 77 crore write-off.

In a detailed regulatory filing following its Board Meeting on April 22, 2026, Sarla Performance Fibers Limited revealed a major financial setback. The company reported a significant consolidated net loss of Rs. 59.64 crore for the quarter ended March 31, 2026, a sharp reversal from the Rs. 12.69 crore profit recorded in the same period last year. While quarterly sales saw a marginal uptick of 2.19% to reach Rs. 102.53 crore, operational efficiency collapsed, with Operating Profit Margins (OPM) plummeting from 21.62% to a mere 2.09%.

Further compounding the bad news, Statutory Auditors C N K & Associates LLP issued a Qualified Opinion on both Standalone and Consolidated financial statements. The qualification stems from the sale of preference shares in the company’s U.S. subsidiary, Sarla Flex Inc., for a nominal USD 1,21,000. 

This transaction resulted in a staggering loss of Rs. 77.13 crore. (Consolidated), recognized as an “Exceptional Item.” The auditors highlighted that manufacturing operations at the U.S. unit have been suspended since 2017 and regulatory approvals for the write-off are still pending, creating a cloud of accounting uncertainty.

Reacting to the weak earnings and auditor concerns, SARLAPOLY shares crashed 7.40% in early trade. The stock opened at Rs. 90.00 and touched an intraday low of Rs. 87.15.

Currently trading near Rs. 91.26, the stock remains a multi-bagger with a 263% return over the last five years, though it has significantly corrected from its 52-week high of Rs. 127.50. With a market cap of Rs. 762 crore, the company also recommended a Rs. 2 dividend, even as promoters waived their share to support liquidity.

Company Overview

Sarla Performance Fibers Limited is a specialized textile manufacturer focusing on high-tenacity polyester and nylon yarns. Serving niche segments like automotive upholstery and medical bandages, the company operates globally. It is currently undergoing a challenging phase as it restructures its international assets and navigates regulatory hurdles related to its overseas operations.

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