Sportking India Limited: capacity addition program with a planned investment of around ₹1,000 crores to significantly expand spindle capacity

 

• Sportking India Limited: capacity addition program with a planned investment of around ₹1,000 crores to significantly expand spindle capacity
  
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• Key Financial Highlights – H1 FY26: 
• ➢ Revenue from operations stood at Rs. 1,213.2 Crs for H1 FY26. Exports contributed ~ 56% to overall revenue in H1 FY26 registering a growth of 15% on a yearly basis 
• ➢ In H1 FY26, Gross Profit increased by 3.9% YoY to Rs. 307.4 Crs. Gross Profit Margin expanded by 233 bps to 25.3% 
• ➢ EBITDA for H1 FY26 was Rs. 134.9 Crs – an increase of 0.7% YoY. EBITDA Margin for the half year improved by 70 bps on a yearly basis to reach 11.1% 
• ➢ Profit After Tax for H1 FY26 was Rs. 62.4 Crs – registering a growth of 5.1% YoY. PAT Margin was 5.1% and expanded by 53 bps on a yearly basis.
  
• Commenting on the results, Mr. Munish Avasthi, Chairman & Managing Director said, “We are pleased to deliver a stable quarter, underscored by a consistent upward trajectory in gross profit and EBITDA margins driven by softer input costs on a yearly basis. Modest rise in operating expenses YoY further supported gross margin flowthrough to EBITDA. This performance reflects our disciplined execution, operational efficiency, and resilience in navigating market dynamics. The Indian spinning industry is navigating elevated domestic cotton prices sequentially driven by an increase in the Minimum Support Price, with the Cotton Corporation of India expected to play a larger role in stabilizing procurement. Government measures, including temporary relaxation of import duties, have narrowed the cost gap with global peers and improved competitiveness. Despite these headwinds, export volumes have stayed resilient, supported by strong global demand and improving competitiveness of Indian mills. The same was reflected in the exports share of our revenues which increased from 46% in Q2 FY25 to 53% in Q2 FY26 delivering a solid 11% growth YoY. The GST cut on everyday garments is expected to make clothing more affordable and encourage customers to buy more or choose better-quality apparel. During the upcoming festive season, this move should boost demand and create a positive ripple effect across the textile value chain, benefiting manufacturers like us. In the previous quarter we had announced a greenfield capacity addition program with a planned investment of around ₹1,000 crores to significantly expand spindle capacity. We have commenced some initial procedural work towards the same. As we move ahead, we remain confident that supportive policy changes and a positive demand outlook in H2 FY26 will create fresh avenues for growth. Grounded in strong fundamentals, a resilient export base, and a commitment to innovation, Sportking India Ltd is well-positioned to capitalize on emerging trends and deliver sustained value to all stakeholders.