Financial Performance Summary

Consolidated FY26 Performance

  • Revenue from operations: INR 1,578 crores (vs. INR 1,395 crores in FY25), growth of 13.2% YoY
  • EBITDA: INR 217 crores (vs. INR 187 crores in FY25), growth of 16% YoY
  • EBITDA margin: 13.8% (vs. 13.5% in FY25)
  • Profit after tax: INR 100.95 crores (vs. INR 95.10 crores in FY25)

Consolidated Q4 FY26 Performance

  • Revenue from operations: INR 364 crores (vs. INR 399 crores in Q4FY25)
  • EBITDA: INR 44 crores (vs. INR 54 crores in Q4FY25)
  • EBITDA margin: 12.2% (vs. 13.6% in Q4FY25)
  • Profit after tax: INR 18.59 crores (vs. INR 30.39 crores in Q4FY25)

Standalone FY26 Performance

  • Revenue from operations: INR 1,113.44 crores (vs. INR 981.62 crores in FY25)
  • Adjusted operational revenue: INR 1,100.72 crores (vs. INR 984.46 crores in FY25)
  • Adjusted EBITDA: INR 181.34 crores (vs. INR 164.31 crores in FY25)
  • Adjusted EBITDA margin: 16.5% (vs. 16.7% in FY25)
  • Profit after tax: INR 87.85 crores (vs. INR 83.53 crores in FY25)

Standalone Q4 FY26 Performance

  • Revenue from operations: INR 251 crores (vs. INR 277 crores in Q4FY25)
  • Adjusted revenue: INR 249 crores (vs. INR 279 crores in Q4FY25)
  • Adjusted EBITDA: INR 42.94 crores (vs. INR 45.35 crores in Q4FY25)
  • Adjusted EBITDA margin: 17.2% (vs. 16.2% in Q4FY25)
  • Profit after tax: INR 21.36 crores (vs. INR 24.74 crores in Q4FY25)

Segment-wise Performance

Garment Division (including Young Brand Apparel)

Q4 FY26:

  • Operational revenue: INR 316 crores (vs. INR 316.25 crores in Q4FY25)
  • EBITDA: INR 51.41 crores (vs. INR 58.20 crores in Q4FY25)

FY26:

  • Operational revenue: INR 1,421.98 crores (vs. INR 1,308.18 crores in FY25)
  • EBITDA: INR 230.57 crores (vs. INR 212.18 crores in FY25)

Young Brand Apparel

Q4 FY26:

  • Adjusted operational revenue: INR 66.88 crores (vs. INR 81.37 crores in Q4FY25)
  • Adjusted EBITDA: INR 8.47 crores (vs. INR 12.85 crores in Q4FY25)

FY26:

  • Adjusted operational revenue: INR 321.26 crores
  • Adjusted EBITDA: INR 49.23 crores

SPUK

Q4 FY26:

  • Operational revenue: INR 35.04 crores (vs. INR 18.34 crores in Q4FY25)

FY26:

  • Revenue: INR 87.04 crores
  • EBITDA: Positive INR 1.10 crores (first positive EBITDA year)

Retail

Q4 FY26:

  • Operational revenue: INR 17.77 crores (vs. INR 23.25 crores in Q4FY25)

FY26:

  • Revenue: INR 71.54 crores (vs. INR 79.41 crores in FY25)
  • EBITDA losses: Reduced to INR 6.1 million (vs. INR 6.84 crores in FY25)
  • Reported positive EBITDA consecutively from Q2 to Q4FY26

Balance Sheet Position

Standalone Basis

  • Long-term debt: INR 53 crores
  • Working capital debt: INR 207 crores
  • Gross debt: INR 271 crores
  • Net debt (net of cash): INR 217 crores

Consolidated Basis

  • Long-term debt: INR 63 crores
  • Working capital loan: INR 334 crores
  • Gross debt: INR 397 crores
  • Net debt (net of cash): INR 338 crores
  • Liquid investments: INR 60 crores in various instruments

Strategic and Operational Updates

Q4 Performance Context

Q4 export volumes were softer sequentially due to:

  • After-effects of US tariff-related disruption that began in Q2
  • Short-term disruption from Strait of Hormuz affecting cargo movement
  • Realizations remained broadly intact, impact was volume-led rather than pricing-led

Garment Division

  • Integrated operations (spinning and dyeing) support quality consistency and supply chain control
  • Particularly important in infants and kid wear with stringent compliance standards
  • Added new customers in India market
  • Capacity was brought down due to US tariff volatility, but customers are returning with orders expected to improve from August 2026

Sri Lanka Operations

  • Commenced first factory operations in mid-April 2026
  • Targeting scaling to four factories within 12 months
  • FY26 achieved INR 45 crores of FOB business export
  • FY27 target: INR 200-250 crores revenue
  • FY28 target: INR 400-450 crores revenue (full capacity)
  • Strategic importance: improves geographic diversification and reduces concentration risk

Young Brand Apparel

  • 100% US customer based, heavily impacted by US tariff situation
  • Situation has now stabilized and demand has revived
  • Salem expansion underway but slowed due to US tariff uncertainty
  • Salem expansion expected to contribute INR 50-60 crores revenue, likely in FY28

SPUK Business

  • FY26 revenue: GBP 7.5 million (INR 87.04 crores)
  • Turned EBITDA positive in FY26
  • Current order book: GBP 6.1 million
  • FY27 revenue guidance: GBP 12-14 million
  • Two anchor customers expected to contribute GBP 8 million each in FY27

Retail Division

  • Focus on improving discipline and moving towards sustainable profitability
  • Achieved positive EBITDA consecutively from Q2 to Q4FY26
  • Losses narrowed materially versus prior years

Current Order Book

  • SPAL Garmenting Division: INR 380 crores
  • Young Brand Apparel: INR 142 crores
  • SPUK: GBP 6.1 million
  • Total: Approximately INR 600 crores

FY27 Guidance and Outlook

Financial Guidance

  • Consolidated revenue: INR 2000 crores
  • Consolidated EBITDA margin: 14-15%
  • Garment division EBITDA margin: 15% (standalone guidance)
  • SPUK EBITDA margin: 4-5%
  • Retail: Focus on breaking even at EBITDA level

Segment Revenue Breakdown Guidance

  • S.P. Apparels Garmenting division (including Young Brand and Sri Lanka): INR 1800 crores
  • SPUK: INR 150 crores
  • Retail Ventures: INR 80-90 crores

Capacity and Utilization

  • Current machine capacity in India: 4000 machines (should be 5000 machines)
  • Target: 5700 machines in India by FY27
  • Sri Lanka: 2000 machines
  • Young Brands: 1400 machines
  • Current utilization: 64% with headroom for improvement
  • Sivakasi expansion: 440 machines (currently slowed due to US tariff volatility)
  • Peak capacity potential: INR 2500 crores revenue at 15% EBITDA margin

Market Diversification

  • Current US exposure: 17% (was 22% before tariff issues)
  • Target geographic mix: 30% US, 35% Eurozone, 35% UK
  • Currently have 12 customers across these regions
  • Ongoing discussions with 3-4 large US customers

Raw Material Costs

  • Cotton prices increased to INR 75,000, now stabilizing around INR 70,000
  • Yarn prices increased by approximately 5%
  • Addressing cost pressures through selective pass-through to customers, commercial discussions, and internal efficiency initiatives
  • Rupee depreciation provides partial offset to higher input costs

Foreign Exchange Management

  • 80% of orders are currency hedged, 20% kept open
  • Manage FX exposure prudently with directional messaging rather than precise currency assumptions

ESG Initiatives

  • Solar capacity expansion progressing
  • Target: 4.5 MW by March 2027
  • Supports lower energy cost volatility and strengthens ESG positioning

Trade Agreement Benefits

  • UK FTA expected in next 2-3 months
  • EU FTA also expected around same time
  • Bangladesh to lose EU LDC duty-free status by 2029, creating opportunity for India
  • Customers already shifting business from Bangladesh to India and Sri Lanka
  • Benefits will be passed to customers through duty savings

Management Commentary on Recovery Timeline

  • Temporary disruption phase is behind us
  • Normalization in customer engagement occurring
  • Q1-Q2 FY27 will still have after-effects of tariff issue
  • Significant recovery expected from Q3 FY27 onwards
  • Order booking to execution typically has 3-4 month lag (90-120 days)

Labor Situation

  • Faced labor disruptions due to factory closures during tariff volatility
  • Currently recalling workers, expecting 30-40% return rate
  • Continuous process of recruiting and training new workers
  • No major grave disruptions expected in Q1 FY27