Financial Performance Overview
S.P. Apparels Limited reported strong financial results for FY 2025-26 with standalone revenue growth of 13.4% to ₹11,134.38 million and consolidated revenue of ₹15,786.37 million. Standalone profit after tax increased 5.16% to ₹878.42 million, while consolidated PAT reached ₹1,009.45 million. The company achieved basic EPS of ₹35.00 (standalone) and ₹40.22 (consolidated), demonstrating sustained profitability in the textile and apparel sector.
Key Corporate Actions
The Board recommended a dividend of ₹3 per equity share (30%) aggregating to ₹75.42 million, subject to shareholder approval at the 21st AGM. Additionally, the company proposed a 5:1 stock split to subdivide each ₹10 face value equity share into five ₹2 shares, aimed at enhancing liquidity and retail participation. The authorized capital will remain unchanged at ₹47.25 crores but represented by 23.625 million shares instead of 4.725 million shares.
Strategic Developments and Expansion
The company completed the 100% acquisition of Young Brand Apparel Private Limited for ₹1,523.01 million in June 2024, which contributed to consolidated results. International expansion continued with Sri Lanka operations through subsidiary S.P. Apparels International (Private) Limited, achieving approximately ₹450 million in FOB exports during its first year. ESG initiatives progressed with 86% renewable power consumption and ₹14.52 million invested in energy conservation equipment.
Subsidiaries Performance
Young Brand Apparel reported adjusted operational revenue of ₹3,212.6 million and EBITDA of ₹492.3 million, though impacted by US customer exposure. S.P. Retail Ventures reduced EBITDA loss to ₹6.1 million (from ₹68.4 million) and reported positive EBITDA for the first time. S.P. Apparels (UK) Limited achieved operational revenue of ₹870.4 million with a turnaround to positive EBITDA of ₹11.0 million.
Related Party Transactions and Governance
The company disclosed related party transactions totaling ₹468.51 million with entities linked to Key Managerial Personnel, including sales, purchases, loans, and CSR donations. The Board comprises 8 directors with established committees for audit, nomination, risk management, and CSR. The 21st AGM is scheduled for September 21, 2026, to adopt financial statements, declare dividend, and seek approval for the stock split and MOA alteration.
Financial Position and Ratios
The company maintained strong credit ratings of [ICRA]AA- (Stable) for long-term facilities and [ICRA]A1+ for short-term facilities. Key ratios showed debt-to-equity at 0.29 (standalone) and 0.31 (consolidated), with current ratio at 1.42. The company employed significant foreign exchange hedging with mark-to-market loss of ₹134.40 million on outstanding contracts.
Regulatory Compliance and Disclosures
The annual report was filed pursuant to SEBI LODR Regulation 34(1), containing comprehensive financial statements, management discussion, and corporate governance reports. The company disclosed discrepancies in quarterly current asset statements filed with banks, attributed to provisions and regrouping entries not part of submitted data. Implementation of new labour codes was assessed to have no material impact on financial statements.