Document Overview

Sportking India Limited reported its FY26 annual results with mixed performance - revenue declined 1.1% to ₹2,495.86 crore while net profit grew 5.8% to ₹119.72 crore, reflecting improved operational efficiency and margin expansion.

Financial Performance Highlights (FY 2025-26)

  • Revenue from Operations: ₹249,585.66 lakhs (FY24-25: ₹252,422.94 lakhs), decrease of 1.1%
  • EBITDA: ₹30,057.37 lakhs (FY24-25: ₹29,359.36 lakhs), showing operational improvement
  • Profit After Tax: ₹11,972.38 lakhs, growth of 5.8% YoY
  • PAT Margin: 4.8% (improved from 4.48%)
  • EPS: ₹9.39 (FY24-25: ₹8.88)
  • Total Equity: ₹1,115.90 crore (FY25: ₹1,006.91 crore)
  • Debt to Equity Ratio: 0.41 (improved from 0.58)

Dividend Recommendation

  • Final Dividend: ₹1.00 per equity share of face value ₹1.00 each
  • Preference Dividend: 5% on Non-Cumulative Non-Convertible Redeemable Preference Shares
  • Total Equity Dividend Amount: ₹12.71 crore
  • Total Preference Dividend Amount: ₹3.42 crore
  • Subject to approval at 37th AGM on September 12, 2026
  • Record date: September 5, 2026

Annual Report Corrigendum

  • Issued corrigendum to correct typographical errors in retained earnings (₹91,349.32L vs ₹91,240.78L) and total equity (₹99,403.88L vs ₹99,295.34L) on page 125 of FY25-26 Annual Report
  • Correction stated to be purely inadvertent with no impact on underlying financial position
  • Revised Annual Report incorporating corrections filed with exchanges

Significant Events

Fire Incident at Bathinda Plant:

  • Raw material damage: ₹28.29 crore (excluding GST)
  • Property, plant and equipment damage: ₹2.05 crore
  • Insurance claim recoveries: ₹30.25 crore
  • Net loss due to fire: ₹1.46 crore (recorded under Other Expenses)

Accounting Policy Change:

  • Changed inventory valuation policy for raw materials from FIFO to weighted average cost
  • Implemented with retrospective effect as per Ind AS 8
  • Impacted opening inventory by ₹2.81 crore

Corporate Developments

  • Credit Rating Upgrade: CRISIL upgraded long-term rating from "CRISIL A/Positive" to "CRISIL A+/Stable" on May 21, 2025
  • Expansion Project: 150,000 spindles greenfield expansion project underway with financial closure completed
  • Solar Power Investment: Acquired 26% stake in Evincea Renewable Seven Private Limited for 40.3 MW solar project, commissioned on June 18, 2026
  • Management Change: Proposed change in designation of Mrs. Anjali Avasthi from Non-Executive to Whole-time Director with monthly remuneration of ₹5 lakh

Key Ratios Improvement

  • Debtor Turnover Ratio: 58 days (from 66 days, -12.12%)
  • Inventory Turnover Ratio: 57 days (from 63 days, -9.52%)
  • Interest Coverage Ratio: 6.66 times (from 5.84 times, +14.04%)
  • Current Ratio: 3.25 times (from 2.63 times, +23.57%)
  • Operating Profit Margin: 8.21% (from 7.99%, +2.75%)

Regulatory Compliance & Governance

  • Filed requisite forms with ROC and disclosures to stock exchanges under SEBI LODR Regulations
  • All related party transactions in ordinary course of business at arm's length
  • No material orders passed by regulators/courts impacting going concern status
  • CSR expenditure of ₹2.84 crore against requirement of ₹2.94 crore

Corporate Calendar

  • 37th AGM Date: September 12, 2026 at 10:30 AM
  • Venue: Registered Office at Village Kanech, Near Sahnewal, GT Road, Ludhiana
  • Business Items: Adoption of financial statements, dividend declaration, director appointments, and ratification of auditors