S.P. Apparels Limited reported a strong start to FY27, with standalone net profit after tax rising 33.4% year-on-year to ₹265.4 million for the quarter ended June 30, 2026. Consolidated net profit grew to ₹249 million compared to ₹206 million in the same period last year, reflecting a healthy year-on-year improvement. The performance was underpinned by an expansion in the standalone adjusted EBITDA margin to 17.5%, up from 15.2% in Q1FY26. Alongside the results, the Board recommended a final dividend of ₹3 per share (30%) on the face value of ₹10 each for FY26 and proposed a 1:5 stock split to enhance liquidity and encourage small investor participation.

The financial results were approved by the Board at its meeting held on August 11, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The unaudited standalone and consolidated results were reviewed by the statutory auditors, ASA & Associates LLP, in accordance with Standard on Review Engagements (SRE) 2410. The company operates in a single reportable segment, textile business, as per Ind AS 108.

Financial Performance Highlights

Consolidated revenue from operations stood at ₹4,010.8 million in Q1FY27, broadly in line with the year-ago period, while reflecting a 9.9% sequential growth compared to ₹3,649.1 million in Q4FY26. Consolidated EBITDA rose to ₹614 million from ₹530 million in Q1FY26, with the consolidated EBITDA margin expanding to 15.30% from 13.14% year-on-year. Standalone adjusted revenue from operations was ₹2,659.4 million, down from ₹2,877.0 million in Q1FY26, yet profitability improved significantly, with standalone adjusted EBITDA rising 6.7% year-on-year to ₹465.8 million.

The table below summarises key financial metrics across reporting periods:

Corporate Actions and Shareholder Updates

The Board proposed subdividing existing equity shares of face value ₹10 into five shares of face value ₹2 each. This alteration requires shareholder approval at the 21st Annual General Meeting (AGM). The move aims to make equity shares more affordable for retail investors. Post-split, the authorized share capital will remain ₹472.5 million but divided into 236.25 million shares of ₹2 face value. The record date for the split will be intimated after AGM approval.

The final dividend of ₹3 per share is payable within 30 days of the AGM, with a record date fixed for September 4, 2026. The 21st AGM will be held virtually on September 21, 2026. The register of members will remain closed from September 15 to September 21, 2026. The cut-off date for remote e-voting eligibility is September 14, 2026. Additionally, the Board approved alterations to the SPAL Employee Stock Option Plan 2024 to align with the proposed stock split.

What the Numbers Show

The divergence between standalone revenue decline and significant profit growth highlights operational efficiency gains. While standalone adjusted revenue fell approximately 7.6% year-on-year, the adjusted EBITDA margin expanded by 230 basis points to 17.5%, suggesting cost optimization or a favorable product mix shift within the core textile business. On a consolidated basis, the year-on-year improvement in EBITDA margin from 13.14% to 15.30%, alongside net profit growth from ₹206 million to ₹249 million, underscores strengthening profitability across the group structure during the first quarter of FY27.

S.P. Apparels Limited has extended an unsecured loan facility of GBP 4,50,000 to its wholly owned subsidiary, S.P. Apparels (UK) (P) Limited, to support its business operations in the United Kingdom. The agreement, executed on July 29, 2026, carries an interest rate of 7% per annum payable with annual rests and is repayable on demand or within three years, whichever occurs earlier.

The transaction was disclosed to the Bombay Stock Exchange and the National Stock Exchange under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The disclosure also referenced SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Loan Agreement Details

S.P. Apparels Limited holds 100% of the shares in S.P. Apparels (UK) (P) Limited, classifying the transaction as a related-party transaction conducted at arm’s length. The loan is unsecured, meaning no collateral or security has been provided by the borrower. The agreement does not include special rights such as the appointment of directors, first right to share subscription, or restrictions on changes to the capital structure.

Operational Context

The funds are designated exclusively for the business and operations of the UK subsidiary. As a related-party transaction involving a wholly owned entity, the arrangement reflects internal capital allocation strategies rather than external financing dependencies. The absence of security and special rights indicates a standard intercompany lending structure typical for parent-subsidiary relationships.

The company secretary, K. Vinodhini, signed the disclosure, confirming compliance with regulatory requirements. No other promoters, promoter groups, or group companies have an interest in this transaction beyond the listed entities.