Sportking India Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange and National Stock Exchange of India. The filing, dated August 17, 2026, provides an overview of the company’s operational footprint, sustainability initiatives, and governance practices for FY26.

The Ludhiana-based textile manufacturer reported a total turnover of ₹249,585.66 lakh and a net worth of ₹111,590.04 lakh as disclosed in the CSR applicability section of the report. The company operates three manufacturing plants and offices across India, serving customers in 36 international countries alongside the domestic market. Exports accounted for approximately 51% of the total turnover, highlighting the significant reliance on global demand for its cotton and polyester-blended yarn products.

Operational and Environmental Metrics

Sportking India highlighted several environmental initiatives in the report, including the operation of a 27.62 MW solar power plant. The company also initiated capital expenditure for a 40.3 MW captive solar power project through a Special Purpose Vehicle under a 25-year Solar Power Purchase Agreement during FY26. This new project is expected to reduce annual power costs by approximately 12–13% and enhance the share of renewable energy in its overall mix.

Total energy consumption for FY26 stood at 1,056,804 GJ, comprising 126,755 GJ from renewable sources and 930,049 GJ from non-renewable sources. Water withdrawal was recorded at 706,126 kilolitres, entirely sourced from groundwater. The company noted that it has initiated the phased implementation of Zero Liquid Discharge (ZLD) processes across its manufacturing operations.

Workforce and Governance

As of March 31, 2026, Sportking India employed 559 permanent employees and 5,420 permanent workers. The workforce composition included 96.60% male employees and 48.67% female workers. The company reported a turnover rate of 10.65% for permanent employees and 77.05% for permanent workers in FY26.

The Board of Directors comprises six members, with two women directors representing 33.33% of the board. The report confirmed that no fines, penalties, or disciplinary actions were taken against directors or key managerial personnel for bribery or corruption during the year. Additionally, there were no recordable work-related injuries or fatalities reported among employees or workers.

What the Numbers Show

A notable divergence exists between the stability of the employee base and the high churn rate among the worker segment. While the employee turnover rate remained low at 10.65%, the permanent worker turnover rate stood at 77.05%, indicating significant fluidity in the operational workforce compared to the administrative staff. Furthermore, the sharp increase in waste generation from 15.13 tonnes in FY25 to 171.61 tonnes in FY26 warrants attention, although the report attributes this to comprehensive waste tracking rather than operational inefficiency.

Sportking India Ltd reported a net profit of ₹76.0 crore for the quarter ended June 30, 2026, marking a 123% year-on-year increase from ₹34.1 crore. The Ludhiana-based textile manufacturer saw revenue rise 20.1% to ₹703.7 crore, driven by improved realizations and strong demand. This top-line growth was accompanied by significant margin expansion, with EBITDA jumping 90.3% to ₹132.2 crore. Alongside robust financial performance, the company announced a ₹1,000 crore greenfield capacity addition in Odisha and strategic mergers to integrate forward into fabric dyeing and garment manufacturing.

The Board approved the unaudited financial results on August 1, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditor SCV & Co. LLP conducted a limited review under Standard on Review Engagements (SRE) 2410. The company also scheduled its 37th Annual General Meeting for September 12, 2026.

Financial Performance Highlights

Earnings per share increased to ₹6.0 from ₹2.7 in the previous year’s quarter. Profit before tax rose to ₹102.2 crore from ₹46.5 crore. Tax expense for the quarter was ₹26.23 crore, comprising current tax of ₹27.38 crore and a deferred tax benefit of ₹1.15 crore.

Operational Costs and Margins

Total expenses rose to ₹603.8 crore from ₹551.3 crore. Cost of materials consumed increased to ₹434.0 crore, reflecting higher production volumes. Employee benefit expenses grew modestly to ₹39.3 crore. Finance costs decreased to ₹8.7 crore from ₹11.3 crore. Gross margin expanded by 575 basis points to 32.4%, while EBITDA margin improved by 693 basis points to 18.8%. Domestic revenue contribution grew to 48% from 39%, while exports remained at 50%.

Strategic Expansion and Mergers

The company announced a greenfield capacity addition in Odisha with an outlay of approximately ₹1,000 crore, funded through term loans and internal accruals. The first phase will set up 1.50 lakh spindles, representing a 40% increase over the existing 3.79 lakh spindle count. Operations are expected to commence in the third quarter of FY27. This expansion aims to serve the eastern market and diversify geographic presence.

Additionally, the Board approved the acquisition of a majority stake in Marvel Dyers and Processors Private Limited and the manufacturing facilities of Sobhagia Sales Private Limited on a slump sale basis. Marvel Dyers is engaged in dyeing, printing, and finishing of fabrics, while Sobhagia Sales manufactures and retails readymade garments. These moves signal a strategic shift towards forward integration, allowing Sportking India to add value by moving up the textile product chain.

Leadership and Governance Changes

The Board promoted Anjali Avasthi to Whole-time Director, designated as Executive Director, effective August 1, 2026. This three-year appointment follows a recommendation from the Nomination and Remuneration Committee. Avasthi is related to Chairman and Managing Director Munish Avasthi. The company confirmed she is not debarred from holding office as per BSE Circular No. LIST/COMP/14/2018-19 and NSE Circular No. NSE/CML/2018/24.

What the Numbers Show

The divergence between revenue growth (20.1%) and expense growth (less than 10%) highlights significant operational leverage for Sportking India. This efficiency gain was amplified by a decline in finance costs, directly contributing to the doubling of pre-tax profits. The upcoming Odisha plant and proposed mergers indicate a clear strategy to capitalize on current capacity utilization levels of 96%+ by expanding output and capturing higher margins through vertical integration into fabrics and garments.