Sportking FY26 PAT rises 5.8%; margins expand on robust demand
Sportking India Limited reported a 5.8% increase in FY26 net profit to ₹119.7 Crs, while Q4 PAT declined 7.3% YoY to ₹32.8 Crs due to forex provisions. Q4 EBITDA surged 16.1% to ₹85.4 Crs, driven by robust demand and better spreads. The Board approved acquisitions of Marvel Dyers and Sobhagia Sales, and recommended a final dividend of ₹1 per share.
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Sportking India Limited reported a net profit after tax of ₹119.7 Crs for the full year ended March 31, 2026, an increase of 5.8% compared to the previous year, with a PAT margin of 4.8%. For the quarter ended March 31, 2026, the company posted a net profit after tax of ₹32.8 Crs. Revenue from operations for FY26 stood at ₹2,495.9 Crs, remaining largely stable year-on-year, while Q4 revenue stood at ₹636.8 Crs, a marginal increase of 1.3% YoY. Q4 EBITDA surged 16.1% to ₹85.4 Crs, with the EBITDA margin expanding by 172 basis points to 13.4%.
Financial Performance
The following table summarises key financial metrics from the investor presentation (₹ in Crs):
| Particulars | Q4 FY26 | Q4 FY25 | YoY | FY26 | FY25 | YoY |
|---|---|---|---|---|---|---|
| Revenue from Operations | 636.8 | 628.8 | 1.3% | 2,495.9 | 2,524.2 | -1.1% |
| EBITDA | 85.4 | 73.6 | 16.1% | 286.0 | 266.8 | 7.2% |
| EBITDA Margin | 13.4% | 11.7% | +172 bps | 11.5% | 10.6% | +89 bps |
| Profit After Tax | 32.8 | 35.3 | -7.3% | 119.7 | 113.1 | 5.8% |
| PAT Margin | 5.1% | 5.6% | -47 bps | 4.8% | 4.5% | +31 bps |
Operational Highlights
Total production volume for Q4 FY26 stood at 20,527 MT compared to 20,956 MT in Q4 FY25. Yarn sales volume for Q4 FY26 stood at 21,052 MT versus 21,038 MT in Q4 FY25. Capacity utilization was at 96% for Q4 FY26. Exports contributed 48.7% of total revenue in Q4 FY26.
Management Commentary
Mr. Munish Avasthi, Chairman & Managing Director, stated that the company delivered a resilient performance despite a challenging environment, supported by better yarn realization and demand. He highlighted robust demand across geographies, including a resurgence in China as a large importer, where the company's share increased to 10-12%. Management expects margins to expand over the next two to three quarters due to increasing cotton spreads, which have reached almost three-year highs, and good cotton coverage. The 40-megawatt solar power supply is expected to commence by the end of May 2026, saving approximately ₹14-15 crores annually.
Strategic Acquisitions and Expansion
The Board approved the acquisition of a majority stake in M/s Marvel Dyers and Processors Private Limited, a related party engaged in dyeing, printing, and finishing of fabrics. Separately, the Board approved the acquisition of the manufacturing undertaking of M/s Sobhagia Sales Private Limited (SSPL) on a slump sale basis. The company proposes to enter into a long-term lease arrangement with SSPL for the land and building. Management expects these acquisitions to close within the current calendar year.
Financial closure for the Greenfield Expansion Project in Odisha has been completed, with construction activities having commenced. The project will expand the spindle count by 1,50,000, with commercial operations expected to commence in the third quarter of the financial year. The project is estimated at ~1,000 crores.
Dividend and Cost Auditor
The Board has recommended a Final Dividend of ₹1/- per equity share amounting to ₹1,270.72 Lakhs, subject to shareholder approval. Additionally, the Board recommended a dividend of 5% on Non-Cumulative Non-Convertible Redeemable Preference Shares amounting to ₹34.16 Lakhs. The Board approved the re-appointment of M/s R.R & Co., Cost Accountants, as the Cost Auditor for FY 2026-27.
Historical Stock Returns for Sportking
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.31% | +2.05% | +23.70% | +98.62% | +70.34% | +76.94% |
How will the commencement of the 40-megawatt solar power supply impact the company's operating cost structure and EBITDA margins starting FY27?
What specific synergies and revenue contributions are expected from the acquisitions of Marvel Dyers and Sobhagia Sales once they are integrated?
Will the resurgence in demand from China and the increased market share be sufficient to offset potential volatility in other export markets?
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