Sportking India Ltd commenced commercial operations of its solar power project on June 18, 2026, marking a significant step in its commitment to sustainable growth and energy efficiency. The project, established under a Solar Power Purchase Agreement (SPPA) with M/s Evincea Renewable Seven Private Limited, a Special Purpose Vehicle, will supply solar power to the company's facilities in Punjab. This initiative is projected to reduce the company's power costs by approximately 12-13% annually, delivering substantial long-term financial benefits.

Operational and Financial Impact

The commissioning of the solar power project is expected to generate substantial long-term benefits for Sportking India Ltd. By integrating renewable energy sources, the company aims to optimize operating costs and enhance its competitiveness in the market. The reduction in power costs by 12-13% annually represents a direct improvement in operational efficiency.

Environmental and Strategic Objectives

Beyond financial savings, the project reinforces Sportking India Ltd's environmental and social objectives. The successful commissioning is designed to reduce the company's carbon footprint and increase the share of clean energy in its overall power consumption. This move aligns with the company's focus on creating sustainable value for all stakeholders while maintaining operational excellence.

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):

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.