Sportking India Limited has issued detailed communications to shareholders regarding the Tax Deduction at Source (TDS) applicable to its recommended final dividend of ₹1 per equity share for the financial year ended March 31, 2026. The Board of Directors had previously recommended this dividend, representing a 100% payout on the face value, during its meeting on May 16, 2026. The dividend is subject to approval by shareholders at the 37th Annual General Meeting (AGM) scheduled for September 12, 2026.

Under the provisions of the Income Tax Act, 2025, as amended by the Finance Act, 2026, dividends declared and paid by the company are taxable in the hands of shareholders. Consequently, Sportking India is required to deduct tax at source from the dividend amount at prescribed rates before payment. The company has provided distinct guidelines for resident and non-resident shareholders to determine the applicable withholding tax rates.

TDS Rates for Resident Shareholders

For resident shareholders who have registered a valid Permanent Account Number (PAN), tax will be deducted at a rate of 10% under Section 393(1) of the IT Act, 2025. However, if a shareholder does not have a PAN, or if the PAN is inoperative/invalid due to non-linkage with Aadhaar, the company will deduct TDS at a higher rate of 20% under Section 397(2).

Resident individuals may be exempt from TDS if their total dividend income from the company in FY27 does not exceed ₹10,000, or if they submit Form 121 meeting all eligibility conditions. Resident non-individuals, such as insurance companies, mutual funds, Alternative Investment Funds (AIFs), and New Pension System (NPS) trusts, can claim exemption by providing self-declarations and relevant registration certificates from regulators like IRDAI or SEBI.

Guidelines for Non-Resident Shareholders

Non-resident shareholders are subject to withholding tax at 20% (plus applicable surcharge and cess) under Section 393(2) of the IT Act, 2025, unless they opt for benefits under a Double Tax Avoidance Agreement (DTAA). To avail DTAA benefits, non-residents must submit:

• A self-attested copy of their PAN card allotted by Indian income tax authorities.
• A self-attested Tax Residency Certificate (TRC) for FY27 from their country of residence.
• Form 41 filed online via the Income Tax Department portal.
• A self-declaration confirming beneficial ownership and treaty eligibility.

Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) must also provide their SEBI registration certificates. Shareholders from Singapore must additionally furnish evidence demonstrating the non-applicability of Article 24 of the India-Singapore DTAA. The company reserves the right to reject documents if discrepancies are found or if the review is unsatisfactory.

Submission Deadline and Payment Details

Shareholders are requested to submit all necessary documents, including PAN details, bank mandates, and exemption certificates, on or before August 31, 2026. Documents submitted after this cut-off date will be accepted only at the sole discretion of the company. Failure to link PAN with Aadhaar will result in the PAN being deemed invalid, triggering the higher 20% TDS rate.

The record date for determining dividend eligibility is September 5, 2026. Dividends will be paid electronically to shareholders whose names appear in the register of members or depository records on this date. The company has reminded members holding shares in demat form to ensure their electronic bank mandates are updated with their respective Depository Participants (DPs), as the company cannot process direct requests for bank detail changes for such holdings. Physical shareholders must update their details with the Registrar and Transfer Agent, M/s Beetal Financial & Computer Services Pvt Ltd.

Financial Context and Strategic Updates

For FY26, Sportking India reported a profit after tax (PAT) of ₹11,972.38 lakh, up 5.8% from ₹11,314.60 lakh in FY25. Revenue from operations stood at ₹249,585.66 lakh, slightly down 1.1% from the previous year’s ₹252,422.94 lakh. EBITDA rose to ₹30,057.37 lakh from ₹29,359.36 lakh. The company maintained strong production volumes of 83,801 metric tonnes, up 3.4% year-on-year, with capacity utilization at approximately 96%. Exports contributed 52% of total revenue.

Strategically, the company continues its focus on sustainability and expansion. It acquired a 26% stake in a 40.3 MW solar power project, which commenced commercial operations in June 2026, expected to reduce power costs by 12–13%. Additionally, financial closure has been secured for a greenfield expansion involving 150,000 spindles, aimed at enhancing spinning capacity.

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.