News Earnings S.P. Apparels Reports Steady Q3 FY26 Performance, Maintains FY27 Revenue Guidance at INR 2,000 CroresS.P. Apparels Reports Steady Q3 FY26 Performance, Maintains FY27 Revenue Guidance at INR 2,000 Crores
S.P. Apparels Limited reported steady Q3 FY26 results with consolidated revenue of INR 382.9 crores (up 6.6% YoY) and PAT of INR 27.0 crores (up 9.1% YoY). For nine months FY26, the company achieved strong consolidated revenue growth of 21.9% to INR 1,213.7 crores with PAT growth of 27.3% to INR 82.4 crores. Management maintains FY27 revenue guidance of INR 2,000 crores, supported by recent India-US and India-EU trade agreements that have resolved tariff uncertainties and improved customer engagement across key markets.
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S.P. Apparels Limited delivered a steady performance in Q3 FY26 despite sector-wide challenges, with the company maintaining operational efficiency across all verticals while navigating trade policy uncertainties that have now been resolved through recent international agreements.
Financial Performance Highlights
The company reported solid financial results for both the quarter and nine-month periods. On a consolidated basis, revenue from operations in Q3 FY26 reached INR 382.9 crores, representing a 6.6% year-on-year growth. EBITDA grew by 11.2% to INR 56.6 crores with an EBITDA margin of 14.8%, while profit after tax stood at INR 27.0 crores compared to INR 24.8 crores in the previous year, marking a 9.1% increase.
| Financial Metric: | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Consolidated Revenue: | INR 382.9 crores | INR 359.1 crores | +6.6% |
| Consolidated EBITDA: | INR 56.6 crores | INR 50.9 crores | +11.2% |
| EBITDA Margin: | 14.8% | 14.2% | +60 bps |
| Consolidated PAT: | INR 27.0 crores | INR 24.8 crores | +9.1% |
For the nine-month period ended December 2025, the company demonstrated strong momentum with consolidated revenue of INR 1,213.7 crores against INR 995.9 crores in the previous year, achieving robust growth of 21.9%. EBITDA during this period stood at INR 173.2 crores with a margin of 14.3%, while profit after tax reached INR 82.4 crores compared to INR 64.7 crores, representing significant growth of 27.3%.
Trade Agreement Impact and Market Outlook
The resolution of trade uncertainties through recent agreements has provided much-needed clarity for the textile industry. The India-US agreement reducing tariffs to 18% has strengthened the company's competitiveness and opened access to the USD 118 billion US textile import market. Similarly, the India-EU FTA eliminating up to 12% import duties has improved buyer sentiment significantly.
Management highlighted that the temporary pause with US customers due to tariff uncertainties has now eased, with customers resuming order placements and normalizing booking patterns. The company's multi-country manufacturing model, spanning India and Sri Lanka, provides flexibility to navigate market shifts and serve customers efficiently based on landed costs and lead times.
Segment-wise Performance Analysis
The Garment division continued as the company's backbone, with Q3 FY26 adjusted operational revenue of INR 343.6 crores, achieving 7.6% year-on-year growth. Adjusted EBITDA for the division stood at INR 58.3 crores, also growing 7.6% year-on-year. For the nine-month period, the division reported adjusted operational revenue of INR 1,105.7 crores, up 16.7% year-on-year, with adjusted EBITDA of INR 179.2 crores, representing 16.3% growth.
| Division Performance: | Q3 FY26 Revenue | Q3 FY26 EBITDA |
|---|---|---|
| Garment Division: | INR 343.6 crores | INR 58.3 crores |
| SP UK: | INR 19.2 crores | INR 0.8 crores |
| Retail Division: | INR 17.2 crores | INR 0.8 crores |
The Young Brand apparel division, being predominantly US-focused, experienced pressure in Q3 due to earlier tariff uncertainty. However, the division maintained healthy operational margins, and with the tariff situation now resolved, customer engagement has picked up sharply with strong order visibility for the upcoming season.
Strategic Initiatives and Capacity Expansion
In Sri Lanka, the company made significant progress by integrating an additional factory, bringing total operational capacity to approximately 1,650 machines. The company expects Sri Lankan operations to reach normalized levels from Q1 FY27 with meaningful shipments and optimum utilization in Q2 FY27. During the year, the acquisition of factories also added new customers, with orders expected to begin in Q1 and steady contribution from Q2 onwards.
| Current Order Book: | Value |
|---|---|
| SPAL Division: | INR 353 crores |
| Young Brand Apparel: | INR 87 crores |
| SP UK: | INR 30 crores |
SP UK remains a key growth driver with management targeting significant expansion over the next two financial years, aiming for revenue of approximately USD 20 million (INR 200 crores) as customer additions and design-led engagement scale up. The division's ability to source between India and Sri Lanka depending on landed costs provides a distinct competitive advantage.
Future Guidance and Sustainability Commitments
Management maintained their revenue guidance of INR 2,000 crores by FY27 on a consolidated basis, supported by the order pipeline, customer additions in Sri Lanka, resumption of Young Brand expansion, and scaling up of SP UK operations. The company is also progressing on sustainability commitments by planning to add approximately 3 megawatts of rooftop solar capacity across three additional units for FY27, taking total installed in-house solar facility capacity to 4 megawatts.
The Retail division remained EBITDA positive and recently added another anchor store, with both Crocodile and Angel & Rocket brands showing steady performance through disciplined inventory management and improved consumer engagement strategies.
Historical Stock Returns for SP Apparels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.22% | -2.59% | +16.42% | -3.87% | -10.26% | +265.65% |
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