SP Apparels Limited (SPAL) has reported robust financial results for the second quarter, with significant improvements across its various business segments. The company's consolidated revenue grew by 9.2% year-on-year to INR 427.00 crores, while profit after tax (PAT) surged by 58.4% to INR 34.70 crores.

Key Highlights

• Consolidated revenue: INR 427.00 crores (9.2% YoY growth)
• PAT: INR 34.70 crores (58.4% YoY growth)
• SPUK division: Achieved positive EBITDA of INR 1.10 crores
• Retail division: Reported positive EBITDA of INR 0.53 crores

Segment-wise Performance

Garment Division

The garment division, including Young Brand Apparel, reported an adjusted revenue of INR 389.00 crores, marking a 10.2% year-on-year growth. The adjusted EBITDA for this segment stood at INR 66.60 crores, showing a 16.7% increase from the previous year.

SPUK Division

SPUK division achieved a significant milestone by turning profitable. It reported a revenue of INR 18.00 crores with a positive EBITDA of INR 1.10 crores, compared to a loss in the same quarter last year.

Retail Division

The retail division also showed remarkable improvement, with revenue of INR 21.70 crores and a positive EBITDA of INR 0.53 crores, compared to a loss of INR 0.88 crores in the previous comparable quarter. Within the retail division:

• Crocodile brand revenue: INR 16.00 crores
• Angel & Rocket revenue: INR 5.00 crores

Export Performance

SP Apparels' export business witnessed strong growth, with export quantity reaching 18.9 million pieces in the current quarter, compared to 15.3 million pieces in the same quarter of the previous year, representing a 24% year-on-year increase.

Operational Updates

1. Sri Lanka Operations: The company has strengthened its presence in Sri Lanka, aiming to leverage the country's cost-effective manufacturing environment and duty-free access to Europe and the UK.

2. Capacity Utilization: SP Apparels maintained a healthy capacity utilization of around 83% in India, supported by strong demand and new customer additions across Europe and the UK.

3. U.S. Tariff Impact: The company is actively managing the impact of increased U.S. tariffs by exploring opportunities with European and UK customers to mitigate potential risks.

4. Retail Business Turnaround: The retail division's positive EBITDA marks a significant milestone, driven by strong performance of the Crocodile brand and growing traction for Angel & Rocket.

Future Outlook

Despite challenges in the U.S. market due to tariff issues, SP Apparels maintains its revenue guidance of INR 2,000.00 crores. The company plans to focus on stabilizing its recent expansions before considering further capacity additions.

Mr. P. Sundararajan, Chairman and Managing Director, commented, "We are delighted to report that all our divisions have delivered strong performance in Q2. Notably, retail and SP divisions have reported positive EBITDA during the quarter, marking a significant milestone in our turnaround strategy."

The company remains optimistic about its growth prospects, leveraging its integrated model, diversified customer base, and strategic expansions in Sri Lanka to drive sustainable growth in the coming years.

Financial Position

As of the latest report, SP Apparels' gross debt on a standalone basis stood at INR 263.00 crores, with a net debt of INR 229.00 crores. On a consolidated basis, the net debt is INR 303.00 crores.

SP Apparels continues to demonstrate resilience and adaptability in the face of global market challenges, positioning itself for sustained growth and profitability across its diverse business segments.

SP Apparels Limited, a prominent player in the textile industry, has announced a significant addition to its leadership team. The company's Board of Directors has approved the appointment of Mr. Srinivas Chidambaram (DIN: 00514665) as a Non-executive Independent Director for a term of five years, commencing from November 12, 2025, subject to shareholder approval.

Extensive Corporate Experience

Mr. Chidambaram brings a wealth of experience to SP Apparels, with over 35 years in the corporate world. Notably, he has spent more than 27 years specializing in private equity, a background that promises to add valuable financial acumen to the company's board.

Investment Expertise

Throughout his career, Mr. Chidambaram has been involved in investments exceeding $600 million across more than 30 companies. His investment portfolio spans various sectors, including IT, Healthcare, Fintech, Financial Services, Manufacturing, and Infrastructure. This diverse experience is expected to provide SP Apparels with insights into multiple industries and potential growth opportunities.

Board Approval and Compliance

The appointment was approved at a Board meeting held on November 14, 2025. In compliance with regulatory requirements, SP Apparels has disclosed this information to the stock exchanges, as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Appointment

Independence and Expertise

The company has confirmed that Mr. Chidambaram does not have any relationship with the existing Directors or Key Managerial Personnel of SP Apparels. This independence is crucial for maintaining objectivity in board decisions. Additionally, SP Apparels has affirmed that Mr. Chidambaram is not debarred from holding the office of director by virtue of any SEBI order or any other such authority.

Implications for SP Apparels

The appointment of Mr. Chidambaram is expected to enhance the company's strategic decision-making capabilities, particularly in areas of finance and investment. His extensive experience in private equity and involvement in diverse sectors may help SP Apparels in identifying new growth avenues and optimizing its financial strategies.

As SP Apparels continues to navigate the competitive textile industry landscape, the addition of Mr. Chidambaram to its board signals the company's commitment to strengthening its governance and strategic planning capabilities.