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 has officially completed the postal ballot process for appointing Mr. Srinivas Chidambaram (DIN: 00514665) as a Non-executive Independent Director. The company submitted the scrutinizer report and declared voting results on December 30, 2025, confirming overwhelming shareholder support for the appointment.

Official Voting Results Declaration

The company formally declared the postal ballot results on December 27, 2025, with the resolution being passed as a Special Resolution. The voting process was conducted entirely through remote e-voting, overseen by scrutinizer Mr. M.D. Selvaraj, FCS, Managing Partner of MDS & Associates LLP.

Comprehensive Voting Statistics

The postal ballot witnessed strong participation from shareholders, with detailed voting statistics revealing unanimous support for the appointment.

Regulatory Compliance and Documentation

The company submitted the scrutinizer report and voting results to both BSE and NSE under Regulation 30 & 44 of SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015. The postal ballot notice was sent electronically to all eligible shareholders on November 27, 2025.

Director Profile and Expertise

Mr. Chidambaram brings over 35 years of corporate experience to SP Apparels, with more than 27 years specializing in private equity. His extensive investment portfolio spans across IT, Healthcare, Fintech, Financial Services, Manufacturing, and Infrastructure sectors, with involvement in investments exceeding $600 million across more than 30 companies.

Appointment Terms and Governance

The appointment becomes effective for a five-year term commencing from November 12, 2025. The company has confirmed that Mr. Chidambaram maintains independence from existing Directors and Key Managerial Personnel, ensuring compliance with governance standards and regulatory requirements.

With the successful completion of the postal ballot process and regulatory submissions, SP Apparels has strengthened its board composition with an experienced independent director, positioning the company to benefit from enhanced strategic decision-making capabilities in the competitive textile industry.