SP Apparels Limited has announced its financial results for the quarter ended December 31, 2025, demonstrating robust performance across key metrics. The company's board meeting held on February 11, 2026, approved the unaudited standalone and consolidated financial results along with several strategic decisions.

Strong Financial Performance in Q3FY26

The company delivered impressive growth in the third quarter, with consolidated operations showing significant improvement across revenue and profitability metrics.

Standalone Business Results

The standalone operations also demonstrated healthy growth, reflecting the company's core business strength and operational efficiency.

Division-wise Performance Analysis

The company's diversified business model showed strong performance across different segments, with the garment division leading growth momentum.

The export performance remained robust with SP Apparels achieving sales quantity of 18.2 million pieces and Young Brand Apparels contributing 6.2 million pieces during the quarter.

Key Board Decisions and Corporate Actions

The board meeting addressed several important corporate governance and strategic matters that will shape the company's future operations.

Earnings Call and Investor Engagement

Following the results announcement, SP Apparels has scheduled a comprehensive earnings call for February 13, 2026 at 12:00 PM IST. The call will feature key management personnel including Chairman & Managing Director P Sundararajan, Executive Director S Latha, Joint Managing Directors S Shantha and S Chenduran, CEO PV Jeeva, and CFO V Balaji.

The company's strong Q3FY26 performance, combined with strategic board decisions and transparent investor communication, positions SP Apparels well for continued growth in the textile and apparel sector.

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.