SP Apparels Reports Robust Q2 Performance with 58% Surge in Net Profit

SP Apparels Limited , a leading textile manufacturer, has reported a strong financial performance for the second quarter of fiscal year 2026, with significant growth in revenue and profitability.

Key Financial Highlights

Consolidated net profit jumped 58.3% year-over-year to ₹347.00 million, up from ₹219.20 million in Q2 FY25.
Consolidated revenue grew by 10.3% to ₹4,273.43 million, compared to ₹3,936.80 million in the same quarter last year.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to ₹704.50 million, marking a substantial 35.3% increase from ₹520.70 million in Q2 FY25.
EBITDA margin expanded to 16.5% from 13.2% in the corresponding quarter of the previous year.
Earnings per share (EPS) for the quarter improved to ₹13.80, up from ₹8.70 in Q2 FY25.

Segment Performance

The company's performance across various segments showed positive trends:

The Garment Division, including Young Brand Apparel, reported revenue of ₹3,892.10 million with an adjusted EBITDA of ₹665.50 million, maintaining a healthy EBITDA margin of 17.1%.
SP Retail Ventures Limited contributed revenue of ₹216.80 million with an EBITDA of ₹5.30 million.
SP Apparels UK (P) Limited generated revenue of ₹179.90 million and an EBITDA of ₹11.30 million.

Operational Highlights

Export volumes increased significantly, with sales quantity reaching 18.9 million pieces compared to 15.3 million pieces in Q2 FY25.
The company maintained strong operational efficiency, reflected in the improved EBITDA margins.

Balance Sheet and Cash Flow

As of September 30, 2025, SP Apparels reported:

Total assets of ₹13,440.40 million, up from ₹12,688.70 million as of March 31, 2025.
A robust equity position with total equity of ₹8,957.07 million.
Healthy cash and cash equivalents of ₹342.49 million.

The company's cash flow from operating activities for the half-year ended September 30, 2025, stood at ₹990.89 million, indicating strong operational cash generation.

Management Commentary

P. Sundararajan, Managing Director of SP Apparels Limited, commented on the results: "We are pleased with our performance this quarter, which demonstrates the resilience of our business model and the effectiveness of our strategic initiatives. The significant growth in profitability and improved margins reflect our focus on operational excellence and cost management. We remain committed to delivering value to our shareholders and maintaining our growth trajectory."

Future Outlook

While the company has not provided specific forward-looking statements, the strong performance in Q2 FY26 positions SP Apparels well for continued growth. The increased export volumes and improved operational efficiencies suggest a positive outlook for the coming quarters.

Investors and analysts will likely watch for the company's ability to maintain its growth momentum and further improve its margins in the face of global economic uncertainties and potential fluctuations in raw material costs.

SP Apparels Limited continues to strengthen its position in the textile industry, leveraging its manufacturing capabilities and diverse product portfolio to drive sustainable growth.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.09%	+7.53%	+13.83%	-7.26%	-5.05%	+476.03%

SP Apparels Limited, a prominent player in the garment manufacturing sector, has made a significant move to bolster its international presence. The company has invested Rs 43,508,668 (approximately Rs 4.35 crore) as equity in its wholly-owned subsidiary, S.P. Apparels International Private Limited (SPAIPL), based in Sri Lanka.

Investment Details

Aspect	Details
Investment Amount	Rs 43,508,668 (USD 490,000)
Subsidiary	S.P. Apparels International Private Limited (SPAIPL)
Ownership	100% wholly-owned subsidiary
Transaction Type	Cash consideration
Subsidiary Location	Sri Lanka
Subsidiary's Business	Garment manufacturing
Subsidiary's Turnover	1,872,585 LKR

Strategic Implications

The investment, which represents a 100% cash consideration transaction, is aimed at expanding S.P. Apparels' business operations. The company cited strategic advantages and cost-effective manufacturing circumstances as key drivers behind this decision.

Corporate Governance and Disclosure

This transaction falls under the category of a related party transaction. It's noteworthy that Mr. P. Sundararajan, Managing Director and Promoter, and Mr. S. Chenduran, Joint Managing Director and Promoter Group of S.P. Apparels Limited, also serve as directors in SPAIPL.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, S.P. Apparels has duly informed the Bombay Stock Exchange and the National Stock Exchange of India about this investment.

Outlook

This strategic investment underscores S.P. Apparels' commitment to expanding its global footprint and optimizing its manufacturing capabilities. By leveraging Sri Lanka's garment industry infrastructure, the company aims to enhance its competitive position in the international market.

As the textile and apparel industry continues to evolve, such strategic moves could play a crucial role in shaping the company's future growth trajectory and market positioning.