Sportking India , a prominent player in the textile industry, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance marked by volume growth but overall revenue decline.

Key Financial Highlights

Revenue and Profitability

Despite a 12% increase in volume, Sportking India experienced a 4% year-on-year decline in overall revenue, which stood at ₹627.40 crores for Q2 FY26. The company attributed this decline to lower yarn spreads, highlighting the challenges faced in the current market environment.

However, it's not all gloomy for the textile manufacturer. The company reported an expansion in its gross profit margin, which reached 24.10% during the quarter. This improvement in profitability metrics suggests that Sportking India has been able to manage its costs effectively, even in the face of revenue pressures.

Operational Performance

Sportking India maintained a robust operational performance during the quarter, with capacity utilization remaining high at 96%. This indicates that the company is efficiently using its production capabilities to meet market demand.

Export Growth

A bright spot in the company's performance was its export business. Sportking India reported an 11% growth in exports, with revenue from international sales reaching ₹334.20 crores. This growth in exports demonstrates the company's ability to tap into global markets and partially offset domestic challenges.

Expansion Plans

Looking ahead, Sportking India is progressing with its expansion project in Odisha. The company expects to break ground on this new facility within the next 30-40 days. This expansion could potentially enhance the company's production capacity and market reach in the coming quarters.

Conclusion

Sportking India's Q2 FY26 results present a nuanced picture of the company's performance. While facing headwinds in terms of overall revenue, the company has shown resilience through improved gross margins, strong export growth, and high capacity utilization. The upcoming Odisha expansion project may provide additional growth opportunities as the company navigates the dynamic textile market landscape.

Investors and market watchers will likely keep a close eye on how Sportking India leverages its operational efficiencies and expansion plans to address the challenges posed by market conditions in the coming quarters.

Sportking India Limited , a leading textile conglomerate, has announced its financial results for the second quarter and half-year ended September 30, 2025, showcasing resilient performance amidst market dynamics.

Key Financial Highlights

For Q2 FY26, Sportking India reported:

• Revenue from operations of ₹627.40 crore, a slight decrease of 3.7% year-on-year
• EBITDA of ₹65.40 crore, up 4.5% year-on-year, with margin expanding to 10.4% from 9.6% in Q2 FY25
• Profit After Tax (PAT) of ₹28.30 crore, down 5.5% year-on-year

For H1 FY26, the company achieved:

• Revenue from operations of ₹1,213.20 crore
• EBITDA of ₹134.90 crore, with margin improving to 11.1% from 10.4% in H1 FY25
• PAT of ₹62.40 crore, up 5.1% year-on-year

Operational Performance

Sportking India maintained best-in-class capacity utilization levels at 96% during Q2 FY26. The company's yarn sales volume increased to 20,949 MT in Q2 FY26, compared to 18,775 MT in Q2 FY25, indicating strong demand.

Export Growth

A notable highlight was the company's export performance. Export revenue grew by 11% year-on-year in Q2 FY26, with exports contributing 53% of total revenue, up from 46% in Q2 FY25. This growth underscores the company's strong global demand and improving competitiveness.

Expansion Plans

Sportking India has announced a significant greenfield expansion project worth approximately ₹1,000 crore. This investment aims to add 1.50 lakh spindles in Odisha, representing a 40% increase over the existing capacity of 3.79 lakh spindles. The expansion is expected to be completed in 12-15 months and will be funded through term loans and internal accruals.

Strategic Initiatives

The company received in-principle approval for the merger of Marvel Dyers and Processors Pvt Ltd and manufacturing facilities of Sobhagia Sales Pvt Ltd. This strategic move is expected to enable forward integration into processed fabrics and garments, potentially enhancing Sportking India's value chain.

Management Commentary

Mr. Munish Avasthi, Chairman & Managing Director, commented on the results: "We are pleased to deliver a stable quarter, underscored by a consistent upward trajectory in gross profit and EBITDA margins driven by softer input costs on a yearly basis. The Indian spinning industry is navigating elevated domestic cotton prices sequentially driven by an increase in the Minimum Support Price, with the Cotton Corporation of India expected to play a larger role in stabilizing procurement."

He added, "As we move ahead, we remain confident that supportive policy changes and a positive demand outlook in H2 FY26 will create fresh avenues for growth. Grounded in strong fundamentals, a resilient export base, and a commitment to innovation, Sportking India Ltd is well-positioned to capitalize on emerging trends and deliver sustained value to all stakeholders."

Outlook

With its strong export performance, strategic expansion plans, and focus on operational efficiency, Sportking India appears well-positioned to navigate market challenges and capitalize on growth opportunities in the textile sector. The company's forward integration initiatives and capacity expansion are likely to strengthen its market position in the coming quarters.