S.P. Apparels Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript S.P. Apparels Ltd filed with BSE on 26 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
S.P. Apparels reported FY26 consolidated revenue of Rs 1,578 crores, up 13.2% year-on-year, with EBITDA of Rs 217 crores, up 16%, though Q4 revenue and EBITDA declined year-on-year due to softer export volumes from US tariff disruption and Strait of Hormuz-related shipping delays. Management described the Garment division, Young Brand Apparel, SPUK and Retail segment performances separately, noting SPUK and Retail both achieved positive EBITDA during the year. Management also discussed Sri Lanka factory ramp-up, Salem and Sivakasi expansion plans, and outlined a consolidated FY27 revenue target with a Garmenting division EBITDA margin guidance.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: Rs 364 crores (Q4 FY26)
p. 6
“On a consolidated basis for Q4 FY26, revenue from operations stood at INR 364 crores compared to INR 399 crores year-on-year.”
V. Balaji, page 6 of the filed PDF · View the filing
Consolidated EBITDA: Rs 44 crores (Q4 FY26)
p. 6
“EBITDA for the quarter stood at INR 44 crores as against the INR 54 crores EBITDA year-on-year.”
V. Balaji, page 6 of the filed PDF · View the filing
Consolidated EBITDA margin: 12.2% (Q4 FY26)
p. 6
“EBITDA margins stood at 12.2% compared to 13.6% year-on-year.”
V. Balaji, page 6 of the filed PDF · View the filing
Profit after tax: Rs 18.59 crores (Q4 FY26)
p. 6
“Profit after tax for the current quarter stood at INR 18.59 crores as against INR 30.39 crores in Q4FY25.”
V. Balaji, page 6 of the filed PDF · View the filing
Consolidated revenue: Rs 1,578 crores (FY26)
p. 6
“On a full year basis, consolidated revenue from operations increased to INR 1,578 crores as against the year-on-year number of INR 1,395 crores, reflecting a growth of 13.2% year-on-year.”
V. Balaji, page 6 of the filed PDF · View the filing
Consolidated EBITDA: Rs 217 crores (FY26)
p. 6
“EBITDA for FY26 grew to INR 217 crores from INR 187 crores in FY25, a growth of 16% with EBITDA margins of 13.8% compared to 13.5% last year.”
V. Balaji, page 6 of the filed PDF · View the filing
Profit after tax: Rs 100.95 crores (FY26)
p. 6
“Profit after tax for FY26 stood at INR 100.95 crores as against INR 95.10 crores in FY25.”
V. Balaji, page 6 of the filed PDF · View the filing
Garment division operational revenue: Rs 1,421 crores (FY26)
p. 4
“For FY26, the Garment division, including Young Brand Apparel, delivered operational revenue of INR 1,421 crores and EBITDA of INR 230 crores, maintaining a healthy margin profile.”
P. Sundararajan, page 4 of the filed PDF · View the filing
Young Brand adjusted operational revenue: Rs 321.26 crores (FY26)
p. 4
“In FY26, Young Brand reported adjusted operational revenue of INR 321.26 crores and adjusted EBITDA of INR 49.23 crores.”
P. Sundararajan, page 4 of the filed PDF · View the filing
SPUK revenue: GBP 7.5 million (FY26)
p. 4
“FY26 revenue for SPUK was GBP 7.5 million.”
P. Sundararajan, page 4 of the filed PDF · View the filing
Retail revenue: Rs 71.54 crores (FY26)
p. 5
“For FY26, Retail revenue was INR 71.54 crores, and the losses have narrowed materially versus prior years.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Current order book: approximately Rs 600 crores
p. 5
“Our current order book for all the divisions is SPAL Garmenting Division is INR 380 crores, Young Brand Apparel is INR 142 crores, SPUK is GBP 6.1 million, all putting together approximately INR 600 crores is the order book currently.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Net debt: Rs 338 crores
p. 7
“On consolidated basis, long-term debt stands at INR 63 crores and working capital loan stands at INR 334 crores. Gross debt at INR 397 crores and net debt including net of cash and cash equivalent stands at INR 338 crores.”
V. Balaji, page 7 of the filed PDF · View the filing
Sri Lanka FOB export revenue: Rs 45 crores (FY26)
p. 8
“this FY26, we have been able to do about INR 45 crores of FOB business export top line within this 1-year time.”
P. Sundararajan, page 8 of the filed PDF · View the filing
Utilization level: 64% (Q4 FY26)
p. 9
“if you look at our utilization for the current quarter, our utilization is only 64%.”
V. Balaji, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin (garment export business) — around 15%
stated firmly by P. Sundararajan
p. 5
“we continue to guide for EBITDA margin of around 15% supported by pricing discipline and tight cost management.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Consolidated revenue — INR 2000 crores · FY27
stated firmly by P. Sundararajan
p. 9
“That is why we are aiming for INR 2000 crores next year considering all these things.”
P. Sundararajan, page 9 of the filed PDF · View the filing
Consolidated EBITDA margin — 14%-15% · FY27
stated firmly by V. Balaji
p. 9
“Yes, with respect to the guidance, we are looking at INR 2000 crores next year. On a consolidated basis with a 14%-15% EBITDA.”
V. Balaji, page 9 of the filed PDF · View the filing
Sri Lanka FOB export revenue — INR 200 to INR 250 crores · FY27
stated firmly by P. Sundararajan
p. 8
“we are aiming for INR 200 to INR 250 crores during the next financial year out of Sri Lanka.”
P. Sundararajan, page 8 of the filed PDF · View the filing
Sri Lanka FOB export revenue — INR 400 crores to INR 450 crores · FY28
stated as an aspiration by P. Sundararajan
p. 8
“probably in FY28, we will be able to do INR 400 crores to INR 450 crores.”
P. Sundararajan, page 8 of the filed PDF · View the filing
Salem expansion revenue contribution — about INR 50 crores · FY28
stated as an aspiration by P. Sundararajan
p. 8
“that will definitely bring another about INR 50 crores, but not immediately, maybe FY28.”
P. Sundararajan, page 8 of the filed PDF · View the filing
Solar capacity — around 4.5 MW · March '27
stated firmly by P. Sundararajan
p. 5
“we are committed to reaching around 4.5 MW by March ‘27.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Core garment export EBITDA margin — 17%-18%
stated as an aspiration by P. Sundararajan
p. 5
“we also expect the core government export business to sustain an adjusted EBITDA margin in the range of 17%-18%.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Top-line ambition — INR 2,000 crore
stated as an aspiration by P. Sundararajan
p. 5
“We continue to work towards our INR 2,000 crore top-line ambition.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Peak potential turnover from current capacity — around INR 2500 crores · FY28
stated as an aspiration by V. Balaji
p. 15
“you are talking about the full peak capacity which will reach around INR 2500 crores of revenue.”
V. Balaji, page 15 of the filed PDF · View the filing
FY27 segmental revenue breakup — INR 1800 crores Garmenting, INR 150 crores SPUK, INR 80-90 crores Retail · FY27
stated firmly by V. Balaji
p. 16
“So, in terms of revenue, INR 1800 crores from S.P. Apparels’ Garmenting division including Young Brand and Sri Lanka put together. And looking at INR 150 crores revenue from SPUK and INR 80-90 crores of revenue from Retail Ventures.”
V. Balaji, page 16 of the filed PDF · View the filing
Geographic revenue mix — 30% US, 35% Euro, 35% UK · FY27
stated as an aspiration by V. Balaji
p. 12
“we are looking at with respect to 30% with US, 35% with Euro and 35% UK.”
V. Balaji, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the depreciation helps compete against duty-free countries and offset raw material cost increases.
Answered by P. Sundararajan
Asked by Rehan: Is rupee depreciation driving more order volume from customers?
p. 8
“This global competition against Bangladesh and other countries. So, this is helping us. We are coming under the duty paid.”
P. Sundararajan, page 8 of the filed PDF · View the filing
Management gave revenue targets of Rs 200-250 crores for FY27 and Rs 400-450 crores by FY28 from Sri Lanka.
Answered by P. Sundararajan
Asked by Rehan: How is Sri Lanka ramping up given delays?
p. 8
“we are aiming for INR 200 to INR 250 crores during the next financial year out of Sri Lanka.”
P. Sundararajan, page 8 of the filed PDF · View the filing
Management said SPUK has a 6 million order book and expects 12-14 million revenue for the year, with two anchor customers each contributing about 8 million.
Answered by V. Balaji
Asked by Murtaza: What SPUK revenue run rate and customer contribution is expected in FY27?
p. 10
“we have already had 6 million order book as of today. And we are looking at another 6-8 million in revenue for the whole year.”
V. Balaji, page 10 of the filed PDF · View the filing
Management attributed pressure to elevated interest costs on Retail Ventures and said PAT positivity depends on raising equity.
Answered by V. Balaji
Asked by Murtaza: Is the Retail EBITDA improvement structural, and when will it be PAT positive?
p. 11
“there is an elevated interest cost on Retail Venture which needs to be supported through equity.”
V. Balaji, page 11 of the filed PDF · View the filing
Management said cotton prices rose then stabilized and are being partly passed through to customers.
Answered by P. Sundararajan
Asked by Murtaza: How does the cotton price environment compare year-on-year and is there margin pressure from input cost lag?
p. 11
“Now the cotton price has gone up and now it is stabilizing and slightly coming down now. It went up to INR 75,000. Now it is about INR 70,000.”
P. Sundararajan, page 11 of the filed PDF · View the filing
Management said a customer who previously sourced only from Bangladesh and Sri Lanka approached them citing the 2029 change and is now considering India.
Answered by P. Sundararajan
Asked by Murtaza: Is there early inquiry flow from EU buyers ahead of Bangladesh losing LDC status?
p. 11
“just one hour before we got a customer who never did it in India, who is only doing in Bangladesh and Sri Lanka, has come to us and he himself said that by 2029, this will be no longer duty-free in Bangladesh.”
P. Sundararajan, page 11 of the filed PDF · View the filing
Management said US exposure fell to 17% this quarter due to tariffs and they are adding Eurozone customers to balance the mix.
Answered by V. Balaji
Asked by Prerna Jhunjhunwala: How is geographic diversification progressing and who are new clients?
p. 12
“our exposure with the US is only 22%. And now, because of the tariff issues, we had some issues and it has come down to 17% this quarter.”
V. Balaji, page 12 of the filed PDF · View the filing
Management confirmed the expansion is still slowed due to US tariff volatility though tariffs are now at 10%.
Answered by V. Balaji
Asked by Bhavin Chheda: Has the Sivakasi 440-machine expansion been postponed?
p. 14
“Sivakasi expansion of 440 machines we are still slowing down because of the US tariff volatility.”
V. Balaji, page 14 of the filed PDF · View the filing
Management clarified the labor movement stemmed from earlier capacity reduction due to the US tariff disruption, not broader labor unrest, and said only 30-40% of workers have returned so far.
Answered by P.V. Jeeva
Asked by Shubhankar Gupta: Have labor disruptions from LPG issues or voting-related migration affected Q1 operations?
p. 17
“it is not a labor disruption. As MD said, there was a disruption in the US business. We were forced to reduce the capacity that is why the labor, they have all returned to their native places.”
P.V. Jeeva, page 17 of the filed PDF · View the filing
Risks flagged
US tariff-related disruption affecting bookings and shipment schedules
p. 3
“The first, the after-effects of US tariff-related disruption that began in Q2 and impacted booking and shipment schedules across subsequent quarters.”
P. Sundararajan, page 3 of the filed PDF · View the filing
Strait of Hormuz disruption affecting cargo movement and timings
p. 3
“The second, short-term disruption such as the Strait of Hormuz which affected cargo movement and timings.”
P. Sundararajan, page 3 of the filed PDF · View the filing
Young Brand's heavy dependence on US customers exposing it to tariff impact
p. 3
“Young Brand was impacted during the year because it is more US customer heavy”
P. Sundararajan, page 3 of the filed PDF · View the filing
Raw material costs moving up during the year
p. 5
“On profitability, raw material costs have moved up during the year.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Foreign exchange sensitivity
p. 5
“Foreign exchange remains a sensitivity.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Timing of reimbursement for commercial support/discount credits is not within company control
p. 5
“the timing is not within our control, and we will remain conservative and recognize any benefit only when it materializes.”
P. Sundararajan, page 5 of the filed PDF · View the filing
Elevated interest cost on Retail Ventures pulling down bottom line
p. 11
“it is only the finance cost which is pulling down the bottom line.”
V. Balaji, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.