Sportking India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sportking India Ltd filed with BSE on 25 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
Sportking India reported stable revenue with improved profitability in Q4 FY26, driven by better yarn realization and demand for cotton yarn. Management cited a resurgence in Chinese import demand, renewed Bangladesh optimism, and rupee depreciation as key tailwinds during the quarter. The company also outlined progress on its solar power project, a greenfield spindle expansion, and two proposed acquisitions in dyeing and manufacturing.
Numbers mentioned
China's share of India's yarn exports: 23%-24%
p. 5
“as a country, the India's share is around, I think, since last 4, 5 months around, I can say, about 23%, 24%.”
Munish Avasthi, page 5 of the filed PDF · View the filing
Sportking's exports to China: increased from 2%-3% to 10%-12% (last 1 quarter)
p. 5
“But at Sportking, yes, of course, we have also increased our exports to China from almost 2%, 3% to maybe 10%, 12% in last 1 quarter.”
Munish Avasthi, page 5 of the filed PDF · View the filing
Cotton yarn spread: more than $1
p. 8
“Cotton yarn spread today is, I think, around more than $1 between the skein cost and the final yarn prices.”
Munish Avasthi, page 8 of the filed PDF · View the filing
CCI cotton procurement: 106 lakh bales out of projected production of around 310 lakh bales
p. 12
“This year, they have bought 106 lakh bales out of projected production of around 310.”
Munish Avasthi, page 12 of the filed PDF · View the filing
Yarn prices: increased from around USD2.70-2.80 to close to USD3.30 (last quarter to current)
p. 11
“So we see the yarn prices, which were at around USD2.70, let's say, in average for last quarter, maybe USD2.80. So they have gone up now to anywhere close to USD3.30.”
Munish Avasthi, page 11 of the filed PDF · View the filing
Solar power cost savings: INR14 crores to INR15 crores (annually)
p. 4
“The 40-megawatt solar power supply will commence by the end of May and is expected to save around INR14 crores to INR15 crores next year, this -- annually.”
Munish Avasthi, page 4 of the filed PDF · View the filing
Greenfield expansion capex: approximately INR1,000 crores
p. 4
“We are also making strong progress on our greenfield expansion project of approximately INR1,000 crores, which will enhance our spindle capacity by around 150,000 spindles.”
Munish Avasthi, page 4 of the filed PDF · View the filing
Solar plant capacity: 40 megawatt
p. 13
“So this is 40 megawatt, which will be giving us around 7 crores unit every year at a price of INR3.70.”
Munish Avasthi, page 13 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 — next 2, 3 quarters
stated conditionally by Munish Avasthi
p. 4
“We are expecting to expand our margins for next 2, 3 quarters with these increasing spreads and a good cotton coverage.”
Munish Avasthi, page 4 of the filed PDF · View the filing
Greenfield spindle capacity commercial operations — 150,000 spindles · Q3 FY27
stated firmly by Munish Avasthi
p. 4
“We expect the commercial operations of the project to commence in the third quarter of the current financial year.”
Munish Avasthi, page 4 of the filed PDF · View the filing
Revenue — INR2,700 crores, INR2,800 crores · this financial year
stated as an aspiration by Munish Avasthi
p. 10
“With our top line, we are expecting around INR2,700 crores, INR2,800 crores this financial year, the coming financial year.”
Munish Avasthi, page 10 of the filed PDF · View the filing
Top line growth — 7% to 10% · next three quarters
stated conditionally by Munish Avasthi
p. 11
“So we expect top line to increase by 7% to 10% in the next three quarters because of the higher prices.”
Munish Avasthi, page 11 of the filed PDF · View the filing
Margin expansion — at least 15%, 20% quarter-on-quarter · next two, three quarters
stated as an aspiration by Munish Avasthi
p. 11
“We don't -- they'll be -- they shall be -- we are looking at quarter-on-quarter expanding by at least 15%, 20%.”
Munish Avasthi, page 11 of the filed PDF · View the filing
EU and UK FTA implementation — by the end of this financial year
stated conditionally by Munish Avasthi
p. 8
“So we expect both the FTAs to be effective from within this -- by the end of this financial year.”
Munish Avasthi, page 8 of the filed PDF · View the filing
Acquisition completion (Marvel Dyers and Sobhagia Sales) — within this quarter, this calendar year at the most
stated firmly by Munish Avasthi
p. 10
“So we expect to close this within this quarter, in this calendar year at the most.”
Munish Avasthi, page 10 of the filed PDF · View the filing
Revenue growth of acquired group companies — 20% to 25% · this financial year
stated as an aspiration by Munish Avasthi
p. 12
“But going ahead, we see a healthy increase in revenue by at least 20% to 25% in this financial year.”
Munish Avasthi, page 12 of the filed PDF · View the filing
Revenue growth of acquired group companies — 15% to 20% · FY27
stated as an aspiration by Munish Avasthi
p. 13
“FY27 now, we expect both the companies to grow by 15% to 20% at least.”
Munish Avasthi, page 13 of the filed PDF · View the filing
New spindle capacity utilization ramp-up — 97%, 98% utilization · 6 months post-commissioning
stated firmly by Munish Avasthi
p. 9
“I think the day we start commissioning, it should take 6 months from there where we can fully - - when we can expect 97%, 98% utilization.”
Munish Avasthi, page 9 of the filed PDF · View the filing
Duty on imported cotton resolution — next couple of months
stated conditionally by Munish Avasthi
p. 12
“And we expect to see something coming up in the next couple of months.”
Munish Avasthi, 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 they have visibility through a 90-day sales book and cotton coverage for 3-6 months, giving confidence spreads will hold or improve.
Answered by Munish Avasthi
Asked by Bhavika Jain: How confident is management that cotton yarn spreads will be sustainable for the next 2-3 quarters?
p. 5
“So -- and looking at the current demand scenario, we foresee that this demand is going to be there going forward. And with the cotton, we have already covered for these 3 to 6 months.”
Munish Avasthi, page 5 of the filed PDF · View the filing
Management attributed it to a resurgence in China's domestic demand, US-China trade dynamics, and China's cotton import needs due to high duties on raw cotton.
Answered by Munish Avasthi
Asked by Ahmed Madha: What is driving the resurgence in Chinese demand for Indian cotton yarn, given its historical volatility?
p. 6
“But what we are seeing different with China this time around is we see for last 4, 5 years, that Chinese domestic demand was faltering and we see a resurgence in their domestic demand, which is helping in increasing the demand for all kinds of yarns -- and not only cotton yarn, but all kinds of yarn.”
Munish Avasthi, page 6 of the filed PDF · View the filing
Management declined to give formal guidance but indicated an expectation of margins above 15%.
Answered by Munish Avasthi
Asked by Ahmed Madha: What margin range should be assumed for the first half based on current visibility?
p. 10
“We don't give any guidance, but yes, I'll be disappointed if we don't.”
Munish Avasthi, page 10 of the filed PDF · View the filing
Management said the immediate margin impact would be small given the acquired businesses are only 7-8% of total turnover, but synergies would help over time.
Answered by Munish Avasthi
Asked by Pramod: What is the expected impact of the Marvel Dyers and Sobhagia Sales acquisitions on Sportking's overall margins?
p. 10
“But as I said, the overall -- because these are 7% to 8% of our total turnover. So the impact on the total company will not be so huge within this year.”
Munish Avasthi, page 10 of the filed PDF · View the filing
Management confirmed CCI pricing tracks international levels during selling periods, creating a mismatch that raises procurement costs for mills during buying season.
Answered by Munish Avasthi
Asked by Krunal Shah: Is CCI cotton pricing calibrated in line with US cotton prices, and what impact does this have on mills?
p. 12
“But the problem lies in when they are buying. When they sell, they are pretty good. But when they are buying, that time, there's a problem.”
Munish Avasthi, page 12 of the filed PDF · View the filing
Management explained the impact was a notional entry from dollar closing at an all-time high on March 31 and expected it to reverse if the rupee doesn't depreciate further.
Answered by Munish Avasthi
Asked by Yash Mehta: What caused the forex mark-to-market impact in the quarter and is it a material ongoing risk?
p. 14
“So that's why though it is a notional entry, but that is required to be made. And the impact will be reversed in this quarter if the rupee doesn't depreciate much more than this.”
Munish Avasthi, page 14 of the filed PDF · View the filing
Risks flagged
Global macroeconomic uncertainty from multiple ongoing wars
p. 3
“Though there are some headwinds as well, the macro climate is still of huge uncertainty because of multiple wars going on.”
Munish Avasthi, page 3 of the filed PDF · View the filing
Higher inflation forecasts weighing on growth
p. 3
“Inflation forecasts are of higher inflation, which generally doesn't bode well for growth.”
Munish Avasthi, page 3 of the filed PDF · View the filing
Duty on cotton remains a detriment to the industry
p. 3
“Duty on cotton, though right now not that relevant, continues to be a detriment.”
Munish Avasthi, page 3 of the filed PDF · View the filing
Volatility of Chinese demand as an export market
p. 6
“So that's why our share is always -- we are very circumspect in increasing our share to such a market.”
Munish Avasthi, page 6 of the filed PDF · View the filing
Old, unmodernized machinery struggling to compete and sustain margins
p. 9
“So either you modernize or you shut down. Otherwise, it's very difficult to compete.”
Munish Avasthi, page 9 of the filed PDF · View the filing
Foreign exchange volatility causing mark-to-market impacts
p. 14
“So it is just that when March 31 closed, the dollar closed at the highest level, all-time high levels. So anything which was yet to be shipped or yet to be received was mark-to-market.”
Munish Avasthi, page 14 of the filed PDF · View the filing
Uncertainty in future cotton price movements affecting margins beyond current visibility
p. 12
“Right now, whatever the international prices are, so we will be much higher than the MSP. So right now, it looks good, but with international prices, you never know.”
Munish Avasthi, page 12 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.