S. P. Apparels LimitedTextilesSPAL
Q1 FY27 concall · earnings callS. P. Apparels Limited
Despite a soft first quarter revenue impacted by prior U.S. tariff issues, the company posted strong profitability improvements and expects a stronger second half driven by new customer wins, the India-U.K. FTA, and capacity ramp-ups, maintaining its full-year revenue guidance.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹401 Cr | Broadly stable | |
| Consolidated EBITDA | ₹61.4 Cr | 15.9% | |
| Consolidated PAT | ₹24.9 Cr | 20.4% | |
| Standalone Adjusted EBITDA Margin | 17.5% | Improved | |
| SPUK Revenue | ₹33.3 Cr | 125.2% | |
| SP Retail Ventures Revenue | ₹18.83 Cr | 26.7% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹359.32 Cr+42.5% YoY-8.2% QoQ | ₹24.75 Cr+40.5% YoY+12.9% QoQ | ₹9.86+40.5% YoY+12.9% QoQ |
| Q2 FY25 | ₹391.30 Cr+33.8% YoY+59.5% QoQ | ₹21.92 Cr-23.3% YoY+21.4% QoQ | ₹8.73-23.4% YoY+21.4% QoQ |
| Q1 FY25 | ₹245.31 Cr-0.9% YoY-16.9% QoQ | ₹18.05 Cr+20.6% YoY-36.6% QoQ | ₹7.19+20.4% YoY-36.6% QoQ |
| Q4 FY24 | ₹295.13 Cr+7.3% YoY+17.1% QoQ | ₹28.46 Cr+38.7% YoY+61.6% QoQ | ₹11.34+38.6% YoY+61.5% QoQ |
| Q3 FY24 | ₹252.14 Cr+0.4% YoY-13.8% QoQ | ₹17.61 Cr+32.7% YoY-38.4% QoQ | ₹7.02+34.7% YoY-38.4% QoQ |
TL;DR
- Consolidated revenue stable at INR 401 crores year-on-year, but EBITDA grew 15.9% to INR 61.4 crores and PAT grew 20.4% to INR 24.9 crores.
- Garment division standalone adjusted EBITDA margin improved to 17.5% on better efficiencies and product mix.
- SPUK U.K. business revenue grew 125.2% year-on-year to INR 33.3 crores, though EBITDA was negative due to air freight and shipment timing.
- Young Brand Apparels revenue was lower year-on-year due to U.S. tariff after-effects, but adjusted EBITDA grew.
- Retail division (SP Retail Ventures) revenue grew 26.7% year-on-year to INR 18.83 crores and reported positive EBITDA.
- The company remains confident in achieving its FY27 consolidated revenue guidance of INR 2,000 crores, with growth weighted towards the second half.
Said on the call
“We remain confident of achieving our previously stated consolidating revenue guidance of INR 2,000 crores for FY27.”
From the Q&A
| Topic | What management said |
|---|---|
| Capacity Utilization & Air Freight | Lower capacity utilization was due to order slowness from U.S. tariff issues; air freight cost in SPUK was about 50,000 GBP for the quarter, and shipment delays were due to customer requests, not expected to continue in Q2. |
| New Customers | Added 3 new customers (2 from U.K., 1 from EU) in the garment business and is in the process of adding 3 more to SPUK, one being Marks & Spencer. |
| SPUK Growth Targets | Targets GBP 13 million in revenue in 3 years and GBP 50 million in 5 years for SPUK, expecting sustainable profitability as it scales. |
| Sri Lanka Operations | Factories are running at or near full capacity; revenue from Sri Lanka was INR 25 crores in Q1 and is expected to be INR 150-200 crores for the full year FY27. |
| Young Brand New Product | Planning to add bra products (molded value-added bras) as a new product line; investment estimated at not more than INR 10 crores, with revenue contribution expected next financial year. |
| Order Book | Total order book is about INR 570-600 crores (SPAL ~INR 430 crores, Young Brand ~INR 100 crores, SPUK ~INR 70 crores), providing visibility for the next few months. |
| Margins Guidance | Guiding for consolidated Garment division (including Young Brand and Sri Lanka) EBITDA margin above 15% for the full year. |
| U.S. Market Outlook | Currently, customers are not expecting further tariff issues, but the situation is uncertain; order book is safe until January. |
Guidance
- Consolidated revenue guidance of INR 2,000 crores for FY27.
- Garment division (including Young Brand and Sri Lanka) EBITDA margin guidance of above 15% for FY27.
- Growth weighted towards the second half of FY27.
- SPUK targets GBP 13 million revenue in 3 years and GBP 50 million in 5 years.
- Sri Lanka expected to contribute INR 150-200 crores revenue for FY27.
- Young Brand Apparels revenue expected to reach INR 340-350 crores in FY27.
- S.P. Apparels (India) revenue expected to reach INR 1,300-1,400 crores in FY27.
- Consolidated interest cost expected to be INR 30-35 crores for FY27 (excluding exchange loss).
Source
Summary written from the transcript filed by S. P. Apparels Limited for the call held on 13 Aug 2026; published 21 Aug 2026, 23:38 IST.
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