S. P. Apparels Limited has informed the Exchange about Transcript
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S.P. Apparels reported a strong Q1 FY26 with consolidated revenue of INR 405 crores, up 63.3% year-on-year, and EBITDA of INR 54.6 crores at a 13.5% margin. Standalone revenue grew 34.5% to INR 287 crores with EBITDA margin of 15.2%. Management flagged that the US tariff situation (currently 50% on certain categories) has forced a re-strategy, with the company taking a 2.5-3% margin hit in Q1 and planning to shift US-bound Young Brand production to Sri Lanka while pivoting towards Europe and UK. Garment division order book stands healthy at INR 404 crores, and the company is targeting 7,800 machines in India and 2,000 in Sri Lanka by March 2026, with an FY27 topline target of INR 2,000 crores. The retail brand Angel & Rocket is expected to break even by Q3 FY26, and management is in talks to raise equity for the retail business.
Short-term sentiment may be mixed as gross margins compressed ~840 bps due to product mix changes and wage hikes, plus tariff-related uncertainty remains until the August 27 deadline. However, the strong order book, UK FTA opportunity, and Sri Lanka capacity build-up provide a constructive medium-term growth outlook, supporting confidence in meeting the FY27 INR 2,000 crore revenue target.