NSE: SPAL · BSE: 540048
S. P. APPARELS LIMITED
Manufactures and exports readymade garments, primarily for children, from factories in India, with newer capacity in Sri Lanka and a UK distribution operation. The Garment Division, which includes the Young Brand apparel unit serving a 100% US customer base, generated INR 1,421 crore of revenue in FY26 with EBITDA of INR 230 crore at a 16.2% margin. The UK arm SPUK turned EBITDA positive in FY26 on GBP 7.5 million of revenue, and an in-house Retail division achieved EBITDA breakeven from Q2 through Q4 FY26. A Sri Lanka factory commenced operations in mid-April 2026, with management targeting INR 200-250 crore from that unit in FY27. The consolidated order book stood at INR 600 crore across divisions (SPAL Garmenting INR 380 crore, Young Brand INR 142 crore, SPUK GBP 6.1 million). Management is targeting a geographic mix of 30% US, 35% EU and 35% UK by FY27, with FY27 consolidated revenue guidance of INR 2,000 crore at 14-15% EBITDA margin. The biggest cost line is materials at 32.3% of revenue, followed by employee costs at 25.3%, reflecting the labour-intensive nature of garment making. Current capacity utilization is around 75%, with a target of 90%+ at full deployment of 9,000-10,000 machines by FY28, when peak revenue is targeted at INR 2,500 crore. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Garment Division (SPAL Garmenting + Young Brand), Young Brand (within Garment Division), Retail Division, SPUK (UK subsidiary), Sri Lanka factory. Labour-intensive, export-oriented garment manufacturing focused on the children/infants category
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 859 | 1,078 | 1,087 | 1,395 | 1,579 |
| EBITDA (ex other income) | 152 | 143 | 158 | 188 | 218 |
| margin % | 17.7 | 13.2 | 14.5 | 13.5 | 13.8 |
| Owners' profit | 85 | 0 | 0 | 95 | 101 |
| EPS, as reported (₹) | 32.96 | 32.37 | 35.72 | 37.90 | 40.22 |
| ROE % · ROCE % | 13.4 · 17.0 | 12.4 · 17.2 | 11.8 · 16.5 | 11.2 · 16.5 | 10.7 · 18.1 |
| Debt / equity (x) | 0.34 | 0.37 | 0.27 | 0.45 | 0.43 |
| Cash from operations | 33 | 216 | 79 | 44 | 209 |
| Capex | (39) | (52) | (55) | (82) | (108) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 391 | 359 | 399 | 403 | 427 | 383 | 365 | 401 |
| Profit before tax | 30 | 35 | 37 | 31 | 48 | 37 | 28 | 36 |
| Net profit | 22 | 25 | 30 | 21 | 35 | 27 | 19 | 25 |
| EPS (₹) | 8.73 | 9.86 | 12.11 | 8.23 | 13.83 | 10.76 | 7.40 | 9.89 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| PAGE INDUSTRIES LTD | 37,812 | 50.0 | 25.16 | — | 50.8 | 58.6 | — | 21.1 |
| ARVIND LIMITED | 13,369 | 32.3 | 3.23 | 14.1 | 10.3 | 11.9 | 12.9 | 9.4 |
| PEARL GLOBAL IND LIMITED | 5,588 | 18.0 | 3.89 | 11.2 | 18.8 | 16.8 | 27.5 | 11.2 |
| GOKALDAS EXPORTS LTD. | 4,744 | 46.0 | 2.20 | 12.9 | 4.6 | 6.0 | 26.9 | 12.1 |
| LUX INDUSTRIES LIMITED | 3,496 | 32.8 | 1.92 | 19.4 | 5.8 | 7.3 | 8.4 | 8.2 |
| SBC EXPORTS LIMITED | 3,114 | 76.9 | 38.83 | 70.5 | 31.5 | 28.3 | — | 13.9 |
| KEWAL KIRAN CLOTHING LTD | 2,631 | 17.8 | 2.35 | 9.6 | 13.6 | 16.6 | 32.0 | 24.0 |
| KITEX GARMENTS LTD | 2,250 | — | 1.82 | 34.0 | (1.1) | 0.3 | 7.9 | 11.3 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 20.1 | 16.2 | 22 of 37 | 42% |
| P/B | 2.3 | 1.5 | 24 of 35 | 32% |
| ROCE | 14.2 | 8.4 | 12 of 44 | 74% |
| ROE | 10.7 | 5.8 | 13 of 35 | 65% |
| Debt / Equity | 0.4 | 0.3 | 25 of 35 | 29% |
| EBITDA margin | 15.9 | 10.4 | 9 of 35 | 77% |
| Revenue growth | (0.6) | 7.9 | 25 of 37 | 33% |
| Profit growth | 20.4 | 6.8 | 16 of 37 | 58% |
| Market cap | 2111 | 146 | 10 of 44 | 79% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 13 Oct 2026 · RTA compliance certificate filed for Q2 FY26-27 | compliance | minimal | — | — |
| 6 Oct 2026 · Record date fixed for 5-for-1 stock split on December 10, 2026 | corporate actions | high | — | — |
| 6 Oct 2026 · Board fixes record date for 1:5 stock split | corporate actions | high | — | — |
| 28 Sept 2026 · Trading window closure for Q2 FY27 results | compliance | minimal | — | — |
| 23 Sept 2026 · 21st AGM results: all 5 resolutions passed; stock split 10 to 2 approved | board shareholder meetings | low | — | — |
| 22 Sept 2026 · Revised Annual Report FY2025-26 filed with typo corrections | results | medium | — | — |
| 21 Sept 2026 · 21st AGM approves stock split from Rs 10 to Rs 2 and dividend | board shareholder meetings | low | — | — |
| 29 Aug 2026 · S.P. Apparels to hold 21st AGM on 29 August 2026 | compliance | minimal | — | — |
| 29 Aug 2026 · Promoter sells 5 lakh shares; stake drops from 49.88% to 48% | ownership changes | high | — | — |
| 28 Aug 2026 · S.P. Apparels 21st AGM on 21 Sep 2026, proposes 1:5 stock split | board shareholder meetings | low | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
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| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
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Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.