Sportking India Q2 FY27 results: net profit ₹96.36 crore vs ₹28.27 crore, revenue up 24.5%

How did Sportking India perform in Q2 FY27?

Sportking India reported standalone Q2 FY27 revenue of ₹781.05 crore, up 24.5% from ₹627.39 crore in Q2 FY26 and 11.0% from ₹703.68 crore in Q1 FY27. EBITDA rose 136.8% year on year to ₹154.88 crore and increased 17.1% from ₹132.21 crore in the previous quarter. The EBITDA margin reached 19.8%, compared with 10.4% a year earlier and 18.8% in Q1 FY27.

Profit before tax was ₹129.66 crore, up 244.6% from ₹37.63 crore in Q2 FY26 and 26.9% from ₹102.20 crore in Q1 FY27. Net profit was ₹96.36 crore against ₹28.27 crore a year earlier and ₹75.97 crore in the previous quarter, while basic EPS rose to ₹7.58 from ₹2.22 and ₹5.98, respectively. The filing states that the company has no subsidiary, associate or joint venture, so the results are standalone.

What changed in Sportking India's costs and profit?

Total expenses increased 9.1% year on year to ₹652.22 crore, compared with a 24.5% rise in revenue. Cost of materials was up 12.6% at ₹493.30 crore, employee cost rose 11.5% to ₹38.29 crore and finance costs edged up 0.5% to ₹12.15 crore. Depreciation fell 41.4% to ₹13.90 crore, while other expenses declined 0.7% to ₹94.50 crore.

The company revised the estimated useful life of certain assets from 7.50 years to 10 years on a triple-shift basis, with effect from 1 July 2026. The filing says this reduced the depreciation charge for the quarter and half year by ₹802.40 lakhs. Other income fell 89.7% year on year to ₹0.83 crore from ₹8.04 crore, and there was no exceptional item.

Tax expense rose 255.8% to ₹33.30 crore from ₹9.36 crore. Management attributed the year-on-year EBITDA improvement to higher cotton and blended-yarn demand, operational efficiency and stable cotton prices. The earnings call also cited improving demand, better realisations and a more stable raw-material environment.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹1,484.73 crore, up 22.4% from ₹1,213.19 crore in H1 FY26. Total income rose 20.7% to ₹1,487.87 crore from ₹1,233.2 crore, while profit before tax increased 175.7% to ₹231.87 crore from ₹84.11 crore.

Profit after tax for the first half was ₹172.34 crore, up 176.4% from ₹62.36 crore in H1 FY26. Basic EPS increased 176.2% to ₹13.56 from ₹4.91. The investor presentation showed H1 FY27 EBITDA of ₹287.1 crore at a 19.3% margin, compared with ₹134.9 crore and 11.1% in H1 FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,044.87 crore, against ₹1,744.37 crore at 31 March 2026, while total equity rose to ₹1,275.19 crore from ₹1,115.90 crore. Borrowings increased to ₹545.19 crore from ₹462.67 crore and cash rose to ₹52.13 crore from ₹0.67 crore. Inventories were ₹452.44 crore, trade receivables ₹473.47 crore and trade payables ₹92.97 crore.

Net operating cash flow in H1 FY27 was ₹218.73 crore, compared with ₹158.51 crore in H1 FY26. Investing cash flow was negative ₹206.78 crore against negative ₹25.85 crore, while financing cash flow was positive ₹39.50 crore against negative ₹120.13 crore. Capital expenditure was ₹208.62 crore, up from ₹24.20 crore a year earlier.

How has Sportking India done over the last 8 quarters?

Revenue increased year on year in each of the last four quarters and rose to ₹781.05 crore in Q2 FY27, the highest level in the reported series. Net profit also reached a series high of ₹96.36 crore, following ₹75.97 crore in Q1 FY27 and ₹28.27 crore in Q2 FY26.

The EBITDA margin peaked at 19.8% in Q2 FY27 and bottomed at 9.4% in Q3 FY25. Net profit bottomed at ₹16.29 crore in Q3 FY25, while revenue was lowest at ₹585.80 crore in Q1 FY26. The direction at the end of the series was upward for revenue, profit and margin.

What else did the company announce?

The board approved the unaudited standalone financial results for the quarter and half year ended 30 September 2026 at its meeting on 30 October 2026. The filing enclosed the results, statement of assets and liabilities, cash-flow statement and limited review report, which were subject to limited review by the statutory auditors.

A same-day investor presentation announced the Odisha expansion and a Marvel Dyers deal. The presentation described a first-phase Greenfield project with 1.50 lakh spindles, an approximate 40% increase over the existing 3.79 lakh spindles and an approximate ₹1,000 crore outlay funded through term loans and internal accruals. It stated that operations were expected to commence in Q3 FY27. No dividend or fund-raising approval was disclosed in the provided same-day filings.

What did Sportking India's management say?

Management said exports were 52% of Q2 revenue, with demand in China and Bangladesh remaining healthy, while domestic demand had slowed for two to three months. It also flagged cotton-price volatility, the domestic-import spread, uncertainty over extension of the cotton import-duty waiver beyond October, and debt constraints on Phase 2 capital expenditure.

How did Sportking India shares react?

Sportking India fell 0.8% within five minutes of the filing appearing, 4.6% after 15 minutes and 5.4% after 30 minutes. The stock closed 12.9% lower on the reaction day from its pre-results close and was 12.6% lower by the next day’s close from that same reference. No five-day move was available.

The Other Textile Products industry median fell 0.5% on the reaction day, while the Nifty Microcap 250 fell 2.5%. Sportking India therefore underperformed the sector median by 12.4 percentage points on the reaction day and by 12.6 percentage points by the next day’s close. Earlier reaction-day moves included gains of 15.4% on 1 August 2026 and 11.9% on 7 February 2026.

How did other Other Textile Products companies do?

A total of 93 other Other Textile Products companies filed for the quarter as of 6 November 2026. Their median revenue growth was 20.7%, while Sportking India’s revenue grew 24.5%. Of the peers compared for revenue growth, 51 grew slower than Sportking India and 42 grew faster.

Among the 96 peers compared for profit, 68 reported higher profit. The peer revenue-growth median of 20.7% was below Sportking India’s 24.5% growth for the quarter.