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Sportking India Delivers Stellar Q1 FY27 Results with PAT Surging 123% YoY to ₹76 Crore; Odisha Greenfield Project On Track

Posted On : 2026-08-02 19:49:35( TIMEZONE : IST )

Textile conglomerate Sportking India Limited (BSE: 539221 | Symbol: SPORTKING) announced its financial results for the first quarter ended June 30, 2026 (Q1 FY27), reporting strong earnings expansion supported by improved realizations, expanding spreads, and strong operational performance.

The company's Board of Directors approved the unaudited financial statements on August 1, 2026.

Robust Q1 FY27 Financial Trajectory

Sportking India posted double-digit revenue growth and more than doubled its profitability metrics across the board:

1. Revenue & Top-Line Growth

Operational Revenue: Rose 20.1% YoY to ₹703.7 crore in Q1 FY27, compared to ₹585.8 crore in Q1 FY26 (and up 10.5% sequentially from ₹636.8 crore in Q4 FY26).

Gross Profit: Reached ₹228.0 crore, up 46.0% YoY from ₹156.1 crore in Q1 FY26. Gross margin expanded by 575 bps YoY (and 557 bps QoQ) to 32.4%.

2. Operating & Net Profitability

EBITDA: Surged 90.3% YoY to ₹132.2 crore in Q1 FY27 against ₹69.5 crore in Q1 FY26 (up 54.8% QoQ from ₹85.4 crore in Q4 FY26).

EBITDA Margin: Expanded sharply by 693 bps YoY to 18.8%.

Profit Before Tax (PBT): Rose 119.9% YoY to ₹102.2 crore.

Profit After Tax (PAT): Surged 122.8% YoY to ₹76.0 crore compared to ₹34.1 crore in Q1 FY26 (and up 131.9% QoQ from ₹32.8 crore in Q4 FY26).

PAT Margin: Stood at 10.8%, reflecting a 498 bps YoY expansion.

Earnings Per Share (EPS): Increased to ₹6.0 per share for the quarter, compared to ₹2.7 in Q1 FY26 and ₹2.6 in Q4 FY26.

Operational Volumes and Production Metrics

Total Production Volume: Stood at 20,120 Metric Tonnes (MT) during Q1 FY27.

Yarn Sales Volume: Reached 20,492 MT in Q1 FY27, compared to 20,327 MT recorded in Q1 FY26.

Key Strategic & Expansion Updates

1. Odisha Greenfield Capacity Expansion

Execution of the company's 1,50,000-spindle greenfield expansion project in Odisha remains fully on track. Civil construction activities are actively underway, with initial commercial production from Phase 1 anticipated to start during the third quarter of FY27 (Q3 FY27).

2. Commissioning of Renewable Solar Energy Project

During the quarter, Sportking India officially commissioned its solar power project. The initiative is expected to reduce overall annual power costs by 12% to 13%, boost operational efficiencies, and increase the proportion of green energy within the company's operational energy mix.

Commenting on the results, Mr. Munish Avasthi, Chairman & Managing Director said, "We are pleased to report a strong start to FY27, with revenue growing by 20.1% year-on-year and profitability more than doubling during the quarter. EBITDA increased by 90.3% while PAT grew by 122.8%, supported by improved realizations, healthy spreads and our continued focus on operational excellence. All key margins witnessed significant expansion on both a year-on-year and sequential basis, reflecting favorable market conditions as well as disciplined execution across the business.

The textile industry continues to operate in an evolving environment marked by geopolitical developments and changing trade dynamics. Encouragingly, demand trends across key export markets remained stable during the quarter, with Europe witnessing improving traction. The implementation of the India-UK Free Trade Agreement is a significant positive for the Indian textile sector and is expected to enhance our competitiveness in one of the world's largest apparel markets. While geopolitical tensions in certain regions continued to impact logistics and supply chains, the industry has adapted well to these challenges and remained resilient.

Looking ahead, we remain optimistic about demand prospects. The upcoming festive season, coupled with improving sentiment across domestic and international markets, is expected to support consumption and order flows in the coming quarters. Furthermore, the Government's decision to temporarily remove import duty on cotton has improved cotton availability and brought greater stability to raw material markets, which should benefit the textile value chain.

We continue to invest in the long-term growth of the business. Our Odisha greenfield expansion project, which will add 1,50,000 spindles, is progressing as planned with construction activities underway. Additionally, the first phase of the production is expected to commence during the third quarter of the current fiscal year. During the quarter, we also commissioned our solar power project, which is expected to improve operational efficiency, reduce power costs and increase the share of renewable energy in our overall energy mix.

We remain confident in the long-term prospects of the Indian textile industry and believe Sportking is well positioned to benefit from the opportunities ahead. Our continued focus on quality, operational excellence and timely capacity expansion will support sustainable growth and value creation for all stakeholders."