S. P. Apparels Limited has presented its financial performance for Q2 & H1 FY26, highlighting significant growth and outlining future strategies. * Consolidated Performance (YoY Growth): * Total Revenue for Q2 FY26 increased by 9.2% to ₹427.34 crore. For H1 FY26, it grew by 30.5% to ₹830.78 crore. * EBITDA for Q2 FY26 rose by 28.1% to ₹63.65 crore, with H1 FY26 EBITDA up 41.0% to ₹116.58 crore. * Profit After Tax (PAT) for Q2 FY26 surged by 58.4% to ₹34.70 crore. H1 FY26 PAT grew by 38.5% to ₹55.36 crore. * Earnings Per Share (EPS) for Q2 FY26 stood at ₹13.8 and for H1 FY26 at ₹22.1. * Standalone Performance (YoY Growth): * Adjusted Total Revenues for Q2 FY26 increased by 18.4% to ₹304.87 crore. For H1 FY26, it grew by 25.7% to ₹592.57 crore. * Adjusted EBITDA for Q2 FY26 rose by 23.6% to ₹54.35 crore. H1 FY26 Adjusted EBITDA increased by 22.3% to ₹98.0 crore. * PAT for Q2 FY26 grew by 51.4% to ₹27.30 crore. H1 FY26 PAT was up 15.7% to ₹47.19 crore. * EPS for Q2 FY26 was ₹10.9 and for H1 FY26 was ₹18.8. * Quarter Highlights: * Adjusted EBITDA Margin was 17.8%. * Retail Division reported positive EBITDA in Q2 FY26, with expectations to sustain this momentum. * SPUK Division also delivered positive EBITDA in Q2 FY26 and is poised to maintain growth. * Growth Strategies: * Existing Verticals: Plans to enhance capacity utilization by approximately 10% from FY25 levels and add ~1,000 machines in India by FY26E, including a greenfield expansion in Sivakasi. The company is diversifying its product mix to reduce dependency on Kids wear, targeting a 50% Kids Wear and 50% Adult Wear revenue mix by FY27E. SPUK is seeking a strategic investor and planning capital market fundraising. * Expanding Geographical Footprint: A subsidiary was established in Sri Lanka in January 2025, targeting capacity expansion to 2,000 machines by March 2026E, leveraging locational advantages and an asset-light model. * New Acquisition: Young Brand Apparels, acquired in 2024, has capacity potential to expand to 1,700 machines from 1,400. It reported Q2 FY26 PAT of ₹9.26 crore, up 20.4% YoY. The company is evaluating expansion in Sri Lanka for lingerie production. * ESG Initiatives: * Mission to achieve carbon neutrality by 2033. * Utilizes 80% renewable energy and operates a Zero Liquid Discharge plant. Invested in 1 MW solar energy, committed to increasing to 5 MW.
