Q3 2026 S.P.Apparels Ltd Earnings Call Transcript
Key Points
- S.P. Apparels Ltd (BOM:540048) reported a 10.9% year-on-year growth in adjusted revenue for Q3, reaching INR 258 crore.
- The company successfully signed trade agreements with the US, EU, and UK, which are expected to enhance competitiveness and open new market opportunities.
- The garmenting division remains the backbone of the company, with new buyers onboarded, strengthening market presence.
- The Sri Lanka operations are progressing well, with increased capacity and integration of additional factories.
- The company is optimistic about significant growth in SP UK, targeting a revenue goal of USD 20 million over the next two financial years.
- Q3 was softer for the sector, and Q4 is expected to remain under pressure due to tariff issues.
- The utilization in India declined due to the addition of new machines and the impact of US tariffs.
- The company faced temporary pauses with US customers due to tariff uncertainties, affecting order placements.
- Young Brands experienced pressure in Q3 due to earlier tariff uncertainty, impacting revenue.
- The company had to offer discounts to maintain continuity with American customers, affecting margins.
Good afternoon everyone. I'm P. Sundararajan, Chairman, Managing Director of SPFL Limited. Thank you for joining SPFL Investors Call. I'm pleased to share our business update, the evolving trade environment, customer traction across key markets, and our priorities as we enter the next phase of growth. This has been a steady quarter for us, and I'm happy to share that our operations across all verticals have continued to perform well. Even though Q3 was soft for the sector, we managed the quarter efficiently. The industry, environment, and policy clarity trade deal between India and the US was cause of worry for the past seven to eight months, and now signing of India-US agreement has helped.
Bring clarity on the tariff situation, we are also happy that the EU and India have signed the trade deal last month. Further, we are all aware that UK and India also have agreed for a trade deal. This scenario is very positive for the industry. The clarification on the India-U.S agreement has removed the uncertainty we saw
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