Q4 2026 S.P.Apparels Ltd Earnings Call Transcript
Key Points
- S.P. Apparels Ltd (BOM:540048) reported a 13.2% year-on-year growth in consolidated revenue for FY26, reaching INR1,578 crores.
- The company maintained a healthy EBITDA margin of 13.8% for FY26, up from 13.5% in the previous year.
- The Garment Division, including Young Brand Apparel, delivered operational revenue of INR1,421 crores and EBITDA of INR230 crores, maintaining a strong margin profile.
- S.P. Apparels Ltd (BOM:540048) is expanding its operations in Sri Lanka, with plans to scale to four factories within 12 months, enhancing geographic diversification.
- The company is focusing on renewable energy investments, aiming to reach 4.5 megawatts of solar capacity by March '27, supporting lower energy cost volatility and strengthening ESG positioning.
- Sequentially, export volumes in the Garment Division were softer in Q4 due to technical disruptions and a strike affecting cargo movement.
- The Young Brand segment was impacted by US tariff volatility, leading to a temporary disruption in order bookings.
- The company's retail division reported losses, although they have narrowed compared to the previous year.
- S.P. Apparels Ltd (BOM:540048) faced challenges in order booking due to US tariff volatility, affecting capacity utilization.
- The company is experiencing labor disruptions, impacting capacity utilization, and is in the process of recruiting and training new employees.
Ladies and gentlemen, good day, and welcome to the S.P. Apparels Limited Q4 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Prerna Jhunjhunwala from Elara Securities.
Thank you, and over to you, ma'am.
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Thank you, Riya. Good afternoon, everyone. On behalf of Elara Securities Private Limited, I would like to welcome you all to Q4 and full-year FY26 post results conference and business update call of S.P. Apparels Limited.
Today, we have with us the senior management of the company, including Mr. P. Sundararajan, Chairman and Managing Director; Mrs. S. Latha, Executive Director; Mrs. S. Shanta, Joint Managing Director; Mr. S. Chenduran, Joint Managing Director; Mrs. P.V. Jeeva, Chief Executive Officer; and Mr. V. Balaji, Chief Financial Officer.
I would now like to hand over the call to the management for opening remarks.
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