SBC Exports Ltd

Financial highlights

• Standalone Q1 FY27 revenue ₹106.03 Cr, up 72.80% YoY.
• Standalone Q1 FY27 EBITDA ₹16.49 Cr, up 221.44% YoY.
• Standalone EBITDA margin 15.45% (vs 8.92% in Q1 FY26).
• Standalone PAT ₹9.42 Cr, up 270.87% YoY.
• Standalone PAT margin 8.89% (vs 4.15%).
• Consolidated Q1 FY27 revenue ₹121.08 Cr, up 67.11% YoY.
• Consolidated Q1 FY27 EBITDA ₹16.89 Cr (approx), up 192.21% YoY.
• Consolidated EBITDA margin 13.64% (from 8.02%).
• Consolidated PAT ₹9.60 Cr, up 269.23% YoY.
• Consolidated PAT margin 7.93% (from 3.60%).

Management outlook

• FY2026-27 growth target of 40-50%, subject to market conditions.

International expansion and exports

• Exports of readymade garments remain SBC's core revenue engine.
• Order book growth driven by Middle East markets and F-Route.
• Dubai route reopening to boost export volumes.
• Subsidiary Mauji Trip Limited consolidated; expands diversified travel services.

Domestic growth and product development

• F-Route expands portfolio with Cord Sets and Formal Shirts.
• Strengthening digital presence and e-commerce for direct-to-consumer engagement.
• Mauji Trip Limited consolidated with SBC.

Industry outlook and policy support

• Textile sector to grow from US$225B in 2026 to US$350B by 2030.
• Exports target to US$100B by 2030 under FTAs and 5F vision.
• Over 35 million incremental jobs by 2030.
• Budget supports mega textile parks, ease of doing business, and incentives.

Cancellation details

• Board approved cancellation of the proposed conversion of ₹99,05,94,474 unsecured loan into 27,516,513 equity shares.
• Cancellation approved at board meeting on 12 August 2026.
• Original proposal approved 29 May 2026 for 27,516,513 equity shares at ₹36 per share.
• Reasons: procedural and regulatory complexities encountered during implementation.
• Cancellation removes need for shareholder approvals under current plan.
• Regulatory disclosure provided per SEBI circular attached.
• Proposed issue price of ₹36 per share discontinued.

Standalone financials

• Standalone revenue from operations: ₹10,603.58 lakh; total income: ₹10,979.79 lakh; net profit: ₹942.60 lakh.
• Standalone basic/diluted EPS: ₹0.20 each.

Consolidated financials

• Consolidated revenue from operations: ₹12,107.74 lakh; total income: ₹12,484.80 lakh; net profit: ₹960.44 lakh.
• Consolidated basic/diluted EPS: ₹0.20 each.

Segment performance (Standalone)

• IT Support revenue: ₹3,552.21 lakh; Garments revenue: ₹7,051.37 lakh; total ₹10,603.58 lakh.
• Standalone segment PBT: IT ₹281.65 lakh; Garments ₹1,245.05 lakh; total ₹1,526.70 lakh.

Capital actions

• Cancellation of proposed preferential issue approved by Board on 12 Aug 2026.
• Original proposal: 27,516,513 equity shares at ₹36 per share.
• Cancellation due to procedural and regulatory complexities.

Order details

• Awarding entity: Ministry of Electronics and Information Technology through NICSI (domestic).
• Nature and scope: manpower supply for NICSI internal requirements and projects.
• Value: INR 52,19,862.
• Domestic entity.
• Execution period: six months.
• Date of allotment: 27 July 2026.
• Key terms: monthly payments on service; agency to disburse wages and statutory benefits.
• Promoter/Group interest: none.
• Related party: not applicable; not an arm's length transaction.

Order details

• Awarding entity: Ministry of Electronics and Information Technology through NICSI.
• Nature and scope: Manpower supply for NICSI internal requirements.
• Contract value: ₹52,19,862.
• Entity type: Domestic.
• Execution: Six months; Allotment: 27 July 2026.
• Payment terms: Monthly payments based on services rendered.
• Labour obligations: Agency to pay deployed manpower entitlements (salary, EPF/ESI, etc.).
• EMD option: EMD convertible to security deposit for period plus three months.
• Promoter interest: No promoter group interest; not a related party transaction.
• Material impact: No explicit material impact disclosed.

Compliance status

• Confirmation certificate under Regulation 74(5) received.

Order extension details

• Awarding entity: Mahamana Pandit Madan Mohan Malaviya Cancer Centre & Homi Bhabha Cancer Hospital (MPMMCC), BHU, Varanasi.
• Nature of contract: Extension of existing contract for supply of technical and non-technical manpower.
• Original contract period: 2 years.
• Extended contract period: 01.07.2026 to 31.12.2026.
• Effective date of extension: 01.07.2026.
• Value of extension: ₹32.00 crore.
• Significant terms: extension at existing rates, terms, and conditions.
• Domestic awarding entity: Domestic entity.
• Promoter/related parties: No promoter interest; no related party transaction.
• Material impact: Extension maintains existing terms; no further revenue impact disclosed.

Financial Performance 📊

• Standalone Q3 FY26 revenue rose 40.92% to Rs. 70.49 Cr; 9M revenue up 26.41% to Rs. 196.66 Cr.
• Standalone Q3 FY26 EBITDA increased 548.34% to Rs. 9.79 Cr; 9M EBITDA up 91.04% to Rs. 24.72 Cr.
• Standalone Q3 FY26 EBITDA margin improved 360.07% to 13.89%; 9M margin up 50.97% to 37.37%.
• Consolidated Q3 FY26 revenue grew 45.53% to Rs. 104.84 Cr; 9M revenue up 28.63% to Rs. 261.99 Cr.
• Consolidated Q3 FY26 EBITDA surged 566.12% to Rs. 12.19 Cr; 9M EBITDA rose 105.68% to Rs. 27.87 Cr.
• Consolidated Q3 FY26 EBITDA margin increased 357.72% to 11.63%; 9M margin up 53.43% to 31.22%.

Profitability Metrics

• Standalone Q3 FY26 PBT rose 182.09% to Rs. 9.45 Cr; 9M PBT increased 70.56% to Rs. 23.35 Cr.
• Standalone Q3 FY26 PBT margin improved 105.97% to 12.76%; 9M margin up 33.31% to 33.69%.
• Consolidated Q3 FY26 PBT increased 206.01% to Rs. 11.20 Cr; 9M PBT up 82.09% to Rs. 26.02 Cr.
• Consolidated Q3 FY26 PBT margin rose 115.59% to 10.36%; 9M margin increased 35.95% to 27.94%.

Business Developments

• Strong order inflows in garments and exports, notably in readymade garments under F-Route Clothing brand.
• Expansion in high-margin segments and diversified garment operations supporting FY26 targets.
• Export order book growth in Middle East and other key markets.
• Domestic market traction driven by wide product range and efficient distribution networks.

Operational Outlook

• Elevated run rate expected in Q3 and Q4 FY26, positioning these as strongest quarters on record.
• Enhanced execution capabilities and resilient demand across key segments.

Industry Outlook

• Indian textile and apparel sector projected to grow from US$225 billion (2025) to US$350 billion (2030).
• Government aims to triple textile exports to US$100 billion by 2030 via FTAs and ‘5F’ vision.
• Sector expected to generate over 35 million incremental jobs by 2030, supported by skilling and infrastructure initiatives.
• Continued government support through budget measures, mega textile parks, and export incentives.