Sportking India Ltd

Financial performance

• Revenue from operations for FY26: ₹2,49,585.66 Lakhs, -2.3% YoY.
• EBITDA rose to ₹30,057.37 Lakhs; margin improved modestly.
• PAT ₹11,972.38 Lakhs, up 5.8% YoY.
• Basic EPS ₹9.39 for FY26.
• Corrigendum: Retained earnings at 1-Apr-2025 corrected to ₹91,349.32 Lakhs; Total equity ₹99,403.88 Lakhs.

Geography and customers

• Exports accounted for 52% of revenue; export revenue ₹129,536.89 Lakhs.
• Domestic revenue (India) ₹114,263.13 Lakhs for FY26.
• Top 5 customers contributed ₹43,269.35 Lakhs (17.75% of revenue).
• Single segment focus: Yarn and related textile products.

Capital investment and expansion

• Greenfield spindle expansion of 150,000 spindles; financial closure completed.
• CAPEX for 40.3 MW captive solar project; SPPA for 25 years; commissioning 2026-27.
• Acquired 26% equity in Evincea Renewable Seven Private Limited for captive solar.

Dividends and capital management

• Board recommends final dividend of Rs 1 per equity share; subject to AGM.
• Dividend Distribution Policy in place; dematerialisation emphasized.

Governance and leadership

• Naresh Kumar Jain (WTD) passed away on 07 June 2025.
• Chetan Rupal (Executive Director) appointed 02 Aug 2025; Puneet Singhania (Independent) also appointed.
• Anjali Avasthi designated as Whole-time Director from 01 Aug 2026 for 3 years.
• Board: 6 members; 2 Executives, 4 Non-Executives including 3 Independents.

Audits, controls and accounting policy

• Statutory auditors: SCV & Co. LLP; no qualifications.
• Secretarial auditor: Sunny Kakkar & Associates; no qualifications.
• Ind AS 8 restatement: raw material valuation changed from FIFO to weighted average; retrospective effect.

ESG and CSR

• CSR expenditure: ₹283.69 Lakhs; average net profit-based CSR obligation ₹293.56 Lakhs.
• CSR carry-forward: ₹11.85 Lakhs; unspent ₹1.99 Lakhs carry forward.
• CSR committee active; BRSR included in annual report.

Sustainability and environment

• 62 MW rooftop solar; 40.3 MW CAPEX in SPV; expected 12-13% annual power cost savings.
• LED lighting and energy efficiency measures implemented across facilities.
• Groundwater use and water reuse under zero liquid discharge initiatives.

Liquidity and cash flows

• Net cash from operating activities: ₹29,196.64 Lakhs.
• Investing activities: outflows ₹9,375.51 Lakhs; financing activities ₹19,803.76 Lakhs.
• Cash at year-end: ₹67.32 Lakhs; undrawn facilities ₹33,726.45 Lakhs.

Outlook and risks

• Indian textile sector remains positive with policy support (PLI, RoDTEP, FTAs).
• Global macro headwinds persist; management emphasizes agile, cost-conscious execution.

Rating Action

• Long-term facility Rs 935 cr: Crisil A+/Positive; outlook revised from Stable to Positive; rating reaffirmed.
• Short-term facility Rs 65 cr: Crisil A1; rating reaffirmed.
• Total facilities rated Rs 1,000 crore.

Rationale & Drivers

• Outlook revised to Positive on strengthened business risk profile.
• Sustained domestic and international demand with high capacity utilisation.
• Odisha expansion adds about 40% capacity to 5.29 lakh spindles.
• FY2026 revenue Rs 2,503 crore; operating margin 11.7%.
• Projected FY2027 revenue growth around 15%; Odisha facility supports scale.
• Capex of Rs 960 crore; timely commissioning monitorable.
• Debt protections remain healthy; debt/EBITDA 2.0–2.3x; interest coverage >6.5x.
• Liquidity robust; net cash accrual > Rs 300 crore annually; unused WC limits ~ Rs 300 crore.
• Risks: capex execution, working capital intensity, raw-material and forex volatility.

Financial Profile

• FY2026 revenue Rs 2,503 crore; PAT Rs 120 crore; PAT margin 4.8%.
• Adjusted debt declined to Rs 463 crore; debt/EBITDA 1.58x; interest coverage >6x (2026).
• Net cash accruals projected above Rs 300 crore annually through 2027–2029.

Outlook & Risks

• Outlook: Positive reflecting profitability and scale from Odisha expansion.
• Sensitivity: sustained revenue growth and cash generation.
• Downside: weaker profitability or delayed capex execution.

Dividend and tax framework

• Board recommends final dividend of Rs 1 per equity share for FY2025-26, subject to AGM approval.
• Dividend taxed under IT Act 2025; TDS driven by PAN, Aadhaar linkage and applicable rules.
• Record date for final dividend: 05 September 2026.
• TDS for resident PAN holders at 10%; 20% for others.
• Non-resident DTAA benefits require TRC, Form 41, and supporting documents.
• Submit required documents by 31 August 2026.
• Dividend payment will be electronic; no warrants or cheques.

Governance and AGM details

• Board approved final dividend recommendation at 16 May 2026 meeting.
• Final dividend subject to shareholder approval at the 37th AGM.
• AGM date not disclosed; approval pending.

AGM and AR access

• 37th AGM scheduled for 12 September 2026 at 10:30 AM IST at Ludhiana registered office.
• Annual Report FY2025-26 and AGM Notice are available via company website and provided web links.
• Letters to Members without registered emails include web links, path, and QR Code for AR/Notice.
• AR URL: https://sportking.co.in/wp-content/uploads/2026/08/Sporting-Annual-Report2026.pdf.
• AGM Notice URL: https://sportking.co.in/wp-content/uploads/2026/08/Letter-Notice-of-Shareholder-Meeting.pdf.
• For KYC updation, contact Beetal RTA or your DP.