Sportking India FY26 Net Profit Rises 5.8%; Acquisitions and Greenfield Expansion Approved

Sportking India Limited has published its standalone audited financial results for the quarter and year ended March 31, 2026, in Business Standard (English) and Desh Sewak (Punjabi) on May 18, 2026, pursuant to Regulation 47 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on May 16, 2026. The Statutory Auditors, SCV & Co. LLP, Chartered Accountants, have issued an Auditor's Report with an unmodified opinion on the standalone audited financial results for the quarter and year ended March 31, 2026.

Financial Performance

The company reported a net profit after tax of Rs. 11,972.38 Lakhs for the full year, an increase of 5.8% compared to the previous year. For the quarter ended March 31, 2026, the company posted a net profit after tax of Rs. 3,276.22 Lakhs. The company's revenue from operations for FY26 stood at Rs. 2,495.9 Crs, remaining largely stable year-on-year. On a quarterly basis, Q4 revenue stood at Rs. 636.8 Crs, a marginal increase of 1.3% YoY. Q4 EBITDA surged 16.1% to Rs. 85.4 Crs, with the EBITDA margin expanding by 172 basis points to 13.4%. The negative other income of Rs. 7.9 Crs in Q4, due to mark-to-market provisions on foreign exchange, impacted the quarterly net profit, which registered a degrowth of 7.3% YoY. Total comprehensive income for FY26 stood at Rs. 12,204.27 Lakhs, while Q4 FY26 total comprehensive income was Rs. 3,508.11 Lakhs.

The following table summarises key financial metrics from the published audited extract (Rs. in Lakhs except EPS):

Particulars: Q4 FY26 (Audited) FY26 (Audited) Q4 FY25 (Audited) Total Income from Operations (Net): 62,883.46 2,51,045.77 63,778.20 Net Profit Before Tax: 4,398.22 16,094.90 5,009.45 Net Profit After Tax: 3,276.22 11,972.38 3,533.74 Total Comprehensive Income: 3,508.11 12,204.27 3,617.53 Equity Share Capital: 1,286.80 1,286.80 1,286.80 Reserves (excl. Revaluation): — 1,10,303.24 — EPS – Basic & Diluted (Rs.): 2.55 9.39 2.75

The following table summarises key operational and margin metrics:

Particulars: Q4 FY26 (Audited) Q4 FY25 YoY FY26 (Audited) FY25 YoY Operational Revenue (Rs. Crs): 636.8 628.8 1.3% 2,495.9 2,524.2 -1.1% EBITDA (Rs. Crs): 85.4 73.6 16.1% 286.0 266.8 7.2% EBITDA Margin: 13.4% 11.7% +172 bps 11.5% 10.6% +89 bps Profit After Tax (Rs. Crs): 32.8 35.3 -7.3% 119.7 113.1 5.8%

Operational Highlights

Total production volume for Q4 FY26 stood at 20,527 MT compared to 20,956 MT in Q4 FY25. Yarn sales volume for Q4 FY26 stood at 21,052 MT versus 21,038 MT in Q4 FY25. Capacity utilization was at 96% for Q4 FY26. Exports contributed 48.7% of total revenue in Q4 FY26.

Dividend and Cost Auditor

The Board of Directors has recommended a Final Dividend of Rs. 1/- per equity share of face value of Rs. 1/- each on fully paid equity shares amounting to Rs. 1,270.72 Lakhs, subject to shareholder approval at the ensuing Annual General Meeting. Additionally, the Board has recommended a dividend of 5% on Non-Cumulative Non-Convertible Redeemable Preference Shares of face value of Rs. 10/- each, amounting to Rs. 34.16 Lakhs for FY 2025-26. The Board also approved the re-appointment of M/s R.R & Co., Cost Accountants, as the Cost Auditor of the company to conduct the Cost Audit for the financial year 2026-27.

Strategic Acquisitions and Expansion

The Board approved the acquisition of a majority stake in M/s Marvel Dyers and Processors Private Limited, a related party engaged in dyeing, printing, and finishing of fabrics. This transaction is classified as a related party transaction and is being conducted at arm's length. The consideration may be discharged in cash and/or by way of issuance of shares, based on valuation reports and mutually agreed terms. The following table provides key financial details of Marvel Dyers:

Particulars: Details Date of Incorporation: 02.01.1986 Authorized Share Capital: Rs. 200.00 Lakhs Paid-up Share Capital: Rs. 125.00 Lakhs Turnover (FY 2024-25): Rs. 5,582.80 Lakhs Turnover (FY 2023-24): Rs. 5,544.05 Lakhs Turnover (FY 2022-23): Rs. 6,412.60 Lakhs

Separately, the Board approved the acquisition of the manufacturing undertaking of M/s Sobhagia Sales Private Limited (SSPL) on a slump sale basis, as a going concern. SSPL is engaged in the business of manufacturing and retailing of readymade garments. The company also proposes to enter into a long-term lease arrangement with SSPL for the land and building pertaining to the manufacturing facilities. This transaction is also a related party transaction conducted at arm's length. The following table provides key financial details of SSPL:

Particulars: Details Date of Incorporation: 02.11.1993 Authorized Share Capital: Rs. 22,00.00 Lakhs Paid-up Share Capital: Rs. 11,69.07 Lakhs Turnover (FY 2024-25): Rs. 9,972.27 Lakhs Turnover (FY 2023-24): Rs. 11,585.86 Lakhs Turnover (FY 2022-23): Rs. 12,731.01 Lakhs

Both transactions are subject to the completion of due diligence, valuation exercise, negotiation, and execution of definitive agreements. The company confirmed that financial closure for its Greenfield Expansion Project in Odisha has been completed, with construction activities having commenced. The project will expand the spindle count by 1,50,000, with commercial operations expected to commence in the third quarter of the financial year. The project is estimated at ~1,000 crores.

Notable Developments

During November 2025, a fire accident occurred at the company's Bathinda plant, resulting in damage to raw material, building, and rooftop solar. No casualties were reported. The company recorded a loss of Rs. 3,171.29 Lakhs on account of the fire in the Statement of Profit and Loss, which has been netted off with insurance claim recoveries, with the net impact being not material. Additionally, the company voluntarily changed its accounting policy for raw material valuation from the first-in first-out (FIFO) basis to the weighted average basis during the quarter ended September 30, 2025, with retrospective effect in accordance with Ind AS 8. This change also had a consequential impact on the valuation of work-in-progress and finished goods. The Government of India has notified four new Labour Codes subsuming 29 legislations effective November 21, 2025; the company has assessed the impact and continues to comply with the major provisions having financial impact.

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