SPORTKING Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹645.9 Cr
verification pending
Revenue YoY
6%
reported change
EBITDA
₹65.66 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Sportking India reported a 6% YoY revenue growth to INR 645.9 crore in Q3 FY26 with PAT up 33% YoY to INR 24.6 crore, driven by 45bps EBITDA margin expansion to 10.2%. The quarter faced headwinds from US tariffs impacting sentiments, though this was partially offset by duty-free cotton window and resilient Bangladesh demand. A fire incident at Bathinda plant caused INR 1.5 crore net impact. Year-to-date, revenue grew 2.8% YoY to INR 1,851.1 crore with 96% capacity utilization. Management highlighted game-changing EU-India trade deal and US tariff reduction as structural tailwinds, with management guiding to margin improvement of at least 10% sequentially over next two quarters. The 1,000 crore Odisha greenfield expansion (40% capacity increase) is on track for Q3 FY27 commissioning, while the government garment merger completing by April 1st will add INR 200 crore revenue. Cotton price competitiveness remains the key headwind to monitor.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects EBITDA margins to improve by at least 10% sequentially in each of the next two quarters, driven by improving spreads and operational efficiency gains.
- The INR 1,000 crore greenfield expansion will add 1.5 lakh spindles (40% capacity increase) generating additional turnover of INR 1,200-1,300 crore, with commissioning from Q3 FY27.
- Merger completing April 1st adds INR 200 crore revenue with ~15% PAT margins; management targets INR 250-260 crore next fiscal year with 25-30% expansion.
- New 40MW solar capacity from March 1st will increase renewable power to 40-45% of total consumption, generating annual savings of INR 16 crore.
Risks flagged
- Management identified cotton prices as the sole remaining headwind to becoming most competitive textile nation globally. Domestic cotton remains expensive vs international prices due to CCI MSP procurement, though gap is narrowing.
- US tariffs significantly impacted Q2/Q3 demand with muted festival season. While January shows improvement, sustainable demand recovery across all markets remains to be established.
- When asked about customer pressure for price reductions, management deflected by stating prices were rising. This may understate competitive dynamics given the Q3 spread compression and 10.8% EBITDA growth lagging 33% PAT growth partly due to fire impact.
- The fire loss was stated as INR 32 crore gross, netted with insurance. Management only confirmed INR 1.5 crore bottom-line impact, leaving ambiguity around insurance recovery timing and ultimate net financial impact.
Key quotes
- This deal is a game-changer for Indian textile industry and we believe it's very positive for the sector for years to come. We thank the government of India for finally giving us a level playing field in the biggest textile delivering block in the world.
- The merger will be completed by the end of this quarter and our vision is to be a predominantly government house in next 5 to 10 years. This is just to give us leverage and knowhow that we are acquiring these units and we're going to scale them up.
- The recent uptick we have seen in demand is a lot to do with the consolidation which has already happened in last two three years. We are seeing much more consolidation happening in the sector and going forward a lot more happening.
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