Sportking India Q2 Margins Expand, Exports Rise 11% YoY

Sportking India Limited, one of India’s leading textile conglomerates, reported steady financial performance for the second quarter and half-year ended September 30, 2025, with healthy margin expansion and resilient export growth.

The company recorded a revenue from operations of Rs 627.4 crore in Q2 FY26, with exports contributing around 53% to overall revenue, an 11% year-on-year increase. Total production volume during the quarter stood at 21,294 MT, while yarn sales volume rose to 20,949 MT compared to 18,775 MT in Q2 FY25. Capacity utilization remained strong at 96%, maintaining one of the best levels in the industry.

Sportking’s gross profit increased 4.8% YoY to Rs 151.3 crore, with the gross profit margin expanding by 197 basis points to 24.1%. EBITDA rose 4.5% YoY to Rs 65.4 crore, with the EBITDA margin improving by 82 basis points to 10.4%. The company reported a profit after tax (PAT) of Rs 28.3 crore, slightly lower by 5.5% YoY, while maintaining a stable PAT margin of 4.5%.

For the first half of FY26, revenue from operations stood at Rs 1,213.2 crore, with exports contributing 56%, up 15% YoY. Gross profit for H1 FY26 grew 3.9% to Rs 307.4 crore, while EBITDA rose 0.7% to Rs 134.9 crore, and PAT increased 5.1% to Rs 62.4 crore.

Commenting on the results, Munish Avasthi, Chairman and Managing Director, said, “We are pleased to deliver a stable quarter highlighted by a consistent upward trajectory in gross profit and EBITDA margins, driven by softer input costs and disciplined execution. This performance reflects our operational efficiency and resilience in navigating market dynamics.”

He added that despite elevated domestic cotton prices due to higher Minimum Support Prices, government interventions such as temporary import duty relaxation have improved cost competitiveness. “Export volumes have remained strong, with export revenue rising from 46% in Q2 FY25 to 53% in Q2 FY26. The recent GST cut on everyday garments is also expected to boost demand during the festive season, benefiting manufacturers like us,” he said.

Avasthi also reiterated progress on the company’s Rs 1,000-crore greenfield capacity expansion program aimed at significantly increasing spindle capacity. “Supported by favorable policies and a positive demand outlook in H2 FY26, Sportking India is well-positioned to capture emerging opportunities and deliver sustained value to stakeholders,” he added.