Sportking India Limited reported a 5.8% year-on-year increase in net profit after tax for FY ’26, supported by improved operational efficiency and margin expansion, even as the company faced foreign exchange-related pressures during the fourth quarter.
The textile manufacturer posted a consolidated net profit after tax of Rs. 119.7 crore (US $12.42 million) for the financial year ended 31st March 2026, compared to the previous year, while PAT margin improved by 31 basis points year-on-year to 4.8%. Revenue from operations remained largely stable at Rs. 2,495.9 crore (US $259 million) during FY ’26.
According to the company’s audited financial performance, total income from operations stood at Rs. 2,510.46 crore (US $260 million) during FY ’26, while total comprehensive income reached Rs. 122.04 crore (US $12.66 million).
For the quarter ended March 2026, Sportking India reported revenue from operations of Rs. 636.8 crore (US $66.11 million), reflecting a marginal increase of 1.3% year-on-year. However, quarterly net profit after tax declined 7.3% to Rs. 32.8 crore (US $3.41 million) due to negative other income arising from mark-to-market foreign exchange provisions amounting to Rs. 7.9 crore (US $820,000).
Q4 EBITDA rose sharply by 16.1% to Rs. 85.4 crore (US $8.86 million), with EBITDA margin expanding by 172 basis points to 13.4%. Total comprehensive income for the quarter stood at Rs. 35.08 crore (US $3.64 million).
Munish Avasthi, Chairman & Managing Director, stated that stronger operational efficiencies and higher yarn realisations helped support profitability during the quarter. It noted that elevated global cotton prices contributed to improved yarn spreads, aided by inventory procured at comparatively lower costs.
The company added that rising fuel and freight costs, coupled with rerouting through alternate trade corridors, extended transit times and increased logistics expenses across the textile value chain. Cotton prices also remained elevated due to constrained supply conditions and rising input costs, although higher cotton prices translated into improved yarn realisations.
Operationally, production volume during Q4 FY ’26 stood at 20,527 metric tonnes compared to 20,956 metric tonnes in the year-ago period. Yarn sales volume remained stable at 21,052 metric tonnes against 21,038 metric tonnes in Q4 FY ’25. Capacity utilisation stood at 96% during the quarter, which the company described as best-in-class levels. Exports contributed 48.7% of total revenue during the quarter.
Separately, the Board approved the acquisition of a majority stake in Marvel Dyers and Processors Private Limited, a related-party company engaged in dyeing, printing and finishing of fabrics.
The Board also approved the acquisition of the manufacturing undertaking of Sobhagia Sales Private Limited on a slump sale basis as a going concern. SSPL operates in the manufacturing and retailing of readymade garments. Sportking India additionally plans to enter into a long-term lease arrangement for the land and buildings associated with the manufacturing facilities.
Both transactions remain subject to due diligence, valuation exercises, negotiations and final agreements.
Meanwhile, the company confirmed financial closure for its proposed greenfield expansion project in Odisha, where construction activities have already commenced. The project, involving an estimated investment of around Rs. 1,000 crore (US $ million), will add 1,50,000 spindles to the company’s capacity, with commercial operations expected to begin in the third quarter of the financial year.
