S.P. Apparels Q1 FY27: Dividend of ₹3/share, Stock Split Proposed
S.P. Apparels Limited reported Q1 FY27 consolidated revenue of ₹401 crore and a 20.4% rise in profit after tax to ₹24.9 crore. The company announced a dividend of ₹3 per share and a proposed stock split from ₹10 to ₹2 face value. Management is optimistic about growth driven by the India-UK FTA and a ₹2,000 crore FY27 revenue guidance.
The proposed stock split and dividend are significant corporate actions that directly impact shareholders. The positive outlook and growth drivers mentioned, like the India-UK FTA, suggest a strong future performance, impacting investor sentiment and the company's valuation.
The company reported improved profitability and margins despite stable revenue. The announcement of a dividend and a proposed stock split are positive for shareholders. Management expressed confidence in achieving future revenue targets, supported by new agreements and market shifts.
S.P. Apparels Limited (SPAL) announced its Q1 FY27 results, reporting a stable consolidated revenue of ₹401 crore, a slight decrease from ₹403 crore in the prior year. However, profitability saw a significant improvement, with consolidated EBITDA rising by 15.9% year-on-year to ₹61.4 crore, and EBITDA margin expanding to 15.3% from 13.1%. Profit after tax grew by 20.4% to ₹24.9 crore.
The company's Board has approved a dividend of ₹3 per share and proposed a stock split of equity shares from ₹10 face value to ₹2 face value, subject to necessary approvals. This move aims to enhance shareholder value and broaden investor participation.
Management highlighted the positive impact of the India-UK free trade agreement, leading to improved customer engagement and visibility for future orders, with three new UK brands added to their customer base. The company also anticipates benefits from the potential EU-India free trade agreement.
On a standalone basis, adjusted revenue was ₹265.9 crore, with adjusted EBITDA increasing by 6.7% to ₹46.6 crore, and margins improving to 17.5%. Profit after tax saw a strong growth of 33.4% to ₹26.5 crore.
The Garment division, the primary growth driver, showed strong profitability and improved operating efficiencies, with standalone adjusted EBITDA margin at 17.5%. The company is expanding its customer base and leveraging its dual manufacturing platform in India and Sri Lanka to capitalize on the China Plus-One and Bangladesh Plus-One sourcing shifts.
The Young Brand Apparel division, despite lower year-on-year revenue due to US tariff issues, delivered better profitability. Production is scaling up, with all planned units expected to be operational by October, and the addition of bra products is planned to create a new growth story.
SPUK's UK business reported strong revenue growth of 125.2% to ₹33.3 crore, though EBITDA was negative due to shipment timing. The Retail division, SP Retail Ventures, reported revenue of ₹18.83 crore, a growth of 26.7% year-on-year, with improving EBITDA.
SPAL maintains a consolidated revenue guidance of ₹2,000 crore for FY27, expecting growth to be weighted towards the second half of the year, supported by improved order inflows and capacity ramp-up. The current order book stands at approximately ₹570 crore.
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S. P. Apparels Limited filed this with the NSE as a statutory disclosure, categorised under concall scheduled. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by S. P. Apparels Limited. Read the original for the full detail.