S P Apparels Q1 FY27 Earnings Call — Analysis (NSE: SPAL)
S.P. Apparels delivered a flat Q1 FY27 top line but a strong margin and profit beat, and management reaffirmed FY27 consolidated revenue guidance of ₹2,000 Cr on H2-weighted order visibility.
Result quality: poor — Revenue declined. Management sentiment: neutral.
The take
Q1FY27 Consolidated revenue from operations ₹401 Cr ( −₹-2 Cr YoY ) .
Results
Consolidated revenue ₹401 Cr broadly flat YoY; consolidated EBITDA ₹61.4 Cr +15.9% YoY with margin 15.3% vs 13.1%; consolidated PAT ₹24.9 Cr +20.4% YoY.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated revenue from operations | ₹401 Cr | −₹-2 Cr | yoy · Q1FY27 · Q1 FY26: ₹403 Cr |
| Consolidated EBITDA | ₹61.4 Cr | +15.9% | yoy · Q1FY27 · Q1 FY26: ₹52.9 Cr |
| Consolidated EBITDA margin | 15.3% | +220 bps | yoy · Q1FY27 · Q1 FY26: 13.1% |
| Consolidated PAT | ₹24.9 Cr | +20.4% | yoy · Q1FY27 · Q1 FY26: ₹20.7 Cr |
| Consolidated EPS | ₹9.9 | +₹1.7 | yoy · Q1FY27 · Q1 FY26: ₹8.2 |
| Standalone adjusted revenue from operations | ₹265.9 Cr | −₹-21.8 Cr | yoy · Q1FY27 · Q1 FY26: ₹287.7 Cr |
| Standalone adjusted EBITDA | ₹46.6 Cr | +6.7% | yoy · Q1FY27 · Q1 FY26: ₹43.7 Cr |
| Standalone adjusted EBITDA margin | 17.5% | +230 bps | yoy · Q1FY27 · Q1 FY26: 15.2% |
| Standalone PAT | ₹26.5 Cr | +33.4% | yoy · Q1FY27 · Q1 FY26: ₹19.9 Cr |
| Garment division including Young Brand Apparels adjusted revenue | ₹337.3 Cr | none · Q1FY27 · No prior-period figure stated | |
| Garment division including Young Brand Apparels adjusted EBITDA margin | 17.6% | none · Q1FY27 · No prior-period margin stated | |
| Young Brand Apparels revenue | ₹72.7 Cr | none · Q1FY27 · No YoY figure stated; sequential volume 5.0 mn vs 5.2 mn pieces | |
| Young Brand Apparels adjusted EBITDA margin | 17.7% | none · Q1FY27 · No prior-period margin stated | |
| SPUK revenue | ₹33.3 Cr | +125.2% | yoy · Q1FY27 |
| SPUK EBITDA | -₹1.0 Cr | none · Q1FY27 · Negative due to ~£50,000 air freight and shipment timing | |
| SP Retail Ventures revenue | ₹18.8 Cr | +26.7% | yoy · Q1FY27 |
| SP Retail Ventures EBITDA | ₹0.41 Cr | none · Q1FY27 · ₹41 lakh | |
| S.P. Apparels export sales quantity | 15.7 million pieces | none · Q1FY27 | |
| Young Brand Apparels export sales quantity | 5.0 million pieces | -0.2 mn pieces | qoq · Q1FY27 · Prior sequential quarter 5.2 mn pieces |
| Yarn division EBITDA | ₹7.5 Cr | none · Q1FY27 | |
| Standalone gross debt | ₹258 Cr | point_in_time · As on 30 Jun 2026 · Standalone | |
| Standalone cash and cash equivalents | ₹46.6 Cr | point_in_time · As on 30 Jun 2026 · Standalone | |
| Standalone net debt | ₹211 Cr | point_in_time · As on 30 Jun 2026 · Gross debt ₹258 Cr less cash ₹46.6 Cr | |
| Total order book | ₹600 Cr | point_in_time · As on 13 Aug 2026 · SPAL India ₹430 Cr + SPUK ₹70 Cr + YBA ₹100 Cr |
Guidance
Management reaffirmed FY27 consolidated revenue guidance of ₹2,000 Cr and guided garment division EBITDA margin above 15% for FY27.
Key themes
H2-led growth, FTA gains, margin resilience
Operational commentary
- Order book at ~₹600 Cr with segment split S.P. Apparels India ₹430 Cr, Young Brand Apparels ₹100 Cr, SPUK ₹70 Cr; management says the company is booked until October and open for November onward.
- Management attributed the soft Q1 top line to U.S. tariff impact late last quarter and customer-requested shipment spillover; no shipment spillover is expected in Q2.
- Garment profitability improved despite lower utilization, driven by better operating efficiency, product mix and healthy yarn spreads; standalone adjusted EBITDA margin rose to 17.5%.
- Capacity expansion restarted: 750 machines added in India; Salem facility started trial production and is expected to run at full planned Phase 1 capacity in about three months post Diwali; Sivakasi factory has a plan to add another ~400 machines over two years.
- Young Brand Apparels: Palladum production commenced; commercial production from another approved facility expected in coming months; all planned units expected in commercial production by October 2026.
- Young Brand Apparels is adding a molded bra product line with orders that can fill 200 machines; investment is expected to be not more than ₹10 Cr, with full-fledged production/revenue from next financial year.
Research and educational content only. Not investment advice.