Sportking India Q1 FY27 Results (NSE: SPORTKING)
Signal: Steady quarter
The read
Q1FY27 revenue growth of 8.7% YoY was healthy but profitability was squeezed by higher input and other costs. Net profit fell 7.3% YoY. The change in raw material valuation method (to weighted average with retrospective restatement) adds uncertainty over reported comparatives. Positives: finance cost declined 13.6% and the new solar project (commenced 18-Jun-2026) should reduce power costs by 12-13% going forward.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹636.78 Cr | 8.68% | N/A |
| EBIT | ₹46.35 Cr | -1.8% | |
| Net profit | ₹32.76 Cr | -7.3% | |
| EPS | ₹2.79 | -7.3% | |
| EBIT margin | 10.98% |
P&L walk
Revenue grew 8.7% YoY but net profit fell 7.3% as raw material cost rose 4.7% and gross margin contracted ~120bps. Operating leverage absent because employee and power costs grew slower than revenue but not enough to offset input cost pressure. Finance cost declined 13.6% YoY providing modest support.
Key positives
- Revenue grew 8.7% YoY to ₹636.78 Cr, accelerating from prior quarter?
- Finance cost down 13.6% YoY to ₹8.74 Cr, improving interest coverage.
- Solar power project commenced – expected to reduce annual power costs by 12-13%.
Key concerns
- Net profit fell 7.3% YoY despite revenue growth, driven by higher other expenses (+13.2% YoY).
- Change in raw material valuation method (weighted average) with retrospective effect raises comparability concerns.
- EBITDA margin contracted ~60bps YoY to ~11%.
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