Consolidated nine-month revenue rises 21.9% to ₹12,137.3 million as garment manufacturer executes geographical expansion. SPUK division returns to profitability amid capacity scaling in Indian and Sri Lankan facilities.
S.P. Apparels Limited (NSE: SPAL) recorded a 27.3% year-over-year increase in consolidated profit after tax (PAT) for the first nine months of fiscal year 2026, reaching ₹823.6 million. Consolidated revenue from operations for the period grew 21.9% to ₹12,137.3 million. These results reflect sustained volume growth in core garment manufacturing and an operational turnaround in the company’s international business segments.
Strategic Moves Drive Improved Bottom Line
The results disclosure, presented on February 12, 2026, details a period of significant operational scaling and strategic acquisition integration. A primary driver for the improved bottom line was the performance of S.P. Apparels (UK) (SPUK), which reported a positive EBITDA of ₹18.7 million for the nine-month period, recovering from a loss of ₹17.2 million in the prior year. Furthermore, the company has progressed with the integration of Young Brand Apparel Private Limited (YBAL), a move designed to facilitate its entry into the intimate wear export market.
Solid Earnings Growth and Margin Expansion
For the nine-month period ending December 2025, consolidated EBITDA rose 29.7% to ₹1,731.8 million, with EBITDA margins expanding to 14.3% from 13.4% in the corresponding period of the previous year. For the third quarter (Q3 FY26), revenue climbed 6.6% year-over-year to ₹3,829.5 million, while PAT reached ₹270.0 million, a 9.1% increase. Earnings per share for the nine-month period stood at ₹32.8, up from ₹25.8 a year earlier. Standalone operations in Tirupur contributed ₹8,513.5 million in adjusted operational revenue for the first nine months, representing a 20.8% increase.
Expanding Manufacturing Capacity and Retail Footprint
Management’s strategy focuses on capacity expansion and geographical diversification to drive future revenue growth. In India, the company plans to add approximately 1,000 machines by the end of FY26. Capacity utilization in the garmenting division stood at 71.0% for 9M FY26, down from 85.0% in FY25, a decrease attributed to the addition of new machinery and the impact of U.S. tariff policies. In Sri Lanka, where operations commenced in January 2025, SPAL intends to scale capacity to 2,000 machines by FY27 using an asset-light acquisition model targeting customer-approved factories. The retail division, featuring brands such as Crocodile and Angel & Rocket, reported a 98% revenue increase between FY21 and FY25 and continued to post positive EBITDA during the latest quarter.
Expansion of Indian Textile Export Market
The company’s performance is situated within a broader projected expansion of the Indian textile export market, which is expected to reach $65 billion by 2026. Industry growth is currently supported by “China Plus One” sourcing diversification and the anticipated benefits of Free Trade Agreements (FTAs) with the United Kingdom and European Union. These macroeconomic factors, combined with government incentive schemes such as the Rebate of State and Central Taxes and Levies (RoSCTL), are intended to enhance the export competitiveness and profitability of Indian apparel manufacturers.