Any current/future new fundraising through debt or equity?

The company plans to raise equity initially by the end of Q2 (FY26), as mentioned on Page 13. The equity raise is linked to plans for demerging the retail business, with a potential separate listing in a few years (approximately 3 years from equity raising). No major future capex investments are planned beyond minor maintenance; significant capacity expansions have been completed or are in progress (Page 9). Current consolidated net debt stands at INR 335 crores with expectations to stabilize or reduce to around INR 200 crores in 2-3 years post expansion consolidation (Page 15). No explicit me

Any current/future capex/capital investment/strategic investment?

Consolidated capex planned for FY26 is approximately INR 60 crores in India plus $6 million (around INR 50-55 crores) as unsecured loan to Sri Lanka subsidiary, totaling about INR 110-120 crores. Capex includes adding around 1,000 machines in India and 2,000 machines in Sri Lanka by March 2026. Young Brand Apparel plans to lease a facility near Salem with 300 sewing machines to increase capacity to 1,700 machines by next year. No major capex beyond FY27 is planned; focus will be on consolidating capacity, optimizing utilization, and sweating assets. Minor maintenance capex expected for Sri Lan

Future growth expectations in sales/revenue/volumes?

Targeting INR 2,000 crores revenue by FY27 with approximately 7,500 machines in operation (Page 5). FY26 revenue expected between INR 1,600 crores to INR 1,800 crores considering expansions and acquisitions (Pages 10,12). Young Brand Apparel revenue projected to grow from INR 325 crores to around INR 350 crores in FY26, with potential INR 400-420 crores in next couple of years (Pages 15,6). Sri Lanka operations expected to contribute INR 200 crores revenue in FY26 and expand capacity to 2,000 machines by FY27 (Page 4,7). SPUK revenue targeted at GBP 9.5-10 million for FY26, with growth to GBP

Future growth expectations in earnings/operating earnings/profits/EPS?

S.P. Apparels aims for an EBITDA margin of around 18% on a standalone basis in the next 1-2 years (Page 11, 10). Young Brand Apparel is expected to improve EBITDA margin from 15% to around 16-17% (Page 11). Revenue target is INR 2,000 crores by FY27, driven by capacity expansions including standalone, Sri Lanka, and Young Brand operations (Pages 5, 9). For FY26, consolidated revenue is expected between INR 1,600 to 1,800 crores with stable EBITDA margins around 18% (Pages 9-10). EPS is expected to grow aligned with revenue and margin expansion; FY25 consolidated EPS was INR 37.9 per share, wit

Current/ Expected Orderbook/ Pending Orders?

Current order book status for Garment division is INR 442 crores. (Page 4) SPUK's current order book is valued at GBP 4.5 million. (Page 4) For FY26, SPUK has an order book of approximately GBP 4.4 million. (Page 12) No specific consolidated order book total mentioned beyond these figures.

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S P Apparels LtdQ1 FY25Textiles & Apparels

S P Apparels Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,038P/E: 17.3Market Cap: ₹2.0K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Targeting INR 2,000 crores revenue by FY27 with approximately 7,500 machines in operation (Page 5).
→FY26 revenue expected between INR 1,600 crores to INR 1,800 crores considering expansions and acquisitions (Pages 10,12).
→Young Brand Apparel revenue projected to grow from INR 325 crores to around INR 350 crores in FY26, with potential INR 400-420 crores in next couple of years (Pages 15,6).
→Sri Lanka operations expected to contribute INR 200 crores revenue in FY26 and expand capacity to 2,000 machines by FY27 (Page 4,7).
→SPUK revenue targeted at GBP 9.5-10 million for FY26, with growth to GBP 12-14 million in FY27 (Page 12).
→Capacity additions of 700-1,000 machines planned in FY26, including asset-light leasing at Salem for Young Brand (Pages 8,4).
→Steady revenue growth anticipated with cautious expansion and consolidation over next 2-3 years (Pages 15,9).

Margin guidance

Category 3

→S.P. Apparels aims for an EBITDA margin of around 18% on a standalone basis in the next 1-2 years (Page 11, 10).
→Young Brand Apparel is expected to improve EBITDA margin from 15% to around 16-17% (Page 11).
→Revenue target is INR 2,000 crores by FY27, driven by capacity expansions including standalone, Sri Lanka, and Young Brand operations (Pages 5, 9).
→For FY26, consolidated revenue is expected between INR 1,600 to 1,800 crores with stable EBITDA margins around 18% (Pages 9-10).
→EPS is expected to grow aligned with revenue and margin expansion; FY25 consolidated EPS was INR 37.9 per share, with expectations of improvement (Page 5).
→Management is confident about margin improvements and long-term value creation through strategic decisions and capacity optimization (Page 19).
→Young Brand contribution and margins show potential for further improvement with better utilization (Pages 8-9).

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Fundraise plans

Yes

→The company plans to raise equity initially by the end of Q2 (FY26), as mentioned on Page 13.
→The equity raise is linked to plans for demerging the retail business, with a potential separate listing in a few years (approximately 3 years from equity raising).
→No major future capex investments are planned beyond minor maintenance; significant capacity expansions have been completed or are in progress (Page 9).
→Current consolidated net debt stands at INR 335 crores with expectations to stabilize or reduce to around INR 200 crores in 2-3 years post expansion consolidation (Page 15).
→No explicit mention of raising fresh debt; focus appears to be on managing existing debt and supporting acquisitions through internal resources and planned equity raise.

Order book

Yes

→Current order book status for Garment division is INR 442 crores. (Page 4)
→SPUK's current order book is valued at GBP 4.5 million. (Page 4)
→For FY26, SPUK has an order book of approximately GBP 4.4 million. (Page 12)
→No specific consolidated order book total mentioned beyond these figures.

Capex plans

Yes

→Consolidated capex planned for FY26 is approximately INR 60 crores in India plus $6 million (around INR 50-55 crores) as unsecured loan to Sri Lanka subsidiary, totaling about INR 110-120 crores.
→Capex includes adding around 1,000 machines in India and 2,000 machines in Sri Lanka by March 2026.
→Young Brand Apparel plans to lease a facility near Salem with 300 sewing machines to increase capacity to 1,700 machines by next year.
→No major capex beyond FY27 is planned; focus will be on consolidating capacity, optimizing utilization, and sweating assets.
→Minor maintenance capex expected for Sri Lanka; no significant investment needed for hostels or new infrastructure.
→Strategic investment includes acquisition of Young Brand Apparel (~INR 150-160 crores) and factory acquisitions in Sri Lanka to boost operational flexibility and growth.

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