S P Apparels Ltd

- The company is looking to raise equity to support the expansion of its retail division. - Until the equity raise is completed, the retail division plans to grow at around 20% to maintain EBITDA breakeven and manage working capital. - There is no explicit mention of any current or future planned fundraising through debt in the transcript. - The focus on equity fundraising appears aimed at scaling the retail business and supporting growth initiatives.

- For FY25, SP Apparels Limited's Capex incurred over 9 months is approximately INR 70 crores. - For FY26, including the addition of capacities in Sri Lanka, expected Capex is higher, around INR 70-80 crores. - Sri Lanka operations currently involve a job work model; if own factories are set up, investment metrics will change. - Plans to invest in Sri Lanka include adding about 1,000 machines with an investment of around INR 50-75 crores. - The company aims to expand garment manufacturing capacity by adding machines, targeting 2,000 more machines over two years. - There is an active plan to acquire factories in Tamil Nadu to expand existing capacities. - Focus on moving operations away from Tirupur cluster to rural areas for fresh workforce and training. - Expansion plans await equity raising to scale faster; currently aiming for 15-20% growth with controlled investment.

- Group revenue expected to reach around INR 1,600 crores in the next financial year. - Standalone garment business targeting 15% to 20% top-line growth over the next 2 years. - Young Brand Apparel (YBAPL) expected to grow from current INR ~310-350 crores to INR 400 crores at full capacity in 2-3 years. - Sri Lanka operations planned to add capacity of around 2,000 machines over 2 years to support growth. - Overall capacity expansion: aiming to run 7,000 machines by FY27 (including India and Sri Lanka). - SPUK retail is growing with new customers; expecting a robust FY26. - Retail division targeting profitability for FY26, with ongoing expansion and equity fundraising. - Company optimistic about volume and value growth supported by efficiency improvements and capacity additions.

- **Revenue Growth**: Company expects 15% to 20% growth in top-line revenue over the next 2 years, primarily from standalone garment business and Sri Lanka operations. - **EBITDA Margins**: - Garment division targeted EBITDA margin around 18%. - SPUK expected to maintain EBITDA around 4-5%. - Retail division aiming for flat EBITDA, currently near breakeven and expected to improve profitability by FY26. - **Young Brand Apparel (YBA)**: Projected revenue around INR350 crores in FY26 with 15% EBITDA margins; potential to reach INR400 crores over 2-3 years with margin improvements as capacity utilization increases. - **Capex**: Around INR70-80 crores planned for FY26 including Sri Lanka capacity addition. - **EPS**: Current EPS stands at INR7.2 (standalone Q3 FY25). Operating efficiencies and growth should support EPS growth, though explicit future EPS guidance isn't provided. - **Strategic Outlook**: Confidence expressed in margin improvements and sustained earnings growth driven by capacity expansion, efficiency, and geographic diversification.

- Young Brand Apparel (YBAPL) order book is around INR 85 crores. - The business expects strong demand driven by customers shifting production away from Bangladesh due to political instability, with India and Sri Lanka as preferred alternatives. - SPUK's current order book is valued at GBP 3.2 million. - The company is actively adding new customers, with SPUK having secured 2 new customers and 2 more potential customers in discussion. - The Sri Lankan operations are ramping up, with about 300 machines currently running, expected to reach 800 machines from August onwards, indicating growing production orders. - Customer demand is robust, and existing customers have consented to increasing orders for Sri Lankan production, reducing risk of underutilized capacity.