S.P. Apparels: consolidated PAT +20% YoY to ₹24.9 Cr, margins expand to 15.3%

S.P. Apparels' consolidated (primary) revenue for Q1 FY27 was ₹401.1 Cr, essentially flat YoY (-0.6% vs ₹403.4 Cr in Q1 FY26) though up 9.9% QoQ off a seasonally softer Q4 FY26 (₹364.9 Cr). Consolidated PAT of ₹24.9 Cr grew 20.4% YoY (₹20.7 Cr in Q1 FY26) and 33.8% QoQ (₹18.6 Cr in Q4 FY26), with EPS at ₹9.89 vs ₹8.23 a year ago. Both revenue (~₹401 Cr) and PAT (~₹24.9 Cr) came in above the ₹344-396 Cr revenue and ₹12-15 Cr PAT ranges flagged in a pre-result Univest preview — a beat on both lines, though that preview was a trailing-growth projection, not a formal brokerage estimate. Management's own press release highlights the more flattering comparison for each basis — QoQ (+33.8%) on consolidated PAT and YoY (+33.4%) on standalone PAT — while the less-flattering consolidated YoY (+20.4%) isn't called out; the underlying numbers agree with management's figures, just not their framing.

The growth was entirely a margin story. Consolidated NPM expanded to 6.2% from 5.1% a year ago, and the company's own disclosed EBITDA margin rose to 15.3% from 12.94% in Q1 FY26 (and 12.2% in Q4 FY26) — already at or above the 14-15% consolidated EBITDA margin band management guided for FY27, one quarter in. Standalone PAT of ₹26.5 Cr grew faster, +33.4% YoY, aided by standalone finance costs falling to ₹2.4 Cr from ₹7.2 Cr a year ago; consolidated finance costs instead rose to ₹14.9 Cr from ₹11.8 Cr, pointing to debt shifting toward the UK subsidiary — consistent with the loan agreement executed and then terminated with S.P. Apparels UK during the quarter and the ₹12.51 Cr corporate guarantee extended to it. That subsidiary's EBITDA stayed negative (₹(1.0) Cr) even as its revenue jumped 125% YoY to ₹33.3 Cr, so consolidated PAT growth (+20.4% YoY) trails the standalone print (+33.4%) by more than the usual divergence threshold, with the UK operation the drag.

The stock went into the print at ₹1,074.5, down 4.5% over the past month of trading.

On the FY27 revenue target of ₹2,000 Cr consolidated (₹1,800 Cr Garmenting, ₹150 Cr SPUK, ₹80-90 Cr Retail Ventures), Q1's ₹401 Cr is roughly a fifth of the annual number — too early to call a miss but behind a straight-line pace, even as the margin band is already being met. Alongside results, the board recommended a final FY26 dividend of ₹3/share and approved a 1:5 stock split (face value ₹10 to ₹2, pending shareholder approval at the September 21, 2026 AGM) — moves aimed at broadening retail participation, not signals on operating performance. Segment-wise, the Garmenting division (incl. Young Brand Apparel) posted an adjusted EBITDA margin of 17.6% on ₹337.3 Cr revenue, S.P. Retail Ventures grew revenue 26.7% YoY to ₹18.8 Cr, and export volumes were 15.7 million pieces (S.P. Apparels) plus 5.0 million pieces (Young Brand Apparels) for the quarter.