Regulatory Approval Or License Win
Expected: ImmediateHIGH confidence
What: U.S. Tariff Rate: 18%
“The India-U.S. pact, which brings tariffs down to 18% strengthens our competitiveness and opens access to USD118 billion U.S. textile import market.”
S P Apparels Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +16.2%Weak5w Streak
In , S P Apparels Ltd (Textiles - Readymade Apparel) is outperforming Nifty 500 with +16.2% relative strength. Fundamentals: Weak. On a 5-week streak.
S P Apparels Ltd Key Facts
- PE Ratio
- 18.0x
- Market Cap
- ₹2,039 Cr
- PAT Growth YoY
- +13%
- Revenue Growth YoY
- +7%
- OPM
- 14.0%
- RS vs Nifty 500
- +16.2%
PE: Mid ContractionStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💰Trading 14% above estimated fair value
Earnings Acceleration Triggers
1. Regulatory Approval Or License Win
ImmediateHIGH
2. Geographical Expansion
FY26MEDIUM
3. New Product Or Brand Launch
OngoingMEDIUM
Key Risks
1. U
HIGH2. Minimum wage increases in Tamil Nadu effective March 2025 have impacted margins
MEDIUM3. Monitoring Bangladesh's zero-duty provisions for garments using U
MEDIUMSector-Specific Signals
India Capacity Utilization83%Not Given
Export Quantity18.9 million+24%
Total Installed Machines7,000Not Given
Consolidated Order Book₹470 CrNot Given
Key Numbers
PAT Growth YoY
+13%
Stable
Revenue YoY
+7%
Stable
Operating Margin
14.0%
0 bps YoY
PE Ratio
18.0
Current Price
₹811
Dividend Yield
0.25%
Fundamental Score
28/100
Weak
3Y PAT CAGR
+4%
Market Cap
2.0K Cr
Valuation
Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are S P Apparels Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Geographical Expansion
Expected: FY26MEDIUM confidence
What: Sri Lanka Capacity: 1,650 machines
Impact: ₹50 Cr revenue
“Sri Lanka remains useful for programs where duty-free access to the U.K. and EU market provides an advantage.”
New Product Or Brand Launch
Expected: OngoingMEDIUM confidence
What: D2C Growth: 200%
“Angel & Rocket and Crocodile, our D2C numbers have grown up significantly. It's more than 200% growth on D2C.”
Operating Leverage Inflection
Expected: FY27MEDIUM confidence
What: Utilization Target: 95%
Impact: ₹1,200 Cr export revenue
“We run the full capacity of about 5,000 machines; we will be doing close to INR 1,200 crores... of exports alone.”
Order Book Or Contract Wins
Expected: Q4 FY26LOW confidence
What: Order Book: ₹470 Cr
“The order book status division-wise of SPAL is INR 353 crores, Young Brand apparel is INR 87 crores SPUK is INR 30 crores.”
Young Brand EBITDA margin at 22%
HIGH confidence
What: Young Brand EBITDA margin at 22%
“Young Brand, you have reported an EBITDA margin of almost 22%. Q2, it was 15%. So it has improved substantially.”
U.S. Revenue Contribution guidance raised
HIGH confidence
What: 10% → 20%
“Currently, our contribution is quite very low with U.S., and we are improving on the U.S. So, we are moving from 10% to 20% in the standalone business.”
What Are the Key Risks for S P Apparels Ltd?
Earnings deceleration risks from management commentary
U
HIGHTrigger: The 25% punitive tariff (moving to 50%) created a wait-and-watch mode among American buyers.
Management view: Negotiated price contributions from both sides and passed discounts to raw material suppliers.
Monitor: regulatory
Minimum wage increases in Tamil Nadu effective March 2025 have impacted margins
MEDIUMTrigger: Wages have gone up, and some factories were closed due to the combined impact of tariffs and wage hikes.
Impact: PAT impact: Margin pressure
Management view: Focusing on higher realization adult wear products to offset labor costs.
Monitor: labor
Monitoring Bangladesh's zero-duty provisions for garments using U
MEDIUMTrigger: Potential competitive disadvantage if Bangladesh maintains duty-free access while India pays 18%.
Management view: Leveraging Sri Lanka operations which also enjoy duty-free access to UK/EU.
Monitor: geopolitical
Rupee depreciation provided a slight benefit to margins in the current quarter
LOWTrigger: Currency movement helped offset some of the discounting given to customers.
Impact: PAT impact: 1.5% - 2% of top line
Management view: Standard hedging and working on exchange rate benefits.
Monitor: fx
What Is S P Apparels Ltd's Management Saying?
Key quotes from recent conference calls
“The overall outlook, we remain committed to achieving INR 2,000 crores top line guidance for FY27 on consolidated basis. [Previous Consolidated Revenue FY27 guidance]”
“We expect operations in Sri Lanka to reach normalized levels from Q1 FY27 with meaningful shipments and optimum utilization in Q2 FY27. [Initiative: Sri Lanka Capacity Ramp-up]”
“For this, the coming financial year, it would be around 150 machines effective running, but that can scale up to 350 machines by the end of the next financial year. [Initiative: Young Brand Salem Expansion]”
“The temporary pause with our U.S. customers, which we saw in Q3 due to the U.S. tariff situation has now eased after the signing of the India U.S. agreement. [Risk (regulatory): HIGH]”
What Did S P Apparels Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹382.9 Cr
YoY +6.6%QoQ -10.3%
Why: Revenue growth was impacted by a soft quarter for the sector and the temporary pause in U.S. orders due to tariff uncertainty.
Consolidated revenue showed resilience despite sector-wide softness and tariff-related headwinds in the U.S. market.
EBITDA
₹56.6 Cr
YoY +11.2%Margin 14.8%
Why: EBITDA growth was driven by improved gross margins in the Young Brand division and cost discipline in the retail segment.
Margins remained stable as the company passed on discounts to suppliers and focused on operational efficiencies.
PAT
₹27.0 Cr
YoY +9.1%QoQ -22.2%
Why: PAT growth was supported by the turnaround in SPUK and Retail divisions, which both reported positive EBITDA.
Profitability was aided by the elimination of losses from the exited Head brand franchise and improved performance in the UK.
Other Highlights
• Retail division remained EBITDA positive for the second consecutive quarter.
• Order book stands at ₹353 Cr for SPAL and ₹87 Cr for Young Brand.
• Net debt stood at ₹227.9 Cr on a standalone basis.
What Sector Metrics Matter for S P Apparels Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
India Capacity Utilization
83%
YoY Not GivenQoQ 0%
Why: Impacted by addition of new machines and temporary pause in U.S. orders.
Export Quantity
18.9 million
YoY +24%QoQ Not Given
Why: Growth driven by new customer additions across Europe and the U.K.
Total Installed Machines
7,000
YoY Not GivenQoQ +700
Why: Expansion in India and Sri Lanka to meet FY27 targets.
Consolidated Order Book
₹470 Cr
YoY Not GivenQoQ +17.5%
Why: Resumption of U.S. orders and new customer onboarding.
UK Revenue Contribution
70%
YoY Not GivenQoQ Not Given
Why: U.K. remains the primary market for the garment division.
U.S. Revenue Contribution
25%
YoY Not GivenQoQ Not Given
Why: Targeting an increase to 20% in standalone and 85% in Young Brand.
D2C Revenue Growth
200%
YoY Not GivenQoQ Not Given
Why: Strong traction in Angel & Rocket and Crocodile brands online.
Realization per Piece Y-o-Y
-3%
YoY -3%QoQ Not Given
Why: Product mix shift towards children's products which have lower ASP.
What Is S P Apparels Ltd's Management Guidance?
Forward-looking targets from management for FY27
OPM Guidance
15%
Capex Plan
₹30 Cr
Revenue Outlook
₹2,000 Cr
Margin Outlook
REAFFIRMED
Capex Plan
₹30 Cr
Maintenance capex, solar investment, and Young Brand expansion.
Management Tone: BULLISH
Guidance Changes
RAISED
U.S. Revenue Contribution: 10% → 20%
How Fast Is S P Apparels Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +7% | +18% | Stable |
| PAT (Net Profit) | +13% | +4% | Stable |
| OPM | 14.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Textiles - Readymade Apparel Stocks Beating Nifty 500
Frequently Asked Questions: S P Apparels Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were S P Apparels Ltd's latest quarterly results?
S P Apparels Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +12.5% (stable)
- Revenue Growth YoY: +6.7%
- Operating Margin: 14.0% (expanding)
Is S P Apparels Ltd's profit growing or declining?
S P Apparels Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +12.5% (latest quarter)
- PAT Growth QoQ: -22.9% (sequential)
- 3-Year PAT CAGR: +3.8%
- Trend: Stable — consistent growth pattern
What is S P Apparels Ltd's revenue growth trend?
S P Apparels Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +6.7%
- Revenue Growth QoQ: -10.3% (sequential)
- 3-Year Revenue CAGR: +17.5%
How is S P Apparels Ltd's operating margin trending?
S P Apparels Ltd's operating margin is expanding.
- Current OPM: 14.0%
- OPM Change YoY: 0.0% basis points
- OPM Change QoQ: -1.0% basis points
What is S P Apparels Ltd's 3-year profit and revenue CAGR?
S P Apparels Ltd's long-term compounding rates
- 3-Year Profit CAGR: +3.8%
- 3-Year Revenue CAGR: +17.5%
Is S P Apparels Ltd's growth accelerating or decelerating?
S P Apparels Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: -46.6% bps
- Sequential Acceleration: -72.9% bps
What is S P Apparels Ltd's trailing twelve month (TTM) performance?
S P Apparels Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹113 Cr
- TTM PAT Growth: +22.8% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +25.0% YoY
- TTM Operating Margin: 14.0%
Is S P Apparels Ltd overvalued or undervalued?
S P Apparels Ltd appears overvalued based on our fair value analysis.
- Valuation Signal: Overvalued
- Current PE: 18.0x
- Price-to-Book: 2.3x
What is S P Apparels Ltd's current PE ratio?
S P Apparels Ltd's current PE ratio is 18.0x.
- Current PE: 18.0x
- Market Cap: 2.0K Cr
- Dividend Yield: 0.25%
How does S P Apparels Ltd's valuation compare to its history?
S P Apparels Ltd's current PE is 18.0x.
- Current PE: 18.0x
- Valuation Assessment: Overvalued
What is S P Apparels Ltd's price-to-book ratio?
S P Apparels Ltd's price-to-book ratio is 2.3x.
- Price-to-Book (P/B): 2.3x
- Book Value per Share: ₹358
- Current Price: ₹811
Is S P Apparels Ltd a fundamentally strong company?
S P Apparels Ltd is rated Weak with a fundamental score of 27.89/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +6.7% (10% weight)
- PAT Growth YoY: +12.5% (10% weight)
- PAT Growth QoQ: -22.9% (10% weight)
- Margins expanding (10% weight)
Is S P Apparels Ltd debt free?
S P Apparels Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹381 Cr
What is S P Apparels Ltd's return on equity (ROE) and ROCE?
S P Apparels Ltd's return ratios over recent years
- FY2023: ROCE 15.0%
- FY2024: ROCE 13.0%
- FY2025: ROCE 14.0%
Is S P Apparels Ltd's cash flow positive?
S P Apparels Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹44 Cr
- Free Cash Flow (FCF): ₹-126 Cr
- CFO/PAT Ratio: 46% (weak cash conversion)
What is S P Apparels Ltd's dividend yield?
S P Apparels Ltd's current dividend yield is 0.25%.
- Dividend Yield: 0.25%
- Current Price: ₹811
Who holds S P Apparels Ltd shares — promoters, FII, DII?
S P Apparels Ltd's shareholding pattern (Mar 2026)
- Promoters: 61.8%
- FII (Foreign): 1.5%
- DII (Domestic): 16.6%
- Public: 20.1%
Is promoter holding increasing or decreasing in S P Apparels Ltd?
S P Apparels Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 61.8% (Mar 2026)
- Previous Quarter: 61.9% (Dec 2025)
- Change: -0.12% (decreasing — worth monitoring)
How long has S P Apparels Ltd been outperforming Nifty 500?
S P Apparels Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is S P Apparels Ltd a new momentum entry or an established outperformer?
S P Apparels Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for S P Apparels Ltd?
S P Apparels Ltd has 7 key growth catalysts identified from recent earnings analysis
- Regulatory Approval Or License Win — The signing of the India-U.S. agreement has removed uncertainty and restored buyer sentiment.
- Geographical Expansion — Sri Lanka provides duty-free access to UK/EU and serves as a risk mitigation hub.
- New Product Or Brand Launch — Angel & Rocket brand is gaining traction in the premium kidswear segment via omnichannel expansion.
- Operating Leverage Inflection — Full utilization of 5,000 machines in India expected to drive significant revenue growth.
What are the key risks in S P Apparels Ltd?
S P Apparels Ltd has 4 key risks worth monitoring
- [HIGH] U — The 25% punitive tariff (moving to 50%) created a wait-and-watch mode among American buyers.
- [MEDIUM] Minimum wage increases in Tamil Nadu effective March 2025 have impacted margins — Wages have gone up, and some factories were closed due to the combined impact of tariffs and wage hikes.
- [MEDIUM] Monitoring Bangladesh's zero-duty provisions for garments using U — Potential competitive disadvantage if Bangladesh maintains duty-free access while India pays 18%.
- [LOW] Rupee depreciation provided a slight benefit to margins in the current quarter — Currency movement helped offset some of the discounting given to customers.
What did S P Apparels Ltd's management say in the latest earnings call?
In Q3 FY26, S P Apparels Ltd's management highlighted
- "The overall outlook, we remain committed to achieving INR 2,000 crores top line guidance for FY27 on consolidated basis. [Previous Consolidated Reven..."
- "We expect operations in Sri Lanka to reach normalized levels from Q1 FY27 with meaningful shipments and optimum utilization in Q2 FY27. [Initiative: ..."
- "For this, the coming financial year, it would be around 150 machines effective running, but that can scale up to 350 machines by the end of the next f..."
What is S P Apparels Ltd's management guidance for growth?
S P Apparels Ltd's management has provided the following forward guidance for FY27
- Revenue outlook: ₹2,000 Cr
- OPM guidance: 15%
- Capex plan: ₹30 Cr for Maintenance capex, solar investment, and Young Brand expansion.
- Management tone: bullish
- Milestone: [RAISED] U.S. Revenue Contribution: 10% → 20%
What sector-specific metrics matter most for S P Apparels Ltd?
S P Apparels Ltd's most important sub-sector-specific KPIs from the latest concall
- India Capacity Utilization: 83% (YoY Not Given) (QoQ 0%) — Impacted by addition of new machines and temporary pause in U.S. orders.
- Export Quantity: 18.9 million (YoY +24%) (QoQ Not Given) — Growth driven by new customer additions across Europe and the U.K.
- Total Installed Machines: 7,000 (YoY Not Given) (QoQ +700) — Expansion in India and Sri Lanka to meet FY27 targets.
- Consolidated Order Book: ₹470 Cr (YoY Not Given) (QoQ +17.5%) — Resumption of U.S. orders and new customer onboarding.
- UK Revenue Contribution: 70% (YoY Not Given) (QoQ Not Given) — U.K. remains the primary market for the garment division.
- U.S. Revenue Contribution: 25% (YoY Not Given) (QoQ Not Given) — Targeting an increase to 20% in standalone and 85% in Young Brand.
Is S P Apparels Ltd worth studying for long term investment?
Based on quantitative research signals, here is why S P Apparels Ltd may be worth studying
- Earnings growing at +12.5% YoY
- Operating margins are expanding — OPM at 14.0%
- Cash flow is positive — CFO ₹44 Cr
What is the investment thesis for S P Apparels Ltd?
S P Apparels Ltd investment thesis summary:
Research Signals (Bull Case)
- Margins expanding
- Growth catalyst: Regulatory Approval Or License Win
Risk Factors (Bear Case)
- Appears overvalued
- Key risk: U
What is the future outlook for S P Apparels Ltd?
S P Apparels Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Overvalued
- Key Catalyst: Regulatory Approval Or License Win
- Key Risk: U
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.