SP Apparels Q3FY26 (Consolidated) result

• SP Apparels’ (SPAL’s) revenue grew by 6.6% y-o-y to Rs. 383 crore, missing our expectation of Rs. Rs. 402 crore. Garment division posted 7.6% y-o-y growth, Retail division fell by 7.6% y-o-y and SPUK division declined by 23.3% y-o-y. Garment division volumes (excluding Young Brands) rose by 15.2% y-o-y to 18.2 million pieces.
• Gross margin declined by 32 bps y-o-y to 58.5%, while EBITDA margin rose by 62 bps y-o-y to 14.8%, in line with our expectation of 14.7%.
• EBITDA grew by 11.2% y-o-y to Rs. 57 crore and adjusted PAT increased by 21.2% y-o-y to Rs. 30 crore due to higher other income. PAT came in line with our expectation of Rs. 32 crore.
• View: We shall review our earnings estimates and come out with a detailed report post the conference call. Currently we have a Positive view on the stock. 

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore