<h1>Sportking Expands Capacity, Eyes Margin Growth</h1>

Ashwin Thakker

16 Aug 2025 — 1 min read

Sales Outlook: Sportking targets doubling revenue from integrated apparel and dye house units (currently INR 150-180 crores) within 2-3 years post-merger. Overall company revenue is expected to expand significantly with upcoming capacity additions.
Margin Outlook: The company anticipates an overall margin expansion of 200-300 basis points following its new capacity addition in Odisha. This new plant alone is projected to yield 200-300 basis points higher margins. Furthermore, integrated units are expected to enhance profitability through better utilization and efficiency. For Q1 FY'26, PAT margin was 6% and Operational EBITDA margin stood at approximately 12%.

Sportking India Ltd. reveals ambitious future plans following a Q1 FY'26 marked by robust margin growth. The company is now targeting significant expansion through strategic capital investments and vertical integration, signaling strong confidence in its long-term profitability and market reach, even amidst current geopolitical and market uncertainties.

Strategic Capacity Expansion and Diversification

Sportking India Ltd. is embarking on a substantial growth trajectory with a planned CAPEX of approximately INR 1,000 crores. This investment funds a Greenfield Capacity Addition Program in Odisha, adding 150,000 spindles, a significant 40% boost to existing capacity.

"The timeline for this project is 12 to 15 months, and we are confident to wrap up the operations within this time frame."

This strategic move diversifies operations beyond Punjab, providing substantial growth headroom and enhancing market reach by leveraging Odisha's port proximity. The project will be funded through a mix of internal accruals and term loans.

Margin Growth and Market Adaptability

Sportking anticipates significant margin improvements from its expansion and integration efforts. The new Odisha spinning unit is expected to deliver 200 to 300 basis points higher margins, benefiting from advanced technology, government incentives, and geographical advantages. Additionally, the integration of apparel manufacturing and dye house units, targeted within 6-8 months, is projected to enhance overall company margins through improved efficiency.

"We expect our overall margins of our company to expand by 200 to 300 basis points after we add this 40% capacity."

The company maintains a robust outlook on profitability despite external factors like tariffs and cotton price volatility, by leveraging its operational efficiencies.

Sportking India Ltd. is poised for substantial growth, driven by strategic CAPEX and vertical integration. Despite global trade uncertainties, the company maintains a robust outlook, leveraging its diversified export base and operational efficiencies for sustained profitability and market leadership.

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