Sportking Charts Ambitious Growth Path

Ashwin Thakker

16 Aug 2025 — 2 min read

Sales Outlook: Expects to double revenue from integrated apparel manufacturing and dye house segments within two to three years. Overall company revenue poised for significant growth from 40% spindle capacity expansion.
Margin Outlook: Anticipates overall company margins to expand by 200-300 basis points from the new Odisha plant, driven by advanced technology, incentives, and geographical advantages. Vertical integration is also set to enhance margins. Near-term spreads face some uncertainty due to global tariffs, with normalcy expected in 30-45 days.

Sportking India Ltd. reveals an ambitious growth trajectory, underpinned by strategic capacity expansion and vertical integration. The company's Q1 FY26 earnings call highlighted robust export performance and a clear roadmap for future profitability, navigating global trade dynamics with focused initiatives. Learn how Sportking plans to achieve its expansion goals.

Strategic Capacity Expansion and Diversification

Sportking India Ltd. is embarking on a significant INR 1,000 crore capital expenditure program to increase its spindle capacity by 150,000, representing a substantial 40% expansion over its existing 3.8 lakh spindles. This new spinning unit will be established in Odisha, marking the company's first diversification outside Punjab. Management expects this project to be completed within 12 to 15 months, funded by a mix of internal accruals and term loans. The Odisha plant is anticipated to boost margins by 200-300 basis points due to advanced technology, government incentives, and strategic proximity to ports. As Munish Avasthi, Chairman and Managing Director, stated,

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

Vertical Integration and Market Dynamics

In addition to core capacity expansion, Sportking is progressing with the integration of its apparel manufacturing and dye house units, targeting completion within six to eight months. This vertical integration aims to double revenue from these segments (currently INR 150-180 crores) in the next two to three years while improving overall margins. On the export front, the company achieved strong Q1 FY26 performance with exports contributing 58% of revenue, primarily to Bangladesh. Management acknowledges the recent 25% US tariff on Indian goods creates near-term uncertainty but expects market normalcy in 30-45 days, as they have limited direct US exposure. Mr. Avasthi noted,

“Overall quarter exports increased by approximately 18% year-on-year.”

Sportking's Q1 FY26 earnings call reflects a company poised for significant future growth, driven by strategic capacity expansion in Odisha and effective vertical integration. While navigating global trade uncertainties, its focus on operational excellence, diversified presence, and margin improvement initiatives underpin a robust outlook. The company is actively building a resilient foundation for sustained profitability.

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