Sportking India Q4 FY25 results: PAT surges 58% YoY, exports hit record high, dividend declared

Sportking India Limited, one of India‘s most prominent vertically integrated textile companies, reported robust financial results for both the fourth quarter and the full fiscal year ended 31 March 2025. The company delivered strong growth in profitability, led by record-breaking export performance and improved margin metrics. With healthy operational efficiency and strategic market positioning, the Ludhiana-based firm has reinforced its standing as a leading player in the Indian spinning sector, while delivering value to shareholders through dividend payouts and debt reduction.

Why Did Sportking India’s Q4 FY25 Profit Rise 58%?

For the fourth quarter of FY25, Sportking India posted operating revenue of ₹628.8 crore, reflecting a year-on-year growth of 2.9 percent. While revenue growth was modest, the company’s performance on the profitability front was exceptional. Profit after tax surged to ₹36.1 crore, up 58 percent from ₹22.9 crore in the same quarter of the previous year. This substantial rise in net profit was driven by a combination of improved export contribution, cost rationalisation, and operational efficiencies. The profit after tax margin expanded by 200 basis points to 5.7 percent, reinforcing the company’s pricing power and input management strategy.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at ₹74.3 crore, marking a 10.8 percent rise year-on-year. The EBITDA margin rose to 11.8 percent from 11.0 percent a year earlier. Gross profit improved to ₹167.4 crore in the quarter, with gross margin expanding to 26.6 percent, up 265 basis points year-on-year. According to Chairman and Managing Director Munish Avasthi, the robust quarterly outcome was made possible by record export revenue, which now contributes 58 percent of the total revenue—a 43 percent increase from the year-ago period.

What Was Sportking India’s FY25 Performance?

Over the full fiscal year, Sportking India reported total operating revenue of ₹2,524.2 crore, up 6.2 percent from ₹2,377.1 crore in FY24. Export revenue, accounting for roughly 52 percent of the total, grew at a strong pace of 15 percent year-on-year. This export-led revenue mix underscores the company’s growing international relevance and adaptability in foreign markets, especially amid evolving global sourcing needs. EBITDA for FY25 rose significantly to ₹262.9 crore, reflecting a 28.2 percent year-on-year growth. EBITDA margin improved to 10.4 percent from 8.6 percent in the previous year.

The company reported a profit after tax of ₹109.3 crore for FY25, compared to ₹70.3 crore in FY24, translating into a 55.3 percent increase. PAT margin for the full year expanded to 4.3 percent, up from 3.0 percent a year earlier. The earnings per share for FY25 rose to ₹8.57 from ₹5.50 in the previous fiscal, underlining improved shareholder returns. Reflecting its commitment to rewarding shareholders, the company announced a final dividend of ₹1 per equity share, amounting to ₹12.71 crore, in addition to a 5 percent dividend on non-cumulative non-convertible redeemable preference shares worth ₹0.34 crore. Both payouts are subject to shareholder approval.

What’s Driving Sportking’s Export Momentum?

The record-setting export performance witnessed in Q4 and across FY25 is a result of favourable trade dynamics, steady global demand, and India’s strengthened position in textile exports. Sportking India capitalised on currency movements, particularly a relatively weaker rupee, and steady cotton and synthetic fibre input costs, which allowed the company to maintain competitive yarn spreads in overseas markets. With an export footprint spanning over 30 countries, the company has positioned itself as a reliable supplier of both grey and dyed yarns across weaving and knitting segments.

The implementation of government-led trade agreements and textile parks under the PM MITRA scheme also played a catalytic role in supporting the sector. The policy environment has remained favourable, especially with the government’s continued thrust on enhancing the competitiveness of Indian textile manufacturers. Management highlighted that Sportking’s strong balance sheet and focus on quality enabled the company to serve rising global demand without compromising on domestic deliveries.

How Is Sportking India Positioned Operationally?

Sportking’s operations continue to demonstrate industry-leading efficiency and scale. In Q4 FY25, the company reported a production volume of 20,956 metric tonnes, with yarn sales volume reaching 21,038 metric tonnes. This was accompanied by a capacity utilisation rate of 96 percent, one of the highest among Indian spinning mills. The company operates three fully integrated manufacturing facilities equipped with modern machinery, giving it the flexibility and scalability to handle fluctuating market demands.

Full-year gross margins improved to 24.1 percent from 21.8 percent in FY24, a reflection of improved inventory and cost controls. The company also used the strong cash flows generated during the year to pare down debt, thereby reducing interest obligations and further strengthening the bottom line. The management has reiterated its commitment to prudent capital allocation, focusing on capacity enhancements, margin sustainability, and working capital optimisation.

Is Sportking Stock a Buy After FY25 Results?

Sportking India Limited’s stock closed at ₹778.30 in the trading session prior to the May 1 market holiday. The stock has shown upward momentum in the last month, underpinned by strong Q3 and Q4 results and a dividend announcement. The financial year ended with a 55 percent rise in PAT and strong operational cash flow, prompting renewed interest from both retail and institutional investors.

Brokerage analysts have generally turned bullish on the stock following the Q4 earnings release. Several mid-cap analysts have assigned a “Buy” rating to Sportking, citing its EBITDA growth, high capacity utilisation, and improved margins. The stock is currently trading at a trailing price-to-earnings ratio of approximately 9x and an EV/EBITDA multiple below 6x, offering a valuation discount compared to peers like Vardhman Textiles and Nahar Spinning Mills, despite outperforming them on profitability growth and export contribution.

Institutional activity, particularly from domestic institutional investors (DIIs), has increased marginally over March and April 2025. These investors are encouraged by the company’s improved earnings visibility and consistent dividend policy. Foreign institutional investors (FIIs), however, continue to have low exposure, largely due to the company’s smaller market capitalisation and limited liquidity. That said, given Sportking’s strong export footprint and earnings consistency, FII interest may rise if the company attracts broader institutional coverage.

Retail interest has also spiked significantly following the earnings announcement, particularly among income-focused investors attracted by the dividend yield and consistent financial performance. Pre-result trading volumes were 40 percent higher than the 20-day average, and momentum indicators suggest continued investor accumulation.

Technically, the Relative Strength Index (RSI) stands at 59, indicating neutral-to-bullish sentiment, while the MACD (Moving Average Convergence Divergence) has shown a positive crossover, suggesting upward momentum. The stock is trading above its 20-day simple moving average, reinforcing a near-term bullish outlook. With margins on the rise, debt coming down, and policy tailwinds supporting the broader textile sector, Sportking remains well-positioned for further re-rating.

What’s the FY26 Outlook for Sportking India?

Looking ahead, the management remains confident about sustaining growth into FY26. The company is likely to build on its existing manufacturing base with targeted capacity upgrades and operational enhancements. Management also signalled continued focus on value-added products and geographic diversification, including deeper penetration into high-margin international markets.

Favourable government incentives, including the production-linked incentive (PLI) scheme and the development of integrated textile parks, are expected to provide an additional tailwind for scale-based players like Sportking. As global retailers continue to diversify their sourcing channels, India’s yarn manufacturers are poised to gain, and Sportking, with its robust export infrastructure and operational discipline, appears to be at the forefront of this shift.

With a strong order book, rising demand from key markets, and a disciplined capital management approach, Sportking India Limited is entering FY26 with positive momentum. Investors and analysts alike will be watching closely to see if the company can build on its strong FY25 performance and continue delivering value across the board.