S.P. Apparels Q1FY27: Profit up 20%, 1:5 split

What S.P. Apparels announced

S.P. Apparels Limited reported a stronger Q1FY27 earnings print led by higher profits, even as revenue stayed broadly flat year-on-year. For the quarter ended June 30, 2026, the company reported higher consolidated and standalone profitability versus the same period last year.

Alongside the financial results, the board approved shareholder-friendly actions, including a proposed 1:5 stock split and a final dividend of ₹3 per share for FY26. The company also set key dates for the dividend record date and the Annual General Meeting (AGM).

The board meeting that approved the actions was held on August 11, 2026. Shareholder approval will be required for the stock split at the upcoming AGM.

Q1FY27 consolidated performance: stable revenue, higher profit

On a consolidated basis, revenue from operations stood at ₹4,010.76 million in Q1FY27. This was broadly stable compared with ₹4,034.39 million in Q1FY26, translating into a marginal year-on-year decline of 0.6%.

Sequentially, consolidated revenue rose 9.9% from ₹3,649.08 million in Q4FY26. The quarter also delivered higher profitability, with consolidated net profit rising to ₹248.74 million in Q1FY27. This represented 20.4% year-on-year growth from ₹206.55 million in Q1FY26, and an improvement from ₹185.85 million in Q4FY26.

The company reported consolidated Q1FY27 EBITDA at ₹613.6 million. It also reported that EBITDA increased 16.1% year-on-year to ₹614 million, and the EBITDA margin expanded to 15.3% from 13.1% in the comparable period.

Standalone numbers: PAT up over 33%

On a standalone basis, adjusted profit after tax (PAT) came in at ₹265.37 million in Q1FY27. This was a 33.4% year-on-year increase from ₹198.90 million in Q1FY26.

Standalone adjusted EBITDA rose to ₹465.8 million in Q1FY27, up 6.7% from ₹436.6 million a year earlier. The results summary also noted that standalone net profit surged 33.4% to ₹265.4 million despite a dip in adjusted revenue.

Separately, the company reported standalone Q1FY27 revenue of ₹2,751.22 million.

EPS and profitability metrics disclosed

S.P. Apparels reported earnings per share (EPS) for Q1FY27 on a consolidated basis at ₹9.89 (basic) and ₹9.86 (diluted). The same results summary also referenced an EPS figure of ₹9.9 for the quarter.

Profitability commentary in the provided data highlighted an improvement in EBITDA margin to 15.3% from 13.1% in the year-ago quarter. While the revenue line stayed flat year-on-year, the reported margin expansion provides context for why profits improved in Q1FY27.

Board proposes 1:5 stock split to improve liquidity

The board approved a proposal to subdivide existing equity shares of face value ₹10 into five equity shares of face value ₹2 each, implying a 1:5 stock split. The stated rationale was to enhance equity liquidity and encourage retail investor participation.

The stock split will require shareholder approval at the company’s 21st Annual General Meeting. If approved, the company stated that the authorized share capital will remain ₹472.5 million, but will be divided into 236.25 million shares with face value ₹2 each.

Final dividend of ₹3 per share for FY26

The board recommended a final dividend of ₹3 per share for FY26. The company also described this as 30% of the ₹10 face value.

As per the disclosed schedule, the final dividend is payable within 30 days of the AGM, subject to shareholder approval. The record date for the dividend was fixed as September 4, 2026.

Key dates: record date and AGM schedule

S.P. Apparels stated that its 21st AGM will be held virtually on September 21, 2026. The dividend record date is September 4, 2026, and the payout timeline is within 30 days of the AGM.

These dates matter for shareholders tracking eligibility for the dividend, and for investors who are watching the stock split process, which is contingent on shareholder approval.

Earnings call details and participants

The company scheduled an earnings conference call to discuss Q1FY27 financial performance on Thursday, August 13, 2026 at 12:00 noon IST. The call was described as a discussion of already completed quarterly financial results.

Management participants listed for the call included Chairman and Managing Director Mr P Sundararajan; Executive Director Mrs S Latha; Joint Managing Directors Mrs S Shantha and Mr S Chenduran; CEO Mrs PV Jeeva; and CFO Mr V Balaji. Elara Securities (India) Private Limited was stated as the organiser of the conference call.

Snapshot of key reported numbers

Business context mentioned in the data

The provided company overview described S.P. Apparels as a manufacturer and exporter of knitted garments for infants and children, supplying yarn and fabrics, and offering dyeing, embroidery and printing services. It also referenced domestic menswear sales in India under the Crocodile brand.

The same overview stated that S.P. Apparels generated about ₹15,800 million in revenue from its textile business in the most recent reported year.

Guidance referenced for FY27

The provided data also cited FY27 consolidated revenue guidance of ₹20,000 million with an EBITDA margin around 14% to 15%. The guidance was repeated in the source text.

Market impact: what investors typically track from these disclosures

The company’s announcements combine two types of signals investors commonly monitor: profitability trends and capital market actions. On the operating side, consolidated profit rose year-on-year even as consolidated revenue stayed near flat, while the quarter also reported higher EBITDA and a higher EBITDA margin.

On the corporate actions side, the stock split proposal and the FY26 final dividend introduce near-term milestones around the record date and AGM. Because the stock split requires shareholder approval, the AGM outcome becomes a key procedural step before any subdivision can take effect.

Why the update matters

For a company where quarterly revenue is close to prior-year levels, profit growth stands out as a key data point because it can reflect improved operating efficiency and margin performance, as highlighted by the reported rise in EBITDA margin to 15.3%.

Separately, a stock split does not change the underlying value of the business by itself, but companies often pursue it to improve liquidity and broaden participation, which was also the stated rationale here. The dividend recommendation adds a cash-return component for FY26 shareholders, subject to approval and the record date.

Conclusion

S.P. Apparels’ Q1FY27 results showed higher consolidated and standalone profits, with consolidated revenue broadly stable year-on-year and higher sequentially. The board also proposed a 1:5 stock split and recommended a ₹3 final dividend for FY26, with the record date set for September 4, 2026 and the virtual AGM scheduled for September 21, 2026.

The next confirmed event on the calendar is the earnings conference call on August 13, 2026, followed by the AGM where shareholders will vote on the stock split and the dividend.