SPAL retail revenue fell to Rs 72 crore in FY26 after FY24 peak

S. P. Apparels Limited reported retail revenue of Rs 72 crore in FY26, down from Rs 83 crore in FY24 and Rs 79 crore in FY25, marking two consecutive annual declines. SPAL disclosed a retail portfolio spanning Crocodile, Angel & Rocket and Natalia, with 59,030 sq. ft of retail space.

Why did SPAL retail revenue fall for two years?

SPAL’s retail revenue fell to Rs 72 crore in FY26, Rs 7 crore below FY25 revenue of Rs 79 crore and Rs 11 crore below the FY24 peak of Rs 83 crore. The presentation does not state a reason for either annual decline, and does not attribute the movement to demand, pricing, product mix, store productivity, online sales or distribution.

The FY25 reduction was the first since retail revenue rose from Rs 48 crore in FY22 to Rs 81 crore in FY23 and Rs 83 crore in FY24. FY26 revenue was still Rs 24 crore above FY22. SPAL describes the FY22-to-FY26 change as 49% growth and a 10% compound annual growth rate, or CAGR, which measures average annual growth over a period.

SPAL also reported Rs 39 crore for H1FY27, or the first half of FY27. This is a partial-year figure and cannot be compared directly with the Rs 72 crore full-year FY26 result. The presentation provides neither an H1FY26 comparison nor an FY27 retail revenue target.

How large is SPAL’s retail footprint?

SPAL reported 59,030 sq. ft of retail space and approximately 121,000 loyal customers across store and online channels. It also disclosed 94 locations in the combined large-format outlet, company-owned store and franchisee store category, as well as 117 points in its distributor/SIS/DM category. SIS and DM are labels used but not defined in the presentation.

Crocodile is sold through physical stores, distribution channels and several e-commerce platforms, according to SPAL. The disclosed retail-space and customer figures are network measures, while the Rs 72 crore FY26 figure covers the whole retail division. SPAL does not provide revenue by store type, e-commerce, distributor, shop-in-shop or other channel.

The presentation also does not provide comparable FY24 or FY25 figures for retail space, customer numbers or channel points. As a result, it does not allow a calculation of sales per store, sales per square foot, customer spending, or the contribution of each route to market during the decline from Rs 83 crore in FY24 to Rs 72 crore in FY26.

Which brands are in SPAL’s retail portfolio?

SPAL’s disclosed retail portfolio comprises Crocodile menswear, Angel & Rocket kidswear and Natalia women’s wear. The company acquired a major stake in Crocodile Products Private Limited, or CPPL, in 2006 and secured an exclusive Crocodile licence to manufacture and market sportswear and footwear in India. CPPL is described as a joint venture with Crocodile International.

Crocodile had 51 standalone stores in the disclosed network. SPAL says its retail division undertakes manufacturing, distribution and marketing activities for the brand in India. The first Crocodile exclusive brand outlet opened in Jayanagar, Bangalore, in 2008, followed by a flagship outlet in Anna Nagar, Chennai, in 2010.

Angel & Rocket adds a children’s category for ages 0 to 14 years. SPAL acquired the licence of the UK-based premium kidswear brand in 2022 and opened its first flagship Angel & Rocket outlet in Indiranagar, Bengaluru, that year. The presentation reports 46 Angel & Rocket placements in large-format stores and five standalone stores, supported by an in-house UK design team.

Natalia is the third brand disclosed by SPAL. Acquired from Chennai garment exporter SM Apparels, it targets women aged 20 to 35 with western wear featuring an ethnic flair. The presentation gives no Natalia-specific revenue, store count, retail-space allocation or acquisition date, so its contribution to the Rs 72 crore FY26 retail result cannot be determined.

How did SPAL develop its retail operation?

SPAL developed its retail operation from the 2006 CPPL investment and Crocodile licence. Between 2008 and 2012, it opened Crocodile outlets in Bangalore and Chennai, while the Crocodile apparel brand entered Globus stores in 2012. SPAL also says it launched athleisure and undergarment distribution across India in 2015.

For 2013 to 2019, SPAL describes a consolidation phase in which it used initial public offering, or IPO, proceeds to strengthen store presence and its brand. The presentation does not quantify those proceeds, the number of stores added, or retail revenue before FY22. It identifies the 2022 Angel & Rocket licence as the move into a dedicated kidswear brand.

SPAL describes its current retail approach as using a distribution network, in-house design and a diversified offering across menswear, kidswear and women’s wear. The historical revenue movement from Rs 48 crore in FY22 to Rs 72 crore in FY26 supports its stated 49% growth over that four-year period, although revenue moved down in FY25 and FY26.

What does H1FY27 show about SPAL retail?

SPAL reported Rs 39 crore of retail revenue in H1FY27, after reporting Rs 72 crore for the full FY26 year. The first-half amount shows that the retail division continued to operate after FY26 across the disclosed Crocodile, Angel & Rocket and Natalia portfolio, but it does not establish a full-year FY27 trend without a corresponding prior-year first-half figure.

The presentation gives no FY27 target for retail revenue, retail space, customer additions or store openings. It also does not specify whether the reported 94 outlet locations, 117 distributor/SIS/DM points and 59,030 sq. ft footprint apply to FY26 or H1FY27. These omissions prevent a direct assessment of network change following FY26.

Conclusion

SPAL’s disclosures show a retail division with three brands, 59,030 sq. ft of retail space and approximately 121,000 store and online customers, but revenue declined from Rs 83 crore in FY24 to Rs 79 crore in FY25 and Rs 72 crore in FY26. The presentation establishes the revenue trend without providing brand-level sales, comparable-store data or a stated cause for the decline.

The next disclosed marker is Rs 39 crore of revenue in H1FY27. Investors can watch whether SPAL’s stated plan to develop Crocodile, Angel & Rocket and Natalia through distribution, design and a diversified portfolio is followed by full-year FY27 revenue, channel and brand-level disclosures, as no FY27 retail target or expansion timetable is provided.