Sportking targets Odisha plant production within 40 days

Sportking India Limited expects commercial production at its 150,000-spindle Odisha greenfield plant within 30 to 40 days of the October 30, 2026 earnings call, after completing first-phase construction and beginning machinery erection. Management expects the project to generate Rs 1,200 crore to Rs 1,300 crore of revenue in the next financial year.

When will Sportking's Odisha plant start commercial production?

Sportking expects the Odisha plant to begin commercial production within 30 to 40 days, management said on October 30, 2026. The company said first-phase construction was complete, machinery erection was under way and it intended to complete the full project by March 2027.

The schedule follows a rapid construction period for the greenfield site. Management said construction began around February 15, 2026, and expects the overall project to be completed in about one year. In its opening remarks, Sportking said regulatory approvals had been secured, the building was almost complete and the entire machinery package had been ordered, with deliveries arriving in stages.

The commissioning timetable matters because Sportking said its existing plants operated at 99% capacity during Q2 FY27. The Odisha capacity is therefore intended to provide room for additional customer orders rather than replace underused capacity elsewhere. Management also said it had identified new markets to target with the new capacity while continuing to add customers and markets every quarter.

How much revenue could Sportking's Odisha expansion generate?

Sportking expects the 150,000-spindle Odisha project to contribute Rs 150 crore to Rs 200 crore of revenue in the remaining part of FY27 and Rs 1,200 crore to Rs 1,300 crore in the next financial year. The larger next-financial-year estimate follows the planned commissioning and March 2027 completion of the project.

Management said the new unit should be earnings before interest, tax, depreciation and amortisation, or EBITDA, positive from day one once it scales up. It also said the Odisha unit's margin should be at least 4 to 5 percentage points, and potentially 6 percentage points, above the margin Sportking achieves once the unit is operational. These are management projections rather than reported financial results.

The expansion follows higher profitability at the existing business. Sportking reported a Q2 FY27 EBITDA margin of 19.8%, compared with 10.4% in Q2 FY26. Management attributed the year-on-year change to improving demand for cotton and blended yarn, operational-efficiency measures developed over two to three years, and cotton prices that had remained stable for about one year.

Why is the Odisha project important to Sportking's capacity and costs?

Sportking says Odisha can relieve the 99% utilisation at its existing facilities while providing cotton-sourcing and state-incentive benefits. Management cited proximity to the eastern cotton-growing belt, industrial infrastructure and a competitive operating ecosystem, alongside the need to serve demand from domestic and export customers.

Exports accounted for about 52% of Sportking's total Q2 FY27 revenue. Management said demand from China and Bangladesh remained robust, while the domestic market had been slower for two to three months before Diwali. It expected domestic demand to improve after Diwali during the seasonal period running from Diwali to Holi, adding to export demand.

The project is supported by incentives management quantified against a planned Rs 1,000 crore investment. Sportking expects capital subsidy of roughly Rs 200 crore to Rs 220 crore over five years, paid in five equal instalments, although management also referred to a 30% capital-subsidy framework. It expects power at Rs 4 per unit for 10 years in Odisha, compared with a blended power cost of around Rs 6 in Punjab.

Management also cited an employment scheme of Rs 7,000 to Rs 8,000 per worker each month for five years, along with benefits related to provident-fund contributions, stamp duty and land. It said half of the land price could be returned once employment reaches 1,000 people. Separately, Sportking said its commissioned solar project is expected to reduce annual power costs by about 15% across its operations.

Is Sportking already considering a second Odisha expansion phase?

Sportking is already evaluating a second Odisha phase, but management said it must first stabilise the initial plant and remain comfortable with debt levels. The company said it has land in Odisha that can support another 300,000 spindles beyond the current 150,000-spindle project, while its broader growth plans also include the garment sector.

Management said it could consider starting the next project in the next six to eight months, depending on cash generation and leverage after the first plant stabilises. It did not announce a capital commitment, commissioning date or revenue target for the possible phase. Sportking said it does not want debt to remain above its preferred level for a prolonged period.

For March 2027, management expects long-term debt of around Rs 700 crore to Rs 750 crore and working-capital spending below Rs 200 crore, placing total debt below Rs 1,000 crore. That projected debt position relates to the initial Odisha build-out, not a disclosed Phase 2 investment. Management said the next phase, as a brownfield expansion at an established site, could take two to three months less than the first greenfield project.

Sportking also expects to complete the merger process for its fabric and garment companies within the next couple of months, after making them compliant for integration. Management gave a ballpark combined half-year revenue figure of around Rs 80 crore for those businesses and said production interruptions during restructuring reduced potential revenue by roughly Rs 20 crore from around Rs 100 crore.

Conclusion

Sportking's immediate expansion rests on bringing 150,000 Odisha spindles into commercial production within 30 to 40 days and completing the project by March 2027. The capacity is intended to address 99% utilisation at existing plants, with management forecasting Rs 1,200 crore to Rs 1,300 crore of next-financial-year revenue and a margin uplift of at least 4 to 5 percentage points at the Odisha unit.

The next milestones are the start of commercial production, the pace of commissioning through March 2027 and the project's FY27 revenue contribution of Rs 150 crore to Rs 200 crore. Investors will also watch whether management proceeds with a possible additional 300,000 spindles after the initial plant stabilises, and whether debt remains within the stated below-Rs-1,000-crore March 2027 expectation.