Sportking India Q2 Net Profit Surges 241% YoY to ₹96.4 Crore as Margins Expand

Key numbers

1-Year Return	114.4%Stock Performance
Market Cap	₹2,730 CrSmall Cap
P/E Ratio	16.89xSector: 49.82x
Promoter Holding	74.36%Zero Pledged

Key highlights

• Net profit grew by 240.6% year-on-year to ₹96.4 crore from ₹28.3 crore in Q2-26
• Revenue from operations increased to ₹781 crore, marking a 24.6% growth over the previous year
• Operating margins expanded significantly to 16.6%, up from 5.9% in the same quarter last year
• Company revised plant and machinery useful life from 7.5 to 10 years, reducing H1 depreciation by ₹8.02 crore
• Strong financial health reflected in a Piotroski score of 9 and a durability score of 95
• FII holding in the company increased by 0.52% during the latest quarter to 0.88%

Triple-Digit Profit Growth Driven by Operating Leverage

Sportking India reported a substantial improvement in its financial performance for the quarter ended September 30, 2026. The company's net profit reached ₹96.4 crore, a 26.8% increase on a sequential basis and a sharp 240.6% rise compared to the ₹28.3 crore recorded in the year-ago period. This surge was underpinned by revenue from operations, which rose to ₹781 crore.

The company's ability to drive volume growth while managing costs resulted in a dramatic expansion of operating margins, which improved from 5.9% to 16.6% year-on-year, reflecting high efficiency in its core textile operations.

Asset Life Revision Impacts Depreciation Schedule

• The company reassessed the useful life of specific plant and machinery from 7.50 years to 10 years on a triple-shift basis.
• This prospective change was implemented effective July 1, 2026, based on internal technical evaluations.
• The accounting impact reduced the depreciation charge for the first half of FY27 by ₹802.40 lakhs.
• Management noted this change aligns with Ind-AS 8 requirements for accounting estimates and errors.
• Total expenses for the quarter stood at ₹652.21 crore, with raw material costs accounting for ₹493.30 crore.

Market Valuation and Momentum Trends

In the broader market context, Sportking India continues to be categorized as a Strong Performer with a momentum score of 69.32. The stock currently trades at a Price-to-Earnings (P/E) ratio of 16.89, which remains significantly lower than the textile sector average of 49.82. Despite a 114.4% gain over the past year, its PEG ratio stands at 0.39, indicating that the stock's price growth has been well-supported by its earnings trajectory.

The company maintains a high durability score of 95, supported by steady cash flows and a promoter holding that has remained stable at 74.36% over the last four quarters.

Technical Assessment of Fixed Assets

During the quarter ended September 30, 2026, the company has reassessed the useful life of certain categories of plant and machinery based on internal assessment and technical evaluation.

What to watch next

• Commissioning of the Phase 1 greenfield capacity of 150,000 spindles in Odisha, expected in Q3 FY27
• Achievement of the full-year FY27 revenue guidance of ₹3,000 crore
• Utilization of the ₹52.13 crore cash and cash equivalents for upcoming expansion projects
• Next quarterly board meeting and result announcement expected in January or February 2027

“The Board of Directors of Sportking India Limited, at their Meeting held today viz. Friday, 30th October 2026, has inter-alia, considered and approved the Unaudited Financial Results for the Quarter and Half Year ended 30th September, 2026.”

Sportking India · financial snapshot

Share price	₹214.85
Market capitalisation	₹2,730.14 Cr
Revenue (annual)	₹2,495.86 Cr
Net profit (annual)	₹119.72 Cr
Revenue (latest quarter)	₹703.68 Cr+10.51% vs previous quarter
Net profit (latest quarter)	₹75.97 Cr+131.90% vs previous quarter
P/E (TTM)	16.89×Sector 49.82×
Promoter holding	74.36%0.00% QoQ
FII holding	0.88%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.