Earnings Call Transcript

SIL/2026-27/SE Date: 05.11.2026 To To BSE Limited National Stock Exchange of India Ltd, Phiroze Jeeheebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai-400001 Bandra (East), Mumbai– 400051 Script Code: 539221 Symbol: SPORTKING Subject: Transcripts of Earnings Call of Sportking India Limited for Quarter And Half Year Ended 30th September, 2026 Dear Sir, Pursuant to Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, please find enclosed herewith transcripts of the Earnings call of the Company held on Friday, 30th October, 2026 to discuss the Company’s Financial Performance for quarter and half year ended 30th September, 2026. You are requested to take the above mentioned information on your records. Yours truly, For SPORTKING INDIA LIMITED LOVLESH VERMA COMPANY SECRETARY (ACS: 34171) “Sportking India Limited Q2 & H1 FY27 Earnings Conference Call” October 30, 2026 MANAGEMENT: MR. MUNISH AVASTHI – CHAIRMAN AND DIRECTOR – SPORTKING INDIA LIMITED MR. SANDEEP SACHDEVA – CHIEF FINANCIAL OFFICER –SPORTKING INDIA LIMITED MR. LOVLESH VERMA – COMPANY SECRETARY – SPORTKING INDIA LIMITED MODERATOR: MR. PRATHMESH PARAB – MUFG INTIME Page 1 of 16 Sportking India Limited October 30, 2026 Moderator: Ladies and gentlemen, good day and welcome to Sportking India Limited Q2 & H1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prathmesh Parab from MUFG. Thank you, and over to you, sir. Prathmesh Parab: Thank you. Good afternoon, everyone. Welcome to the Sportking India Limited Q2 and H1 FY27 Earnings Conference Call. Today on the call, we have Mr. Munish Avasthi, Chairman and Director, Mr. Sandeep Sachdeva, Chief Financial Officer and Mr. Lovlesh Verma, Company Secretary. I hope you have gone through our press release and investor deck. As a short disclaimer before we start with this call, the call will contain some forward-looking statements, which may be based upon our beliefs, opinions, and expectations of the company as of today. These statements are not a guarantee of future performance and will involve unforeseen risks and uncertainties. With that, I would now like to hand over the call to the management for their remarks. Thank you, and over to you, sir. Munish Avasthi: Thank you, sir. Good afternoon, ladies and gentlemen. I hope all of you had the opportunity to go through our investor presentation and earnings release. We are pleased to report a strong performance for both the second quarter and first half in financial year '27. Our performance during the period was supported by healthy demand across key market, improved realizations, and continued operational discipline. We also benefited from a more stable raw material environment, which enabled us to manage costs effectively while continuing to focus on profitability and customer commitments. Market conditions remained encouraging during the quarter. Demand from our export markets continued to be healthy, supported by improving business conditions across the global textile value chain. On the domestic front as well, consumption trends remain supportive, providing us with good visibility across our categories. From an industry standpoint, a number of long-term trends continue to strengthen India's position within the global textile value chain. Global brands and retailers are continuing to diversify their sourcing strategies and are placing greater emphasis on supply chain resilience, reliability and sustainability. India is well positioned to benefit from these evolving sourcing preferences, given its integrated textile ecosystem, strong manufacturing capabilities and growing focus on responsible production practices. The company is most benefitted by that. In addition, India's cost competitiveness has strengthened over time, supported by ongoing investments in operational efficiency and renewable energy adoption across the textile value chain. Further, the India-UK Free Trade Agreement and the ongoing momentum towards a broader India-EU trade have the potential to further strengthen India's competitiveness in important textile markets. Over time, these developments could create incremental opportunities for Indian exporters, improve market access and support the long-term growth prospects of the sector. Page 2 of 16 Sportking India Limited October 30, 2026 Sustainability is also becoming an increasingly important consideration in global sourcing decisions. Over the years, we have continued to strengthen our sustainability initiatives while investing in efficient, environmentally responsible operations. The successful commissioning of our solar power project is an important step in this direction. Beyond supporting our environmental goals, the project is expected to reduce annual power costs by approximately 15%. Thereby enhancing our overall cost competitiveness. We believe such initiatives strengthen our positioning with customers increasingly value sustainability, reliability and long-term partnerships as part of their sourcing decisions. On the strategic front are 150,000 spindle Greenfield expansion project in Odisha continues to progress on schedule. Having secured all necessary regulatory approvals, the building construction is now almost complete. The entire machinery package has been ordered and has started arriving on the site in a staggered manner. Erection of the initial machinery shipments is currently underway and we expect commissioning in the coming months. This expansion is strategically positioned to support our long-term growth and meet rising customer demands, as the company is already cranking up at 99% capacity this quarter. Odisha provides compelling structural advantages, including close proximity to the Eastern Cotton growing belt robust industrial infrastructure and a highly competitive operating ecosystem. With our existing facilities operating at near full capacity and market demand growing stronger, this new capacity will provide the necessary headroom to scale our operations. Secure the company's next phase of growth and better serve our global customer base. Looking ahead, we remain optimistic about the medium to long-term outlook for both the industry and especially Sportking. A more supportive cotton environment, improving global demand, evolving sourcing patterns, increasing emphasis on sustainability, favorable trade developments. And our ongoing capacity expansion initiatives together create a strong foundation for future growth. We believe Sportking is well positioned to capitalize on the next phase of growth in the textile industry. Our continued investment in capacity, sourcing capabilities and operational efficiencies have strengthened our ability to serve customers effectively and pursue emerging opportunities across all markets. With a scalable manufacturing platform, strengthened cost competitiveness, robust sourcing capabilities and the resources to invest in long-term opportunities, we remain focused on creating sustainable value for all stakeholders. Thank you very much. With this, we would be happy to take your questions. Moderator: Thank you very much. We will now begin the question and answer session. The first question is from the line of Santosh Shetty from LGC Capital. Please proceed. Santosh Shetty: Hello. Munish Avasthi: Hello. Page 3 of 16 Sportking India Limited October 30, 2026 Santosh Shetty: Yes, sir. So a couple of questions. The company reported a significant improvement in EBITDA margin to 19.8% in Q2 FY27 compared to 10.4% in Q2 FY26. So what were the key factors driving this improvement an [Showing first 8,000 characters — download PDF for full document]