Sportking margin beats sector median as expansion plans take shape
Standalone operating margin was 19.83%, while management outlined acquisitions, a 40.3 MW solar plant and a proposed capex programme.
Filed 30 Oct 2026, 13:45 IST · Sportking India Ltd (SPORTKING)
Key takeaways
- Sportking India reported standalone operating profit of Rs 154.88 cr on revenue of Rs 781.05 cr, for an operating margin of 19.83%.
- Other income of Rs 0.83 cr was small relative to profit before tax of Rs 129.66 cr, so reported profit was not materially supported by non-operating income.
- The company’s 19.83% operating margin was 7.33 percentage points above the 12.5% median for 109 Consumer Discretionary peers that have reported.
Price around the results
Operating profit remained the main earnings driver
Sportking India’s standalone operating profit was Rs 154.88 cr on revenue of Rs 781.05 cr, implying a 19.83% operating margin. Interest of Rs 12.15 cr and depreciation of Rs 13.90 cr reduced operating profit to profit before tax of Rs 129.66 cr. Other income was only Rs 0.83 cr, making it a limited contributor to pre-tax profit.
Margin sits above the reported peer median
Sportking’s 19.83% operating margin was 7.33 percentage points above the 12.5% median among 109 reported Consumer Discretionary peers. The presentation says the company has price leadership across all market segments, although the quarter’s data does not provide a comparison showing how revenue or costs changed over time.
Expansion plans extend beyond the existing product base
Management said domestic markets contributed 52% of Q2 FY27 revenue and exports contributed 48%. The company said its board approved acquiring a majority stake in Marvel Dyers and manufacturing facilities of Sobhagia Sales, transactions it said would enable forward integration into processed or dyed knitted fabric and garments. Management also said a proposed capex programme is expected to take 12–15 months to complete.
Solar project is intended to lower power costs
The company said its SPV has commissioned a 40.3 MW solar plant to supply the Bathinda and Ludhiana units for 25 years. Management said the solar power arrangement is expected to reduce power costs by about 12–15% over the long term. The effect of that arrangement on operating costs is a key item to track alongside the 19.83% margin.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹781 cr |
| Other income | ₹1 cr |
| Expenses | ₹626 cr |
| Operating profit | ₹155 cr |
| Operating margin (%) | 19.83% |
| Interest | ₹12 cr |
| Depreciation | ₹14 cr |
| Profit before tax | ₹130 cr |
| Tax | ₹33 cr |
| Net profit | ₹96 cr |
| EPS (₹) | ₹7.58 |
Operating margin of 19.83% compares with a Consumer Discretionary sector median of 12.50% across 109 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Domestic markets contributed 52% and exports contributed 48% of revenue in Q2 FY27.
Guidance & outlook
- The solar power arrangement is expected to reduce power costs by about 12–15% over the long term.
Expansion
- The proposed capex programme is expected to take 12–15 months to complete.
- The company has approved acquiring a majority stake in Marvel Dyers and manufacturing facilities of Sobhagia Sales.
New initiatives
- The proposed transactions will forward-integrate the company into processed or dyed knitted fabric and garments.
- The SPV commissioned a 40.3 MW solar plant to supply power to the Bathinda and Ludhiana units for 25 years.
Competition
- Sportking states that it has price leadership across all market segments.
What to watch
- Whether operating margin holds above 19.83% as the proposed capex programme progresses.
- Progress on the proposed 12–15 month capex programme and the approved acquisition of Marvel Dyers and Sobhagia Sales facilities.
- Whether the 40.3 MW solar arrangement begins to reduce power costs in line with management’s stated 12–15% long-term expectation.