S.P. Apparels targets ₹2,000 cr revenue for FY27
Management expects a demand recovery in US markets and increased capacity in Sri Lanka to drive growth, despite earlier delays in domestic expansion.
— 1 earlier story on S.P. Apparels Ltd. →What's new
- Management reaffirmed the FY27 revenue target of ₹2,000 cr.
- Expansion projects in Salem and Sivakasi have resumed after delays.
- UK subsidiary SPUK targets revenue between GBP 12M and GBP 14M for FY27.
Why this matters
The company is betting on a return to normalcy in US demand and higher utilization at its factories to hit its revenue goal. Resuming stalled domestic projects is a positive signal, but execution in the second half of the year will determine if these targets are realistic.
What we're watching
- Actual contribution from the Salem and Sivakasi plants in H2 FY27.
- Sustainability of the 15% EBITDA margin target in the garmenting division.
- Impact of potential UK/EU FTAs on export volumes.
The full read
S.P. Apparels maintains its goal of ₹2,000 crore in consolidated revenue for FY27. Management attributes this outlook to a recovery in US demand and increased production capacity in Sri Lanka. The company also expects better utilization rates across its Indian manufacturing base. Expansion projects in Salem and Sivakasi previously faced delays but have now resumed. These sites will begin contributing to the top line in the second half of the fiscal year. The UK subsidiary, SPUK, targets between GBP 12 million and GBP 14 million in revenue. The garmenting division aims for an EBITDA margin of roughly 15%. The company is also monitoring potential benefits from upcoming UK and EU free trade agreements. The path to ₹2,000 crore hinges on whether the US market remains stable and if the domestic capacity expansion stays on schedule.
Questions answered
- What is the primary driver for the FY27 revenue target?
- Management points to a ramp-up in Sri Lankan operations, higher utilization in Indian factories, and a normalization of US demand following recent tariff disruptions.
- What is the status of the company's domestic expansion plans?
- Projects in Salem and Sivakasi faced delays but have now resumed. The company expects these facilities to start contributing to revenue in the second half of FY27.
- What are the financial targets for the UK subsidiary?
- The UK subsidiary, SPUK, is projected to generate between GBP 12 million and GBP 14 million in revenue for FY27.
- What margin does the company expect from its garmenting division?
- Management is targeting an EBITDA margin of approximately 15% for the garmenting division.
Story so far
All notes on SPAL →- 26 May 2026 · 6:46 PM IST S.P. Apparels targets ₹2,000 cr revenue for FY27
- 4d ago S.P. Apparels targets ₹2,000 cr revenue despite shifting guidance