Sportking India Limited is an India-based textile company, founded in 1977 and incorporated on February 15, 1989, by Raj Kumar Avasthi and his family members. Headquartered in Ludhiana, India, the company is primarily engaged in the manufacturing of cotton, cotton polyester blended, and acrylic-blended yarn in both grey and dyed forms.
Sportking has established itself as one of India's leading textile companies, operating three state-of-the-art manufacturing facilities located in Punjab and Himachal Pradesh. These facilities are equipped with the latest machinery, producing yarns that are a benchmark in quality and boasting an installed capacity of over 204,600 spindles.
The company's core business involves the manufacturing, trading, and distribution of a diverse range of textile products, including cotton fabrics, synthetic, and blended yarns. Sportking produces a well-diversified range of grey and dyed textile yarns designed to cater to the demands of the weaving and knitting industry in both domestic and international markets.
The comprehensive product portfolio includes:
- 100% Cotton Yarns: Available in compact, Eli-twist, and slub varieties for knitting and weaving applications.
- Polyester/Cotton Blended Yarns: Including combed and melange yarns.
- Dyed Yarns: For 100% cotton and PC blended varieties.
- Acrylic & Acrylic/Polyester Blended Yarns: Offered in high bulk and non-bulk forms.
- Fancy Yarns: Such as Jaspe, slub, injection slub, and snow yarns.
Beyond yarn manufacturing, Sportking has expanded its product offerings to include a wide array of ready-made garments. For boys and men, the company produces T-shirts, shirts, sweatshirts, sweaters, jackets, jeans, trousers, track pants, tracksuits, Bermuda and shorts, and nightwear. For girls and ladies, the portfolio includes tops, tunics, shirts, kurtis, sweatshirts, sweaters, cardigans, jeans, trousers, leggings, track pants, tracksuits, shorts, nightwear, and lingerie.
Sportking India Ltd demonstrates a strong market presence and a robust financial performance. As of May 23, 2025, the company has a market capitalization of ₹1,475.43 crore. The stock has experienced a 52-week high of ₹159.54 and a 52-week low of ₹69.91, with a P/E ratio of 13.51, indicating a healthy valuation.
The company's financial performance for the fiscal year 2025 shows positive growth trends:
- Annual Sales FY25: Rose 6.19% to ₹2,524.23 crore, compared to ₹2,377.14 crore in FY24.
- Annual Net Profit FY25: Increased significantly by 55.29% to ₹109.25 crore, up from ₹70.35 crore in FY24.
Quarterly results also reflect sustained growth:
- Q1 FY25 Sales (ended March 2025): Rose 2.88% to ₹628.81 crore, against ₹611.18 crore in the previous quarter (Q4 FY24).
- Q1 FY25 Net Profit (ended March 2025): Saw a substantial rise of 58.01% to ₹36.12 crore, compared to ₹22.86 crore in the previous quarter (Q4 FY24).
- Revenue Q1 FY25: ₹628.81 Cr (as on March 2025)
- Net Profit Q1 FY25: ₹36.12 Cr (as on March 2025)
- Annual Revenue FY25: ₹2,524 Cr
- Annual Profit FY25: ₹109 Cr
- ROE: 13.3% over the last 3 years
- Market Capitalization: ₹1,475.43 Cr (as of May 2025)
- Promoter Holding: 74.36% (as of March 2025)
- Dividend Yield: 0.87%
CRISIL upgraded Sportking's long-term rating to A+/Stable and reaffirmed its short-term rating at A1 for ₹1,000 Cr facilities on May 21, 2025. This upgrade reflects the improvement in Sportking's business risk profile, with fiscal 2025 revenue exceeding ₹2,500 crores and operating margin improving to 10.6% from 10.1% in fiscal 2024.
The company's revenue is projected to increase by 1-3% to approximately ₹2,600 crores in fiscal 2026, as it operates near full capacity. Operating margins are expected to remain healthy at 10.5-11.5% in fiscal 2026, supported by stable spreads and minimal inventory losses. Over the medium term, margins are anticipated to improve further to 11-12%, driven by the increased use of solar power, which will result in lower power costs.
Sportking has strategically focused on expanding its manufacturing capabilities and improving operational efficiency through technological upgrades.
- 2018-19: Expanded its Bathinda Unit by adding 68,000 spindles, establishing a state-of-the-art plant for manufacturing cotton compact yarn.
- June 2022: Commissioned a 10.2 MW Rooftop Solar Power Project at the Bathinda Unit, aiming to reduce power costs and enhance sustainability.
- 2022-23: Commissioned two additional capacity projects:
- Phase One: 40,800 spindles for manufacturing polyester-cotton yarn in Q2 FY23.
- Phase Two: 63,072 spindles in Q4 FY23.
- September 13, 2024: The company split the face value of its shares from ₹10 to ₹1, making them more accessible to a broader range of investors.
Sportking India Ltd employs a multi-channel distribution strategy to maximize its market reach. The company sells its products through various avenues including:
- Retail outlets
- Its online retail store
- Multi-brand channel outlets
- Company-owned retail stores
- E-commerce platforms
The company operates both within India and internationally, demonstrating its ability to cater to a diverse customer base and strengthen its global presence.
The promoter holding in Sportking India Ltd has remained stable at 74.36% as of March 2025, consistent with June 2024 data, indicating strong confidence from the core management.
Sportking India Ltd continues to strengthen its position in the Indian textile industry through strategic capacity expansions, technological upgrades, and diversified product offerings. The company maintains a stable financial performance and strong market presence, positioning it for continued growth and leadership in the sector.
