SP Apparels Reports Strong Sales Growth Amid Rising Debt and Liquidity Concerns in August 2025

SP Apparels, a small-cap player in the Garments & Apparels industry, has released its financial results for the quarter ending June 2025 on August 14, 2025. The company reported a notable performance in net sales, achieving Rs 403.44 crore, which reflects a year-on-year growth of 64.46%. This marks the highest quarterly sales figure in the last five quarters, indicating a positive near-term sales trend. Additionally, profit before tax, excluding other income, reached Rs 29.86 crore, growing by 66.91% year-on-year, further supporting the favorable outlook on profitability.
However, the financial results also highlight some challenges for SP Apparels. The operating profit to interest ratio has reached its lowest point in five quarters at 4.49 times, suggesting a decline in the company's ability to manage interest payments. Furthermore, interest expenses have surged to Rs 11.78 crore, the highest in the last five quarters, indicating increased borrowing costs. The company's cash and cash equivalents have also fallen to Rs 41.29 crore, the lowest in the last six half-yearly periods, raising concerns about short-term liquidity. Additionally, the debt-equity ratio has risen to 0.45 times, the highest in recent periods, suggesting a growing reliance on debt for operational funding.

In light of these developments, SP Apparels has experienced an adjustment in its evaluation, with its score reflecting these recent changes.

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