SBC Exports reported a stellar FY26 with revenue rising 34% to ₹403.21 crore and net profit surging 89% to ₹25.27 crore. Growth was balanced across its garment, IT, and travel segments. However, the upcoming AGM brings critical votes on significant five-year related party transaction ceilings involving the MD's interests, which investors should monitor closely alongside the company's strong operational expansion.
SBC Exports FY26 Revenue Hits ₹403 Crore; Profits Surge 89%
Revenue rose 34% to ₹403.21 crore; Net Profit grew 89% to ₹25.27 crore.
Reader Takeaway: Strong operational growth across three business segments offset by major upcoming shareholder votes on high-value related party transactions.
What just happened
SBC Exports has released its FY 2025-26 annual report, revealing significant year-over-year expansion. The company, which operates across garment manufacturing, IT support, and travel services, saw its Profit After Tax (PAT) rise to ₹25.27 crore, compared to ₹13.37 crore in the previous year. Revenue from operations climbed to ₹403.21 crore.
Why this matters
The company’s performance highlights the effectiveness of its diversified business model. All three segments showed robust growth: Garment manufacturing contributed ₹171.23 crore, IT services generated ₹130.19 crore, and the travel segment (under Mauji Trip Limited) recorded ₹104.07 crore. Management is prioritizing profit retention to fuel future expansion rather than issuing dividends.
The backstory
The upcoming 15th Annual General Meeting (AGM) is a pivot point for shareholders. The management has tabled two massive related party transactions (RPTs) for approval. These include a ₹200 crore annual ceiling for packaging materials from Korporate Bizmax Limited and a ₹100 crore annual ceiling for services with SBC Infotech Limited—both entities where the MD and Whole-Time Director hold interest. These mandates cover the next five years.
Risks to watch
Investors should scrutinize the proposed RPTs, as the aggregate values (₹1,500 crore over five years) are substantial relative to the company's annual turnover. Furthermore, the company reported a past regulatory penalty from stock exchanges due to the delayed submission of voting results, though management claims corrective measures are in place.
What to track next
Watch for the voting outcomes at the AGM regarding the RPT resolutions. Additionally, monitor the 'F-Route' brand expansion and the performance of Mauji Trip Limited, which remain key drivers of the company's growth narrative heading into FY 2027.