SBC Exports reported a robust 34% YoY revenue increase to Rs 403.21 crore for FY 2025-26. While profit after tax rose to Rs 25.27 crore, the company has opted to skip dividends to fund aggressive expansion across its textile, IT, and travel segments.
SBC Exports Reports Revenue of Rs 403.21 Crore and Profit of Rs 25.27 Crore
SBC Exports Limited recorded a consolidated revenue of Rs 403.21 crore for FY 2025-26, up from Rs 300.05 crore in the previous fiscal. Profit for the year attributable to owners reached Rs 25.27 crore, compared to Rs 13.37 crore in FY 2024-25.
Reader Takeaway: Strong operational growth across diversified segments is balanced against significant future related party transaction commitments.
What just happened
SBC Exports has released its 15th Annual Report, highlighting a shift toward a diversified business model encompassing garments, IT services, and travel. The board has opted to retain earnings rather than declare a dividend for FY 2025-26, aiming to deploy capital toward ongoing growth initiatives. The company also secured CMMI Level 3 certification to bolster its service delivery framework.
Why this matters
The company is scaling its operational footprint through strategic partnerships, including a tie-up with the 'Punjab Kings' cricket team to promote its 'F-Route' apparel brand. However, shareholders are now reviewing proposed related party transactions involving significant financial ceilings—up to Rs 1,000 crore for packaging materials and Rs 500 crore for services over the next five years—which represent a substantial portion of the firm's current scale.
Segment Performance
The diversified revenue model shows broad-based expansion:
- Garments Manufacturing: Rs 171.23 crore revenue with Rs 32.59 crore PBIT.
- IT Support Services: Rs 130.19 crore revenue with Rs 11.24 crore PBIT.
- Travel & Tour Operations (Mauji Trip Ltd): Rs 104.07 crore revenue with Rs 4.71 crore PBIT.
Risks to watch
The primary point of scrutiny for investors remains the high aggregate limits proposed for related party transactions. These long-term commitments are large relative to current annual turnover. Furthermore, the absence of a dividend payout may affect investors looking for immediate capital returns from the company's improved profitability.
What to track next
Investors should closely track the outcome of the upcoming Annual General Meeting (AGM) regarding the approval of the proposed related party transactions and management's specific capital allocation strategy for the retained earnings.