SBC - SBC Exports

📊 NSE: SBC 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 12:56

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for HY1 FY26 grew 19.54% YoY to INR 157.15 Cr. Segment-wise performance for HY1 FY26: IT Support Services revenue reached INR 55.68 Cr (up 41.7% YoY from INR 39.29 Cr), Garments Sales reached INR 70.49 Cr (up 6.4% YoY from INR 66.25 Cr), and Tour & Travel Services reached INR 31.59 Cr (up 16.3% YoY from INR 27.17 Cr).

Geographic Revenue Split

The company is expanding its international footprint with a significant push into Dubai-based clients for garment exports. Domestic revenue is driven by IT Support Services for government organizations and institutional clients in India.

Profitability Margins

Consolidated PAT for FY24 was INR 9.44 Cr (4.43% margin), representing a 36.61% YoY growth. For HY1 FY26, segment-wise profit before tax was: IT Support Services INR 3.94 Cr, Garments Sales INR 13.19 Cr, and Tour & Travel Services INR 0.93 Cr. Standalone PAT margin for Q2 FY26 was reported at 51.47%, though this reflects a specific quarterly surge.

EBITDA Margin

Consolidated EBITDA margin for FY24 was 9.59%, up from 6.43% in FY23. In Q2 FY26, standalone EBITDA surged by 78.18% YoY to INR 9.80 Cr, driven by improved operational efficiency and a strategic shift in product mix.

Capital Expenditure

The company has acquired land in Ghaziabad to set up a fifth manufacturing unit specifically to cater to export markets. Historical infrastructure development includes establishing integrated facilities for dyeing, printing, stitching, and packaging across 4 existing units.

Credit Rating & Borrowing

Finance costs for FY24 stood at INR 5.92 Cr, a significant increase of 158.52% YoY from INR 2.29 Cr in FY23, indicating increased borrowing to fund expansion and working capital.

⚙️ Operational Drivers

Raw Materials

Textile fabrics and yarn (implied by garment manufacturing), though specific material names and cost percentages are not disclosed in available documents.

Capacity Expansion

Currently operates 4 manufacturing facilities. Expansion is underway with land already acquired in Ghaziabad for a new export-oriented unit.

Raw Material Costs

Raw material procurement is identified as a key risk area. Procurement strategies focus on streamlining manufacturing and optimizing resources to control costs while facilitating QoQ growth.

Manufacturing Efficiency

Integrated facilities (dyeing to packaging) drive efficiency. ROCE improved to 0.29 in FY25 from 0.26 in FY24, reflecting better capital efficiency.

📈 Strategic Growth

Expected Growth Rate

21.21%

Growth Strategy

Growth is targeted through a multi-pronged approach: infrastructure development (new Ghaziabad unit), geographic expansion into Dubai and other international markets, and scaling the Mauji Trip subsidiary in the travel sector. The company is also focusing on high-margin garment export orders, such as a recent INR 50 Cr contract.

Products & Services

Garments (manufactured and exported), IT Support Services (government and institutional), and Tour & Travel services (Ticketing, Leisure Travel, and MICE).

Brand Portfolio

Mauji Trip (Travel Services subsidiary) and F-Route (Logo/Brand).

New Products/Services

Expansion of export-quality garment lines and world-class services in Leisure Travel and MICE through Mauji Trip Limited.

Market Expansion

Targeting newer geographies for garments and expanding the domestic footprint for IT services. The new Ghaziabad unit is the primary vehicle for export market expansion.

🌍 External Factors

Industry Trends

The garment industry is seeing a shift toward integrated manufacturing. The travel industry is experiencing a surge in Leisure and MICE demand, evidenced by SBC's 145% growth in travel services in FY24.

Competitive Landscape

The company competes in the fragmented garment export market and the competitive IT support and travel services sectors.

Competitive Moat

Moat is built on integrated manufacturing facilities (dyeing, printing, stitching, packaging) which provide cost leadership and quality control. This is sustainable due to the high capital requirement for integrated setups.