SBC Exports Ltd Q2 FY26: ₹64.8 Cr Revenue, ₹10.5 Cr PAT — Garments, IT, and Travel in One Garam Masala of Growth and Debt!
1. At a Glance
SBC Exports Ltd, a Mirzapur-born multitasker, just pulled off another quarter where the numbers looked like a juggling act between garments, manpower services, and travel bookings. For Q2 FY26, the company clocked ₹64.8 crore revenue and ₹10.5 crore PAT, boasting a solid PAT margin of 16.2% and an even more solid brand-new logo for “F-Route – Uniquely You.” Yes, the company literally rebranded while pocketing profits. The stock trades at ₹24.6 with a P/E of 52.1x, ROE of 24.4%, and market cap at ₹1,172 crore — because in India, even a ₹24 stock can have fashionista-level confidence.
Over the last 3 months, the share is up ~40%, thanks to export orders from Dubai and a brand story that now stretches from Mirzapur to Muscat. But before you fall for the glamour, note this: Debt stands at ₹199 crore and promoters have pledged 35.4% of holdings. That’s like buying new sneakers on EMI while flexing your fitness goals.
So, what do we have? A company selling innerwear, staffing government projects, and booking your holidays — all while juggling export orders worth ₹300 crore. Now that’s diversification at MBA PowerPoint levels of creativity.
2. Introduction
Welcome to SBC Exports Ltd — the company that started by trading handmade carpets in Mirzapur and now runs a three-course business buffet of Garments, IT Services, and Travel. Think of it as the “multi-talented cousin” at every family gathering — sings, dances, cooks, and also claims to be a web developer.
From 1.5 lakh garments a month in Unit 1 to 8 lakh pieces per month in Unit 2, SBC is stitching profits faster than Mirzapur weavers can blink. But behind the fabric and fragrance lies an IT army managing HR services, manpower staffing, and digitization projects for heavyweight clients like the Ministry of Home Affairs, ICSI, and DRDO. Yes, the same company that makes your t-shirt also digitizes government documents. Only in India.
And then comes the third leg — Mauji Trip Limited, a travel subsidiary that handles tickets, packages, and MICE bookings (Meetings, Incentives, Conferences, and Exhibitions). Because why not throw in some travel plans between textile batches?
In short, SBC Exports is an Indo-Middle Eastern, multi-segmented, multi-skill powerhouse — half garment exporter, half government contractor, and half travel agent. Wait, that’s three halves. But with these results, who’s counting?
3. Business Model – WTF Do They Even Do?
Let’s decode this three-headed dragon.
1. Garments Segment (57% of FY24 revenue): This is SBC’s fashion playground. The company manufactures and trades a wide range of garments including innerwear, leisurewear, and comfort wear under the brand F-ROUTE. They claim over 120 SKUs, available through 400+ distributors and 25,000 retail touchpoints. The cherry? Their e-commerce site frouteclothing.com — because D2C is the new “dupatta to customer.”
2. IT & Manpower Services (34% of FY24 revenue): Their IT division handles HR staffing, system integration, and e-governance projects. If you’re wondering what connects garments to digitization — it’s called “government tenders.” Their client list reads like an alphabet soup of ministries and departments — from MHA to DRDO to NIC.
3. Tour & Travel Services (9% of FY24 revenue): Operated through subsidiary Mauji Trip Limited, this vertical books corporate tours, flights, hotels, and complete travel experiences. Basically, the company that made your track pants might also be booking your trek.
New Ventures: They’ve acquired land worth ₹18 crore in Ghaziabad to set up another manufacturing unit for exports. Translation: They plan to stitch even more shirts while the IT team automates the stitching schedule and Mauji Trip books the courier flight.
If diversification were an Olympic event, SBC would be bringing home gold for “Maximum Business Categories per Crore of Revenue.”
4. Financials Overview
Metric (₹ Cr)
Latest Qtr (Q2 FY26)
Same Qtr LY (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue
64.8
50.5
72.0
+28.4%
-9.9%
EBITDA
9.8
4.6
5.0
+113%
+96%
PAT
10.5
4.9
11.0
+112%
-4.5%
EPS (₹)
0.24
0.11
0.26
+118%
-8%
Annualised EPS = ₹0.24 × 4 = ₹0.96. With a CMP of ₹24.6, the implied P/E = 25.6x (annualised basis). The screener P/E of 52.1x is based on trailing EPS, which means markets already priced in a runway of optimism long enough for Mauji Trip’s next charter flight.
Still, doubling YoY profit is no joke — SBC’s operating margin jumped to ~15% this quarter, signaling efficiency. Or maybe just a very good export order from Dubai paid in USD.
5. Valuation Discussion – Fair Value Range Only
Let’s play professor and break it down:
A. P/E Method:
Annualised EPS = ₹0.96
Industry P/E (Garment/Textile peer avg) ≈ 30x
Fair Value Range = ₹0.96 × (25–35) = ₹24–₹34 per share
B. EV/EBITDA Method:
EV = ₹1,355 Cr
TTM EBITDA = ₹32 Cr (approx.)
EV/EBITDA = 42.4x (very high!) Even if we normalise to 20–25x (industry range), EV should be ₹640–₹800 Cr. => Fair Market Cap range = ₹460–₹620 Cr, or ₹10–₹13 per share.
C. Simplified DCF (Educational Approximation): Assume free cash flow normalisation after FY25 losses.
FY25 OCF = -₹69 Cr (ouch), but expected stabilisation. Assume 15% growth for 5 years, discount rate 12%. => Intrinsic fair range ≈ ₹18–₹28 per share.
Fair Value Range (Consolidated View): ₹18 – ₹34 per share.
Disclaimer: This fair value range is for educational purposes only and is not investment advice. SBC’s volatility is high — like Mirzapur’s political climate.
6. What’s Cooking – News, Triggers, Drama
SBC’s newsfeed looks like a Bollywood script — repeat export orders, new logos, and even a possible IPO for its travel arm. Let’s recap recent masala:
Nov 2025: Announced repeat export order of ₹45 Cr from Dubai-based HUXXE Readymade Garments LLC, payment in USD. Dubai clearly loves F-Route fits.
Aug 2025:₹17.56 Cr export order from same client — looks like HUXXE can’t get enough of Mirzapur’s style.
May 2025: Plans for Mauji Trip Limited IPO, along with new e-commerce tie-ups with Amazon, Flipkart,
