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KHADIM - Khadim India

📊 NSE: KHADIM 🏢 Leather / Leather Products 📅 Last Updated: 12/14/2025 8:54

📢 Recent Corporate Announcements

Khadim India Releases Audio Recording of Q3 FY26 Investor Meet

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 16 Feb 2026, 08:53 PM

Khadim India Limited has officially released the audio recording of its Investor Meet held on February 16, 2026. The meeting was centered around the company's Unaudited Standalone and Consolidated Financial Results for the third quarter and nine months ended December 31, 2025. This disclosure follows the requirements of Regulation 30 of the SEBI Listing Regulations. The recording is accessible via the company's website for public review of management commentary.

Audio recording of the Investor Meet held on February 16, 2026, is now publicly available.
Discussion focused on financial performance for Q3 and the nine-month period ending December 31, 2025.
Compliance filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Recording link is hosted on the official Khadim India institutional investors webpage.

💡 Investors should listen to the recording to understand management's perspective on Q3 performance and future growth outlook. This is a routine regulatory update and does not necessitate immediate action.

Khadim India Q3 FY26 Revenue Drops 21.8% YoY to ₹862.4 Mn; Reports Net Loss

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 16 Feb 2026, 01:05 PM

Khadim India reported a weak performance for Q3 FY26, with revenue declining 21.8% YoY to ₹862.4 million. Gross margins contracted by 280 bps to 49.9%, and EBITDA margins fell to 12.8% from 14.6% in the previous year. The company reported a net loss of ₹1.7 million for the quarter, a sharp decline from the ₹62.8 million profit recorded in Q3 FY25. Despite the financial slowdown, the company continues to expand its asset-light franchise model, which now accounts for 77% of its 864-store network.

Revenue from operations decreased by 21.8% YoY to ₹862.4 million in Q3 FY26.
EBITDA fell 31.1% YoY to ₹110.8 million, with margins dropping to 12.8%.
Reported a net loss of ₹1.7 million versus a profit of ₹62.8 million in Q3 FY25.
9M FY26 PAT margin stands at a thin 0.8% compared to 4.3% in the prior year period.
Retail footprint remains at 864 stores, with 66% of the presence concentrated in East India.

💡 Investors should exercise caution as the company faces significant top-line pressure and margin erosion. The upcoming demerger of the distribution and manufacturing segments into KSR Footwear Limited is a key event to watch for potential structural recovery.

Khadim India Schedules Q3 & 9M FY26 Earnings Conference Call for February 16, 2026

🟡 NEUTRAL ⭐ 4/10

EARNINGS 📅 10 Feb 2026, 04:46 PM

Khadim India Limited has announced its earnings conference call to discuss the financial results for the third quarter and nine months ended December 31, 2025. The call is scheduled for Monday, February 16, 2026, at 4:00 PM IST. Senior management, including Managing Director Rittick Roy Burman and Group CFO Indrajit Chaudhuri, will be present to interact with analysts and institutional investors. This routine disclosure provides a platform for stakeholders to gain insights into the company's recent operational performance and future outlook.

Conference call scheduled for February 16, 2026, at 16:00 IST to discuss Q3 & 9M FY26 results.
Key management participants include MD Rittick Roy Burman and Group CFO Indrajit Chaudhuri.
The call will be facilitated by MUFG - IR with a Diamond Pass link available for registration.
International access numbers provided for investors in Hong Kong, Singapore, UK, and USA.

💡 Investors should attend the call or review the transcript to understand the company's margin performance and demand outlook in the footwear sector. Key metrics to watch include store expansion updates and inventory management efficiency.

Khadim India Q3 Results: Net Loss of ₹1.74 Mn; Revenue Drops 21.7% YoY to ₹862 Mn

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 10 Feb 2026, 03:14 PM

Khadim India reported a weak performance for Q3 FY26, swinging to a net loss of ₹1.74 million compared to a profit of ₹11.68 million in the same quarter last year. Revenue from operations declined significantly by 21.7% YoY to ₹862.37 million, reflecting a slowdown in sales. The bottom line was further pressured by an exceptional item of ₹18.20 million related to the impact of new Labour Codes. Additionally, the board approved a small strategic investment of up to USD 30,000 in its wholly-owned Bangladesh subsidiary.

Revenue from operations fell 21.7% YoY to ₹862.37 million from ₹1,102.35 million in the year-ago period.
Reported a net loss of ₹1.74 million for Q3 FY26 against a net profit of ₹11.68 million in Q3 FY25.
Recognized an exceptional charge of ₹18.20 million due to the implementation of new Labour Codes.
Board approved additional investment of up to USD 30,000 in Khadim Shoe Bangladesh Limited.
Standalone EPS for the quarter turned negative at ₹(0.09) compared to ₹0.64 in Q3 FY25.

💡 Investors should exercise caution as the company faces significant revenue contraction and a swing into losses. Monitor the management's commentary on demand recovery and the long-term impact of labour code adjustments on operating margins.

Khadim India Q3 FY26 Revenue Drops 21.8% YoY; Reports Net Loss of ₹1.74 Million

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 10 Feb 2026, 03:05 PM

Khadim India reported a weak performance for Q3 FY26, with standalone revenue falling to ₹862.37 million from ₹1,102.35 million in the same quarter last year. The company swung to a net loss of ₹1.74 million compared to a profit of ₹11.68 million YoY, largely impacted by an exceptional item of ₹18.20 million related to new Labour Codes. For the nine-month period ending December 2025, net profit decreased significantly to ₹23.66 million from ₹41.85 million. Additionally, the board approved a small strategic investment of up to USD 30,000 in its Bangladesh subsidiary.

Standalone Revenue from Operations declined by 21.8% YoY to ₹862.37 million in Q3 FY26.
Reported a net loss of ₹1.74 million in Q3 FY26 versus a profit of ₹11.68 million in Q3 FY25.
Exceptional item of ₹18.20 million recorded during the quarter due to the impact of new Labour Codes.
Nine-month FY26 net profit fell by 43.5% to ₹23.66 million compared to ₹41.85 million in the prior year period.
Board approved further investment of up to USD 30,000 in wholly-owned subsidiary Khadim Shoe Bangladesh Limited.

💡 Investors should exercise caution as the company faces both top-line contraction and margin pressure from regulatory costs. Monitor the recovery in consumer demand and the impact of the Bangladesh investment on consolidated performance.

Khadim India Credit Rating Reaffirmed at CARE BBB; Outlook Stable

🟢 POSITIVE ⭐ 6/10

ROUTINE 📅 12 Jan 2026, 06:28 PM

CARE Ratings has reaffirmed Khadim India's long-term rating at 'CARE BBB' and short-term rating at 'CARE A3+'. Crucially, the ratings have been removed from 'Rating Watch with Developing Implications' and assigned a 'Stable' outlook, indicating reduced uncertainty regarding the company's credit profile. The rating covers total bank facilities of ₹182.95 crore, based on the company's financial performance through FY25 and H1FY26. This stabilization of the credit outlook reflects a more predictable operational environment for the footwear retailer.

Long-term bank facilities of ₹151.45 crore reaffirmed at CARE BBB with a Stable outlook.
Short-term bank facilities of ₹31.50 crore reaffirmed at CARE A3+.
Ratings removed from 'Rating Watch with Developing Implications', signaling improved financial clarity.
Total bank facilities rated aggregate to ₹182.95 crore across major lenders like SBI, ICICI, and Union Bank.
Rating action follows review of FY25 audited and H1FY26 unaudited financial performance.

💡 The removal of the 'Rating Watch' is a positive signal of operational stabilization; investors should now focus on margin improvements in upcoming quarterly results to justify a re-rating.

Khadim India Announces Trading Window Closure from Jan 1, 2026 for Q3 Results

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 31 Dec 2025, 12:50 PM

Khadim India Limited has officially announced the closure of its trading window for all designated persons starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's upcoming financial results. The window will remain closed until 48 hours after the declaration of the unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. This is a standard regulatory procedure for listed companies in India to prevent insider trading before earnings announcements.

Trading window for dealing in company securities to close on January 1, 2026.
Closure is related to the financial results for the quarter and nine months ending December 31, 2025.
Window will reopen 48 hours after the financial results are publicly disclosed.
Compliance maintained under SEBI (Prohibition of Insider Trading) Regulations, 2015.

💡 No action is required as this is a routine regulatory filing. Investors should look out for the upcoming announcement of the Q3 earnings date to assess the company's financial performance.

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💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for FY25 was INR 4,180.33 million, a 1.93% decline from INR 4,262.52 million in FY24. Retail segment revenue stood at INR 418 crore in FY25, while the Distribution segment (now discontinued) contributed INR 205.71 crore. For Q2 FY26, revenue was INR 1,016 million.

Geographic Revenue Split

The company has a geographically concentrated presence, primarily in East India followed by South India, which exposes it to region-specific economic risks. Specific percentage splits per region are not disclosed in available documents.

Profitability Margins

Gross margin for Q2 FY26 was 47.1% (INR 478.7 million). The company targets a long-term gross margin of 50-52%. PAT margin for Q2 FY26 was 1.7% (INR 16.8 million). FY25 consolidated profit after tax was INR 50.60 million, down 19.4% from INR 62.78 million in FY24.

EBITDA Margin

EBITDA margin for Q2 FY26 was 13.6% (INR 137.9 million). For FY25, consolidated Profit before Depreciation, Interest, and Tax was INR 755.28 million, a 6.25% decrease from INR 805.66 million in FY24.

Capital Expenditure

The company was sanctioned a fresh term loan of INR 20 crore to fund the expansion of Company Owned Company Operated (COCO) stores. As of June 2025, INR 6.50 crore had been disbursed.

Credit Rating & Borrowing

Long-term bank facilities of INR 151.45 crore are rated CARE BBB (Rating Watch with Developing Implications). Short-term facilities of INR 31.50 crore are rated CARE A3+ (RWD). Interest coverage ratio was 2.27 times in FY24.

⚙️ Operational Drivers

Raw Materials

Lightweight EVA (Ethylene-vinyl acetate) soles are specifically mentioned as a key component for the Sharon brand. Specific percentage of total cost is not disclosed.

Capacity Expansion

The company operates 886 retail stores as of March 2025 (213 COCO and 673 franchise). Expansion is focused on COCO stores using a sanctioned INR 20 crore term loan and increasing product lines in sub-brands like Sharon and British Walker from 50-60 lines to higher numbers.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company noted that pricing reductions of 7-8% were implemented to push volume growth, which impacted operating margins.

Logistics & Distribution

Distribution business turnover was approximately INR 100 crore in the first two quarters of FY26. The segment was demerged into KSR Footwear Limited to improve operational focus.

📈 Strategic Growth

Expected Growth Rate

7-8%

Growth Strategy

Growth will be achieved through the demerger of the distribution business to focus on high-margin retail, expanding the COCO store network via a INR 20 crore term loan, and increasing product variety in premium sub-brands like British Walker and Sharon. The company is also arresting volume de-growth by reducing MRP in the retail segment.

Products & Services

Fashion footwear, comfort footwear with California construction, lightweight EVA sole footwear, and related accessories.

Brand Portfolio

Khadim, British Walker, Sharon.

New Products/Services

Expansion of product lines in Sharon and British Walker brands from the current 50-60 lines to a higher number to drive double-digit growth in premium segments.

Market Expansion

Expansion of the COCO store network and increasing the distributor base (781 as of March 2025) to serve multi-brand operators across India.

Strategic Alliances

Demerger of the distribution business into KSR Footwear Limited (KFL) via a Scheme of Arrangement sanctioned by NCLT, effective May 01, 2025.

🌍 External Factors

Industry Trends

The footwear industry is facing volume growth challenges, particularly in the mid-price segments (INR 500-1,500). Peers like Bata are facing similar issues. There is a shift toward localized marketing and improved visual merchandising.

Competitive Landscape

Key competitors include Bata and other distribution-heavy footwear players. Competition is most intense in the INR 500 to INR 1,500 price bracket.

Competitive Moat

The company's moat is its established brand presence and extensive retail/distribution network (886 stores and 781 distributors), particularly in East and South India. Sustainability depends on successfully transitioning to a higher-margin retail-focused model post-demerger.

Macro Economic Sensitivity

Sensitive to GST policy changes; a GST cut implemented in late Q2 FY26 is expected to improve gross margins in the second half of the year.

Consumer Behavior

Consumers are showing double-digit growth in the 'less than INR 500' and 'above INR 1,500' segments, while the mid-segment remains a pain point.

Geopolitical Risks

Geographic concentration in East and South India makes the company vulnerable to regional economic disruptions or localized events like floods, which previously led to store closures.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by GST rate changes and NCLT regulations regarding the Scheme of Arrangement for the demerger of the distribution business.

Environmental Compliance

ESG risks are noted as 'Not Applicable' in the credit rating assessment for this manufacturing entity.

Taxation Policy Impact

The provision for taxation (current and deferred) for FY25 was INR 26.15 million on a profit before tax of INR 218.77 million from continuing operations.

Legal Contingencies

The company followed a Scheme of Arrangement sanctioned by the Hon’ble National Company Law Tribunal (NCLT), Kolkata Bench, for the demerger of its distribution business into KSR Footwear Limited. No other specific court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of the demerger on the remaining retail business's credit profile and the ability to arrest volume de-growth in the mid-price segment.