Khadim India Limited (KHADIM)
₹118.02 -1.57% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Khadim India's revenue was ₹77.8 Cr (-18.7% year on year, -6.8% on the previous quarter), and net profit ₹0.5 Cr (-38.6% year on year); the operating margin was 10.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹77.8 | -18.7% | -6.8% |
| Operating profit | ₹7.8 | -36.5% | -34.2% |
| Net profit | ₹0.5 | -38.6% | -30.4% |
| EPS (₹) | 0.28 | -39.1% | -31.7% |
| Operating margin | 10.1% | — | — |
KHADIM exchange data
NSE end-of-day data for
It closed at a price band (circuit) on 3 sessions in about the last 20.
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
CARE Ratings has reviewed credit ratings for Khadim India Limited's bank facilities totaling ₹161.74 crore. The agency reaffirmed the long-term facility rating of ₹151.49 crore at 'CARE BBB' but revised the outlook from 'Stable' to 'Negative'. Short-term bank facilities of ₹10.25 crore were reaffirmed at 'CARE A3+'. The negative outlook reflects underlying operational and financial pressure on the footwear retailer, whose TTM revenue contracted to ₹349 crore with a thin TTM PAT of ₹3 crore and a debt load of ₹249 crore.
- Total bank facilities reviewed: ₹161.74 crore
- Long-term facilities rating reaffirmed at CARE BBB, but outlook revised to Negative from Stable (₹151.49 crore)
- Short-term facility rating reaffirmed at CARE A3+ on a reduced amount of ₹10.25 crore (down from ₹31.50 crore)
- Rated facilities include ₹47.50 crore of proposed/un-tied limits (₹23.50 crore term loan, ₹24.00 crore fund-based)
Khadim India Limited has approved the allotment of 10,22,727 fully convertible equity share warrants on a preferential basis at an issue price of ₹110 per warrant. The total issue size stands at ₹11.25 crore, representing about 5.2% of the company's current market capitalization of ₹216 crore. The company has collected 25% of the subscription price upfront, with the remaining 75% payable upon exercise within 18 months. Promoter Siddhartha Roy Burman was allotted 2,27,273 warrants, which will increase his equity holding from 8.89% to 9.59% upon full conversion.
- Allotment of 10,22,727 convertible warrants approved at ₹110 per share
- Total issue value aggregates to ₹11,24,99,970 (~₹11.25 crore)
- 25% upfront subscription amount received, with 75% payable on exercise within 18 months
- Promoter Siddhartha Roy Burman allotted 2,27,273 warrants, raising his stake to 9.59% post-conversion
Khadim India Limited reported the consolidated scrutinizer's results for its 45th Annual General Meeting held on September 24, 2026. Shareholders approved all five resolutions, including adoption of FY26 financial statements, reappointment of director Ritoban Roy Burman, and reappointment of statutory auditors M/s. Roy & Roy for a second five-year term. Special resolutions regarding the continuation of Independent Director Prof. (Dr.) Surabhi Banerjee and alteration of the Articles of Association were also passed, each garnering over 99.99% voting approval.
- All 5 resolutions passed with over 99.99% votes in favor
- Adoption of FY26 financial statements approved with 1,10,90,774 votes (99.9963% in favor)
- Re-appointment of statutory auditors M/s. Roy & Roy approved for a 5-year consecutive term
- Special resolution to alter Articles of Association passed with 1,10,90,735 votes (99.9960% in favor)
Khadim India Limited reported the consolidated scrutinizer's results for its 45th Annual General Meeting held on September 24, 2026. Shareholders approved all five resolutions, including adoption of FY26 financial statements, reappointment of director Ritoban Roy Burman, and reappointment of statutory auditors M/s. Roy & Roy for a second five-year term. Special resolutions regarding the continuation of Independent Director Prof. (Dr.) Surabhi Banerjee and alteration of the Articles of Association were also passed, each garnering over 99.99% voting approval.
- All 5 resolutions passed with over 99.99% votes in favor
- Adoption of FY26 financial statements approved with 1,10,90,774 votes (99.9963% in favor)
- Re-appointment of statutory auditors M/s. Roy & Roy approved for a 5-year consecutive term
- Special resolution to alter Articles of Association passed with 1,10,90,735 votes (99.9960% in favor)
Khadim India released its Q1 FY27 investor presentation, reporting an 18.7% YoY decline in standalone revenue from operations to ₹77.84 crore (₹778.4 Mn). EBITDA contracted 36.5% YoY to ₹7.83 crore, with EBITDA margins slipping 280 bps to 10.1%. Net profit declined 39.2% YoY to ₹0.52 crore (₹5.2 Mn), though gross margin expanded by 380 bps YoY to 51.5%. The total retail store network stood at 825 branded outlets as of June 30, 2026.
- Revenue from operations fell 18.7% YoY to ₹778.4 Mn from ₹957.0 Mn in Q1 FY26
- EBITDA declined 36.5% YoY to ₹78.3 Mn, with EBITDA margin shrinking to 10.1% vs 12.9% YoY
- Profit after tax fell 39.2% YoY to ₹5.2 Mn with a thin PAT margin of 0.7%
- Gross margin improved by 380 bps YoY to 51.5% compared to 47.7% in Q1 FY26
- Retail store footprint stood at 825 branded outlets (187 COCO and 638 franchise stores)
Khadim India Limited has issued a communication to shareholders providing the web-link to access its Annual Report and Notice for the 45th Annual General Meeting (AGM) for FY 2025-26. The AGM is scheduled to take place virtually via Video Conferencing on Thursday, September 24, 2026, at 11:30 a.m. IST. Physical letters containing the web-link details are being dispatched to shareholders whose email IDs are not registered with the company or depositories.
- 45th Annual General Meeting scheduled for Thursday, September 24, 2026, at 11:30 a.m. IST
- Meeting to be conducted virtually through Video Conferencing (VC) / Other Audio Visual Means (OAVM)
- Annual Report and Notice dispatched electronically and web-link shared physically for unregistered email holders
- Notice and Annual Report cover the financial year ended March 31, 2026 (FY26)
Khadim India Limited has submitted its Annual Report for FY 2025-26 and issued notice for its 45th Annual General Meeting to be held on September 24, 2026 via video conferencing. For FY26, the company reported revenue of ₹367.10 crore (₹3,670.95 million), EBITDA of ₹47.28 crore (12.9% margin), and PAT of ₹3.14 crore. The company completed the demerger of its distribution and manufacturing business into KSR Footwear Limited to focus on its asset-light retail operations. Total store count stood at 851 retail outlets (189 COCO and 662 franchise stores) with total volume sales of 5.80 million pairs.
- 45th Annual General Meeting scheduled for September 24, 2026 at 11:30 a.m. IST
- Reported FY26 operational revenue of ₹3,670.95 million with PAT of ₹31.39 million
- EBITDA stood at ₹472.85 million representing an EBITDA margin of 12.9%
- Operates an asset-light retail network of 851 stores (78% franchise-operated) with 5.80 million pairs sold in FY26
Khadim India Limited has announced that its 45th Annual General Meeting (AGM) will be held on Thursday, September 24, 2026, at 11:30 AM IST via Video Conferencing. The company has fixed Thursday, September 17, 2026, as the cut-off date to determine shareholder eligibility for remote e-voting and voting during the AGM. The notice of the AGM and Annual Report for the financial year ended March 31, 2026, will be dispatched electronically to registered shareholders.
- 45th Annual General Meeting scheduled for Thursday, September 24, 2026, at 11:30 AM IST via VC/OAVM
- Cut-off date fixed as Thursday, September 17, 2026, for voting eligibility
- Annual Report and financial statements for FY ended March 31, 2026, to be circulated electronically
Khadim India Limited has received an outstanding amount of ₹31.97 crore along with applicable interest from Samagra Shiksha Abhiyan Authority (SSAA), Punjab. The payment follows an order dated May 05, 2026, by the Hon'ble High Court of Punjab and Haryana, which confirmed the June 27, 2022 arbitral award in the company's favour. The dispute involved withheld receivables and forfeited performance bank guarantees for a school shoes and uniform supply tender. This cash recovery is substantial, representing ~16.1% of the company's current market capitalisation of ₹198 crore and more than 10x its TTM net profit of ₹3 crore.
- Received outstanding dues of ₹31,96,86,729 (₹31.97 crore) along with applicable interest from SSAA Punjab
- Recovery follows the Punjab and Haryana High Court order dated May 05, 2026 upholding the arbitral award
- Settlement conclusively resolves the dispute originating from the tender for supply of school shoes and uniform
- Original arbitral award was passed on June 27, 2022, overturning an earlier adverse Mohali District Court order of August 16, 2023
Khadim India reported a weak set of results for Q1 FY27, with EPS declining to ₹0.28 from ₹0.46 in the same quarter last year. To support growth, the board approved a fundraise of ₹11.25 crore through the issuance of 10.23 lakh convertible warrants to promoters and non-promoters at ₹110 per share. This fundraise represents approximately 6.4% of the company's current market capitalization. The company continues to navigate a high debt-to-equity environment (1.49) while preparing for a structural demerger of its distribution business.
- EPS for Q1 FY27 fell to ₹0.28, a 39% decline compared to ₹0.46 in Q1 FY26.
- Approved issuance of 1,022,727 convertible warrants at ₹110 per share, totaling ₹11.25 crore.
- The warrant issue price of ₹110 represents a premium over the current market price of ₹96.
- Exceptional statutory impact of ₹1.82 crore (₹18.20 million) was noted in FY26 results due to new Labour Code adjustments.
- Consolidated results include a nominal loss of ₹0.02 million from the Bangladesh subsidiary.
Khadim India has received in-principle approval from the National Stock Exchange for the issuance of 10,22,727 fully convertible equity share warrants. This follows shareholder approval at an Extra-ordinary General Meeting (EGM) held on August 01, 2026. The company has committed to re-computing the issue price if required by SEBI (ICDR) Regulations, with a lock-in provision until any price differential is paid. This equity infusion is significant given the company's high debt-to-equity ratio of 1.49 and the recent decline in annual revenue from Rs 568 Cr in FY25 to Rs 367 Cr in FY26.
- Issuance of 10,22,727 fully convertible equity share warrants on a preferential basis.
- Shareholder approval secured via Special Resolution at the EGM on August 01, 2026.
- Commitment to re-compute issue price per ICDR Regulations if required by regulatory authorities.
- Warrants represent approximately 5.7% of the current market capitalization of Rs 177 Cr.
- Fundraise occurs against a backdrop of Rs 249 Cr total debt and a 1.49 D/E ratio.
Khadim India's shareholders have approved the issuance of up to 10,22,727 fully convertible equity share warrants on a preferential basis to both promoter and non-promoter groups. This move represents a potential equity dilution of approximately 5.6% based on the current share count. The capital infusion is critical for the company, which currently carries a high debt of ₹249 Cr against a net worth of ₹167 Cr (D/E 1.49). Additionally, the appointment of Mr. Sekhar Bhattacharjee as an Independent Director was ratified during the EGM held on August 01, 2026.
- Approval for issuance of up to 10,22,727 fully convertible equity share warrants on a preferential basis.
- Preferential allotment targets both Promoter/Promoter Group and Non-Promoter categories.
- Appointment of Mr. Sekhar Bhattacharjee as an Independent Director via Special Resolution.
- EGM attended by 77 members with 14 speaker shareholders raising queries to management.
- The warrant issue follows a period where the stock has seen a 63.7% price decline over 12 months.
Khadim India Limited held an Extraordinary General Meeting (EGM) on August 01, 2026, where shareholders approved the issuance of up to 10,22,727 fully convertible equity share warrants on a preferential basis. These warrants will be issued to both Promoter/Promoter Group and Non-Promoter categories, providing a potential capital infusion for the company. Additionally, the appointment of Mr. Sekhar Bhattacharjee as an Independent Director was ratified. The meeting saw participation from 77 members, with 14 shareholders raising queries to the management.
- Approval for issuance of up to 10,22,727 fully convertible equity share warrants on a preferential basis.
- Warrants to be allocated across Promoter and Non-Promoter categories.
- Appointment of Mr. Sekhar Bhattacharjee as an Independent Director approved via special resolution.
- EGM conducted on August 01, 2026, with 77 members attending via video conferencing.
- Management addressed queries from 14 speaker shareholders regarding the proposed resolutions.
Khadim India Limited held an Extraordinary General Meeting (EGM) on August 01, 2026, where shareholders approved the issuance of up to 10,22,727 fully convertible equity share warrants. These warrants will be issued on a preferential basis to both Promoter/Promoter Group and Non-Promoter categories. This capital infusion is significant given the company's high debt-to-equity ratio of 1.49 and a relatively small market cap of Rs 178 Cr. Additionally, the appointment of Mr. Sekhar Bhattacharjee as an Independent Director was ratified by the members.
- Approval for issuance of up to 10,22,727 fully convertible equity share warrants on a preferential basis
- Warrants to be allocated to both Promoter/Promoter Group and Non-Promoter categories
- Appointment of Mr. Sekhar Bhattacharjee as an Independent Director confirmed via special resolution
- Total of 77 members attended the meeting, with 14 speaker shareholders raising queries
- The EGM was conducted via video conferencing and concluded at 12:20 p.m. IST
Khadim India has issued a corrigendum to its EGM notice, reducing its proposed preferential warrant issue to 1,022,727 warrants at ₹110 each. The total fundraise is now capped at ₹11.25 Cr, representing approximately 6.5% of the company's current market capitalization. This adjustment follows feedback from NSE and BSE, resulting in the removal of one proposed allottee due to disqualification. The EGM remains scheduled for August 01, 2026, to seek shareholder approval for this capital infusion.
- Issue size reduced to 1,022,727 fully convertible equity share warrants at ₹110 per warrant.
- Total aggregate fundraise value adjusted to ₹11,24,99,970 (~₹11.25 Cr).
- One proposed allottee, Ms. Palak Sanjay Agarwal, removed from the list (originally 45,455 warrants) due to disqualification.
- Revised Valuation Report obtained on July 22, 2026, maintaining the offer price at ₹110.
- Warrants allotted to Promoters and Non-Promoters will be subject to a 1-year lock-in from the date of allotment.
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.
Geographic Concentration Risk
High concentration in East and South India; 886 stores are primarily located in these regions.
Third Party Dependencies
Significant dependency on 673 franchise-operated stores and 781 independent distributors for revenue generation.
Credit & Counterparty Risk
The company tightened credit periods in the distribution segment to reduce receivables (INR 100 crore turnover in H1 FY26) before the demerger.
