• Event Type: Q1 FY'27 Earnings Conference Call held with Investors/Analysts
  • Event Date and Time: Thursday, 06th August 2026 (specific time not mentioned)
  • Event Purpose: Discussion of Q1 FY'27 financial performance and business updates
  • Management Participants: Mr. Nikhil Aggarwal (Whole-Time Director and CEO), Mr. Uplaksh Tewary (COO), and Mr. Neeraj Gupta (Finance Controller)
  • Compliance Statement: The call contained forward-looking statements subject to risks and uncertainties beyond management's control
  • Financial Period Discussed: Q1 FY'27 (April-June 2026)
  • Forward-Looking Statements: Management expressed confidence in delivering mid-double-digit growth for FY'27 and maintaining EBITDA margins in the 17-19% range

Financial and Operational Highlights

  • Revenue Growth: 12.2% year-over-year
  • Volume Growth: 11.7% year-over-year
  • EBITDA Margin: Stable at 15.9%
  • Profit After Tax: Grew 17.7% year-over-year
  • Pricing Actions: Implemented 8% MRP increases across key product categories in April 2026
  • Cost Pressures: Absorbed Rs. 5 crores in additional labor costs from statutory minimum wage revisions and Rs. 2.5 crores in additional depreciation from new manufacturing facilities
  • Production: Recorded highest ever Q1 production, with July 2026 being the highest ever production month

Business Segment Performance

  • School Shoes Business: Revenue grew nearly 50% YoY, moved entirely from DIP to Stuck-On category
  • Sneaker Portfolio: Contributing 12-13% to volumes, targeting 30% growth for FY'27
  • Elan by Campus: New neo-casual footwear segment launched, selling in 100-110 company stores and online platforms at Rs. 1,899-2,599 price points
  • Channel Performance: Marketplace operations grew mid-double-digit, company-owned stores saw 20%+ SSG growth, brand.com grew over 100%

Operational Updates

  • Franchise Model Transition: Converted 158 franchise stores from outright business model to SOR (Stock on Return) model
  • Store Expansion: Opened 18 FOFO stores in Q1, targeting 80-120 store additions for FY'27
  • Manufacturing Capacity: Reduced annual assembly capacity from 36 million to 31 million pairs due to shutdown of DIP capacity
  • New Facilities: Commissioned and ramping up new manufacturing facilities at Paonta Sahib and Pantnagar

Additional Notes

  • Accounting Changes: Revised treatment for Walmart (Flipkart and Myntra) resulted in GT charges being netted off from sales, suppressing ASP by approximately 2.5%
  • Inventory Build-up: Proactively built inventory for festive season demand
  • Brand Refresh: Unveiled new logo in May 2026 to connect with younger audience
  • Geographic Performance: Strong growth in Gujarat, Maharashtra, MP, CG markets; expanding in Rajasthan