Disclosure Context

Khadim India Limited (Scrip Code: 540775, NSE Symbol: KHADIM) submitted an investor presentation containing audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The submission was made to BSE Limited and National Stock Exchange of India Limited on May 26, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The document was signed by ABHIJIT DAN, Group Company Secretary & Head – Legal (ICSI Membership No. A21358).

Company Overview

Business Model: Operates an asset-light retail model with 78% of retail presence through franchise route and 100% outsourcing of product requirements.

Market Position: Second largest footwear retailer in India with largest presence in East India and one of the top three players in South India. Maintains the largest footwear retail franchise network in India.

Geographic Reach: Retail presence across 23 states and 4 union territories with 851 'Khadim's' branded retail stores as of March 2026.

Capabilities: Strong design capabilities focused on understanding domestic and global fashion trends, creating sub-brands, driving premiumization, and targeting aspirational customers.

Q4 FY26 Financial Performance

Revenue: ₹835.6 million, representing a decrease of 10.9% Year-over-Year (YoY) and 3.1% Quarter-over-Quarter (QoQ).

Gross Profit: ₹430.7 million with gross margin of 51.5%, down 720 basis points YoY.

EBITDA before exceptional items: ₹119.1 million, down 25.5% sequentially, with EBITDA margin of 14.3%.

Profit After Tax (PAT): ₹7.7 million with PAT margin of 0.9%, down 23.5% YoY.

Cost Structure:

  • Cost of materials consumed: ₹22.3 million
  • Purchase of stock-in-trade: ₹446.2 million
  • Changes in inventories: -₹63.7 million
  • Employee benefits expense: ₹118.1 million
  • Other expenses: ₹193.5 million
  • Depreciation: ₹65.7 million
  • Finance costs: ₹64.8 million
  • Other income: ₹26.1 million

FY26 Full Year Financial Performance

Revenue: ₹3,671.0 million, down 12.2% YoY.

Gross Profit: ₹1,796.4 million with gross margin of 48.9%, down 550 basis points YoY.

EBITDA: ₹491.1 million with EBITDA margin of 13.4%.

Profit After Tax (PAT): ₹31.4 million with PAT margin of 0.9%, down 39.6% YoY.

Cost Structure (FY26):

  • Cost of materials consumed: ₹56.5 million
  • Purchase of stock-in-trade: ₹1,736.4 million
  • Changes in inventories: ₹81.7 million
  • Employee benefits expense: ₹480.1 million
  • Other expenses: ₹825.3 million
  • Depreciation: ₹267.9 million
  • Finance costs: ₹262.4 million
  • Other income: ₹107.7 million
  • Exceptional items: -₹18.2 million

Standalone Balance Sheet (as of March 31, 2026)

Total Assets: ₹5,466.8 million (compared to ₹7,612.9 million in Mar'25)

Non-Current Assets: ₹1,926.8 million

  • Property, plant and equipment: ₹487.5 million
  • Right of use assets: ₹1,050.3 million
  • Financial assets: ₹177.0 million (Investments: ₹2.0 million, Others: ₹175.0 million)
  • Deferred tax assets (net): ₹99.6 million
  • Income tax assets (net): ₹32.0 million
  • Other non-current assets: ₹68.9 million

Current Assets: ₹3,540.0 million

  • Inventories: ₹1,288.9 million
  • Trade receivables: ₹1,863.8 million
  • Cash and cash equivalents: ₹17.4 million
  • Other bank balances: ₹86.2 million
  • Other financial assets: ₹28.4 million
  • Other current assets: ₹255.2 million

Total Equity: ₹1,671.1 million (compared to ₹2,516.6 million in Mar'25)

Non-Current Liabilities: ₹1,237.5 million

  • Financial liabilities - Borrowings: ₹140.0 million
  • Lease liabilities: ₹1,091.6 million
  • Provisions: ₹5.9 million

Current Liabilities: ₹2,558.2 million

  • Financial liabilities - Borrowings: ₹1,078.4 million
  • Lease liabilities: ₹181.6 million
  • Trade payables: ₹1,129.1 million (including ₹13.2 million dues to micro/small enterprises)
  • Other financial liabilities: ₹118.3 million
  • Other current liabilities: ₹42.2 million
  • Provisions: ₹8.7 million

Business Strategy and Outlook

Retail Business Focus: Expanding retail footprint in South India, West India, and Uttar Pradesh in North India. Strategy includes entering new markets through company-owned, company-operated (COCO) stores and augmenting presence through franchisees.

Target Segment: Middle and upper middle-income consumers in metros (including mini metros), Tier I-III cities.

Product Range: Price range from ₹123 to ₹6,499 covering leather/non-leather sandals, slippers, boots, ballerinas, stilettos, moccasins, sports shoes and accessories (socks, shoe polishes, brushes, leather belts, wallets, laptop bags).

Sourcing: 100% outsourced with smaller quantities of premium high-quality products.

Brand Positioning: 'Affordable Fashion' brand catering to the entire family for all occasions, positioned to address approximately 85% of the total Indian footwear market potential.

Management Team

Mr. Siddhartha Roy Burman: Executive Chairman with 43+ years of experience in footwear industry, responsible for overall strategic decision making.

Mr. Rittick Roy Burman: Managing Director, commerce graduate from University of Calcutta, management graduate from University of California, Berkeley, responsible for long-term strategy.

Mr. Ritoban Roy Burman: Non-Executive Non-Independent Director, graduate in Mass Communication from St. Xavier's College, Kolkata, previously worked as Manager-Marketing at Khadim from 2013-2017.

Mr. Alok Chauthmal Churiwala: Non-Executive Independent Director with 28+ years of experience in capital markets, IIM-A & ISB alumnus, third generation stockbroker and angel investor.

Prof. (Dr.) Surabhi Banerjee: Non-Executive Independent Director with 38 years of experience as an academician, former Vice Chancellor of Central University of Orissa, Gour Banga University and Netaji Subhas Open University.

Mr. Indrajit Chaudhuri: Group Chief Financial Officer with 25+ years of experience in finance & accounts, taxation and strategic planning, previously associated with P. G. Shah and Co.

Mr. Aranya Ray: GM - Supply Chain Management with 26+ years of experience in supply chain operations, buying and merchandising, previously worked with ICI India Limited and ITC Limited.

Mr. Kaushik Dutta: AGM - Sales with 22+ years of experience in retail sales and marketing, leads entire Retail and E-commerce business, previously associated with Pantaloons Retail India Limited.