Financial Results (Standalone)

Quarterly Performance (Q4 FY26 vs Q4 FY25)

  • Total Income: ₹91.3 crore (vs ₹109.6 crore in Q4 FY25)
  • EBITDA: ₹8.0 crore (vs ₹9.7 crore in Q4 FY25)
  • EBITDA Margin: 8.8% (flat compared to Q4 FY25)
  • Net Profit: ₹4.1 crore (vs ₹5.0 crore in Q4 FY25)
  • Net Profit Margin: 4.5% (vs 4.6% in Q4 FY25)
  • Diluted EPS: ₹2.3 (vs ₹2.9 in Q4 FY25)
  • Interest Cost: ₹1.2 crore, down 40% from ₹2.0 crore in Q4 FY25

Annual Performance (FY26 vs FY25)

  • Total Income: ₹431.3 crore, up 55.4% from ₹277.5 crore in FY25 (highest ever annual revenue)
  • EBITDA: ₹39.0 crore, up 49.1% from ₹26.1 crore in FY25
  • EBITDA Margin: 9.0% (vs 9.4% in FY25, decline of 38.9 bps)
  • Net Profit: ₹20.8 crore, up 91.8% from ₹10.9 crore in FY25
  • Net Profit Margin: 4.8% (vs 3.9% in FY25, improvement of 91.4 bps)
  • Diluted EPS: ₹11.8, up 91.8% from ₹6.1 in FY25
  • Cash Flow from Operations: ₹25.3 crore generated during FY26
  • Return on Capital Employed (RoCE): Improved to 18% in FY26 from 12% in FY25

Key Performance Highlights

  • Achieved record annual revenue of ₹431.3 crore in FY26
  • Profit After Tax nearly doubled to ₹20.8 crore with margin expansion of 91.4 bps
  • Maintained flat depreciation charges with lower interest costs contributing to profit growth
  • Generated healthy cash flow from operations of ₹25.3 crore supporting growth funding
  • Significant improvement in Return on Capital Employed to 18% from 12% in previous year
  • Continued de-leveraging with long-term debt reduced from approximately ₹5 crore in FY25 to near-negligible levels in FY26
  • Interest cost declined by 40% in Q4 FY26 driven by reduction in borrowings and lower interest rates following CRISIL rating upgrade (to BBB/Stable from BBB-/Stable)

Business Segment Performance

Footwear Business

  • Revenue grew by 16% YoY to ₹208.7 crore in FY26
  • Strong momentum supported by new product launches and richer product mix
  • Q4 Footwear segment delivered 27% YoY growth driven by strong traction in premium and athleisure categories and distribution channel expansion
  • Commenced OEM supply in athleisure category, onboarding leading brands including Spykar, Red Chief, Cult Fit and Lee Cooper
  • Distribution channels widened for premium and fashion footwear
  • New Kundli (Sonipat) athleisure facility undergoing 5x phased capacity expansion (from ~1 lakh to ~5 lakh pairs per month)
  • Expected commercial operations commencement from Q2 FY27 onwards
  • GST Council's reduction of GST rate on footwear cited as significant tailwind expected to enhance affordability and widen addressable market

Toolkit Business

  • Segment revenue of ₹249.5 crore in FY26, emerging as meaningful second business engine
  • Cumulatively delivered approximately 2,00,000 toolkits under PM Vishwakarma Scheme during last 18 months
  • Consistently met quality standards and committed delivery timelines
  • PM Vishwakarma Scheme operates on efficient tech-enabled platform providing transparency and quick delivery & payment mechanism
  • Segment described as structurally asset-light with negligible working capital intensity
  • Return on Capital Employed of approximately 100% for toolkit business
  • Delivery-linked disbursements through tech-enabled PMVKY platform translate directly into strong operating cash flows
  • Union Budget for FY26–27 proposed allocation of ₹3,861 crore to PM Vishwakarma Scheme, substantially scaling up addressable opportunity
  • Company positioned with proven execution track record and established eligibility credentials for upcoming tenders

Management Commentary

Mr. Raj Kumar Agarwal, Chairman, stated: "FY26 has been a landmark year for Lehar Footwears. We have delivered our highest-ever annual revenue and profitability, meaningfully expanded our return ratios, and continued to strengthen the balance sheet. The investments we have made over last couple of years includes non-leather capacity, the launch of our athleisure brand Rannr, deeper distribution, BIS approved products, OEM manufacturing for reputed brands, and execution under the PM Vishwakarma Scheme. These are now translating into a more diversified and profitable business. With the new expanded Kundli athleisure facility scheduled to commence commercial operations in Q2FY27, a supportive GST regime, and a larger upcoming phase of the PM Vishwakarma Scheme, we believe Lehar is well-positioned to sustain growth momentum in FY27 and beyond."

Company Background

  • Incorporated in 1994 by Agarwal Family, headquartered in Jaipur, India
  • Leading manufacturer of non-leather mass footwear specializing in EVA, PVC, and PU injected footwear
  • Product portfolio includes slippers, sandals, school shoes, sports shoes, casual footwear, and athleisure products for men, women, and kids
  • Over 30 years of industry experience with continuous portfolio expansion including Single Mould EVA footwear and sports shoes under "RANNR" brand
  • Strong pan-India distribution network with 520+ distributors across 27 states
  • Exports to more than 20 countries under own brand
  • Manages approximately 1,300 active SKUs
  • Manufactures BIS-compliant products across four plants in Jaipur plus newly commissioned sports shoe manufacturing facility in Kundli, Haryana

Forward-Looking Statements Disclaimer

The document contains forward-looking statements subject to risks and uncertainties including government actions, local, political or economic developments, technological risks, and other factors that could cause actual results to differ materially. The company undertakes no obligation to publicly update these forward-looking statements.