📈 Live Market Tracking
AI-Powered NSE Corporate Announcements Analysis
Khadim India Q3 FY26 Revenue Drops 21.8% YoY to ₹862.4 Mn; Reports Net Loss
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.
Key Highlights
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.
💼 Action for Investors
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 Q3 Results: Net Loss of ₹1.74 Mn; Revenue Drops 21.7% YoY to ₹862 Mn
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.
Key Highlights
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.
💼 Action for Investors
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
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.
Key Highlights
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.
💼 Action for Investors
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
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.
Key Highlights
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.
💼 Action for Investors
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.