💰 Financial Performance

Revenue Growth by Segment

Total revenue reached INR 1,592.96 Cr in FY25, a 9.99% increase from INR 1,448.29 Cr in FY24. In Q2 FY26, the Distribution channel grew by 20% YoY, while the Online channel saw a 6% growth, contributing to a total quarterly revenue of INR 386.6 Cr (up 16% YoY).

Geographic Revenue Split

North and East regions are the primary contributors, accounting for more than 50% of total revenue. The company is actively expanding in the South and West regions to diversify its geographic footprint and insulate against regional consumer preference shifts.

Profitability Margins

Net Profit (PAT) margin improved to 7.54% in FY25 (INR 121.18 Cr) from 6.18% in FY24 (INR 89.44 Cr). Q2 FY26 PAT stood at INR 20.1 Cr, representing a 40.4% YoY increase, driven by better operational efficiencies and volume growth.

EBITDA Margin

EBITDA margin for FY25 was 16.07% (INR 258.22 Cr) compared to 14.87% in FY24. In Q2 FY26, EBITDA grew 32.3% YoY to INR 55.0 Cr, though margins are expected to stabilize between 15-17% over the medium term as the company balances marketing spends and raw material costs.

Capital Expenditure

The company has planned a capital expenditure of approximately INR 230 Cr over FY26 and FY27. This investment is directed toward increasing manufacturing capacity for footwear uppers and assembly lines to support projected growth for the next two years.

Credit Rating & Borrowing

The company maintains a strong credit profile with an interest coverage ratio of 12.96 times in FY25. Gearing remained low at less than 0.50 times, supported by a net worth of over INR 743 Cr and minimal utilization of working capital lines (4% average utilization).

⚙️ Operational Drivers

Raw Materials

Key raw materials include chemicals for soles and fabrics/materials for footwear uppers. While specific % of total cost is not disclosed, the company uses price-locking contracts to mitigate volatility in these inputs.

Import Sources

Not specifically disclosed in the available documents, though the company emphasizes in-house manufacturing at its Ganaur and Haridwar units to reduce external sourcing dependency.

Capacity Expansion

Current sales volume reached 2.49 crore pairs in FY25. Planned expansion includes a INR 230 Cr capex for FY26-27 to increase captive production of uppers and assembly capacity, aiming to improve margins through backward integration.

Raw Material Costs

Raw material costs are managed through a 'regulated price pass-through' strategy to end consumers. The company is increasing captive production of uppers to reduce procurement costs and improve the material margin, which was recently impacted by a 0.4% headwind during the Haridwar 2 plant ramp-up.

Manufacturing Efficiency

Efficiency is driven by the Ganaur in-house sole unit and the rapid ramp-up of the Haridwar 2 plant. Captive production of uppers is a key lever for expected margin improvement to the 15-17% range.

Logistics & Distribution

Distribution is handled through a mix of trade channels (growing at 20%) and D2C. The company encourages channel partners to use cash discounts for timely payments to optimize the receivables cycle.

📈 Strategic Growth

Expected Growth Rate

10%+

Growth Strategy

Growth will be achieved through a double-digit revenue target supported by the expansion of the premium segment, increasing the count of 250 Exclusive Brand Outlets (EBOs), and a Go-To-Market (GTM) export strategy starting with high-quality partners in Sri Lanka.

Products & Services

Footwear, specifically sports and athleisure shoes, ranging from affordable to mid-luxury segments, including a growing premium portfolio.

Brand Portfolio

Campus

New Products/Services

Expansion of the 'Premium Segment' is a core focus, bolstered by distribution strength and capacity expansion, though specific revenue contribution % for new launches is not quantified.

Market Expansion

Targeting increased presence in South and West India to balance the current North/East concentration. Export markets are being entered via a branded GTM strategy rather than simple trading.

Market Share & Ranking

The company is noted for a 'healthy market position' in the footwear industry, competing with major players like Bata and Relaxo.

Strategic Alliances

The company has tied up with a high-quality partner in Sri Lanka for its export debut.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward premiumization and organized retail. Campus is positioning itself by expanding its EBO footprint and premium product range to capture this 10-15% industry growth trend.

Competitive Landscape

Intense competition from established players like Bata, Liberty, Lancer, and Relaxo (Sparx), as well as growing pressure from international brands.

Competitive Moat

The moat is built on a four-decade-long promoter experience, strong brand recall, and a backward-integrated manufacturing model that allows for cost control and design flexibility, which is difficult for unorganized players to replicate.

Macro Economic Sensitivity

The business is sensitive to macroeconomic shifts and consumer spending power in the affordable to mid-luxury footwear segments.

Consumer Behavior

Shifting preferences toward 'athleisure' and premium footwear; Campus is responding by diversifying its product portfolio and increasing its online presence (6% growth).

Geopolitical Risks

Exposure to international brands entering the Indian market and potential trade barriers for export expansion into regions like Sri Lanka.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and Indian Accounting Standards (Ind AS). The company maintains an Internal Financial Control (IFC) system to ensure compliance and asset safeguarding.

Taxation Policy Impact

The company incurred tax expenses of INR 42.76 Cr in FY25, up from INR 30.59 Cr in FY24, following the increase in Profit Before Tax.

Legal Contingencies

The company affirms that there have been no instances of fraud requiring the reporting of material misstatements in operations as of the FY25 report.

⚠️ Risk Analysis

Key Uncertainties

Stretched working capital cycles and inventory management remain key monitorables, as higher lead times for multiple channels can trap cash.

Geographic Concentration Risk

Over 50% of revenue is concentrated in the North and East regions of India.

Third Party Dependencies

While backward integrated, the company still faces risks from the 'price sensitivity' of its target segment which limits its ability to offset third-party raw material spikes.

Technology Obsolescence Risk

Risk of competitive designs and changing customer preferences; mitigated by an in-house design team and rapid manufacturing cycles.

Credit & Counterparty Risk

Receivables are influenced by sales to large format stores with higher credit periods; mitigated by encouraging channel partners to take cash discounts for early payment.