SREEL - Sreeleathers
📢 Recent Corporate Announcements
Sreeleathers Limited has announced an interim dividend of ₹1 per equity share (10% of face value) for the financial year 2025-26. The company has established February 13, 2026, as the record date to identify eligible shareholders for this payout. Dividends will be paid on or before February 25, 2026, subject to applicable Tax Deduction at Source (TDS). Resident shareholders with a valid PAN will incur a 10% TDS, while those without a linked PAN/Aadhaar will face a 20% deduction.
- Interim dividend declared at ₹1 per equity share of ₹10 face value.
- Record date for dividend eligibility is fixed as February 13, 2026.
- Dividend payment to be processed on or before February 25, 2026.
- TDS of 10% applicable for resident shareholders with valid PAN; 20% for others.
- No TDS deduction for resident individuals if total annual dividend is up to ₹10,000.
Sreeleathers Limited has announced an interim dividend of Re. 1 per equity share for the financial year 2025-26, which is 10% of the face value of Rs. 10. The company has fixed February 13, 2026, as the record date to identify eligible shareholders for this payout. The dividend is scheduled to be paid to the members on or before February 25, 2026. This announcement follows the board meeting held on February 6, 2026, where the dividend was officially declared.
- Interim dividend of Re. 1 per equity share declared for FY 2025-26
- Record date for dividend entitlement fixed as February 13, 2026
- Dividend payment date scheduled for February 25, 2026
- Dividend represents 10% of the face value of Rs. 10 per share
Sreeleathers Limited has declared an interim dividend of ₹1 per equity share (10% of face value) for FY 2025-26, with a record date of February 13, 2026. The company reported a strong Q3 FY26 performance, with revenue from operations growing 9.9% YoY to ₹60.90 crore. Net profit for the quarter increased significantly by 21% YoY to ₹7.53 crore, up from ₹6.23 crore in the previous year. For the nine-month period ended December 2025, the company maintained its growth trajectory with a net profit of ₹19.07 crore.
- Declared interim dividend of ₹1 per share (10% of face value) with payment by February 25, 2026.
- Q3 FY26 Revenue from operations increased to ₹60.90 crore vs ₹55.42 crore YoY.
- Net Profit for the quarter rose 21% YoY to ₹7.53 crore from ₹6.23 crore.
- Nine-month (9M) Net Profit grew to ₹19.07 crore compared to ₹17.28 crore in the previous year.
- Basic EPS for the quarter improved to ₹3.25 from ₹2.69 in the corresponding quarter last year.
Sreeleathers Limited reported a steady performance for Q3 FY26, with net profit increasing by 21% year-on-year to ₹7.53 crore. Revenue from operations grew 9.9% YoY to ₹60.90 crore, although it saw a sequential decline from ₹74.71 crore in Q2 FY26. The company has rewarded shareholders with an interim dividend of ₹1 per share, representing 10% of the paid-up capital. For the nine-month period ended December 2025, the company maintained growth with a total income of ₹188.66 crore compared to ₹167.30 crore in the previous year.
- Net Profit for Q3 FY26 stood at ₹753.13 lakhs, up from ₹622.53 lakhs in Q3 FY25.
- Revenue from operations increased to ₹6,090.04 lakhs in Q3 FY26 vs ₹5,541.89 lakhs in the same quarter last year.
- Declared an interim dividend of ₹1.00 per equity share (10%) with a record date of February 13, 2026.
- 9M FY26 Net Profit reached ₹1,907.15 lakhs, a 10.4% growth over 9M FY25.
- Recognized a small exceptional item of ₹6.41 lakhs due to one-time gratuity liability adjustments under new Labour Codes.
Sreeleathers Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The document confirms that for the quarter ended December 31, 2025, all dematerialization requests were processed in accordance with regulations. The company's Registrar and Share Transfer Agent, Niche Technologies Pvt. Ltd., verified that physical certificates were mutilated and cancelled. This is a standard procedural filing to ensure the accuracy of the company's shareholding records.
- Compliance with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- Covers the reporting period for the quarter ended December 31, 2025.
- Confirmation provided by Registrar & Share Transfer Agent, Niche Technologies Pvt. Ltd.
- Verification that security certificates were mutilated and cancelled after dematerialization.
- Ensures that the name of the depository has been substituted in the register of members.
Sreeleathers Limited has informed stock exchanges that its trading window for dealing in company securities will be closed starting January 1, 2026. This closure is a mandatory regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the financial results for the quarter are officially declared. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure to take effect from January 1, 2026.
- Closure pertains to the financial results for the quarter ended December 31, 2025.
- Restriction applies to all designated persons and their immediate relatives as per SEBI norms.
- Trading window will reopen 48 hours after the quarterly results are announced to the exchanges.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment (Footwear and Leather). Revenue from operations for H1 FY26 reached INR 124.81 Cr, representing a 12.08% YoY growth compared to INR 111.36 Cr in H1 FY25. Q2 FY26 revenue was INR 74.77 Cr, up 19.33% from INR 62.66 Cr in Q2 FY25.
Geographic Revenue Split
Not disclosed in available documents; however, the company is headquartered in Kolkata, West Bengal, which serves as its primary operational hub.
Profitability Margins
Net Profit Margin for FY25 was 10.26%, a decline from 12.33% in FY24. Operating Profit Margin also decreased to 14.70% in FY25 from 16.98% in FY24, indicating rising operational costs or pricing pressures in the retail footwear market.
EBITDA Margin
Operating Profit Margin stood at 14.70% for FY25, reflecting a 13.43% YoY decrease from 16.98%. This compression suggests that while sales are 'satisfactory,' the cost of goods sold or administrative overheads are growing faster than top-line revenue.
Capital Expenditure
Total Property, Plant, and Equipment (including Right of Use Assets) was valued at INR 148.84 Cr as of September 30, 2025, compared to INR 149.27 Cr in March 2025, suggesting minimal new net CapEx during the half-year period.
Credit Rating & Borrowing
The company maintains a very low Debt-Equity Ratio of 0.01 (with leases considered as debt). Interest Coverage Ratio improved to 143.01 in FY25 from 123.28 in FY24, indicating extremely high capacity to meet interest obligations from earnings.
Operational Drivers
Raw Materials
Leather, rubber, and synthetic materials used for footwear and accessories. Specific percentage of total cost for each material is not disclosed.
Import Sources
Not specifically disclosed in the documents, though the company notes that availability and pricing of raw materials are crucial factors for operational stability.
Capacity Expansion
Not disclosed in available documents; however, the company maintains a significant asset base with Property, Plant, and Equipment valued at INR 148.84 Cr.
Raw Material Costs
Raw material costs are a 'crucial factor' impacting operations. While specific YoY % changes for procurement are not listed, the decline in Net Profit Margin from 12.33% to 10.26% suggests higher input or procurement costs.
Strategic Growth
Expected Growth Rate
12%
Growth Strategy
Growth is driven by maintaining 'satisfactory' sales performance and leveraging a strong balance sheet with INR 473.89 Cr in equity. The strategy involves managing cyclical demand trends and focusing on society-centric contributions (CSR) to build brand equity, alongside maintaining a nearly debt-free status to allow for flexible capital allocation.
Products & Services
Footwear (shoes, sandals), leather bags, belts, and other leather accessories.
Brand Portfolio
Sreeleathers
External Factors
Industry Trends
The industry is subject to cyclical demand and pricing trends. The company is positioning itself by maintaining high liquidity, with Current Assets of INR 343.28 Cr as of September 2025, to navigate market fluctuations.
Competitive Landscape
The company faces competition in the primary footwear markets, evidenced by the pressure on margins (Net Profit Margin down to 10.26%).
Competitive Moat
The company's moat is built on its strong brand recognition in the leather footwear segment and a robust, debt-free balance sheet (Debt-Equity 0.01), which provides a significant margin of safety against industry downturns.
Macro Economic Sensitivity
Highly sensitive to economic developments in India and changes in consumer spending patterns, as footwear is a consumer-discretionary item.
Consumer Behavior
Demand is cyclical, meaning revenue is likely tied to festive seasons and wedding periods in India.
Regulatory & Governance
Industry Regulations
Operations are impacted by alterations in government regulations and tax regimes related to the leather and footwear industry.
Taxation Policy Impact
The company is subject to Indian corporate tax laws and GST regimes. Current Tax Assets stood at INR 0.33 Lakhs as of September 2025.
Legal Contingencies
The company has disclosed the impact of pending litigation on its financial position as of March 31, 2025, though specific case values were not detailed in the summary.
Risk Analysis
Key Uncertainties
Raw material price volatility and cyclical demand are the primary risks. A 25% or greater change in key ratios like Inventory Turnover (which increased 27.83%) indicates potential risks in working capital efficiency.
Geographic Concentration Risk
Not disclosed, but likely concentrated in Eastern India based on the Kolkata headquarters.
Third Party Dependencies
Dependency on raw material suppliers is noted as a 'crucial factor,' though no specific vendor names are provided.
Technology Obsolescence Risk
The company uses accounting software with database-level logging to prevent unauthorized data changes, indicating a focus on digital integrity for financial reporting.
Credit & Counterparty Risk
Trade receivables are low at INR 77.88 Lakhs (Sept 2025) compared to revenue, indicating a primarily cash-and-carry retail model with low credit risk. Debtors to Sales ratio is only 0.68 days.