Khadim India FY26 Net Profit Falls to Rs 31.39 Million

2 min read     Updated on 21 May 2026, 01:35 AM
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Khadim India Limited announced its audited financial results for the year ended March 31, 2026, reporting a net profit of Rs 31.39 million, a decrease from Rs 51.95 million in the previous year. Revenue from operations fell to Rs 3,670.95 million from Rs 4,180.33 million, impacted by a demerger and exceptional items related to new Labour Codes. The Board re-appointed M/s. Ray & Ray as Statutory Auditors for a second term of five years, subject to shareholder approval.

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Khadim India Limited announced its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The Board of Directors approved the results during a meeting held on May 20, 2026. The auditors issued an un-modified opinion on the financial statements.

Financial Performance

For the financial year ended March 31, 2026, the company reported a net profit of Rs 31.39 million, a decrease from Rs 51.95 million in the previous year. Revenue from operations for the year stood at Rs 3,670.95 million, compared to Rs 4,180.33 million in the prior year. Total income for the period was Rs 3,778.67 million.

For the quarter ended March 31, 2026, the net profit was Rs 7.73 million, while revenue from operations was Rs 835.55 million. Total income for the quarter stood at Rs 861.66 million.

The company reported an exceptional item of Rs 18.20 million for the financial year related to the impact of new Labour Codes. Profit before tax from continuing operations for the year was Rs 50.23 million.

Segment and Operational Details

The company is primarily engaged in the footwear and accessories business segment. The financial results reflect the impact of a demerger effective from May 1, 2025, wherein the distribution business was transferred to KSR Footwear Limited (KFL). Consequently, the results of the distribution business up to the appointed date have been disclosed as discontinued operations.

Consolidated Results

On a consolidated basis, the net profit for the financial year was Rs 30.99 million. Revenue from operations remained consistent with the standalone figures at Rs 3,670.95 million. Total comprehensive income for the year was Rs 36.34 million.

Auditor Re-appointment

The Board approved the re-appointment of M/s. Ray & Ray, Chartered Accountants, as Statutory Auditors for a second term of five years. This appointment is subject to the approval of the members and will commence from the conclusion of the 45th Annual General Meeting until the conclusion of the 50th AGM to be held in the financial year 2031-32.

Key Financial Metrics

Particulars 12 Months ended March 2026 (Rs in Millions) 12 Months ended March 2025 (Rs in Millions)
Revenue From Operations 3,670.95 4,180.33
Total Income 3,778.67 4,284.22
Total Expenses 3,710.24 4,064.10
Net Profit 31.39 51.95
Earnings Per Share (Basic) 1.71 2.83

Historical Stock Returns for Khadim

1 Day5 Days1 Month6 Months1 Year5 Years
-3.10%+7.13%+0.16%-50.82%-63.85%-19.09%

How will the demerger of the distribution business to KSR Footwear Limited impact Khadim India's revenue trajectory and profitability over the next two to three fiscal years?

What strategic initiatives is Khadim India planning to offset the ~12% revenue decline and restore net profit growth in FY2027?

How might the implementation of new Labour Codes continue to create exceptional financial impacts on Khadim India's cost structure in upcoming quarters?

High Court of Punjab and Haryana Confirms Arbitral Award in Favour of Khadim India Limited

2 min read     Updated on 14 May 2026, 02:22 AM
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The Hon'ble High Court of Punjab and Haryana, Chandigarh, vide its order dated May 05, 2026, confirmed the Arbitral Award dated June 27, 2022, in favour of Khadim India Limited, rejecting the District Court at Mohali's order of August 16, 2023, which had set aside the award. The dispute involved withholding of receivables of ₹ 32,00,00,000/- (approx.) and forfeiture of Performance Bank Guarantees by Samagra Shiksha Abhiyan Authority (SSAA), Punjab. The Arbitral Award had entitled Khadim India to ₹ 31,96,86,729/- with interest @ 9% p.a., refund of Performance Bank Guarantees of ₹ 1,50,00,000/- and ₹ 35,00,000/- with interest @ 4.5% p.a., plus proportionate Cost of Arbitration. The Company disclosed this development to the stock exchanges on May 13, 2026, under Regulation 30 of SEBI (LODR) Regulations, 2015.

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Khadim India Limited has received a significant legal victory after the Hon'ble High Court of Punjab and Haryana, Chandigarh, confirmed the Arbitral Award dated June 27, 2022, which was passed in favour of the Company. The order, dated May 05, 2026, was received by the Company on May 12, 2026, and was disclosed to the stock exchanges on May 13, 2026, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Dispute

The matter stems from a dispute between Khadim India and Samagra Shiksha Abhiyan Authority (SSAA), Punjab, through Director General School Education-cum-State Project Director (DG-School) ("the Tenderer"), relating to a tender for supply of school shoes and uniform. The Tenderer, vide its order dated August 28, 2020, withheld receivables of ₹ 32,00,00,000/- (Rupees Thirty Two Crores) (approx.) and forfeited Performance Bank Guarantees of ₹ 1,50,00,000/- (Rupees One Crore Fifty Lakhs) and ₹ 35,00,000/- (Rupees Thirty Five Lakhs). Aggrieved by these actions, Khadim India pursued legal recourse and entered into arbitration before an Arbitral Panel.

Arbitral Award and Subsequent Legal Proceedings

The Arbitral Panel, on June 27, 2022, passed an award in favour of Khadim India. The key details of the award and subsequent proceedings are summarised below:

Parameter: Details
Arbitral Award Date: June 27, 2022
Award Amount: ₹ 31,96,86,729/- (Rupees Thirty One Crores Ninety Six Lakhs Eighty Six Thousand Seven Hundred and Twenty Nine)
Interest on Award Amount: @ 9% p.a.
Performance Bank Guarantee Refund: ₹ 1,50,00,000/- and ₹ 35,00,000/-
Interest on Bank Guarantee Refund: @ 4.5% p.a.
Additional Relief: Proportionate Cost of Arbitration
District Court Order (Mohali): August 16, 2023 — Set aside the Arbitral Award in favour of the Tenderer
Company's Appeal Filed: October 31, 2023, before the Hon'ble High Court of Punjab and Haryana, Chandigarh
High Court Order Date: May 05, 2026
High Court Outcome: Confirmed Arbitral Award in favour of Khadim India; rejected District Court order

Timeline of Regulatory Disclosures

Khadim India has been consistently disclosing the progress of this litigation to the stock exchanges in accordance with SEBI regulations. The Company had made prior disclosures on:

  • August 11, 2023: Initial disclosure regarding the pendency of litigation and details of the Arbitral Award dated June 27, 2022.
  • October 31, 2023: Disclosure informing that the Learned District Court at Mohali had set aside the Arbitral Award vide its order dated August 16, 2023, and that the Company had filed an appeal before the Hon'ble High Court of Punjab and Haryana, Chandigarh.
  • May 13, 2026: Disclosure confirming that the Hon'ble High Court of Punjab and Haryana, Chandigarh, vide its order dated May 05, 2026, confirmed the Arbitral Award in favour of the Company.

High Court Order Restores Award in Company's Favour

The Hon'ble High Court of Punjab and Haryana, Chandigarh, vide its order dated May 05, 2026, confirmed the Arbitral Award dated June 27, 2022, which was originally passed in favour of Khadim India. The High Court simultaneously rejected the order dated August 16, 2023, passed by the Learned District Court at Mohali, which had set aside the Arbitral Award in favour of the Tenderer. The disclosure was made by Abhijit Dan, Group Company Secretary & Head – Legal, Khadim India Limited, on May 13, 2026.

Historical Stock Returns for Khadim

1 Day5 Days1 Month6 Months1 Year5 Years
-3.10%+7.13%+0.16%-50.82%-63.85%-19.09%

Will Samagra Shiksha Abhiyan Authority appeal the High Court's decision to the Supreme Court, and how might that affect the timeline for Khadim India to actually recover the awarded funds?

How will the recovery of approximately ₹32 crores plus accumulated interest at 9% p.a. since 2022 impact Khadim India's balance sheet, working capital position, and future expansion plans?

Could this legal victory strengthen Khadim India's competitive positioning in future government tender bids, particularly in the school footwear and uniform segment across other states?

More News on Khadim

1 Year Returns:-63.85%