KSR Footwear Limited reported a net loss of ₹48.27 million for the quarter ended June 30, 2025, marking its first standalone financial results following a significant corporate restructuring. The company generated revenue from operations of ₹520.61 million during the period. The absence of comparative figures in the filing has been clarified by management as a direct consequence of a demerger scheme sanctioned by the National Company Law Tribunal (NCLT), Kolkata Bench, which became effective on April 1, 2025. This structural change means no major business activity existed prior to the appointed date, rendering year-on-year comparisons inapplicable for this specific reporting window.

The National Stock Exchange of India Limited (NSE) had raised queries on July 17, 2026, regarding the interim audited financial statements submitted on November 27, 2025. In its response dated July 24, 2026, KSR Footwear addressed concerns about missing segment details and comparative data. The company stated that segment-wise reporting is not applicable as it operates solely in the footwear business. Furthermore, it confirmed that the financial results were submitted in machine-readable format and enclosed a high-resolution copy for record-keeping purposes.

Financial Performance Overview

For the quarter ended June 30, 2025, KSR Footwear’s total income stood at ₹526.03 million, comprising ₹520.61 million from operations and ₹5.42 million from other income. Total expenses amounted to ₹576.81 million, driven primarily by cost of materials consumed at ₹322.72 million and other expenses of ₹107.30 million. Employee benefits expense was recorded at ₹33.97 million, while finance costs totaled ₹8.87 million. Depreciation and amortization expense contributed ₹28.57 million to the total outflows. The company incurred a loss before tax of ₹50.78 million, which reduced to a net loss of ₹48.27 million after accounting for a deferred tax benefit of ₹2.51 million.

Balance Sheet and Cash Flow Position

As of June 30, 2025, the company’s total assets were valued at ₹2,061.95 million. Non-current assets included property, plant, and equipment worth ₹340.90 million and right-of-use assets of ₹332.19 million. Current assets totaled ₹732.94 million, dominated by financial assets of ₹472.36 million, which included trade receivables of ₹42.50 million and cash and cash equivalents of ₹40.62 million. On the liabilities side, total equity and liabilities matched the asset base at ₹2,061.95 million. Non-current borrowings stood at ₹358.17 million, while current financial liabilities included borrowings of ₹150.00 million and lease liabilities of ₹43.26 million.

Cash flow from operating activities generated a net inflow of ₹104.51 million, despite the operational loss. This positive cash generation was supported by an increase in trade payables and other liabilities by ₹84.86 million and a reduction in inventories contributing ₹71.28 million. However, investing activities consumed ₹51.77 million, largely due to investments in bank deposits of ₹146.30 million, partially offset by maturities of ₹96.88 million. Financing activities resulted in a net cash outflow of ₹20.95 million, primarily due to interest payments of ₹18.68 million.

What the Numbers Show

The most striking aspect of KSR Footwear’s debut quarter is the divergence between its accrual-based net loss and its robust operating cash flow. While the company reported a net loss of ₹48.27 million, it generated ₹104.51 million in cash from operations. This positive cash conversion is largely attributable to working capital management, specifically the extension of payment cycles to suppliers (trade payables increased significantly) and inventory drawdowns. Investors should note that this cash position is bolstered by the recent integration of Khadim India Limited’s distribution business, which may have altered the typical working capital dynamics of the footwear manufacturing segment. The absence of comparative data limits trend analysis, but the strong cash inflow suggests adequate liquidity to service its debt obligations, including ₹358.17 million in non-current borrowings.

KSR Footwear Ltd has accepted the resignation of Suvajit Choudhury from the position of Chief Financial Officer effective June 30, 2026, following his transfer to the Commercial Department. The company appointed Vikram Jeet Sharma as Deputy General Manager - Strategic Planning & Commercial, a Senior Management Personnel role, effective July 01, 2026. These organizational changes are part of a strategic HR initiative aimed at optimizing management resources.

Resignation of CFO

Mr. Suvajit Choudhury ceased to hold the position of Chief Financial Officer and Key Managerial Personnel at the close of business hours on June 30, 2026. The management decided to move him to a new role within the Commercial Department. The resignation was intimated to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Appointment of New Senior Management

Consequent to the organizational changes, Mr. Vikram Jeet Sharma joined ksr footwear on July 01, 2026. He brings over 24 years of experience in Finance & Accounts to the role of Deputy General Manager - Strategic Planning & Commercial.

Profile of Vikram Jeet Sharma

The disclosures regarding the appointment were made in accordance with Regulation 30 of the Listing Regulations read with the relevant SEBI Master Circular.