KSR Footwear Limited reported a standalone net profit of ₹3.17 million for the quarter ended June 30, 2026 (Q1FY26), reversing a net loss of ₹48.27 million in the same period last year. This turnaround signals improved operational efficiency and cost management for the footwear manufacturer, offering relief to investors after a challenging FY26 where the company posted an annual net loss of ₹127.39 million.

The Board of Directors approved the unaudited financial results at its meeting held on August 05, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by M/s. Agarwal & Associates, the statutory auditors, in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Revenue from operations rose slightly by 0.4% year-on-year to ₹522.50 million in Q1FY26, compared to ₹520.61 million in Q1FY25. However, this growth was slower than the sequential decline observed in the preceding quarter, where revenue stood at ₹602.86 million. Other income decreased significantly to ₹2.03 million from ₹5.42 million in the corresponding period last year, reflecting lower non-operating gains.

Total expenses for the quarter were ₹520.29 million, down from ₹576.81 million in Q1FY25. This reduction was primarily driven by a decrease in cost of materials consumed and favorable changes in inventories. Cost of materials consumed stood at ₹395.25 million, while purchases of stock-in-trade dropped to ₹15.83 million from ₹18.81 million in the prior year quarter.

Profit before tax improved to ₹4.24 million from a loss of ₹50.78 million in Q1FY25. The company recorded a deferred tax expense of ₹1.07 million, compared to a deferred tax benefit of ₹2.51 million in the previous year quarter. Earnings per share (basic) were ₹0.17, up from a loss of ₹2.63 per share in Q1FY25.

What the Numbers Show

The most significant driver of the quarterly profitability was the sharp improvement in pre-tax margins, which turned positive despite only marginal revenue growth. While revenue remained relatively flat YoY, the company successfully reduced total expenses by nearly ₹56.52 million compared to Q1FY25. This suggests effective control over operating costs and inventory management, as indicated by the negative change in inventories of finished goods and work-in-progress, which contributed positively to the bottom line. The absence of exceptional items in Q1FY26, unlike the statutory impact of new Labour Codes recognized in FY26, also aided the cleaner profit presentation.

Management Changes

In addition to approving the financial results, the Board appointed Mr. Vikram Jeet Sharma as the Chief Financial Officer (Key Managerial Personnel) with effect from August 05, 2026. Mr. Sharma brings over 24 years of experience in Finance & Accounts. He joined KSR Footwear Limited as Deputy General Manager - Strategic Planning & Commercial on July 01, 2026. Prior to this, he was associated with Khadim India Limited since January 2006. He is an Associate Member of the Institute of Chartered Accountants of India and holds a Bachelor's degree in Commerce from the University of Calcutta.

KSR Footwear Limited has completed the dispatch of its Annual Report for the financial year ended March 31, 2026 (FY26), along with the notice convening its third Annual General Meeting (AGM). The company published advertisements in ‘Mint’ and ‘Aajkal’ on August 03, 2026, to inform shareholders of the statutory communication under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The AGM is scheduled for Monday, August 24, 2026, at 11:30 a.m. IST, conducted exclusively via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). This update ensures shareholders can vote on key governance matters, including the re-appointment of the Managing Director, while accessing the company’s latest financial performance data.

The primary agenda item is the re-appointment of Mr. Rittick Roy Burman as a Director. Mr. Burman retires by rotation and has offered himself for re-election. He currently serves as the Managing Director, a role he assumed effective April 16, 2025, for a term of three consecutive years. Shareholders holding shares as of the cut-off date, Monday, August 17, 2026, are eligible to vote. The company has enabled remote e-voting facilities through National Securities Depository Limited (NSDL). The voting window opens at 9:00 a.m. IST on Friday, August 21, 2026, and closes at 5:00 p.m. IST on Sunday, August 23, 2026.

Director Re-Appointment Details

Mr. Rittick Roy Burman, a member of the promoter group, brings over nine years of experience in the footwear industry, with expertise in operations, manufacturing, and retailing. He also serves as the Managing Director of Khadim India Limited. Notably, Mr. Burman has voluntarily opted to work without remuneration until the company’s business is fully revived. His last drawn remuneration, as per the audited balance sheet dated March 31, 2026, was nil. This decision reflects management’s focus on stabilizing operations before resuming standard compensation structures. He attended all eight board meetings held during FY26.

Meeting Logistics and Shareholder Instructions

Shareholders must register their email addresses with their Depository Participants (DPs) or the Registrar & Share Transfer Agent, MUFG Intime India Private Limited, to receive the AGM notice and annual report electronically. For those without registered emails, a physical letter containing a weblink to access documents was sent pursuant to Regulation 36(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The facility for appointing proxies is not available for this VC/OAVM meeting.

Members wishing to speak or ask questions must register between August 10, 2026, and August 17, 2026, by emailing compliance@ksrfootwear.com . The company reserves the right to limit the number of speakers and questions to ensure smooth conduct. Additionally, all dividend payments will be made electronically only, as per SEBI mandates, requiring shareholders to update their bank details with their DPs. Mr. A.K. Labh of M/s. A.K. Labh & Co., Company Secretaries, Kolkata, has been appointed as the scrutinizer for the e-voting process.