KSR Footwear Limited has returned to profitability in the first quarter of FY27, reporting a net profit after tax of ₹3.17 million for the three months ended June 30, 2026. This marks a significant reversal from the net loss of ₹48.27 million recorded in the corresponding quarter of FY26. The result signals an operational stabilization for the footwear manufacturer, which had faced margin pressures in the preceding periods.

Total income from operations remained relatively flat at ₹524.53 million in Q1FY27, compared to ₹526.03 million in Q1FY26. For the full year ended March 31, 2026, the company reported total income of ₹2,054.66 million against a net loss after tax of ₹127.39 million. The quarterly profit before tax, before exceptional items, stood at ₹4.24 million, up from a loss of ₹50.78 million in the same quarter last year.

Financial Performance Overview

The company’s earnings per equity share (basic) improved to ₹0.17 in Q1FY27, reversing a loss per share of ₹2.63 in Q1FY26. Diluted earnings per share mirrored this trend at ₹0.17. Equity share capital remained constant at ₹183.78 million across all reported periods.

Impact of New Labour Codes

A key factor influencing the financial comparison is the accounting treatment of new regulatory requirements. On November 21, 2025, the Government of India notified four Labour Codes consolidating 29 existing laws. Subsequently, on May 8, 2026, the Ministry of Labour & Employment notified the respective Central Rules.

The company assessed the incremental impact of these changes and, considering their materiality and non-recurring nature, presented such impacts as "Statutory impact of new Labour Codes" under "Exceptional items" in the audited financial results for the quarter and year ended March 31, 2026. This classification isolated the regulatory cost burden in FY26, allowing the Q1FY27 results to reflect underlying operational performance without similar exceptional drag.

Regulatory Compliance and Forward Outlook

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at a meeting held on August 5, 2026. The company published advertisements in "Mint" (English) and 'Aajkal' (Bengali) on August 6, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regarding future liabilities, the company noted that the West Bengal Labour Department has published draft rules for objections but has yet to finalize them. KSR Footwear continues to monitor the finalization of State Rules and government clarifications, stating it will provide appropriate accounting effects based on such developments. The full statement of unaudited financial results is available on the company’s website and the stock exchange portals.

KSR Footwear Limited has authorized its Key Managerial Personnel (KMPs) to independently determine the materiality of events or information for the purpose of making disclosures to stock exchanges. The decision, taken by the Board of Directors, aims to streamline the company’s regulatory compliance workflow by empowering senior executives to assess and report material information promptly. This authorization is made pursuant to Regulation 30(5) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations).

The Board has jointly and/or severally authorized three specific executives to exercise this authority. These individuals are now responsible for evaluating whether an event or piece of information meets the threshold of materiality as defined by SEBI guidelines, thereby enabling faster and more efficient communication with investors and regulators.

The authorized personnel include:

All three executives share the same contact number, 0334 4009 0501, for official communications regarding these disclosures. Their respective email addresses are rittick.royburman@ksrfootwear.com , vikramjeet.sharma@ksrfootwear.com , and shikha.jindal@ksrfootwear.com .

Regulatory Context

Regulation 30(5) of the SEBI LODR Regulations mandates that listed entities must designate specific personnel who are authorized to determine the materiality of any event or information that requires disclosure to the stock exchanges. This provision ensures that there is a clear line of accountability and a defined process for assessing what constitutes material information, preventing delays in market-sensitive announcements.

By explicitly naming the KMPs, KSR Footwear Limited ensures compliance with this regulatory requirement while maintaining operational agility. The details of this authorization have been displayed on the company’s website at https://www.ksrfootwear.com for public access.

What This Means for Stakeholders

This structural change does not alter the nature of disclosures but rather optimizes the internal approval mechanism. Investors can expect that material events will be assessed and disclosed by the top leadership team without unnecessary bureaucratic layers. The involvement of the Company Secretary, Shikha Jindal, who also holds ICSI Membership No. A58192, ensures that legal and compliance standards are strictly adhered to during the materiality assessment process.

The intimation was submitted to both BSE Limited and National Stock Exchange of India Limited on August 05, 2026. The notice was signed digitally by Shikha Jindal, affirming the Board’s resolution.