Lehar Footwears FY26 profit soars 92%, revenue surges 56%
Lehar Footwears reported a 92% increase in FY26 net profit to ₹20.8 crore, driven by a 56% rise in revenue to ₹431.1 crore. The company improved its RoCE to 18% and significantly reduced debt to ₹1 crore. Growth was led by the Footwear and Toolkit segments, with new capacity at Kundli set to commence operations in Q2FY27.
*this image is generated using AI for illustrative purposes only.
Lehar Footwears has announced its audited financial results for the quarter and year ended March 31, 2026, reporting its highest-ever annual revenue and profitability. The company delivered a breakout performance in FY26, with net profit rising 92% to ₹2083.82 lakh from ₹1086.90 lakh in the previous year. Total income for the year grew to ₹43131.93 lakh, a 55.4% increase compared to ₹27748.00 lakh in FY25. The strong performance was supported by a healthy balance sheet, with long-term debt reducing from a peak of ₹15 crore in FY23 to ₹1 crore in FY26, and the Return on Capital Employed (RoCE) improving to 18% from 12% in the prior year.
Financial Performance
For the full year, revenue from operations increased to ₹43110.93 lakh, up from ₹27721.28 lakh in the prior year. The company’s profit before tax for the year stood at ₹2801.55 lakh, compared to ₹1444.40 lakh in the previous fiscal year. EBITDA for the year rose 49.1% to ₹3900 lakh, with an EBITDA margin of 9.0%. For the quarter ended March 31, 2026, the company reported a net profit of ₹414.05 lakh and revenue from operations of ₹9126.09 lakh. Interest cost declined by 40% to ₹12 lakh in Q4 FY26 from ₹20 lakh in Q4 FY25, driven by a reduction in borrowings and a rating upgrade by CRISIL to BBB/Stable.
| Particulars | Year Ended 31 Mar 26 (₹ in lakhs) | Year Ended 31 Mar 25 (₹ in lakhs) |
|---|---|---|
| Revenue from operations | 43110.93 | 27721.28 |
| Total Income | 43131.93 | 27748.00 |
| Total Expenses | 40330.38 | 26303.61 |
| Profit before tax | 2801.55 | 1444.40 |
| Net Profit | 2083.82 | 1086.90 |
Segment Performance
The company operates across two primary reportable segments: Footwear, Accessories & other like products, and Toolkit & Others. For the year ended March 31, 2026, the Footwear segment reported revenue of ₹20870.40 lakh, growing 16% YoY. This growth was driven by strong traction in premium and athleisure categories, along with the commencement of OEM supply for brands including Spykar, Red Chief, and Lee Cooper.
The Toolkit business emerged as a significant growth driver, with segment revenue of ₹24956.46 lakh. The company has cumulatively delivered 2,00,000 toolkits under the PM Vishwakarma Scheme over the last 18 months. The segment is structurally asset-light with a Return on Capital Employed of approximately 100%.
Future Growth Initiatives
Lehar Footwears is executing a 5x capacity expansion at its Kundli sports shoe facility, increasing capacity from 1 lakh to 5 lakh pairs per month. The new athleisure facility at Kundli is expected to commence commercial operations from Q2FY27 onwards. The company is also scaling its athleisure segment through new OEM partnerships and the launch of its in-house brand 'RANNR'. Additionally, the working capital cycle improved, with debtors velocity and inventory velocity both tightening to 90 days in FY26.
Dividend Declaration
The board of directors has considered and approved a final dividend of ₹0.50 per equity share of ₹10 each for the financial year ended March 31, 2026. This dividend is subject to the approval of shareholders at the ensuing Annual General Meeting.
Governance Updates
M/s A Bafna & Co, Chartered Accountants, issued an audit report with an unmodified opinion regarding the company's audited financial results for the year ended March 31, 2026. Additionally, the board approved the re-appointment of M/s S S Choudhary and Co as the Internal Auditor for the financial year 2026-27.
Historical Stock Returns for Lehar Footwears
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.32% | +0.95% | +16.11% | +2.70% | -8.61% | +832.58% |
How will the 5x capacity expansion at the Kundli facility impact the company's working capital requirements and debt levels in FY27?
What is the expected revenue contribution from the new in-house brand 'RANNR' compared to the established OEM partnerships?
Can the Toolkit segment sustain its 100% RoCE as the company scales up deliveries under the PM Vishwakarma Scheme?
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