Lehar Footwears delivered strong financial performance for the fiscal year ended March 31, 2026, with revenue from operations surging 55% year-on-year to ₹4,311.1 crore. Profit after tax nearly doubled to ₹208.4 crore from ₹108.7 crore in FY25, supported by higher operating leverage, a better business mix, and lower finance costs.

The company’s strategic expansion into closed footwear and athleisure segments, alongside disciplined working capital management, contributed to improved profitability metrics. EBITDA rose 49% to ₹38.9 crore, while the PAT margin expanded to 4.8% from 3.9% in the previous year.

Financial Performance

Cash flow from operations stood at ₹25.3 crore, providing healthy internal funding for growth initiatives. The company also reported an improvement in its credit profile, with CRISIL upgrading its long-term rating to BBB/Stable from BBB-/Stable.

What the Numbers Show

The divergence between revenue growth and debt reduction highlights a significant shift in capital efficiency. While revenue grew by 55%, long-term debt fell from approximately ₹5.0 crore to near-negligible levels. This deleveraging, combined with a drop in finance costs, directly fueled the expansion in PAT margins despite modest pressure on operating margins, which contracted slightly to 9.0% from 9.4%. The improvement in debtor days from 121 to 66 days indicates stronger collection efficiency, further supporting cash generation.

Operational Highlights

Footwear revenue grew 16% to ₹208.7 crore, driven by new product launches and a richer product mix. The fourth quarter saw 27% year-on-year growth in the footwear segment, reflecting stronger traction in premium and athleisure categories. The company launched its in-house sports and athleisure brand, Rannr, marking its entry into the high-growth closed footwear segment.

OEM manufacturing emerged as a key growth avenue, with partnerships established with brands including Spykar, Red Chief, Cult Sport, and Lee Cooper. Subsequent to the fiscal year-end, Lehar Footwears secured its largest-ever OEM order valued at ₹39.7 crore for approximately 18 lakh pairs, strengthening revenue visibility for FY27.

Balance Sheet and Dividend

The company continued to reduce external dependence, bringing long-term debt down significantly. This reduction, along with improved credit ratings, contributed to lower interest costs during the year. The Board of Directors recommended a final dividend of ₹0.50 per equity share of ₹10 face value, subject to shareholder approval at the 32nd Annual General Meeting scheduled for September 10, 2026. The record date for determining dividend entitlement is September 3, 2026.

Lehar Footwears Limited reported a sharp contraction in profitability for the first quarter of FY2027, with net profit after tax falling 58% year-on-year to ₹3.01 crore. The decline was driven by a significant drop in total income, which stood at ₹75.01 crore for the quarter ended June 30, 2026, compared to ₹142.25 crore in the same period last year. The Board of Directors approved these unaudited standalone financial results on August 10, 2026, following review by the Audit Committee, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company’s earnings per share (EPS) also reflected this downturn, dropping to ₹1.71 from ₹4.11 in Q1FY26. While the current quarter showed a profit before tax of ₹4.03 crore, it marked a substantial decrease from the ₹9.73 crore recorded in the corresponding period of the previous fiscal year. Total comprehensive income for the period was ₹2.93 crore, down from ₹7.27 crore year-on-year. The full format of the financial results is available on the BSE website and the company’s official portal.

Financial Performance Overview

The revenue decline indicates a challenging operating environment for the footwear manufacturer in the initial quarter of the new fiscal cycle. Despite the drop in top-line figures, the company maintained positive profitability, avoiding a loss position that might have occurred given the scale of income reduction.

Note: Figures are unaudited standalone results. Q1FY26 data sourced from comparative columns in the filing.

Corporate Governance and Shareholder Updates

Alongside the financial disclosure, Lehar Footwears announced details regarding its 32nd Annual General Meeting (AGM), scheduled for September 10, 2026, at the Vishwakarma Recreation Club in Jaipur. The meeting will address standard business items, including the approval of the annual report for FY2026. In accordance with Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI LODR Regulations, shareholders will be provided with an electronic voting facility for all resolutions.

The register of members and share transfer books will remain closed from September 4, 2026, to September 10, 2026, to determine eligibility for voting and dividend entitlements. The cutoff date for dividend purposes is set for September 3, 2026.

Dividend Recommendation

The Board recommended a final dividend of ₹0.50 per equity share for the financial year ended March 31, 2026. This recommendation is subject to approval by shareholders at the AGM. If approved, the dividend will be paid within 30 days of declaration to members whose names appear on the register as of the cutoff date. The company emphasized that dividends are taxable in the hands of shareholders under the Income Tax Act, 1961, and tax will be deducted at source (TDS) at applicable rates. Shareholders holding physical shares are urged to update their bank and KYC details to ensure timely receipt of payments via electronic transfer.

What the Numbers Show

The most striking aspect of the Q1FY27 results is the disproportionate impact on profitability relative to the revenue drop. While total income fell by approximately 47%, net profit declined by nearly 58%. This divergence suggests fixed cost pressures or margin compression during the quarter. With equity share capital remaining static at ₹17.68 crore and reserves unchanged from the previous audited balance sheet, the company’s capital structure appears stable despite the operational headwinds. Investors should monitor subsequent quarters to see if this is a seasonal anomaly or part of a broader trend affecting the footwear segment.