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.

Lehar Footwears Limited reported a net profit of ₹3.0 crore for the quarter ended June 30, 2026, down from ₹7.2 crore in Q1FY26, while expanding its EBITDA margin to 9.4%. The Board of Directors, meeting on August 10, 2026, also approved the appointment of Rajesh Gattani as Chief Financial Officer, effective September 15, 2026, and scheduled the company’s 32nd Annual General Meeting for September 10, 2026.

The financial results were reviewed by A Bafna & Co., the statutory auditors, who issued a limited review report stating no material misstatement was found in the standalone financial results prepared under Ind AS 34. The filing was submitted to BSE Limited by Ritika Poddar, Company Secretary & Compliance Officer, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

Total revenue from operations declined 47.3% year-on-year to ₹74.9 crore from ₹142.2 crore in Q1FY26. This contraction was primarily driven by the completion of large-scale toolkit supply orders under government schemes, specifically the first phase of the PM Vishwakarma Scheme, which involved cumulatively 2.5 lakh toolkits. Despite the top-line drop, operating efficiency improved with EBITDA margins expanding by 50 basis points to 9.4% from 8.9% in the prior year period.

The core footwear segment demonstrated resilience, growing 9% year-on-year to ₹58.1 crore. This growth offset broader headwinds including inflation, muted exports, and geopolitical disruptions affecting GCC markets. Management attributed the margin expansion to calibrated pricing actions, prudent sourcing strategies, productivity improvements, and a shift toward a richer product mix featuring premium and fashion ranges.

Leadership Changes and Corporate Governance

The Board appointed Rajesh Gattani as Chief Financial Officer, effective September 15, 2026. Gattani is a Chartered Accountant with over 13 years of post-qualification experience in finance, accounting, taxation, audit, and corporate governance. Prior to joining Lehar Footwears, he served as CFO at Universal Quartz & Natural Stones Pvt. Ltd., where he led initiatives including ERP implementation, project financing, and business expansion.

The Board also approved the Board’s Report for the financial year ended March 31, 2026, and the matters for the Notice of the 32nd Annual General Meeting. The AGM is scheduled to be held on Thursday, September 10, 2026, at 10:30 A.M. (IST) at Vishwakarma Recreation Club Park, Jaipur. The record date for the AGM and any dividend declaration has been fixed as September 3, 2026.

What the Numbers Show

A critical observation from the Q1FY27 results is the divergence between top-line revenue and operational efficiency. While total revenue dropped significantly due to the cyclical nature of government scheme completions, the core footwear business maintained positive growth momentum. The expansion of EBITDA margins by 50 basis points, despite rising input and labor costs following minimum wage revisions, indicates effective cost management and successful pricing power within the core segment. Furthermore, the company holds an OEM order book of approximately ₹40+ crore for execution in the upcoming quarter, suggesting near-term revenue visibility. The combination of scaling OEM relationships, D2C growth, and imminent capacity expansion at the Kundli facility positions Lehar Footwears to potentially leverage higher order volumes without capacity constraints in the latter half of FY27.