Lehar Footwears has secured its largest-ever Original Equipment Manufacturer (OEM) order worth ₹39.70 crore for the supply of footwear. The domestic order, involving approximately 18 lakh pairs, is scheduled for execution within 60 days from the acceptance of the purchase order. This development enhances revenue visibility for FY27 and reinforces the company's position as a reliable OEM manufacturing partner.

Order Details at a Glance

The key parameters of this development are summarised below:

Significance of the Order

The order win underscores the company's ability to attract substantial business relative to its size. While the client name remains undisclosed due to confidentiality, the order highlights Lehar Footwears' manufacturing scale and quality standards. The company will service the order through its facilities in Rajasthan and Haryana, utilising BIS-compliant production processes and in-house capabilities.

Raj Kumar Agarwal, Chairman of Lehar Footwears Limited, stated that the order is a strong endorsement of the company's manufacturing scale and quality credentials. He noted that OEM partnerships remain an important growth pillar for the company as it expands across categories while delivering on time and to specification.

Lehar Footwears Limited reported a 56% year-on-year increase in revenue to ₹431.1 Cr for the financial year ended March 31, 2026. Profit after tax (PAT) surged 92% to ₹20.8 Cr, reflecting a PAT margin of 4.8%, while EBITDA rose 49% to ₹38.9 Cr with a margin of 9.0%. The return on capital employed (RoCE) improved to 18.0% for the year.

The company’s financial performance was supported by a healthy balance sheet and operational efficiencies. Long-term debt reduced from a peak of approximately ₹15 Cr in FY23 to near-negligible levels of ₹0.6 Cr in FY26. The debt-to-equity ratio stood at 0.42x. Cash flow from operations (CFO) was recorded at ₹25.2 Cr, indicating healthy cash conversion.

Working capital metrics showed significant improvement. Debtors velocity tightened to 66 days in FY26 from 121 days in the previous year, while inventory velocity improved to 67 days from 86 days. The company attributes these gains to better credit discipline, a leaner inventory management system, and a favorable channel mix.

Financial Highlights

Strategic Growth Drivers

The company expanded its manufacturing capacity and product categories during the year. A phased expansion at the Kundli sports shoe facility aims to increase capacity from 1 lakh to 5 lakh pairs per month. Lehar Footwears also onboarded new OEM partners for sports shoe manufacturing, including Spykar, Red Chief, and Cult Sport, and launched its in-house brand 'RANNR'.

In the toolkit business, the company continued its supply under the PM Vishwakarma Scheme, an asset-light model generating high RoCE. The FY26-27 budget proposes a ₹3,861 Cr outlay for the scheme, which the company expects to support further scaling of this vertical.