Lehar Footwears Limited announced the commencement of operations at its new sports footwear manufacturing facility in Kundli, Haryana, on September 3, 2026. The expansion increases monthly production capacity by 150% to 2.5 lakh pairs, supporting both its in-house brand and OEM customers.

The company plans a phased expansion of the Kundli facility to reach 5 lakh pairs per month. This infrastructure upgrade aims to strengthen Lehar’s position in the sports and athleisure segment while enhancing its competitiveness for larger domestic and international OEM engagements.

Manufacturing Capabilities

The Kundli facility utilizes a 5th-generation manufacturing line featuring higher process automation and tighter manufacturing tolerances. These technological upgrades are designed to improve production efficiency and consistency, addressing the quality standards required by larger OEM clients.

Integrated Design Approach

Lehar has integrated an in-house design studio at the new facility, enabling the company to engage with OEM customers during the product development stage. This approach supports shorter cycles from sample development to commercial production, allowing Lehar to participate directly in the design process rather than solely executing manufacturing orders.

Strategic Outlook

Raj Kumar Agarwal, Chairman of Lehar Footwears Limited, stated that the new facility combines advanced manufacturing technology with strengthened quality capabilities. The company expects these enhancements to improve its competitiveness in pursuing larger OEM opportunities over the medium term.

Lehar, incorporated in 1994, manufactures non-leather mass footwear including EVA, PVC, and PU injected products. The company operates four plants in Jaipur alongside the new Kundli facility, managing approximately 1,300 active SKUs across men, women, and kids’ categories.

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.