Sreeleathers revenue up 12% in FY26; net profit rises 27% to ₹287.4 crore
- Revenue from operations rose 12.40% to ₹2,484.04 crore in FY26
- Net profit after tax increased 27.34% to ₹287.43 crore
- Board recommends final dividend of ₹1 per equity share
- Inventory turnover accelerated to 22.11x from 15.48x
- Other income surged to ₹62.09 crore driven by mutual fund gains
*this image is generated using AI for illustrative purposes only.
Sreeleathers reported a 12.40% rise in revenue from operations to ₹2,484.04 crore for FY26, while profit after tax grew 27.34% to ₹287.43 crore. The Board recommended a final dividend of ₹1 per equity share.
The Kolkata-based footwear retailer posted revenue from operations of ₹2,484.04 crore for the year ended March 31, 2026, compared to ₹2,209.95 crore in the previous fiscal. Profit after tax stood at ₹287.43 crore against ₹225.71 crore in FY25. The interim dividend of ₹1 per share was already paid during the year.
Financial Performance
Operating profit before exceptional items and taxes rose to ₹382.66 crore from ₹319.01 crore. Other income surged significantly to ₹62.09 crore from ₹4.52 crore in the prior year, driven largely by gains on the sale of mutual fund units and interest income. An exceptional item of ₹0.59 crore was recorded due to the statutory impact of new Labour Codes on gratuity liability.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹2,484.04 crore | ₹2,209.95 crore | +12.40% |
| Profit After Tax | ₹287.43 crore | ₹225.71 crore | +27.34% |
| Net Profit Margin | 11.57% | 10.21% | +136 bps |
Gross margin eased by 74 basis points to 23.16% from 23.90%, absorbing pressure from rising costs of petroleum derivatives used in soles. Despite this, net profit margin expanded to 11.57% from 10.21%, supported by operational efficiency and lower tax rates on value-segment footwear under GST reforms.
What the Numbers Show
The surge in other income constitutes a significant portion of the bottom-line growth. While operating profit before tax increased by approximately ₹63.65 crore, total other income jumped by nearly ₹57.57 crore. This indicates that the majority of the year-on-year increase in profit before tax was driven by non-operating financial gains rather than core trading margins alone.
Operational Highlights
Inventory turnover improved sharply to 22.11 times per year from 15.48 times, reducing days of stock on hand to 16.5 days from 23.6 days. Working capital employed fell to ₹2.04 crore from ₹6.55 crore, enabling a negative cash conversion cycle of -0.6 days compared to +7.9 days previously. The franchised channel grew 19.6%, with five new stores opened during the year.
Corporate Actions
The 35th Annual General Meeting is scheduled for September 28, 2026. Shareholders will vote on the re-appointment of Ms. Rochita Dey as a director retiring by rotation and the appointment of Mr. Soham Dey as Whole-time Director for five years. Mr. Dey will receive a token remuneration of ₹1 per annum. The record date for the final dividend is September 21, 2026.
Historical Stock Returns for Sreeleathers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -10.00% | +28.70% | +50.65% | +69.72% | +42.88% | 0.0% |
How sustainable is the 27% profit growth given that nearly ₹57 crore of the increase stems from non-operating gains rather than core trading margins?
What is Sreeleathers' hedging strategy or pricing power to mitigate the impact of rising petroleum derivative costs on sole manufacturing margins?
Will the aggressive improvement in inventory turnover and negative cash conversion cycle be maintained as the franchised channel expands by nearly 20%?
18
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
