Campus Activewear Limited (CAL) has taken significant steps in its employee stock option plans, as announced in a recent corporate filing. The company's Nomination and Remuneration Committee, in a meeting held on November 21, 2025, made key decisions regarding the allotment of shares under existing ESOP schemes and the granting of new options.

Share Allotment Under ESOP Schemes

The committee has issued and allotted a total of 58,138 equity shares, each with a face value of Rs. 5.00, to eligible employees. These shares were allotted upon the exercise of options vested under two schemes: the Campus Activewear Limited Employee Stock Option Plan 2021 and the Employee Stock Option Plan 2021 – Vision Pool.

The breakdown of the allotment is as follows:

Impact on Share Capital

Following this allotment, the company's issued and paid-up equity share capital has increased:

• Previous: Rs. 1,52,73,60,970 (30,54,72,194 equity shares)
• Current: Rs. 1,52,76,51,660 (30,55,30,332 equity shares)

New Option Grant

In addition to the share allotment, the committee has granted 5,317 new options to one employee under the ESOP 2021 – Vision pool. These options were granted at an exercise price of Rs. 5.00 per option, with a four-year vesting period split at 25% each year. The grant date for these new options is November 21, 2025.

Regulatory Compliance

The company has stated that the newly allotted shares will rank pari-passu with the existing equity shares of Campus Activewear Limited in all respects. This action is in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

Campus Activewear continues to use its employee stock option plans as a tool for employee retention and motivation, aligning employee interests with those of the company's shareholders.

Campus Activewear Limited , a leading Indian footwear brand, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating resilience and growth in a competitive market.

Key Financial Highlights

• Revenue grew by 16% year-on-year to INR 387.00 crores
• Profit After Tax (PAT) surged by 40% to INR 20.00 crores
• EBITDA margin improved by 140 basis points to 14.00%
• PAT margin increased by 90 basis points to 5.10%

Performance Drivers

The company's impressive performance was primarily driven by:

1. Distribution Channel Growth: The distribution business delivered a robust 20% year-on-year growth, reflecting the company's strong market presence and effective channel management.

2. Premium Segment Expansion: The premium segment (INR 1,500+ price point) saw significant growth, expanding from 45.20% to 57.20% of the sales mix. This shift towards higher-value products has contributed to improved margins.

3. Women's Category Growth: The women's category share increased to 16.20%, supported by the appointment of Bollywood actor Kriti Sanon as the new brand ambassador for this segment.

4. Volume Growth: The company sold approximately 5.75 million pairs of shoes in Q2 FY26, compared to 5.36 million pairs in the same quarter last year, representing a 7.30% increase in volume.

5. Average Selling Price (ASP) Improvement: The ASP grew by 8.00% year-on-year to INR 672.00 per pair, up from INR 622.00 per pair in the previous year, reflecting the company's successful premiumization strategy.

Strategic Initiatives

Campus Activewear has undertaken several strategic initiatives to drive growth and improve operational efficiency:

1. Capacity Expansion: The company has announced plans for additional manufacturing capacity at Pant Nagar, which is expected to support future growth, particularly in the premium segment.

2. Brand Building: Increased investments in marketing and brand-building initiatives have translated into tangible growth across all channels.

3. Product Innovation: Focus on new product development, especially in the women's and kids' categories, has contributed to the company's growth in these segments.

4. Channel Optimization: The company has been working on optimizing its Exclusive Brand Outlet (EBO) network, focusing on profitability and store-level performance.

Future Outlook

Campus Activewear remains optimistic about its future prospects, citing several factors:

• The recent reduction in GST rates is expected to spur demand in the footwear sector.
• Continued momentum in the premium segment, supported by the company's distribution strength and capacity expansion plans.
• Expansion into new categories such as apparel, with a pilot launch in 60 EBOs during Q3 FY26.
• Potential growth in exports, leveraging India's cost advantage in footwear manufacturing.

While the company faces challenges such as increased working capital requirements due to changes in MSME payment terms, management expects to normalize borrowings by the end of the fiscal year.

Campus Activewear's strong Q2 FY26 performance, coupled with its strategic initiatives and positive industry outlook, positions the company well for continued growth in the Indian footwear market.

Financial Performance Table

Note: YoY = Year-on-Year, bps = basis points