Khadim India Limited , a prominent footwear company, has announced its financial results for the second quarter and first half of the fiscal year 2026, following a significant corporate restructuring. The company recently completed the demerger of its Distribution Business, marking a new chapter in its operational strategy.

Key Highlights

• Khadim India Limited unveiled its unaudited standalone and consolidated financial results for Q2 and H1 FY26.
• The company successfully demerged its Distribution Business to KSR Footwear Limited (KFL).
• The demerger became effective from May 1, 2025, with an appointed date of April 1, 2025.
• KFL allotted 1,83,78,382 new equity shares to Khadim's shareholders on June 7, 2025.
• Khadim's ₹80.10 million investment in KFL was canceled as part of the demerger process.
• KFL ceased to be a wholly-owned subsidiary of Khadim India Limited from April 1, 2025.

Demerger Details

The demerger of the Distribution Business represents a strategic move by Khadim India Limited to streamline its operations. As part of this corporate action:

Financial Reporting

In light of the demerger, Khadim India Limited has made adjustments to its financial reporting:

• The demerged distribution business results are now disclosed as discontinued operations in the financial statements.
• This change in reporting structure aims to provide a clearer picture of the company's continuing operations.

Corporate Governance

The Board of Directors of Khadim India Limited convened on November 7, 2025, to approve the financial results. This timely approval and subsequent disclosure demonstrate the company's commitment to transparent corporate governance practices.

Investor Communication

In compliance with regulatory requirements, Khadim India Limited has published newspaper advertisements on November 8, 2025, in 'Business Standard' (all editions) in English and in 'Aajkal' in Bengali. These advertisements detail the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025.

The company's proactive approach to investor communication is evident in its prompt filing with stock exchanges and widespread publication of results, ensuring that all stakeholders have access to the latest financial information.

As Khadim India Limited navigates this post-demerger landscape, investors and market watchers will be keen to observe how this strategic move impacts the company's performance and market position in the coming quarters.

Khadim India Limited , a prominent footwear and accessories company, has released its unaudited financial results for the second quarter and first half of the fiscal year 2025-26, revealing a mixed performance. The company also announced a key appointment to its internal audit team.

Financial Performance

For the quarter ended September 30, 2025, Khadim India reported revenue from operations of Rs. 1,015.99 crore, marking a significant decrease from Rs. 1,973.03 crore in the corresponding quarter of the previous year. The half-yearly revenue stood at Rs. 2,139.94 crore, down from Rs. 4,100.33 crore in the previous year's comparable period.

Despite the revenue decline, the company managed to post a profit from continuing operations. The basic earnings per share for the quarter were reported at Rs. 0.51.

Key Financial Highlights

New Internal Auditor Appointment

In a move to strengthen its internal audit function, Khadim India's Board of Directors has approved the appointment of Mr. Avijit Mukherjee as the company's new Internal Auditor, effective November 7, 2025. Mr. Mukherjee, a Chartered Accountant with 21 years of experience, has been associated with Khadim India Limited for the past 15 years, serving in various capacities within the Accounts and Internal Audit departments.

Looking Ahead

As Khadim India navigates through challenging market conditions, evidenced by the year-over-year revenue decline, the company's ability to maintain profitability in continuing operations may be seen as a positive sign. The impact of this financial performance on the company's strategic decisions and market position will likely be of interest to investors and industry analysts in the coming quarters.