Campus Activewear , a leading footwear company, has reported its financial results for the quarter ended September 30, 2025 (Q2 FY26). The company's Board of Directors approved the unaudited financial results, which were reviewed by statutory auditors BSR and Co., who found no material misstatements in the unaudited financial statements.

Financial Highlights

• Revenue from operations: ₹386.60 crores, up 16% year-over-year from ₹333.30 crores in Q2 FY25
• EBITDA: ₹55.00 crores, growing 32.3% with margins improving to 14.00% from 12.30%
• Profit after tax: ₹20.10 crores, increasing 40.4%

Operational Updates

Sales Performance

• Sold 5.8 million pairs during the quarter, up 7.4% from 5.4 million pairs in the previous year
• Average selling price increased to ₹672 per pair from ₹622 per pair

Manufacturing Capacity Expansion

• Acquired land and building of approximately 4,700 square meters in Uttarakhand for ₹74.75 crores
• Aims to expand manufacturing capacity for upper and assembly of footwear products
• Current annual assembly capacity stands at 30.7 million pairs

Production and Distribution

• Changed manufacturing of certain products from Free Trade Zone to Domestic Tariff Area
• Maintains operations across 28,000 retail touchpoints in over 700 districts and 28 states
• 46.4% revenue contribution from direct-to-consumer channels
• Launched 504 new designs during the quarter

Campus Activewear's strategic moves, including the acquisition of new manufacturing space and the shift in production locations, indicate the company's efforts to optimize its operations and support its growth in the footwear industry. The company's strong performance in Q2 FY26, marked by significant increases in revenue, EBITDA, and profit after tax, reflects its successful expansion strategies and market positioning.

Campus Activewear Limited, a prominent player in the Indian footwear industry, has announced a significant expansion of its manufacturing capabilities. The company has acquired land and building at SIIDCUL Pantnagar for ₹74.75 crore, marking a strategic move to boost its production capacity.

Acquisition Details

The company has purchased land and building from M/s Nainipanel Industries Private Limited. The acquired property is located in the IIE SIIDCUL, Pantnagar Industrial Area, spanning 47,000 square meters. This acquisition is part of Campus Activewear's plan to expand its existing capacity for manufacturing semi-finished goods (soles and uppers) and footwear assembly.

Expansion Plans

Campus Activewear has outlined an ambitious expansion strategy:

• Investment: The company plans to invest a total of ₹230 crore in this expansion project.
• Capacity Addition: The expansion aims to add 7.2 million pairs of additional manufacturing capacity by the close of FY 2027-28.
• Timeline: The proposed capacity addition is expected to be completed within 2.5 years from September 2025.

Current and Future Capacity

Strategic Rationale

The expansion is driven by the need to meet business growth and increase backward integration. This move is expected to significantly enhance Campus Activewear's production capabilities, allowing the company to better serve the growing demand for its products in the Indian market.

Financing and Regulatory Aspects

• The acquisition is being financed through all-cash consideration.
• The company will use internal accruals to fund the ₹230 crore investment for capacity expansion.
• No regulatory approvals are required for the acquisition, except for transfer permission from SIIDCUL.

Campus Activewear's strategic expansion underscores the company's commitment to growth and its confidence in the Indian footwear market. As the company moves forward with this significant investment, it positions itself to capitalize on the increasing demand for quality footwear in India.