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

Campus Activewear , India's largest sports and athleisure footwear brand, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth and strategic expansion initiatives.

Financial Highlights

For Q2 FY26, Campus Activewear reported:

• Revenue from operations of INR 386.60 crore, up 16.0% year-over-year (YoY)
• EBITDA of INR 55.00 crore, a 32.4% increase YoY, with an EBITDA margin of 14.0%
• Profit After Tax (PAT) of INR 20.10 crore, showing a substantial 40.3% growth YoY
• Sales volume reached 5.8 million pairs, a 7.4% increase YoY
• Average Selling Price (ASP) improved to INR 672 per pair, up 8.0% YoY

Expansion and Growth Strategy

Campus Activewear has outlined a comprehensive growth strategy focusing on:

1. Premium Athleisure Segment: The company is increasing its focus on the premium athleisure category, with the saliency of products priced above INR 1,500 improving from 45.2% to 57.2% in Q2 FY26.

2. Women's Segment Expansion: The company has witnessed an improvement in the women's category mix, aligning with its strategy to broaden appeal across demographics.

3. Manufacturing Capacity Expansion: On September 2, 2025, Campus Activewear acquired land and buildings of approximately 47,000 square meters in Uttarakhand for INR 74.75 crore. This acquisition aims to expand the existing capacity for manufacturing uppers and assembly of finished goods.

4. Distribution Network Strengthening: The company conducted over 150 retailer meets across the nation, showcasing an upcoming range of 650+ SKUs and securing pre-bookings.

5. Omni-Channel Presence: Campus Activewear maintains a strong omni-channel platform with 28,000+ retail touchpoints across 700+ districts in India.

Market Position and Future Outlook

Campus Activewear continues to maintain its position as India's largest sports and athleisure footwear brand in terms of value and volume. The company's thrust on in-house manufacturing facilities, integrated supply chain, and robust omnichannel sales and distribution network has enabled it to cater to diverse consumer needs across different demographics and price points.

Mr. Nikhil Agarwal, CEO of Campus Activewear, commented on the results: "The Company delivered a resilient performance in Q2 and H1 FY26, reflecting the strength of our distribution-led strategy and continued focus on high-growth categories. We remain optimistic about the future, with recent GST rate reductions expected to spur demand, and we anticipate sustained momentum in sneakers, supported by our distribution strength and capacity expansion plans."

Conclusion

Campus Activewear's strong Q2 FY26 performance, coupled with its strategic expansion initiatives and focus on premium segments, indicates a positive trajectory for the company. As it continues to strengthen its market position and expand its manufacturing capabilities, Campus Activewear is poised for sustained growth in the dynamic Indian footwear market.