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.

Khadim India Limited , a prominent footwear retailer, reported a subdued performance for the first quarter, reflecting the challenges posed by a soft demand environment and unpredictable weather conditions.

Financial Highlights

The company reported revenue from operations of Rs. 957.00 million for Q1, with a profit after tax (PAT) of Rs. 8.60 million, translating to a PAT margin of 0.9%. The gross margin stood at 47.7%, while the EBITDA margin was 12.9%.

Factors Affecting Performance

The company's performance was impacted by muted demand, particularly in Tier 2 and Tier 3 cities. Unpredictable weather and global factors affecting consumer sentiment contributed to the soft demand environment. Khadim faced margin pressure due to increased promotional discounting, with discount sales rising from 18% to 33% year-over-year.

Strategic Initiatives

Despite the challenging quarter, Khadim India Limited has undertaken several strategic initiatives:

1. Skechers Partnership: The company entered a strategic partnership with Skechers, offering their footwear at selected Khadim stores.

2. Athleisure Segment: Khadim launched a new athleisure segment, marking an important step in product diversification.

3. Sub-brand Focus: The company plans to scale its sub-brands, British Walkers and Sharon, which have shown encouraging growth trends.

4. True Franchised Model: Khadim is expanding through the True Franchised Model (TFM), having opened 12-13 new TFM outlets, contributing around Rs. 5.00 crores of additional turnover.

Retail Footprint and E-commerce

As of Q1, Khadim's retail footprint comprised 884 stores, including 207 company-owned outlets and 677 franchisee stores. E-commerce sales contributed 1.34% of total revenue for the quarter.

Management Commentary

Rittick Roy Burman, Managing Director of Khadim India Limited, expressed optimism about the upcoming festive season, which is arriving earlier this year. The company anticipates a pick-up in consumer demand and is preparing to capitalize on this opportunity.

Outlook

Looking ahead, Khadim remains confident in its strategy and proactive approach. The company is committed to building on its brand equity, optimizing its retail network, and innovating across product categories to meet evolving consumer preferences.

As the festive season approaches, Khadim expects demand to increase and plans to reduce discounting to protect margins. The company is also focusing on expanding its presence in the Eastern and Southern parts of the country, where brand recognition is strong and new stores can reach profitability more quickly.

With its strategic partnerships, focus on sub-brands, and expansion of the True Franchised Model, Khadim India Limited is positioning itself to navigate the current challenges and capitalize on future growth opportunities in the Indian footwear market.