KSR Footwear Q2 Losses Surge 1617% Amid Revenue Decline and Office Relocation
KSR Footwear Limited experienced a dramatic financial deterioration in Q2, with net losses surging 1617% to ₹91.51 crores compared to ₹5.33 crores in the previous year, while total income declined 7.13% to ₹472.38 crores. The company has strategically relocated its registered office from Kolkata to its Panpur factory in West Bengal, following a major corporate restructuring that saw it emerge from Khadim India Limited's demerged distribution business.
*this image is generated using AI for illustrative purposes only.
KSR Footwear Limited has reported a dramatic deterioration in its financial performance for the second quarter, with losses surging by over 1600% compared to the same period last year. The footwear company's latest results highlight significant operational challenges as it continues to navigate a difficult market environment.
Financial Performance Deteriorates Sharply
The company's Q2 financial results reveal a concerning trend across key metrics:
| Metric | Q2 FY26 | Q2 FY25 | Change |
|---|---|---|---|
| Total Income | ₹472.38 cr | ₹508.62 cr | -7.13% |
| Net Loss (Before Tax) | ₹83.09 cr | ₹5.58 cr | +1389.25% |
| Net Loss (After Tax) | ₹91.51 cr | ₹5.33 cr | +1617.00% |
| Basic EPS | ₹-4.98 | ₹-0.29 | -1617.24% |
The half-year performance shows an equally troubling pattern, with net losses reaching ₹139.78 crores for the six months ended September 30, compared to significantly lower losses in the previous year.
Operational Metrics and Capital Structure
KSR Footwear's operational fundamentals reflect the challenging business environment:
| Parameter | Details |
|---|---|
| Equity Share Capital | ₹183.78 cr |
| Reserves (excluding Revaluation) | ₹557.35 cr |
| Six-Month Total Income | ₹998.41 cr |
| Six-Month Net Loss | ₹139.78 cr |
Strategic Office Relocation
In a significant operational move, KSR Footwear's board has approved the relocation of its registered office from Kolkata to its Panpur factory in West Bengal, effective December 10. This decision appears to be part of a broader strategy to streamline operations and potentially reduce administrative costs in response to mounting financial pressures.
Corporate Restructuring Background
The company's current structure stems from a major corporate reorganization involving Khadim India Limited (KIL). Under a scheme of arrangement effective May 1, 2025, KIL demerged its distribution business into KSR Footwear as a going concern. This transaction resulted in the recognition of ₹698.35 million as capital reserve and the allotment of 1,83,78,382 new equity shares to KIL shareholders on June 10, 2025.
Following this restructuring, KSR Footwear ceased to be a wholly-owned subsidiary of KIL and subsequently listed its shares on both NSE and BSE on November 27, 2025.
Market Challenges and Outlook
The substantial increase in losses coupled with declining revenue suggests KSR Footwear faces significant headwinds in the current market. The company's ability to address these financial challenges through operational efficiency improvements and strategic initiatives will be crucial for stakeholders as the Indian footwear market continues to evolve.
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