KSR Footwear Limited has announced that India Ratings and Research has assigned a credit rating of INDBB-/Stable/INDA4 to the company's bank loan facilities aggregating ₹320.00 million. The rating communication was issued on December 19, 2025, and has been disclosed to stock exchanges in compliance with regulatory requirements.

Credit Rating Details

India Ratings and Research, a Fitch Group company, has evaluated KSR Footwear Limited's banking facilities and assigned the following ratings:

The rating reflects the agency's assessment of the company's creditworthiness and ability to service its debt obligations. The stable outlook indicates that India Ratings expects the company's credit profile to remain consistent in the near term.

Facility Breakdown

The rated bank facilities are provided by Union Bank of India and comprise two main components:

The facilities are structured to support the company's working capital requirements, with the majority comprising non-fund-based limits that typically include letters of credit and bank guarantees.

Regulatory Compliance

KSR Footwear Limited has communicated this credit rating information to both BSE Limited (Scrip Code: 544615) and National Stock Exchange of India Limited (Symbol: KSR) pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's disclosure demonstrates its commitment to maintaining transparency with stakeholders regarding material developments.

About the Rating Agency

India Ratings and Research, the rating agency that assigned this credit rating, is part of the Fitch Group and follows established criteria and methodologies for credit assessment. The agency has indicated that ratings may be subject to change based on new information, changes in financial performance, or other factors deemed material to the credit assessment.

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:

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:

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.