Khadim India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Khadim India Ltd filed with BSE on 01 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Khadim India reported a decline in revenue for both Q4 and full-year FY26, with revenue from operations at Rs 83.6 crore in Q4 FY26 versus Rs 93.8 crore a year earlier, and Rs 367.1 crore for FY26 versus Rs 418 crore in FY25. Management attributed the decline to store closures, reduced primary sales push to franchisees, and deliberate inventory reduction, while noting growth in premium sub-brands TFM and British Walkers. The company also completed the demerger of its distribution and manufacturing businesses into KSR Footwear Limited during the year.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue from operations: INR83.6 crores (Q4 FY26)
p. 4
“For Q4 FY '26, revenue from operations stood at INR83.6 crores as against INR93.8 crores in the corresponding quarter last year, reflecting a decline.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
Gross profit: INR43.1 crores (Q4 FY26)
p. 4
“Gross profit for the quarter stood at INR43.1 crores, with a gross margin of 51.5%.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
EBITDA: INR11.9 crores (Q4 FY26)
p. 4
“EBITDA for the quarter stood at INR11.9 crores, while EBITDA margin stood at 14.3%.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
PAT: INR0.77 crores (Q4 FY26)
p. 4
“PAT for Q4 FY '26 stood at INR0.77 crores, with a PAT margin of 0.9%.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
Revenue from operations: INR367.1 crores (FY26)
p. 4
“For FY '26, revenue from operations stood at INR367.1 crores as compared to INR418 crores in FY '25, registering a decline of 12%.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
Gross profit: INR179.6 crores (FY26)
p. 4
“Gross profit for the year stood at INR179.6 crores, with a gross margin of 48.9%.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
EBITDA: INR49.1 crores (FY26)
p. 4
“EBITDA for FY '26 stood at INR49.1 crores, with an EBITDA margin of 13.4%.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
Profit after tax: INR3.1 crores (FY26)
p. 4
“Profit after tax for the year stood at INR3.1 crores, with a PAT margin of 0.9%.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
Retail footprint: 851 stores (as of March 31, 2026)
p. 4
“As of 31st March 2026, our retail footprint stood at 851 stores, comprising 189 company-owned outlets and 662 franchise-operated outlets across 23 states and 4 union territories.”
Rittick Roy Burman, page 4 of the filed PDF · View the filing
TFM portfolio growth: 46% (FY26)
p. 3
“Our TFM portfolio delivered a strong growth of 46% year-on-year during FY '26, reflecting improving acceptance across customer segment and continued traction in premium and semi-premium categories.”
Rittick Roy Burman, page 3 of the filed PDF · View the filing
British Walkers growth: 6% (FY26)
p. 3
“British Walkers also maintained healthy momentum and registered a growth of 6% year-on-year during FY '26, driven by consistent demand in the men's formal and semiformal footwear categories.”
Rittick Roy Burman, page 3 of the filed PDF · View the filing
Volume sold: 14 lakh pairs (Q4 FY26)
p. 7
“In the volume, sale in Q4 is around 14 lakh pairs, where in Q3, it was around 12 lakh pairs.”
Indrajit Chaudhuri, page 7 of the filed PDF · View the filing
E-commerce contribution: around 5% (FY26)
p. 7
“Around 5%,but we are focusing now more on e-commerce, especially on our khadim.com.”
Indrajit Chaudhuri, page 7 of the filed PDF · View the filing
Raw material price increase: 20% to 25% (February to May 2026)
p. 12
“The raw material prices are increased around 20% to 25% compared to -- in the month of February to now.”
Indrajit Chaudhuri, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue — INR400 crores · FY27
stated firmly by Indrajit Chaudhuri
p. 10
“No, we are targeting a turnover of around INR400 crores and an EBITDA margin of 14% at present.”
Indrajit Chaudhuri, page 10 of the filed PDF · View the filing
EBITDA margin — 14% · FY27
stated firmly by Indrajit Chaudhuri
p. 5
“we will remain steady at the EBITDA level of 14%.”
Indrajit Chaudhuri, page 5 of the filed PDF · View the filing
Gross margin — another 50-basis point improvement · FY27
stated conditionally by Indrajit Chaudhuri
p. 9
“I think we can expect another 50-basis point improvement in gross margin.”
Indrajit Chaudhuri, page 9 of the filed PDF · View the filing
EBITDA margin — 100 to 200 basis points
stated conditionally by Indrajit Chaudhuri
p. 12
“If we are able to do more sales, there is a growth of sales of 5% to 10%, definitely, the EBITDA will increase by 100 to 200 basis points.”
Indrajit Chaudhuri, page 12 of the filed PDF · View the filing
PAT margin — around 2% to 2.5%
stated conditionally by Indrajit Chaudhuri
p. 12
“If the sales grows, we will be able to have PAT of around 2% to 2.5% that we used to do earlier.”
Indrajit Chaudhuri, page 12 of the filed PDF · View the filing
Net debt — INR110 crores to INR115 crores
stated as an aspiration by Indrajit Chaudhuri
p. 10
“INR110 crores to INR115 crores.”
Indrajit Chaudhuri, page 10 of the filed PDF · View the filing
Store count (COCO) — Around 200 COCO stores
stated as an aspiration by Indrajit Chaudhuri
p. 6
“Around 200 COCO stores.”
Indrajit Chaudhuri, page 6 of the filed PDF · View the filing
Inventory rebuild — level required to sustain around INR400 crores of sales · by end of first half of FY27
stated conditionally by Indrajit Chaudhuri
p. 8
“the thing is that by the end of first half, we will go to a stock level, which is generally required to suffice the sale of around INR400 crores.”
Indrajit Chaudhuri, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said store closures are largely complete and cost reduction measures already taken should support a steady 14% EBITDA margin at around INR400 crores of revenue.
Answered by Indrajit Chaudhuri
Asked by Raj Patel: How will the company maintain revenue growth needed to sustain 14% EBITDA margin given operating deleverage in FY26?
p. 5
“So with the revenue remaining at around INR400 crores, again, next year, -- we will remain steady at the EBITDA level of 14%.”
Indrajit Chaudhuri, page 5 of the filed PDF · View the filing
Management attributed the decline to price cuts taken on lower-priced products, and expects Q4's improved margin trend to continue into spring-summer.
Answered by Indrajit Chaudhuri
Asked by Raj Patel: Why did blended gross margin decline despite premium brands scaling?
p. 5
“Blended gross margin has declined last year because we have taken a price cut for the last 1 or 2 years, we have taken some price cut in our products less than INR500.”
Indrajit Chaudhuri, page 5 of the filed PDF · View the filing
Management acknowledged some sales were lost in Q4 due to lower inventory but said the reduction was a deliberate call to improve product mix.
Answered by Indrajit Chaudhuri
Asked by Raj Patel: What is the risk of lost sales due to understocking in Q4 after inventory reduction?
p. 5
“Yes, in the fourth quarter, we have lost some sales because of lower inventory.”
Indrajit Chaudhuri, page 5 of the filed PDF · View the filing
Management said the company will focus on profit-making stores, close loss-making ones as needed, and target a steady-state COCO store count of around 200.
Answered by Indrajit Chaudhuri
Asked by Santosh Shetty: How much additional revenue drag from store rationalization should be expected in FY27?
p. 6
“Around 200 COCO stores.”
Indrajit Chaudhuri, page 6 of the filed PDF · View the filing
Management explained that FRM/TFM franchise formats require investment only in stock, generating more margin currently compared to COCO stores.
Answered by Indrajit Chaudhuri
Asked by Yash Mehta: Are newly opened franchisee stores delivering higher throughput than legacy COCO stores?
p. 6
“So that is giving us more profit as of now compared to COCO.”
Indrajit Chaudhuri, page 6 of the filed PDF · View the filing
Management confirmed athleisure expansion is constrained by small store formats lacking space for changing rooms and broader product ranges.
Answered by Indrajit Chaudhuri
Asked by Yash Mehta: Is athleisure structurally limited given store space constraints versus peers?
p. 7
“It's limited. Because we don't have that much space to keep all the athleisure like tracksuit, pants and everything.”
Indrajit Chaudhuri, page 7 of the filed PDF · View the filing
Management said the price reduction from the GST cut did not increase demand, which remained the same.
Answered by Indrajit Chaudhuri
Asked by Amay Sakhuja: What impact has the GST rate cut had on demand?
p. 8
“I think the demand for the product has not increased with the GST lowering. The demand has remained the same.”
Indrajit Chaudhuri, page 8 of the filed PDF · View the filing
Management said stock correction takes time to reflect in sales since replenishment ordered in Q4 arrives in Q1, impacting both quarters.
Answered by Indrajit Chaudhuri
Asked by Rajeev Jain: Why did revenue not recover sequentially in Q4 despite inventory correction being largely done?
p. 8
“The thing –is that stock correction does not pick up in one quarter. It takes time.”
Indrajit Chaudhuri, page 8 of the filed PDF · View the filing
Management quantified the sales impact from stock reduction at around INR10-15 crore over the last two quarters.
Answered by Indrajit Chaudhuri
Asked by Rajeev Jain: How much of FY26 revenue decline is structural demand weakness versus internal factors like inventory correction?
p. 9
“For stock thing, maybe around INR10 crores to INR15 crores of sales we have lost for the last 2 quarters.”
Indrajit Chaudhuri, page 9 of the filed PDF · View the filing
Management attributed the cash decline to the demerger transfer.
Answered by Indrajit Chaudhuri
Asked by Rajeev Jain: What caused the sharp decline in cash levels during FY26?
p. 9
“Demerger transfer was there.”
Indrajit Chaudhuri, page 9 of the filed PDF · View the filing
Management said premium products deliver roughly 2-3% higher gross margin and see less discounting than mass-market products.
Answered by Indrajit Chaudhuri
Asked by Priti Agarwal: Have premium products delivered better gross margins than lower-ticket categories?
p. 11
“No, one thing is that this premium product has given the gross margin somewhat 2%, 3% more than the normal mass market product.”
Indrajit Chaudhuri, page 11 of the filed PDF · View the filing
Management said part of the reduction was due to demerger accounting, and part was a deliberate reduction of purchases and payment of creditors.
Answered by Indrajit Chaudhuri
Asked by Pahel Sharma: Were trade payables reduced due to vendor factors or a deliberate deleveraging strategy?
p. 13
“for the last 2 quarters in Q3 and Q4, we deliberately reduced the purchase and paid our creditors so that the creditors balance has also come down.”
Indrajit Chaudhuri, page 13 of the filed PDF · View the filing
Risks flagged
Muted consumer demand and pressure on discretionary spending in mass and value segments
p. 3
“FY '26 continued to be a challenging year for the footwear industry, with muted consumer demand and continued pressure on discretionary spending, particularly in the mass and value segments.”
Rittick Roy Burman, page 3 of the filed PDF · View the filing
Continuous demand slowness across the industry
p. 10
“Yes, there is a continuous demand slowness is there in the industry.”
Indrajit Chaudhuri, page 10 of the filed PDF · View the filing
Demand weakness and political turmoil as risks to FY27 guidance
p. 11
“There are risks like -- demand weakness is a risk, then some risk comes in the political turmoil, all these are there.”
Indrajit Chaudhuri, page 11 of the filed PDF · View the filing
Volatile raw material and petroleum product prices
p. 12
“But still, price is very volatile, raw material, petroleum product, which is one of the key components in our segment.”
Indrajit Chaudhuri, page 12 of the filed PDF · View the filing
Election-related disruption impacting sales in key eastern markets
p. 9
“But in April, we have election going on in Bengal and Assam. So that impacted some sales.”
Indrajit Chaudhuri, page 9 of the filed PDF · View the filing
Higher input costs from Middle East crisis impacting raw material sourcing
p. 12
“The raw material prices are increased around 20% to 25% compared to -- in the month of February to now.”
Indrajit Chaudhuri, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.