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Tepid industry demand recovery
View Risks →Campus Activewear Limited — Q3 FY26
Campus Activewear delivered a strong Q3 FY26 with revenue of ₹589 crore (+14.3% YoY) and PAT of ₹63.7 crore (+37% YoY), driven by festive demand, GST rationalization, and premiumization.
bullish
high
Financial stats pending filing verification
2-Minute Summary
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Campus Activewear delivered a strong Q3 FY26 with revenue of ₹589 crore (+14.3% YoY) and PAT of ₹63.7 crore (+37% YoY), driven by festive demand, GST rationalization, and premiumization. EBITDA margin expanded 290 bps to 19.5% on better mix and fixed cost leverage. Key growth levers included a 5.2% ASP increase to ₹711, sneaker volumes doubling, and women's category mix rising to 22% (from 18.7%). The company launched athleisure apparel in January 2026 across 60+ EBOs and online platforms. Management expressed high confidence in sustaining growth, citing distribution expansion (29,000 touchpoints) and a strong product pipeline. Risk: demand recovery remains tepid industry-wide, and Q4 seasonality toward open footwear may pressure margins.
कैम्पस एक्टिववियर ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कमाई 589 करोड़ रुपये रही, जो पिछले साल से 14.3% ज्यादा है। मुनाफा 63.7 करोड़ रुपये रहा, जो 37% बढ़ा। यह त्योहारी मांग, टैक्स में कमी और महंगे उत्पादों की बिक्री बढ़ने से हुआ। कंपनी का मार्जिन 19.5% हो गया, जो पहले से बेहतर है। जूतों की औसत कीमत 711 रुपये हो गई। स्नीकर्स की बिक्री दोगुनी हुई और महिलाओं के उत्पादों की हिस्सेदारी 22% पहुंच गई। जनवरी 2026 में कंपनी ने स्पोर्ट्स कपड़े लॉन्च किए। प्रबंधन को भरोसा है कि ग्रोथ जारी रहेगी। जोखिम: पूरे उद्योग में मांग अभी कमजोर है और चौथी तिमाही में खुले जूतों का सीजन मार्जिन पर दबाव डाल सकता है।
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Read Transcript →Quarter Snapshot
ASP
₹711
+5.2% YoY
Average selling price increased due to premium sneaker mix and channel mix shift toward online.
Women's Category Mix
22%
+3.3pp YoY
Women's share of revenue improved from 18.7% last year, aided by the 'You Go Girl' campaign.
Sneaker Volume Growth
Doubled
+100% YoY
Sneaker volumes doubled year-on-year, with ASP of ₹900-910, driving premiumization.
Online Channel Growth
18%
+18% YoY
Online sales grew 18% YoY, driven by marketplace pivot and strong Amazon performance.
What Changed vs Last Quarter
NEW
Gross margin improvement target for FY26
Management targets gross margin improvement versus last year on a full-year basis, driven by product and channel mix.
NEW
Athleisure apparel pilot expansion
Apparel launched in 60+ EBOs and online; plans to expand to more EBOs after adding trial rooms.
NEW
EBO profitability focus before expansion
EBO count kept stable; focus on unit economics and profitability before resuming store additions.
DROPPED
Double-digit revenue growth for FY26
Management reaffirmed double-digit revenue growth guidance for the full year, despite Q1 disruption.
DROPPED
EBITDA margin aspiration of 17-19%
Management aspires to return to 17-19% EBITDA margins over the medium term, but did not commit to a specific timeline.
DROPPED
Sneaker category growth trajectory
Sneaker sales are expected to grow 15-20% quarter-on-quarter from the current base of ~550K pairs per quarter.
NEW RISK
Inverted duty structure impact
Analyst raised concern about inverted GST duty; management said they are filing refunds but impact not quantified.
NEW RISK
Q4 seasonality shift to open footwear
Q4 typically sees higher mix of open footwear, which may pressure ASP and margins.
RISK GONE
Execution risk from warehouse and SAP transitions
The warehouse consolidation and SAP implementation caused a 15-20 day disruption, impacting online sales. Further operational hiccups could affect near-term performance.
RISK GONE
Intense price competition from unorganized players
Management acknowledged aggressive price cutting by unorganized players, which could pressure volumes and margins in the mass segment.
Fast read
Guidance and risk preview
Management targets gross margin improvement versus last year on a full-year basis, driven by product and channel mix.
Management noted that overall industry demand has not picked up as anticipated, which could cap growth.
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