Persistent Demand Weakness
Industry-wide demand slowdown continues with no meaningful recovery visible. GST rate cuts failed to stimulate consumer demand, indicating structural consumption issues in the footwear sector.
KHADIM / bear-case history
Track the concerns that keep returning.
Khadim India · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Raw Material Inflation
Petroleum-based raw materials have increased 20-25% since February 2026, pressuring margins. While price increases of ₹25-50 are being passed on in retail, distribution margins remain at risk.
Inventory Stocking Lag Affecting Revenue
Inventory correction in Q3-Q4 FY26 led to estimated ₹10-15 crore of lost sales over two quarters. Inventory replenishment will only normalize by end of H1 FY27, delaying revenue recovery.
Evasive Response on Cash/Equity Decline
Analyst questioned sharp decline in cash and equity levels. Management attributed it to demerger transfer but did not provide specifics on remaining cash position adequacy for FY27 operations.