KHADIM Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹83.56 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹11.9 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Khadim India reported a subdued Q4 FY26 with revenue from operations at ₹83.6 crore (vs ₹93.88 crore YoY), reflecting continued demand weakness across mass and value segments. EBITDA margin of 14.3% was maintained through disciplined cost management despite revenue decline. FY26 full-year revenue stood at ₹367.1 crore, down 12% YoY from ₹418 crore, with PAT at a thin ₹3.1 crore for the year. The company completed its distribution and manufacturing demerger into KSR Limited, enabling sharper operational focus. Management guided for FY27 revenue of ~₹400 crore with 14% EBITDA margin and 48-50% gross margin. Key risks include persistent demand softness, raw material inflation (up 20-25% since February), GST rate cuts not boosting demand, and store rationalization headwinds. Premiumization through British Walker (+6% YoY) and athleisure (+46%) are growth levers, though space constraints limit athleisure scalability. Working capital remains tight post-demerger, though management assured adequate facilities.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets revenue of approximately ₹400 crore for FY27, implying ~9% growth from FY26's ₹367.1 crore, supported by inventory restocking and improved product mix.
- Company expects to maintain 14% EBITDA margin at ₹400 crore revenue level, achievable through cost optimization and higher premium product contribution.
- Gross margin expected to improve by 50 basis points to approximately 49-50% range, driven by reduced discounting, better product mix, and price increases in spring-summer collections.
- Management targets approximately 200 company-owned stores as steady-state post rationalization, focusing on profitable locations and strategic expansion in high-potential markets.
Risks flagged
- 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.
- 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 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.
- 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.
Key quotes
- The degrowth has come mainly due to closure of stores and also less push of primary sales to the franchises. Once that the store closure has been done, I think there will be no further store closure and sales will remain the same.
- Khadim is mainly a middle-class brand. So we have to keep our foot strong in the middle-class segment and try out some premiumization where we promote the middle class to buy some premium product like British Walker and Sharon.
- The raw material increased around 20 to 25% compared to February. But still we have also increased our MRP and trying to remain competitive. The raw material price is very volatile, the petroleum product which is one of the key component in our segment.
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