Store Count
864
-29 QoQ
Total retail footprint: 195 COCO and 669 franchise stores, down from 893 in Q2 FY26.
KHADIMINDIA
Other
10 Feb 2026
Khadim India Limited — Q3 FY26
Khadim India reported a weak Q3 FY26 with revenue of 86.2 cr (down 21.8% YoY) and a marginal net loss of INR 0.2 cr.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Khadim India reported a weak Q3 FY26 with revenue of 86.2 cr (down 21.8% YoY) and a marginal net loss of INR 0.2 cr. The decline was driven by deliberate inventory destocking (inventory days reduced from 131 to 117), closure of unprofitable stores (7-8% impact), and subdued discretionary demand. EBITDA margin contracted to 12.8% (down 170 bps YoY) due to higher employee costs from revised labor codes and promotional discounting (20-22% of sales). Management guided for FY27 revenue stabilization around 350 cr with EBITDA margin of 14-14.5% and gross margin of 49-50%. Key growth levers include premium subbrands (British Walkers grew 9.9% YoY), Skechers partnership (doubled sequentially to ~1.5-2 cr run-rate), and e-commerce (targeting 10% of sales). Risk: sustained demand weakness could delay margin recovery.
Key Numbers
Inventory Days
117 days
-14 days QoQ
Reduced from 131 days in Sep 2025; target to reach 105-107 days by Q4 FY26.
Like-for-Like Volume Growth
-2%
-2% YoY
Excluding closed stores, same-store volume declined 2% YoY in Q3 FY26.
E-commerce Share
3-4%
flat YoY
Online sales contribute 3-4% of total revenue; target to reach 10% in FY27.
Management Guidance
FY27 Revenue Stabilization at ~350 cr
Management expects FY27 revenue to remain flat at around 350 cr, with no further volume decline.
Management guidance revenueFY27 EBITDA Margin Target of 14-14.5%
Management guided for EBITDA margin improvement to 14-14.5% in FY27, driven by cost reduction and premium mix shift.
Management guidance marginsFY27 Gross Margin Target of 49-50%
Gross margin expected to normalize to 49-50% in FY27, up from 48.2% in 9M FY26.
Management guidance marginsE-commerce Share Target of 10% in FY27
Management aims to increase online sales contribution from 3-4% to 10% of total revenue in FY27.
Management guidance growthKey Risks
Sustained Demand Weakness
Subdued discretionary spending and value-driven segment pressure may continue to impact sales and margin recovery.
high · management_commentaryHigh Debtors and Working Capital
Debtors at 198 cr (including 32 cr stuck in Punjab government) represent over one year of franchise revenue, straining cash flow.
high · analyst_questionGST Benefit Not Yet Visible
Despite GST rate reduction, volume elasticity has not materialized; management expects impact only from Q1 FY27.
medium · analyst_questionAthleisure Rollout Constraints
Limited store space and lack of changing rooms restrict athleisure expansion; no clear target for store penetration.
low · analyst_questionNotable Quotes
We have corrected our inventory. We have taken call on our stores. We have closed the store which are bleeding. So we have changed our product profile.
Our main objective is to keep the sales at least the volume there is no volume degrowth and with the increase in the ASP there might be some growth in our sales.
We are focusing a lot on our own website and we are developing exclusive lines so that we can have a profitable sale from these marketplaces.
Frequently Asked Questions
What was Khadim India's revenue in Q3 FY26?
Khadim India reported revenue of ₹86 Cr in Q3 FY26, representing a -21.8% change compared to the same quarter last year.
What guidance did Khadim India management give for FY27?
FY27 Revenue Stabilization at ~350 cr: Management expects FY27 revenue to remain flat at around 350 cr, with no further volume decline. FY27 EBITDA Margin Target of 14-14.5%: Management guided for EBITDA margin improvement to 14-14.5% in FY27, driven by cost reduction and premium mix shift. FY27 Gross Margin Target of 49-50%: Gross margin expected to normalize to 49-50% in FY27, up from 48.2% in 9M FY26. E-commerce Share Target of 10% in FY27: Management aims to increase online sales contribution from 3-4% to 10% of total revenue in FY27.
What are the key risks for Khadim India in FY27?
Key risks include Sustained Demand Weakness — Subdued discretionary spending and value-driven segment pressure may continue to impact sales and margin recovery.; High Debtors and Working Capital — Debtors at 198 cr (including 32 cr stuck in Punjab government) represent over one year of franchise revenue, straining cash flow.; GST Benefit Not Yet Visible — Despite GST rate reduction, volume elasticity has not materialized; management expects impact only from Q1 FY27.; Athleisure Rollout Constraints — Limited store space and lack of changing rooms restrict athleisure expansion; no clear target for store penetration..
Did Khadim India meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Khadim India Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.