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. 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.