Lehar Footwears Reports Q1 FY27 Performance: Core Footwear Revenue Up 9% as EBITDA Margins Expand

Lehar Footwears Limited has released its limited review financial results for the first quarter ended June 30, 2026 (Q1 FY27). Demonstrating resilience amid broader macroeconomic and geopolitical challenges, the company's core footwear division recorded steady growth, accompanied by an expansion in overall operational margins.

Financial Performance Overview

For Q1 FY27, Lehar Footwears achieved a total revenue of ₹74.9 crore. While overall topline figures were influenced by the completion of orders in the toolkit division, the primary footwear business expanded by 9% year-on-year to reach ₹58.1 crore, up from ₹53.2 crore in Q1 FY26 and ₹50.1 crore in Q4 FY26.

Operating profitability improved during the period, with the EBITDA margin expanding by 50 basis points year-on-year to 9.4% (generating ₹7.0 crore in EBITDA), compared to 8.9% in Q1 FY26. Profit Before Tax (PBT) stood at ₹4.0 crore, while Profit After Tax (PAT) reached ₹3.0 crore, maintaining a PAT margin of 4.0%. Depreciation for the quarter was ₹1.6 crore, and finance costs were recorded at ₹1.4 crore.

Core Footwear Growth and Distribution Expansion

The 9% growth in core footwear revenue was supported by strong consumer demand for premium and fashion ranges, alongside targeted new product launches. The company continued to expand its market footprint across both traditional trade distribution and modern trade channels, including large format retailers like Reliance Retail and D-Mart.

To deepen its direct-to-consumer (D2C) presence, Lehar Footwears launched its proprietary e-commerce platform for its in-house brand, RANNR (www.rannr.com), while expanding listing presence across major e-commerce marketplaces including Amazon, Flipkart, and Myntra.

In the OEM domain, the company continued scaling its supply of sports shoes to prominent athleisure brands. During the quarter, Lehar Footwears onboarded new client relationships, including HRX and Shein (part of Reliance Retail), adding to its active OEM portfolio.

Geopolitical Headwinds and Cost Management

The first quarter posed several operational challenges, including inflationary pressures, increased labor costs following minimum wage revisions, and export disruptions stemming from ongoing war-related geopolitical tensions. Shipment schedules and order flows to GCC countries were notably affected by export supply chain bottlenecks.

Despite these cost pressures, Lehar Footwears protected its profitability through calibrated pricing actions, prudent input sourcing, productivity enhancement measures, and an enriched product mix, ultimately driving the 50 bps improvement in EBITDA margin.

Completion of PM Vishwakarma Scheme Orders

The non-core Toolkit division generated ₹16.8 crore in revenue for Q1 FY27. This quarter marked the formal completion of all supplies under the first phase of the PM Vishwakarma Scheme, fulfilling a cumulative order of 2.5 lakh toolkits while adhering to stipulated quality standards and delivery schedules.

Capacity Expansion and Strategic Outlook

Lehar Footwears is progressing with a phased capacity expansion at its Kundli (Sonipat) manufacturing facility. Production capacity is being scaled from approximately 1 lakh pairs to nearly 2 lakh pairs per month, with commercial operations scheduled to commence in September 2026. This additional capacity will be operational ahead of the seasonal demand upswing.

Looking ahead, management highlighted several positive growth drivers for the remainder of FY27:

OEM Order Pipeline: The company holds an executable OEM order pipeline of over ₹40 crore slated for delivery in the upcoming quarter.

Dual Brand Utilization: The simultaneous growth of third-party OEM partnerships and the proprietary 'RANNR' brand provides two distinct avenues to maximize manufacturing asset utilization.

Seasonal and Tax Tailwinds: With Q1 historically representing the lightest quarter for athleisure and closed footwear, momentum is expected to build into the second half of the fiscal year. Furthermore, order bookings for the upcoming festive season remain encouraging, buoyed by improved consumer affordability following GST rate reductions on footwear.

Established in 1994, Lehar Footwears operates five production plants across Jaipur, Kaladera (Chomu), and Kundli (Haryana), manufacturing non-leather footwear for retail trade, government schemes, export channels, and digital platforms.

Shares of Lehar Footwears Ltd was last trading in BSE at Rs. 221.30 as compared to the previous close of Rs. 229.30. The total number of shares traded during the day was 24045 in over 401 trades.

The stock hit an intraday high of Rs. 222.90 and intraday low of 219.50. The net turnover during the day was Rs. 5313583.00.

Source : Equity Bulls

Keywords

LeharFootwears INE976H01018 Q1FY27 Q1FY2027 ResultUpdate