Jaipur : Lehar Footwears Limited (BSE – LEHAR | 532829 | INE976H01018), one of the leading regional mass-footwear manufacturers of high quality and stylish non-leather footwears, has announced its Audited Financial Results for Q4 & 12M FY26.

Q4 FY26 Standalone Key Financial Highlights

  • Total Income of ₹ 91.3 Cr
  • EBITDA of ₹ 8.0 Cr
  • EBITDA Margin of 8.8%
  • Net Profit of ₹ 4.1 Cr
  • Net Profit Margin of 4.5%
  • Diluted EPS of ₹ 2.3

FY26 Standalone Key Financial Highlights

  • Total Income of ₹ 431.3 Cr, YoY growth of 55.4%
  • EBITDA of ₹ 39.0 Cr, YoY growth of 49.1%
  • EBITDA Margin of 9.0%, YoY decline of 38.9 Bps
  • Net Profit of ₹ 20.8 Cr, YoY growth of 91.8%
  • Net Profit Margin of 4.8%, YoY growth of 91.4 Bps
  • Diluted EPS of ₹ 11.8, YoY growth of 91.8%

Key Performance Highlights

  • Total Income grew to ₹431.32 crore in FY26, up 55% YoY – highest ever annual revenue in the Company’s history
  • Profit After Tax (PAT) almost doubled to ₹20.8 Crore in FY26; PAT Margin expanded ~90 bps to 4.8% (vs 3.9%) with flat depreciation charges and lower interest costs
  • Generated cash flow from operations of ₹25.2 Crore during FY26, healthy cash conversion supporting growth funding
  • Return on Capital Employed (RoCE) improved meaningfully to 18% in FY26 as compared to 12% in FY25 as a result of healthy operating profit growth and lower dependence on debt
  • Continued de-leveraging – long-term debt reduced from ~₹5 Crore in FY25 to near-negligible levels in FY26
  • For Q4, the Footwear segment delivered 27% YoY growth, driven by strong traction in premium and athleisure categories, along with expansion in distribution channels. However, the toolkit order execution was phased out to the subsequent quarter.
  • In Q4, interest cost declined by 40% to ₹1.2 crore from ₹2 crore in Q4 FY25. This decline was driven by a reduction in borrowings and lower interest rates following a rating upgrade by CRISIL

(upgraded to BBB/Stable from BBB-/Stable).

Key Business Highlights

Footwear Business

  • Footwear revenue grew by 16% YoY to ₹208.7 Crore in FY26, with strong momentum supported by new product launches and a richer mix
  • Commenced OEM supply in the athleisure category; onboarded leading brands including Spykar, Red Chief, Cult Fit and Lee Cooper, opening a new institutional growth channel
  • Widening of distribution channels for premium and fashion footwear
  • Progress on the new Kundli (Sonipat) athleisure facility – 5x phased capacity expansion (from ~1 lakh to ~5 lakh pairs per month); expected to commence commercial operations from Q2 FY27 onwards
  • GST Council’s reduction of GST rate on footwear – a significant tailwind that is expected to enhance affordability, widen the addressable market and accelerate formalization, directly benefiting Lehar’s mass and mid-market portfolio

Toolkit Business

  • The Toolkit business emerged as a meaningful second engine for the Company in FY26, with segment revenue of ₹249.5 Crore
  • Lehar has cumulatively delivered ~2,00,000 toolkits under the PM Vishwakarma Scheme during last 18 months, consistently meeting quality standards and committed delivery timelines.
  • PMKY operates on an efficient tech enabled platform providing absolute transparency and quick delivery & payment mechanism
  • The segment is structurally asset-light, with negligible working capital intensity and a Return on Capital Employed of ~100%; delivery-linked disbursements through the tech-enabled PMVKY platform translate directly into strong operating cash flows.
  • The Union Budget for FY26–27 has proposed an allocation of ₹3,861 Crore to the PM Vishwakarma Scheme, substantially scaling up the addressable opportunity for empanelled vendors.
  • With a proven execution track record and established eligibility credentials, Lehar is well-placed to participate meaningfully in upcoming tenders under the next phase of the Scheme.

Commenting on the performance, Mr. Raj Kumar Agarwal, Chairman of Lehar Footwears Limited said: “FY26 has been a landmark year for Lehar Footwears. We have delivered our highest-ever annual revenue and profitability, meaningfully expanded our return ratios, and continued to strengthen the balance sheet. The investments we have made over last couple of years includes non-leather capacity, the launch of our athleisure brand Rannr, deeper distribution, BIS approved products, OEM manufacturing for reputed brands, and execution under the PM Vishwakarma Scheme. These are now translating into a more diversified and profitable business. With the new expanded Kundli athleisure facility scheduled to commence commercial operations in Q2FY27, a supportive GST regime, and a larger upcoming phase of the PM Vishwakarma Scheme, we believe Lehar is well-positioned to sustain growth momentum in FY27 and beyond.”