Lehar Footwears Q2 FY27 Results (BSE: 532829)
Signal: Revenue declined
The read
The operating inflection is mix-led rather than broad-based: footwear revenue rose 105.5% YoY and gross margin expanded 1018bps to 31.4%, but toolkit revenue fell to negative ₹17.43 lakh, total revenue declined 28.8%, EBITDA declined 28.4% and PAT declined 37.3%. The ₹1409.00 lakh PPE investment is expanding capacity, but H1 operating cash flow was negative ₹28.93 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹100.06 Cr | -28.8% | +33.5% |
| EBIT | ₹7.29 Cr | -35.0% | |
| Net profit | ₹4.58 Cr | -37.3% | |
| EPS | ₹2.58 | -37.5% | |
| EBIT margin | 9.0% |
P&L walk
Revenue recovered 33.5% QoQ but remained 28.8% below last year as footwear revenue more than doubled while toolkit revenue turned negative; gross margin expanded 1018bps YoY on the sharp segment mix shift, but EBITDA fell 28.4% and PAT fell 37.3%.
Segments
Footwear, accessories and other products drove the quarter with ₹10023.00 lakh of revenue and ₹733.90 lakh of segment profit versus ₹4877.50 lakh and ₹409.20 lakh YoY, while Toolkit and Others dragged the group with negative ₹17.43 lakh revenue and a ₹4.64 lakh loss after ₹10438.94 lakh revenue and ₹88.90 lakh profit YoY.
Key positives
- Footwear, accessories and other products revenue increased 105.5% YoY to ₹10023.00 lakh, with segment profit up 79.4% YoY to ₹733.90 lakh.
- Gross margin expanded 1018bps YoY to 31.4%, coinciding with the mix shift toward the footwear segment.
- PPE purchases of ₹1409.00 lakh in H1FY27 increased the asset base to ₹9689.93 lakh, supporting the disclosed capacity-expansion trajectory.
Key concerns
- Consolidated-equivalent standalone revenue declined 28.8% YoY to ₹10005.57 lakh because Toolkit and Others revenue fell from ₹10438.94 lakh to negative ₹17.43 lakh.
- EBITDA declined 28.4% YoY to ₹902.10 lakh and PAT declined 37.3% to ₹457.71 lakh despite the gross-margin expansion, as employee plus other expenses rose 30.1% YoY to ₹2239.42 lakh.
- H1FY27 operating cash flow was negative ₹28.93 lakh versus positive ₹1809.45 lakh in H1FY26, while net debt increased to ₹3435.92 lakh after the capex outlay.
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