Lehar Footwears Ltd

Lehar Footwears Ltd: Trading window closed from 01 October 2026 until 48 hours after the declaration of Un-audited Financial Results for quarter and half year ending 30 September 2026.

Rating action details

• Total bank loan facilities rated: Rs 105 crore (enhanced from Rs 78 crore).
• Long-term rating: CRISIL BBB/Stable (Reaffirmed).
• Short-term rating: CRISIL A3+ (Reaffirmed).
• Rating agency: CRISIL Ratings Limited.
• Action date: 24 September 2026.
• Outlook: Stable.

Brand ambassador appointment

• Appoints Rajkummar Rao as Brand Ambassador for its in-house Rannr athleisure brand.
• Brand will feature Rao across campaigns and consumer communications in digital, e-commerce, retail, print, and outdoor.
• No financial terms of the agreement disclosed.
• Announcement dated 21 September 2026.

AGM Details

• Date and time: 10 September 2026 at 10:30 a.m. IST.
• Mode: physical AGM with remote e-voting and ballot facility.
• Venue: Vishwakarma Recreation Club, Jaipur.
• Cut-off date for voting: 3 September 2026.

Resolutions and outcomes

• Resolution 1 (Ordinary): Adopt Audited Financial Statements and reports; passed.
• Resolution 2 (Ordinary): Declare final dividend of Rs 0.50 per share; passed.
• Resolution 3 (Ordinary): Reappointment of Naresh Kumar Agarwal by rotation; passed.
• Resolution 4 (Special): Revision in remuneration of Executive Directors; passed.
• Resolution 5 (Ordinary): Remuneration payable to related party; passed.

Related-party disclosures

• Approval granted for remuneration to a related party holding an office or profit; no specific counterparty named.

AGM details

• AGM held on 10 September 2026 at 10:30 AM, physical meeting with ballot voting facility
• Venue: Vishwakarma Recreation Club, Jaipur; remote e-voting from 7-9 Sept 2026

Ordinary resolutions

• Adopt Audited Financial Statements and reports for FY2025-26; results to be communicated separately
• Declare final dividend of Rs 0.50 per equity share
• Reappoint Naresh Kumar Agarwal on retirement by rotation

Special resolutions

• Approve revision in remuneration of executive directors
• Approve remuneration revision for a related party holding office or profit in the company

Dividend

• Final dividend: Rs 0.50 per share

Director changes

• Director Naresh Kumar Agarwal proposed for reappointment; term aligned with rotation

Operational update

• Commencement of operations at Kundli, Haryana sports footwear facility.
• Capacity increased 150% to 2.5 lakh pairs per month.
• Phased expansion planned to 5 lakh pairs per month.
• Production for in-house Rannr brand and OEM customers.
• In-house design studio to support development and sampling.
• 5th-generation line with automation for tighter tolerances.

Financial performance

• Total income ₹431.1 crore; revenue up ~56% YoY
• PAT ₹20.8 crore; PAT margin 4.8%
• EBITDA ₹38.9 crore; RoCE 20.1%
• EPS ₹11.79; final dividend ₹0.50 per share proposed
• Cash from operations ₹25.3 crore
• CRISIL upgrade to BBB/Stable; A3+ outlook
• Footwear revenue ₹208.7 crore; up 16%
• Q4 footwear growth 27% YoY

Expansion and capacity

• Kundli facility capacity to 5 lakh pairs/month by Sep 2027
• 5x expansion at Kundli; capacity target reached in phases
• Installed fully automated EVA injection moulding and rotary PU injection machinery
• Rannr brand launched; BIS certifications across key categories

Market and product portfolio

• Active SKUs exceed 1,500 across multiple categories
• Pan-India presence: 27 states; 520+ distributors; 20+ export markets
• OEM manufacturing growth; largest order ₹39.70 crore for ~18 lakh pairs
• Rannr expands closed footwear; premium athleisure growth focus

Dividend, liquidity and capital

• Final dividend ₹0.50 per share; record date 3 Sep 2026
• Net debt ₹1,224.35 crore; gearing 1.17x
• Share capital ₹1,767.88 lakh; strong balance sheet indicators

Governance and risk

• Statutory auditors: M/s A. Bafna & Co; no qualifications
• Secretarial auditor: M/s Gaurav G & Associates
• Board: 6 directors; 50% independent; 13 meetings in FY2025-26
• Vigil mechanism and Code of Conduct in place

CSR and ESG

• CSR spend ₹26.94 lakh; 2% average net profit; CSR obligation ₹19.96 lakh
• Lehar Foundation drives CSR; multiple projects across districts
• Installed solar: 200 kW rooftop; 600 kW + 200 kW plants
• Energy-conservation capex ₹1.49 crore

Outlook and risks

• Indian footwear market solid long-term growth; GST relief aids affordability
• Risks: raw material volatility; competition; global trade dynamics
• Focus on branded growth, OEM expansion, capacity augmentation
• RANNR and OEMs provide revenue visibility

Subject / Purpose

• Press release on limited review financial results for quarter ended June 30, 2026.

Financial highlights

• Footwear revenue grew 9% YoY to ₹58.1 crore in Q1FY27.
• EBITDA margin rose to 9.4% in Q1FY27, up 50 bps YoY.

Key business developments

• D2C site rannr.com launched; presence on Flipkart, Myntra and Amazon.
• New OEM customers Shein and HRX onboarded; OEM sports-shoe supply expanding.
• Trade distribution expanding to D-mart and Reliance Retail.
• Kundli facility capacity to ~2 lakh pairs/month; operations from September 2026.
• Toolkit business delivered 2.5 lakh toolkits; first-phase PM Vishwakarma order received.

Outlook and risks

• Second half expected to be stronger; OEM order of ₹40+ crore next quarter.
• Kundli capacity to be commissioned ahead of seasonal upswing.
• GST rate reduction supporting festive-season orders.
• Geopolitical export disruptions continue; input and labor costs rising.