Jaipur: Lehar Footwears Limited has stepped into a transformative phase of growth, unveiling robust financial results for the quarter ended September 30, 2025, while expanding its business horizons through brand innovation, policy tailwinds, and operational excellence.
In a significant strategic move, the company successfully launched its in-house athleisure and sports footwear brand ‘Rannr’. The brand debut, attended by over 200 dealers from across India, received encouraging market feedback and has already begun generating orders and enquiries, further strengthening Lehar’s pan-India distribution network.
Lehar also stands to benefit from the upcoming high-value tendering under the Government of India’s PM Vishwakarma Scheme. With approximately ₹9,800 crore worth of tenders expected over the next 18 months, the company—already a recipient of two earlier orders—is well-positioned to participate, backed by its eligibility credentials and operational readiness.
Meanwhile, the footwear segment is witnessing signs of demand recovery, catalyzed by the reduction in GST on footwear priced up to ₹2,500 from 12% to 5%. This reform is expected to boost affordability, expand the addressable market, and accelerate the formalization of the footwear industry. Despite a temporary dip in demand due to purchase deferments ahead of the GST cut, Lehar delivered a stable performance and reported a healthy festive season uptick, indicating renewed consumption momentum.
Financial Performance: H1FY26 vs H1FY25
Lehar reported a stellar financial performance in the first half of FY26:
- Revenue surged to ₹282.7 crore, up from ₹100.8 crore in H1FY25 and surpassing the full-year FY25 revenue of ₹277.2 crore.
- Profit After Tax (PAT) jumped to ₹14.6 crore from ₹3.6 crore in H1FY25, with PAT margin improving to 5.2% from 3.6%, driven by higher operating leverage.
- Operating Profit rose to ₹25.3 crore from ₹10.4 crore, maintaining a 9.0% margin.
- PBT stood at ₹19.8 crore, up from ₹4.9 crore in the same period last year.
The company also demonstrated significant improvement in working capital efficiency:
- Debtor days reduced from 129 to 60 days.
- Inventory days dropped from 122 to 37 days, aided by ERP-led inventory planning and improved credit discipline.
- Return on Capital Employed (RoCE) improved from 4.3% to 12.7%.
- Return on Equity (ROE) rose from 3.4% to 12.0%.
- Finance costs declined to ₹2.8 crore from ₹3.2 crore, reflecting robust cash flows and long-term debt repayment.
Business Highlights: Footwear and Toolkits
In the footwear segment, Lehar’s strong presence in the mass and mid-market categories, coupled with a diverse product portfolio, positions it well to capitalize on the anticipated demand revival. Exports in H1FY26 stood at ₹18.3 crore, and the company is now setting up country-wise distribution to further enhance its global footprint.
On the toolkits front, the PM Vishwakarma Scheme—launched in FY24 with a ₹13,000 crore outlay—continues to offer significant growth potential. With ₹3,200 crore worth of tenders already executed and ₹9,800 crore more expected in the next 18 months, Lehar is gearing up to tap into this opportunity. The government is also preparing for an expanded next phase of the scheme, with a larger outlay and broader beneficiary base.
Lehar’s strategic focus on profitability, working capital optimization, and sales transformation has enabled it to navigate market shifts while laying the foundation for sustained growth.
