Khadim India Ltd (KHADIM)
🎯 Key Takeaways
- Khadim India Ltd is in a turnaround phase marked by declining revenue and improving gross margins, reflecting operational resilience amid challenging consumer demand. The company maintains an asset-light retail model with a broad store network but faces profitability pressures, as evidenced by negative net income and low ROE.
- Revenue declined 6.8% QoQ to ₹78 in Q1FY27.
- ⚠️ Sustained revenue decline across all quarters raises concerns about demand stagnation in the leather footwear segment, with no clear recovery path dis
- Market Cap
- ₹210
- P/E Ratio
- 75.5
- P/B Ratio
- 1.26
- ROE
- 1.6%
- ROCE
- 10.5%
- Debt/Equity
- 0.73
- Promoter
- 59.9%
📖 The Story
Khadim India Ltd is in a turnaround phase marked by declining revenue and improving gross margins, reflecting operational resilience amid challenging consumer demand. The company maintains an asset-light retail model with a broad store network but faces profitability pressures, as evidenced by negative net income and low ROE. Management is pursuing capital efficiency through non-core asset rationalization and convertible warrant issuance, signaling a focus on balance sheet flexibility.
📰 What's Happening
In Q1 FY27, Khadim India reported a 18.7% YoY revenue decline to ₹778.4 million, yet gross margin expanded by 380 bps to 51.5%, indicating cost optimization despite volume pressure. The company continues to expand its retail footprint with 825 branded stores across 21 states. A credit rating upgrade to BBB (negative outlook) from CARE Ratings acknowledged improved long-term capacity but highlighted ongoing financial stability concerns. Shareholders approved the issuance of 10,22,727 convertible warrants at ₹110 each during the AGM, with 25% payment received, exercisable until September 2027, potentially diluting existing equity if fully converted.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 102 | 86 | 84 | 78 |
| Operating Profit | 7 | 4 | 5 | 1 |
| OPM % | 7.0% | 5.0% | 6.4% | 1.6% |
| Net Profit | 2 | -0 | 1 | 1 |
| EPS | ₹0.91 | ₹-0.09 | ₹0.41 | ₹0.28 |
Revenue has declined consistently over the past four quarters, from ₹102 million in September 2025 to ₹78 million in June 2026, while operating performance remains volatile. Despite the top-line contraction, gross margin improved significantly to 51.5% in Q1 FY27 from 47.7% in the same period last year, reflecting disciplined cost management. Net profit fell 39.2% YoY to ₹5.2 million in Q1 FY27, with EBITDA margin compressing to 10.1%, underscoring sensitivity to macroeconomic headwinds. The company’s profitability trajectory remains constrained by subdued consumer demand and margin compression in core operations.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margin recovery in the latest filings, focusing instead on operational resilience and capital structure optimization. The negative outlook from CARE Ratings suggests caution on near-term financial stability, prompting the company to pursue convertible warrant issuance as a strategic tool for liquidity management without immediate dilution. There is no public indication of new growth initiatives or demand revival expectations in the disclosed commentary.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 18 | 18 | 18 | 18 |
| Reserves | 233 | 231 | 149 | 147 |
| Borrowings | 295 | 323 | 122 | 255 |
| Total Liabilities | 761 | 819 | 547 | 576 |
| Fixed Assets | 225 | 245 | 155 | 155 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 761 | 819 | 547 | 576 |
The balance sheet shows a strategic reduction in net borrowings, with total debt declining from ₹295 crore in March 2025 to ₹122 crore in March 2026, while equity and reserves remain relatively stable. This deleveraging reflects a conservative capital allocation strategy, prioritizing financial stability over growth investment. The company is not pursuing aggressive expansion or dividend payouts, instead maintaining a cautious stance amid sectoral headwinds and rating agency concerns.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +67 | +26 |
| Investing | -9 | -9 |
| Financing | -42 | -43 |
| Net Cash Flow | +17 | -26 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 59.9% | 59.9% | 59.9% | 59.9% |
| FII | 0.0% | 0.3% | 1.1% | 0.1% |
| DII | 3.2% | 2.5% | 1.3% | 1.1% |
| Public | 30.4% | 30.4% | 30.4% | 31.4% |
| # Shareholders | 33,752 | 34,055 | 34,640 | 34,131 |
Promoter holding has remained stable near 59.85% over the past year, indicating confidence in long-term control. However, Foreign Institutional Investor (FII) ownership has fluctuated dramatically, dropping from 3.21% in Q2FY26 to just 0.12% in Q1FY27, while Domestic Institutional Investors (DII) have also declined from 3.21% to 1.14%. The sharp reduction in institutional interest, particularly FIIs, signals growing skepticism about the company’s turnaround prospects despite improving gross margins.
⚖️ Peer Comparison — Leather
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| METROBRAND | 23,012 | 56.6 | 38.9% | — | 0.00 |
| BATAINDIA | 7,951 | 54.4 | 20.7% | — | 0.00 |
| RELAXO | 7,249 | 39.1 | 12.4% | — | 0.00 |
| CAMPUS | 6,382 | 50.6 | 32.5% | — | 0.41 |
| MAYURUNIQ | 3,194 | 15.4 | 29.0% | — | 0.01 |
| BIL | 1,344 | 52.0 | 10.2% | — | 1.07 |
| SREEL | 660 | 20.1 | 9.5% | — | 0.00 |
| MIRZAINT | 386 | — | -3.4% | — | 0.03 |
| LIBERTSHOE | 376 | 46.2 | 8.9% | — | 0.84 |
| KHADIM | 210 | 75.5 | 10.5% | — | 0.73 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Sustained revenue decline across all quarters raises concerns about demand stagnation in the leather footwear segment, with no clear recovery path disclosed. 2. The negative credit rating outlook from CARE Ratings introduces potential downgrade risk, which could increase borrowing costs and limit access to capital. 3. High promoter concentration (59.89%) combined with declining institutional interest may limit liquidity and amplify volatility if selling pressure emerges. 4. The issuance of convertible warrants introduces future dilution risk, which could depress existing shareholder value if conversion occurs at unfavorable times.
📋 Recent Filings
- 🔴 Announcement2026-10-01Khadim India Ltd received a credit rating from CARE Ratings on its bank facilities totaling ₹161.74 crores, with long-term facilities upgraded to BBB …
- Announcement2026-09-26Khadid India Ltd announced that its trading window will close on October 1, 2026, remaining shut for 48 hours after the unaudited financial results fo…
- 🔴 Corporate Action2026-09-25Khadim India approved the allotment of 10,22,727 fully convertible equity warrants at ₹110 each, with 25% payment received upfront, following sharehol…
- 🟡 Board Meeting2026-09-24Khadim India held its 45th AGM on September 24, 2026 via video conference, adopting audited financials for FY2026, reappointing Ritoban Roy Burman and…
- 🔴 Financial Results2026-09-15Khadim India reported Q1 FY27 revenue of ₹778.4 million, down 18.7% YoY, with gross profit at ₹400.6 million and EBITDA margin of 10.1%. Net profit af…
- 🔴 annual report2026-09-03Khadim India announced its 45th AGM on September 24, 2026, and shared the Annual Report 2025-26 via email and physical notice with a web-link (https:/…
- 🟡 Board Meeting2026-09-02Khadim India Ltd announced its 45th AGM on September 24, 2026, via video conferencing, seeking shareholder approval for adopting FY2026 financial stat…
- 🔴 annual report2026-09-02Khadim India Ltd's FY2025-26 Annual Report shows revenue of **₹3,670.95 million**, EBITDA of **₹472.85 million**, and PAT of **₹31.39 million**, refle…
- 🟡 Board Meeting2026-08-28Khadim India announced its 45th Annual General Meeting will be held on September 24, 2026 via video conference, with voting eligibility set on Septemb…
- 🟡 Board Meeting2026-08-07Khadim India's board approved unaudited standalone and consolidated financial results for Q1 June 2026 during its August 7, 2026 meeting. The results …
🧠 Analyst's Read
Khadim India is navigating a fragile turnaround marked by declining sales and margin volatility, with management prioritizing financial stability over growth. Investors should monitor sequential revenue trends, institutional investor behavior, and any update to the CARE Ratings outlook for early signals of stabilization or further deterioration in financial health.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-10-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
📡 Get AI alerts when KHADIM files new disclosures
Track KHADIM filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track KHADIM — FreeFree account · 2 AI queries/day