Lehar Footwears Ltd. FY 2025-26 Annual Report

Revenue from Operations soared by 55.51% to Rs 431.11 crore in FY 2025-26 from Rs 277.21 crore in FY 2024-25.
Profit After Tax (PAT) surged by 91.72% to Rs 20.84 crore in FY 2025-26 from Rs 10.87 crore in FY 2024-25.

Reader Takeaway: Record financials driven by operational efficiency and new brand launch; toolkit segment faces tender dependency.

What just happened

Lehar Footwears Ltd. has released its annual report for the fiscal year ended March 31, 2026, showcasing a significant jump in financial performance. Key highlights include a 55.51% rise in revenue from operations to Rs 431.11 crore and a 91.72% increase in Profit After Tax (PAT) to Rs 20.84 crore. The company also received a credit rating upgrade to CRISIL BBB/Stable and plans to expand its Kundli facility capacity to 5 lakh pairs per month by September 2027.

Why this matters

This strong financial performance, coupled with a credit rating upgrade, signals improved financial health and operational efficiency for Lehar Footwears. The expansion plans indicate future growth potential. The proposed dividend of Rs 0.50 per share also provides a direct return to shareholders, while the growth in both the footwear and toolkit segments shows diversification.

The backstory

In FY 2024-25, Lehar Footwears had reported revenues of Rs 277.21 crore and PAT of Rs 10.87 crore. The company has been focusing on operational efficiency, a favorable business mix, premiumization, and expansion into athleisure segments. It also secured a significant agreement worth Rs 298 crore with NSIC for the toolkit segment and onboarded new OEM partners.

What changes now

The company is set to increase its production capacity at the Kundli facility and has seen its credit rating improve. The successful launch of its sports and athleisure brand 'Rannr' and expansion of OEM partnerships are expected to drive future growth. The toolkit segment's performance will continue to be influenced by government schemes like PM Vishwakarma.

Risks to watch

The toolkit segment's reliance on government tenders and budget allocations presents a risk. The highly competitive nature of the footwear industry necessitates continuous innovation and design adaptation to maintain profit margins.

Peer comparison

While specific peer data for FY26 is not immediately available from the filing, the footwear industry is competitive with players like Relaxo Footwears and Bata India. Lehar's strategy of brand building ('Rannr') and OEM partnerships aims to capture market share in different segments.

Context metrics (time-bound)

• Revenue from Operations: Rs 431.11 crore (FY 2025-26) vs. Rs 277.21 crore (FY 2024-25)
• Profit After Tax (PAT): Rs 20.84 crore (FY 2025-26) vs. Rs 10.87 crore (FY 2024-25)
• Capacity Goal: 5 lakh pairs/month at Kundli facility (by Sept 2027)
• CRISIL Rating: BBB/Stable (upgraded from BBB-/Stable)

What to track next

Investors will be keen to watch the progress of the Kundli facility's capacity expansion, the performance of the 'Rannr' brand, and the continued execution of the toolkit order book. Management's commentary on future growth strategies and margin sustainability will also be important.