Whalesbook
Lehar Footwears Reports Record FY26 Performance
Lehar Footwears Ltd. announced its highest-ever annual revenue of ₹431.3 Crore for the fiscal year ending March 2026 (FY26), a significant 55% increase from ₹277.5 Crore in FY25. Net profit saw a substantial jump, nearly doubling to ₹20.8 Crore in FY26, compared to ₹10.9 Crore in the previous fiscal year. The company's Return on Capital Employed (RoCE) improved to 18% from 12% in FY25.
Growth Drivers and Financial Health
This strong annual performance reflects robust business growth and improved profitability. The near doubling of net profit and enhanced capital efficiency signal effective operational management. Strategic investments in non-leather capacity, the growth of its 'Rannr' athleisure brand, and expanded distribution network fueled this success. The company also benefited from a supportive GST regime and the PM Vishwakarma Scheme.
Debt Reduction and Future Expansion
A significant reduction in long-term debt to near-negligible levels has strengthened the company's financial health. With the Kundli athleisure facility set to begin commercial operations in Q2 FY27, Lehar Footwears is positioned for further growth. The company expects to realize the full benefits of its toolkit orders in the upcoming quarters.
Key Metrics and Risks
In FY26, the toolkit business generated ₹249.5 Crore in revenue with approximately 100% RoCE, while the footwear segment contributed ₹208.7 Crore with 16% year-over-year growth. The company's credit rating was upgraded by CRISIL to BBB/Stable. A primary concern remains the timing of toolkit order execution, which led to a dip in Q4 FY26 income compared to the prior year due to phased realization of orders. This could impact subsequent quarter comparisons if not managed effectively.
What to Watch Next
Investors will closely monitor the commercial launch of the Kundli athleisure facility and its revenue contribution. Tracking the realization of toolkit orders and overall sales growth in FY27 will be crucial for continued performance.