The company is the largest footwear manufacturer in India in terms of volume and second-largest in terms of revenue. It is also the leader in 'value' segment footwear. The organized retail (EBO stores), e-commerce, and large-format retail stores reported strong performance, while the general trade channel witnessed positive momentum.
Cyborg Score Rationale
Net profit declined 1.55% to Rs 36.16 crore in Q2 FY26, while sales declined 7.48% to Rs 628.54 crore. The company faces financial challenges like declining operating profit and low ROCE in competitive landscape. However, management maintains cautious optimism about recovery.
Top Insights
The company is facing a challenging market environment with reported decline in revenue due to demand softness and cautious distributor behavior linked to GST changes
The company operates 405 exclusive brand outlets and has scaled manufacturing capacity to 10.5 lacs pair per day
The reduction in GST rates is expected to improve market conditions, allowing for potential market share gains in premium segments
The company has delivered poor sales growth of 2.96% over past five years and has a low return on equity of 9.11% over last 3 years
Named Competitors
Bata Footwear — Leather and non-leather footwear across multiple segments
Liberty Footwear — Sports and casual footwear manufacturer
Paragon Footwear — Value and premium footwear offerings
Recent Developments
(February 2026) Stock price at ₹369.25-374.70; market cap ₹9,236.87 Cr