Khadim India Limited — PPTs, 26-05-2025: Investor Presentation

1. Financial Highlights:

Revenue reached Rs 149.1 Cr for the quarter, up 3.8% YoY; FY25 revenue rose 1.4% YoY to Rs 623.7 Cr. Gross margin improved by 62 bps to 46.9%, driven by a better product mix. Quarterly EBITDA stood at Rs 15.2 Cr (10.2% margin), with FY25 EBITDA at Rs 66.6 Cr (10.7% margin). Consolidated figures showed a slight revenue decline of 1.9% YoY to Rs 4180 Cr, EBITDA down 9.8% to Rs 651.4 Cr, and PAT down 19.4% to Rs 50.7 Cr. Retail accounted for ~63% and distribution ~33% of revenue. Inventory and working capital increased moderately to support growth.

2. Strategic Initiatives & Growth Drivers:

The company operates on a two-pronged retail and distribution model with an asset-light approach—90% of retail products are outsourced. Retail expanded with 14 new stores in the quarter, now totaling 886 stores across 28 states and 4 UTs. Distribution network added 51 new distributors, reaching 781. Focus areas include premiumisation, maximizing capacity at existing facilities, and deeper penetration in metros and Tier I-III cities across South, West, and North India.

3. Business Developments:

Completed the demerger of distribution and manufacturing into KSR Footwear Limited, sharpening focus on core retail. Strengthened omni-channel presence through company-owned and franchise stores plus e-commerce. Expanded product portfolio spanning premium and economy segments.

4. Market Position & Competitive Advantage:

Khadim India is the second largest footwear retailer nationally and leads the largest franchise network. It holds a dominant position in East India and ranks top three in South India. The diversified business model reduces risk and targets approximately 85% of India’s footwear market with distinct brands across price tiers. Strong design capabilities underpin premiumisation and customer loyalty, while the wide product range addresses men, women, and children.

5. Investor Implications:

Retail and distribution expansion combined with premiumisation offers positive growth potential. The asset-light model supports margin stability, though scaling risks and margin pressures in distribution warrant attention. The demerger enhances operational focus and value clarity, supporting a smoother growth trajectory.