Lehar Footwears Reports Q1FY27 Results: Core Business Shows Resilience Amid Economic Headwinds

Lehar Footwears Reports Q1FY27 Results: Core Business Shows Resilience Amid Economic Headwinds​

Lehar Footwears Limited has released its limited review financial results for the quarter ended June 30, 2026. The company reported performance across its footwear and toolkit businesses, highlighting growth in core footwear despite headwinds related to inflation, muted exports, and consumer sentiment shifts caused by geopolitical disruptions.

The company’s Q1FY27 (corresponding to the period ending June 30, 2026) results reflect a strong footing in the core business while managing various operational pressures. Footwear revenue grew by 9% year-on-year (YoY), reaching ₹ 58.1 Crore, supported by new product launches and a richer product mix.

The Q1 performance metrics across the company are detailed below:

Strategic Growth and Market Penetration​

The growth in the footwear segment was fueled by a strategic focus on premium and fashion ranges. Lehar Footwears is expanding its market presence through various channels, including trade distribution and large format stores such as Reliance Retail and D-mart. Furthermore, the company has strengthened its OEM relationships, with Shein (part of Reliance Retail) and HRX being newly onboarded among existing partners.

Operational strides include the launch of the company’s dedicated direct-to-consumer (D2C) website, www.rannr.com, alongside establishing a presence across e-commerce platforms including Amazon, Flipkart, and Myntra.

The toolkit business saw significant movement in Q1, completing all supplies for cumulatively 2.5 Lakh toolkits. Orders related to the first phase of the PM Vishwakarma Scheme were received by the company.

Operational Capacity Expansion​

Lehar Footwears is actively progressing with a phased capacity expansion at its Kundli (Sonipat) facility. The existing capacity is being scaled from approximately 1 lakh pairs per month toward 2 lakh pairs per month, with commercial operations scheduled to commence in September 2026. This expanded capacity positions the company to meet higher order volumes ahead of the seasonal upswing.

The company also noted that its OEM supply of sports shoes continues to scale, leveraging both brand partnerships and internal growth.

Market Challenges and Profitability Protection​

Despite managing market challenges, Lehar Footwears focused on protecting profitability through calibrated pricing actions, improved productivity, prudent sourcing, and enhancing the product mix. EBITDA Margins consequently improved by 50 basis points (bps) to 9.4% on a YoY basis for the quarter.

The geopolitical instability in the export market negatively affected performance during the quarter, impacting shipment schedules and order flows from GCC countries. Additionally, the company managed pressure on input costs alongside an increase in labor costs following minimum wage revisions.

Business Outlook​

Looking ahead, Lehar Footwears anticipates that the second half of the financial year will be a more meaningful period for the business, as Q1 was noted to be seasonally the lightest quarter for the athleisure and closed footwear category. The company holds an OEM order valued at approximately ₹ 40 crore scheduled for execution in the upcoming quarter.

The expansion plans, combined with onboarding additional brand customers and scaling up its in-house brand 'RANNR', provide two independent avenues to utilize manufacturing assets. Festive season order booking has been encouraging, supported by improved affordability due to GST rate reductions on footwear.

Stock Price Movement​

Currently, as of 09:34, shares of Lehar Footwears Ltd. are edging lower at ₹221.80 after falling by 3.27%. The stock traded within a tight range today, managing to test lows near ₹219.80 following an intraday high of ₹222.90.