Campus Activewear Ltd (NSE: CAMPUS) Q4 2025 Earnings Call dated May. 29, 2025
Corporate Participants:
Nikhil Aggarwal — Whole Time Director & Chief Executive Officer
Sanjay Chhabra — Chief Financial Officer
Analysts:
Gaurav Jogani — Analyst
Aliasgar Shakir — Analyst
Umang Mehta — Analyst
Shraddha Kapadia — Analyst
Niraj Mansingka — Analyst
Akshen Thakkar — Analyst
Prerna Jhunjhunwala — Analyst
Manasvi Shah — Analyst
Priyank Chheda — Analyst
Presentation:
Operator
Hi, ladies and gentlemen, good day and welcome to the Campus Activewear Limited’s Q4 and FY ’25 Earnings Conference Call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star than zero on your touchstone phone.
Before we proceed on this call, let me remind you that the discussion may contain forward-looking statements that may involve known Known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our businesses that could cause future results, performance or achievement to differ significantly from what is expressed or implied by such forward-looking statements. The Campus management team is represented by Mr Nikhil Agarwal, Whole-Time Director and CEO; and Mr Sanjay Chabra, the CFO. I now hand the conference over to Mr Nikhil Agarwal, Whole-Time Director and CEO for his opening remarks. Thank you, and over to you, sir. Thank you.
Nikhil Aggarwal — Whole Time Director & Chief Executive Officer
Thanks. Good evening, everyone. Thank you all for joining us today for our quarter-four and FY ’25 earnings call. FY ’25 has been a year of meaningful progress and strong execution for the company. Despite a challenging macro-environment, we stayed focused on our strategic priorities and delivered a healthy 10% year-over-year revenue growth reaching to INR1593 crores. This growth was led by higher volumes, reflecting the success of our efforts in expanding distribution, accelerating online sales, launching fresh and relevant styles and running a high-impact digital marketing campaign.
We also made significant strides in strengthening our brand presence. Our expansion into premium large-format stores helped us reach more consumers in Tier-1 cities and metro markets, reinforcing our position in modern retail. Geographically, we continue to build-on our stronghold in the North, Central and West regions, while also expanding into Southern India with encouraging traction. Our enhanced online visibility supported this growth.
We further enriched our family brand proposition by launching over 250 new styles for men, women and children offering vibrant designs at attractive price points. This has helped us cater to the evolving lifestyle needs of Indian families across multiple occasions. Our sneaker portfolio saw an impressive growth of 150% versus FY ’24, reaffirming our commitment to deliver stylish, high-quality footwear that remains accessible.
We also expanded our retail footprint with 30 new stores, taking our total EBO count to 296 across India. On an annualized basis, our gross margin improved by-20 basis-points to 52.3%, driven by procurement and production efficiencies. Our EBITDA margin rose by 120 basis-points to 16.1%, driven by disciplined cost-control and improvement in working capital management. Notably, our net working capital days improved from 92 in FY ’24 to 71 in FY ’25, reflecting our focus on operational efficiency.
In-quarter four FY ’25, we also launched the second phase of our Move Your Way campaign with Vikran Messi. The campaign resonated strongly with Gen Z audiences, celebrating individuality and self-expression and further strengthening our brand connect. We also commenced the commercial production from our II facility for manufacturing high-quality uppers for sneakers during March 2025. Your company will be benefited for this additional capacity for the full-year during FY ’26.
In parallel, we have gone live with SAP on April 2025 to streamline operations, enhance inventory control and improve planning and forecasting, laying the foundation for scalable and agile growth. As we look-ahead, we are energized by the opportunities in front of us with a strong balance sheet, a growing brand and a clear strategic roadmap, we remain committed to deliver long-term value through innovation, agility and a deep understanding of our consumer set.
Thank you. And now I hand over our call to our CFO, Mr Sanjit, to take you through more details on the Q4 and FY ’25 performance.
Sanjay Chhabra — Chief Financial Officer
Thank you, Nikhil. Good evening, everyone, and thank you for joining us for the Q4 and FY ’25 earnings call for Campus Activewear. I would first take you through the Q4 performance. Our operational revenue grew by around 11.5% year-on-year to INR406 crores in-quarter four, driven by higher distribution, which has registered a growth of 9.6% and also the online channel, which has grown 15.2%.
The company sold approximately 6.2 million pairs in during Q4, up 7.8% year-on-year. The average selling price also improved from the average selling price improved to 658 from 636 last year. Our gross margin was 52.3% versus 50.2% during the same-period in last year, driven by higher ASP in distribution and also the online channel. The revenue mix between men and women and children categories stood at 81 is to 19 versus 80 is to 20 last year same quarter.
Our EBITDA for Q4 was INR76.7 crores. The EBITDA margin expanded by 60 bps year-on-year to 18.7%, owing to lower SG&A. Last year numbers included one-off provisions for inventory and receivables. PAT grew by 7.3% year-on-year to INR35 crores during quarter-four ’25 and PAT margin stood at 8.5% versus 8.9% last year. A slight depletion in PAT margin is primarily due to a higher depreciation owing to impairment of our DIP lines. I now move on to the full-year performance.
Our operational revenue grew by around 10% year-on-year to INR1,593 crores in FY ’25, driven by higher distribution, which registered 9% growth and online channel, which grew by 11.7%. The company sold approximately 24.9 million players in FY ’25, up around 12.3% year-on-year. The average selling price stood at INR639 rupees per pair versus INR652 last year, a drop of around 2%. This is primarily driven by mix of open footwear, which went up from 14.2% to 15.2% and higher sale of accessories and also to some extent due to lower realization driven by our liquidation of non-BIS inventory.
Our gross margins were at 52.3%, an improvement of 20 bps from last year, driven by procurement and production efficiencies. The revenue mix between men and women continued to remain flat 80s to 20. Our EBITDA for FY ’25 was at INR258.2 crores. The EBITDA margin expanded by 120 bps year-on-year to 16.1% in FY ’25, owing to lower SG&A. Once again, the last year numbers included one-off provisions for inventory and receivables and hence the SG&A was higher last year.
The current year SG&A numbers are more normalized. Our PAT grew by around 36% year-on-year to INR121.2 crores and PAT margins expanded by 130 bps to 7.5%. Our balance sheet continues to demonstrate strength and robust return ratios such as ROCE and ROE of 22.3% and 17.2% respectively as on 31st March ’25, and we continue to be a debt-free company.
With that summary, I would now conclude my remarks and open the floor to the moderator for Q&A session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Gaurav Jogani from JM Financial. Please go-ahead.
Gaurav Jogani
Thank you for the opportunity, sir, and congratulations on strong revenue growth numbers. Sir, my first question is with regards to if you look at the premiumization in your entire sir segment, last year, if you look at it, products below INR1,000 contributed to around 27% and this year it’s near 22%. I mean, despite this premiumization increase, we are seeing an ASP decline. So one, does this contribution only reflects the footwear contribution and does not include the accessories, which could dilute the ASP.
Sanjay Chhabra
Yeah, Gaurav, two things are driving this ASP decline as I mentioned that in the first-quarter — in the full-year, we — our mix of open footwear was quite high. That was a conscious call that we saw this as an opportunity and increased our sale of open footwear. So that’s diluting the ASP to some extent. And of course, the accessories sales, like again in-quarter two, we introduced our stocks in the distribution market, which was not there earlier. So accessory sale is at an average ASP of INR140 rupees. That again has an impact to some extent on the overall ASP of the organization.
Gaurav Jogani
Sure. But sir, I’m just assuming that the open footwear will also be priced INR1,000 and below. So ideally that would have led to higher contribution of the products 1,050 and above — below, sorry, but that has actually increased The contribution of the premium products have increased. So just wanted to tally to tally that.
Sanjay Chhabra
Gaurav, a right weight or right yardstick to measure this would be that are we able to maintain our margins. So if you see margins despite higher mix of open footwear despite accessories mix, despite liquidation of non-BIS inventories, our margins on a full-year basis has reflected an improvement of 20 basis-points. So we have certain margin thresholds on which we work. And whatever is the is the mix, I mean, we don’t dilute the margins. So I think that’s a — that’s the right way to approach it.
Gaurav Jogani
Sure. Thank you. And sir, my second question is with regards to the online volumes. If you look at the online volume this year, it’s about INR7.4 million and last year it was INR7. So I mean, roughly it’s increased only by 6%, 7%. So is it a conscious call taken by the company to drive more the distribution and the other parts of the business I mean is this a conscious effort taken?
Nikhil Aggarwal
So, hi, Gaurav. So the effort is actually across all channels, right? We operate every channel strategically in a way that it should have a meaningful contribution to the overall top-line. So there is no like conscious effort in terms of the specific number for online, but this is as per the demand and of course, there was a higher proportion of outright sales this year in the online business versus marketplace.
And some of the ASP increase can also be attributed to that. But there is no like — so this is part of the demand and there is no like strategic or conscious effort to maintain this number in terms of volume.
Sanjay Chhabra
Just maybe.
Gaurav Jogani
Yeah.
Sanjay Chhabra
Just to add, I mean each channel is playing its own role. I would say that distribution is for mass-market. If I talk about the revenue numbers, both the distribution — I mean distribution has shown a grown of — a growth of 9.6% and online has shown a growth of 11.7%. So it’s fairly balanced. Each channel is playing its own role. Online, of course, we reach-out to the consumers directly through the marketplace business, which is higher in ASP and hence, we are able to sell more of premium product, whereas in the distribution, it is more of fast market products.
Gaurav Jogani
Sure, sir, that is — I was going to ask, maybe the premium products on the online channel this year would have increased better and hence despite the lower-volume, the contribution is largely the same and the growth is better.
Sanjay Chhabra
Yeah, that’s right.
Nikhil Aggarwal
Yes.
Gaurav Jogani
And sir, lastly, on this Haribar facility, I mean this Haribar facility, because it has commenced in March month, would the depreciation start hitting from next year for this particular facility? And if yes, how much should be the overall months?
Sanjay Chhabra
Gaurav, it — yeah, the depreciation is there for one month-in this financial year. Next year, it will be for 12 months. It’s an investment of around INR21 crores will be amortized over a period of 15 years.
Gaurav Jogani
Sure, sir. Thank you and that’s all from.
Operator
Thank you. We take the next question from the line of Ali Sagar Shakir from Motilal Oswal Mutual Fund. Please go-ahead.
Aliasgar Shakir
Yeah. Hi, Nikhil. Hi,, sir. Thanks so much for the opportunity and congratulations for the double-digit growth. So first question is on the demand scenario. So if you can just talk about how is the current demand and the competitive scenario, both online and offline? And also last quarter you had mentioned that the BIS cleanup will be over by March. So what is the industry scenario and have we cleaned up the BIS inventory? And just a last related question to that is on the sneaker. So if you could just share what is the growth and the mix of sneaker in this quarter.
Nikhil Aggarwal
Hi, Ali. So let me take a BIs first. So on the non-BI side, while we have made significant progress, but there has been — it’s been slightly slower than we anticipated. We were expecting to liquidate a big portion of it by March-end. And there has — it’s been slightly slower than that, but it is all like under control and it’s basically we are expecting in-line with 20 to 40 bps of a margin of hit on in respect of the non-BIs inventory in the coming year and nothing more than that. So that’s on that non-BI side. On the demand scenario, we expect, this year, we’ve seen North, East and West are doing fairly well. South and central has sort of been flattish. So we’ve seen pockets of growth basically across these three areas. And metros and Tier-1s in-quarter four, I would say, has done — the saliency has slightly dropped, so versus the rural and Tier-2 and Tier-3 counters. So versus year-on-year.
And so there has been some dip, I think in terms of consumer demand in terms in metros and Tier-1s. But apart from that, we definitely see a much more positive momentum overall, right, and which has also given us some tailwinds. Going-forward as well, we hope that this tailwind and positive momentum continues. We don’t see any roadblocks or any headwinds at this moment, but I think more than that, a lot of the internal initiatives that we’ve taken in terms of channel expansion across all the three channels and our supply-chain and the back-end improvement measures that we’ve taken as if implementation across along with a new warehouse, we’ve sort of consolidated our warehousing in the back-end.
So a lot of those efficiency — efficiencies should sort of kick-in into this new financial year going-forward. On the sneaker side, Ali, we’ve seen some very good traction and we hope we will continue to — given the lower base, we will continue to expand at a similar pace even this year. And this is definitely also contributing to the higher ASP. And so the volume contribution is roughly about 8.5% for this year and it should definitely go up in FY ’26 given the new plant is also online now and you know some bit of higher contribution of ASP with respect to sneaker should come in. Over to you Ali.
Aliasgar Shakir
Sorry, I was on you. Sneaker last quarter was some 120% growth. So was that similar trend in this quarter?
Nikhil Aggarwal
Sure. It’s actually for the whole year. So the whole year, we have grown at 150% roughly, and the contribution from sneakers, we’ve closed at about 8.5% for the whole on the annual basis.
Aliasgar Shakir
Got it. Second question is on the margin front. So you have earlier indicated that you would want to maintain between 17% to 19% margin. So now that we have closed this year with somewhere close to about 15.5 odd margin, should we see that trajectory improving? And by when do you see a coming into that range of 17%, 18% margin? And related costs — related question on the cost here. We’ve seen a couple of line items seeing big jumps. So if you can just explain, for example, other expenses Y-o-Y and deprecision increase has seen big jumps. If you could just explain why that has happened this quarter.
Sanjay Chhabra
So Ali, just to add here, the EBITDA margins have improved to around 16.1% for — if you look at it full-year and if you’re looking at other expense on a full-year basis, I think it has gone up from INR440 crores to INR462 odd crores.
Aliasgar Shakir
I was looking on a quarterly basis. This quarter other expenses and the patient interest has gone up by. Significantly on Y-o-Y.
Sanjay Chhabra
Yeah. The other expense has gone up from INR90 crores to around INR108 crores, which is correct. A large chunk of this around INR10 crores is higher A&P spend both on the digital — digital media front and on the sales promotion side. So out of this INR18 crores, INR10 crores is purely the marketing piece and then remaining is driven by the volume. So the volume growth, this line also includes the freight and the conversion cost. So that also can be hit is a subset of increase of INR18 crores, right?
And on the depreciation front from INR19 crores to INR22 crores, I explained that it has a one-off impairment hit of our DIP lines, which we have impaired. Out of five lines, we have dropped or uninstalled three lines because it’s a very outdated technology and the school shoes have moved more into the EVA category from the DIP. So INR2 crores hit on depreciation is sitting there.
Aliasgar Shakir
Got it. Similar on the interest also.
Operator
I am so sorry to interrupt. May we request that you rejoin the queue for follow-up questions. There are several other parts waiting.
Aliasgar Shakir
Sure.
Operator
Thank you. We take the next question from the line of Umang Mehta from Kotak Securities. Please go-ahead
Umang Mehta
Hi, thanks for the opportunity and congratulations on a good set of numbers. My question was on open footwear. So would it be possible to share what was the contribution in terms of revenues and volumes this year? And I asked this mainly or basically trying to understand that as we go-ahead, do you think that sneakers and other parts of your portfolio will be able to ensure that double-digit momentum continues, given that obviously the season has not been in favor. So that was the first question.
As I mentioned, the open footwear mix increased from 14.2% last year to 15.2% this year. So that’s the kind of contribution it has on our business.
Nikhil Aggarwal
And we don’t — we don’t expect, of course, like there is a seasonality to this. So of course, quarter one will also have a higher portion of open footwear category. So we don’t anticipate any sort of drop-in that — in the category.
Umang Mehta
Understood, understood. And just the second one was on your full-year margin. On an annual basis, would it be possible to quantify the hit you have taken in terms of BIS basically inventory? I’m asking this mainly just to understand that if it was not there, where would your margins would have ended? And it seems like then your aspiration of 17% is not too far away from where you are already.
Sanjay Chhabra
You see, there won’t be anything called like a direct impact of BIS. I would rather put it as a normal liquidation of slow-moving and non-moving inventory. In this year, since BIS kicked-in, we had a timeline to chase and hence there was a urgency to liquidate certain stocks. And as we mentioned in the beginning that it had an impact of anywhere between 20 to 40 bps on our margins. So that’s the number which is which is sitting there in the current year and in the next year also, it can be likely to be in the same range is how I would put it.
Umang Mehta
Thanks. And so basically last year 20% to 40% similar is expected to be in FY ’24. Understood. Sure. Thank you so much and all the best. Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question, please press star and one. I repeat, participants who wish to ask questions may please press star and one at this time. We take the next question from the line of from Smiths. Please go-ahead.
Shraddha Kapadia
Hello, am I audible?
Nikhil Aggarwal
Yes, sure.
Shraddha Kapadia
Thank you so much for giving the opportunity and congratulations on the good set of numbers. Also, basically my question is somewhat similar to the contribution which the previous participant asked. This is majorly with regards to the men versus women, so if you could help with the revenue as well as the volume mix.
Nikhil Aggarwal
The category mix for men and women, is pretty much similar to last year. It’s 81% or rather 80% has been the contribution for the entire year for men and about 13.5% for women and kids would be 6.7%. So that’s pretty much in-line with how FY ’24 was, while the aspiration is there to certainly grow this category slightly higher. But we have premiumized in the women category. So the ASP for the women category has gone up for us. And this year, we expect women’s share to definitely go up from this mark.
Shraddha Kapadia
Okay, sir. Thank you so much for the detailed explanation. Also, if you — have we taken any price hikes in the current quarter and do we plan to in the future?
Nikhil Aggarwal
Yes, we have taken actually just on the — on the open category side, on the open footwear versus last year quarter-four, we’ve taken a price hike, which has definitely helped us maintain the margin profile as well overall. And I mean, going-forward, we generally do take a price hike at the end-of-the season. So now there is going to be a higher contribution of our NPD products, which anyways would be priced accordingly. And so therefore, you know, given the seasonality as we’re moving into the season now in-quarter two and quarter three, we will be not taking any more price hikes for the time-being. We are pretty much there in terms of the pricing that we — that the company requires.
Shraddha Kapadia
Okay, sir. Okay, sir. If I may just squeeze in one more question. So this is majorly with regards to the BIS. So is there any decline in the competition, especially from China, which we have observed?
Nikhil Aggarwal
Yes, I mean the imports have certainly dried up. The overall volume has — has dropped from China, we do see some impact of that. But honestly, to quantify that is still kind of early. There has been some inventory from non-BIs, which is still being liquidated by a lot of the companies into the market. And as the government did extend the BI’s timeline for the liquidation to July 2026, so companies have sort of taken that leverage and taking their time.
So — but we — but it’s obviously a finite quantity. There is no new fresh incoming non-PIs material or goods anymore. And Chinese impact, we definitely see from channel checks that there is a much smaller volume into the market.
Shraddha Kapadia
Okay, sir. Thank you so much for answering my questions and all the best for future.
Nikhil Aggarwal
Thank you, sir.
Operator
Thank you. We take the next question from the line of Niraj Mansinga from Whitevine Investment Management. Please go-ahead.
Niraj Mansingka
I just have a red question to the spent. How do you see the market evolving after the inventory of BIS goes down? How — considering that you have your own manufacturing in-house. And how do you see the competitive scenario evolving and the volume growth rate in India panning out post BI make full implementation of BIS.
Nikhil Aggarwal
Sure. So actually last two years or rather last three years, we’ve seen the industry not growing in footwear and that’s been the trend the last two, three years, mainly due to the subdued demand on the consumer side. So we do expect that finally due to the non-BIS liquidation and actually the BIS implementation, we expect that the industry should start growing. It’s a big tailwind for everybody, especially the organized players.
And we are fully geared up for it. So with respect to the assortment of products that we are providing this year, this 250 new styles is very well-received into the market. So we don’t — there are certainly a lot of tailwinds. We just need to execute it right and get it correct.
Niraj Mansingka
Can you put some numbers on what is the share you expect see because what was, it was a large tailwin for manufacturers — companies who can manufacture products on their own and we will give an edge to them in pushing the product. So can you give some numbers on how — how the companies who manufacture India can benefit and how much is the market-share right now for them and how much it can some color on numbers, sir.
Nikhil Aggarwal
It’s difficult to quantify numbers, but like it’s basically — you need to understand that there is a finite a very limited manufacturing capacity for the category that we are in sport shoes across India and it’s like really measurable the overall capacity. If you just do a bottoms-up of all the players in the market organized and unorganized, you’ll end-up with a number which is very much quantifiable.
So it’s a very much very finite quantity. And clearly with the depletion of the imported goods into the market, we do expect there should be a benefit to all the organized and unorganized players, especially the organized players because.
Niraj Mansingka
Imported — good prices of Chinese as well to go up in the market and hence your competition — your product will be competitive? Is that the scenario you are seeing that.
Nikhil Aggarwal
Come again, sorry.
Niraj Mansingka
Do you expect the prices of all the imported footwear to go up and hence your manufacturing — your products would be competitive on the market. Is that the main outcome or is it the availability itself of the imported goods would go down?
Nikhil Aggarwal
No, not really. I mean, so we have always been very competitive with respect to the MNC brands mainly due to the pricing power that we have. And our biggest USP is actually the value proposition that campus as a brand provides, right, to the end-consumer. So that is very much intact and that will continue to happen. We don’t see that — so actually there is no real competition in that aspect with the MNC brand because they all primarily start Start at 3,000, 4,000 — rather 4,000 MRP in a month with a decent pair of shoes. So it’s actually a different market that we’re both catering to.
Niraj Mansingka
Okay. Thank you. I’ll come back to the queue. Thank you. Thank you.
Operator
Thank you. Participants who wish to ask questions may please press star and one at this time. To ask a question, please press star and one now. We take the next question from the line of Akshen from Fidelity. Please go-ahead.
Akshen Thakkar
Hi, team. Congratulations on the double-digit growth. Two questions. Is this better? Okay. Sorry. So two questions. One was around the broader demand environment, particularly when it comes to footwear industry. And generally, how are you seeing because seen broader consumption categories having some headwinds. You seem to have done very well. Just trying to disaggregate if this is the market improving or market-share improving? That was question one.
Question two was around UP markets couple of years back, we had discussed that market being under stress as particularly around the MBO channel. So as two years have passed now from that, generally how has that market behaved for you? Those two questions from my side. Thank you.
Nikhil Aggarwal
Yeah, no great questions, Akshin. So actually, I think from a quarter-four perspective, Akshin, we’ve certainly gained market-share. I don’t think the market has really moved the needle that much, while it certainly improved versus quarter-four last year. But on a double-digit growth, we are quite confident that we’ve gained market-share because the demand scenario has, I mean improved but not that much and which is also evident from our peer set numbers, I mean there is there is some struggle in the market with respect to demand. Also, you know.
Sanjay Chhabra
On your second question,, on UP market. I would say that overall, if you see the composition of our growth, it is both mixed, I mean, online and distribution. Distribution, of course through better execution across-the-board, we have seen growth in, I would say six to seven markets across India and UP being a dominant market, yes, the answer would be yes. We are seeing the traction back. There was a growth.
Akshen Thakkar
Thank you guys.
Nikhil Aggarwal
Thank you.
Operator
Thank you. We take the next question from the line of Prerana Jhunjanwala from Elara Capital. Please go-ahead.
Prerna Jhunjhunwala
Thank you for the opportunity and congratulations on strong set of numbers. So just wanted to understand what is driving this growth in volumes? Is it the number of distributors or presence expansion that you’re doing or it’s just online channel expansion and what is driving expansion on channels — online channel for you as well? I mean, that would be my first question.
Nikhil Aggarwal
So it’s actually a mix of certain initiatives, many initiatives rather that we have taken on the front-end and I’m particularly proud of the front-end team. They’ve — it’s a lot of the execution that has happened actually at ground level in terms of placement, in terms of expansion of the outlets, the right set of distributors in the right place. So it’s a lot of execution really at ground level, which has panned out and given us this growth finally into the distribution on an annualized basis. And it’s taken us almost two years.
We’ve been flattish actually on distribution. We have not grown for the past the year before this and the year before that. So it’s a good welcome back for the channel and we expect this momentum to continue and we will continue to add counters and distributor in the right geography wherever is required. So it’s a lot of consolidation efforts. It’s the addition of distributor and the retailers. And of course, the right product also being delivered on-time and in quantity to the respective outlets.
So, yeah, it’s basically distribution is an execution play and online again is more tactical. I mean, in nature is — while the focus is there on marketplace, but we’ve also grown on outright this year quite well and so marketplace will continue to remain a focus. And this year we expect growth to come in a similar fashion from online as well.
Prerna Jhunjhunwala
Okay. And I see that the retail account has increased from around 20,000 to 26,000 in this year, 20,000 in FY ’23 to 26,000 today, but number of distributors have actually come down. So could you help us understand how many distributors have been added over the last two years?
Sanjay Chhabra
Yeah, Prina, the — it’s a very dynamic field, I would say. We continuously evaluate the performance of our distributors, how they are in terms of expanding our reach. And accordingly, we do certain churns. The distributor count remains in the range of 300 to 350. Yes, we — we have consolidated certain geographies and hence the number of distributors have come down. But the measurable output KPI is that how — how good we are expanding our reach. By end of this quarter, I mean, Q4, our reach was at around 23,000 odd outlets versus 19,600 outlets last year.
The number you are seeing is our active outlet count, which is around 26,800, that’s number of outlets which build once in a year, but we also follow a different KPI, which is like bare minimum 12 payers build-on a monthly basis. So that is reach and we track both these KPIs, irrespective of how many distributors we have on-board.
Prerna Jhunjhunwala
Okay. And how much can we expand further, how many outlets can we reach in the next two, three years time-frame that will help us understand the growth path in the distribution channel that you’re targeting at?
Nikhil Aggarwal
So the overall universe is actually quite large and it’s about, 40 45K and we are just at 26. So — but what we have done, the strategy for us is to first obviously get to all the relevant — most relevant counters for us as a brand and the category and that’s how we are doing that. So along with, you know, we expect at least an addition of, let’s say 1,500 counters year-on-year and along with that an increase in the world share for each outlet. So that will lead to the — basically the growth in the distribution channel.
Prerna Jhunjhunwala
Okay. Understood. And.
Operator
I’m so sorry to interrupt. May I request that you rejoin the queue for follow-up questions. There are several other participants waiting.
Prerna Jhunjhunwala
Thank you.
Operator
Thank you. We take the next question from the line of Manasri Shah from ICICI Prudential Asset Management. Please go-ahead.
Manasvi Shah
Yeah. Hi, team and congratulations on a good set of numbers. I have two questions. First is, sir, if we look at the commentary of other peers as well as other you know retailers, et-cetera, in the online channel, especially marketplaces, it seems that there is some sort of a slowdown. Have you witnessed some similar trends on the marketplaces or maybe higher discounting, etc., like just wanted to understand on that front.
Sanjay Chhabra
I would say, again, it’s a dynamic field, Manus we like we have been able to get a fair share on both online marketplace and the outright business. And of course, we are doing a relevant marketing spend to create visibility, create awareness and that’s leading to traction and throughput and we are able to get the desired or rather our team — our sales team is able to meet their set of numbers what we are targeting at the beginning of the year?
Manasvi Shah
Okay. Okay. And sir, on the second question, it’s actually around working capital. So impressive work done on reducing inventory, et-cetera. Is there more scope? That’s number-one. And number two, if you look at your secondary sales growth versus primary, is it like mirroring your primary sales growth in the distribution channel?
Sanjay Chhabra
Okay. First thing, first on the working capital side, I think we have done a fair amount of work-in the last one year and we have reached to a level which is, I would say the most desirable level, but at the same time, we have No plans to cut it down further, which could eventually translate into a sales loss. So from here on, you may see a bit of higher inventory levels. Of course, we need to build before the season. At the level which you are seeing here, I think that’s the optimum level, 95 to 90 days, yeah. And on the — on your second question, sorry, can you please come again?
Manasvi Shah
Your secondary versus primary sales growth?
Sanjay Chhabra
Yeah, we are — I mean, we do have a tracker on the distributor. We have the DMS system and we see that the inventory levels with the distributors are fairly what they were at the end of FY ’24. So we maintain around, I would say 100 to 110 days of inventory. It continues to be same and so fair reflection of that it’s primarily working on a replenishment model, which means that whatever we are able to sell secondary, we are replenishing through primaries.
Manasvi Shah
Okay. Okay. Very clear. Thank you. And all the best. Thank you.
Operator
Thank you. We’ll take the next question from the line of Gaurav Jogani from JM Financial. Please go-ahead.
Gaurav Jogani
Thank you for taking my question again, sir. Sir, just on the increase on the insurance — sorry, the interest. This quarter around the — has increased despite our debt being now zero. So just wanted to understand the reason for the same.
Sanjay Chhabra
Yeah, good question, Gaurav. Interest line now is a reflection of only the ROU assets. So whatever leasehold premises we have in terms of EBOs and warehouses, we create a ROU, a right to use and a depreciation is charged on those assets and the interest component is there. So both in the depreciation and interest line, a component goes and that’s what is sitting in the interest line. This quarter, you see a higher interest, which is purely due to increase of two assets.
We took a warehouse in Kulana for our online business, FG warehouse. And also we have taken this Haridwar 2 facility for the sneakers. So that is on a leasehold premise and also we took a raw-material warehouse. So we have added three lease old assets in this quarter.
Gaurav Jogani
Sure, sir. Thanks. Best all.
Operator
Thank you. Participants who wish to ask questions, please press star and one at this time. I repeat. To ask a question, please press star and one now. The next question is from the line of Alisagar Shakir from Motilal Oswal Mutual Fund. Please go-ahead.
Aliasgar Shakir
Yeah, sir, just to complete the question on margin, where I was just asking about your aspiration of 17% to 19% margin. How should we see the next two years panning out for you?
Nikhil Aggarwal
Ali, the aspiration certainly is intact and as you can see, we are trending towards the guided margin and the initiatives we’ve taken are sort of panning out in that direction. So at this moment, we don’t see any headwinds with respect to margins we have built into, for example, the NPD portfolio and the new launches and with margin sort of is primarily driven firstly from the products, right? So as long as we maintain that and control that and the overheads and the costs are also under control. So it’s a fairly predictable number. So we just need to factor-in the component what we just called out and the rest is sort of taken care of.
Aliasgar Shakir
What kind of margin improvement we should expect in the next two years?
Nikhil Aggarwal
Two years, I don’t know. It’s a very dynamic environment. I think if we can predict one year, that’s a big achievement. So over a year’s time, for sure like we should fall within the range of what we’ve guided.
Aliasgar Shakir
Got it. So next year, you should be able to achieve the 70%, 90% margin guidance range. Understood.
Sanjay Chhabra
We continue to here.
Aliasgar Shakir
Sure, sir. Thank you.
Operator
Thank you. I would like to remind participants that they may press star and one to ask a question. I repeat, to ask a question, please press star and one on your touchstone phone at this time. We take the next question from the line of Priyank Chheda from Capital. Please go-ahead.
Priyank Chheda
Thank you. Finally, I get the chance. I’ve been waiting for last 45 minutes anyways. Sir, my question again on the strategic front for Nikhil. After all the activation that we have undertaken, we always had a targets and aspirations to deliver double-digit volume growth, which we delivered this year. But when it comes to the total revenue growth, which is mid-teens or kind of a revenue growth which we aspired, mid-teens EBITDA margins which we aspire, I see that directionally things are improving amid in the tough market conditions.
But leave aside the market conditions, when should we see these things playing out in terms of revenue growth growing at mid-teens, EBITDA margins coming out in mid-teens? That is my first question.
Nikhil Aggarwal
Hi, Priyan. So I think you’ve answered your own question. So it’s been a fairly tough macro this year. And I think given the adversities that — and it’s very evident from the peers’ numbers, right, that are coming out. So it’s been a very subdued environment. And I think we’ve done fairly well with respect to execution this year and that has primarily led to the volume growth. And ASP growth, of course, is a function of course, the planning and the environment at that point, right?
So given that you know, in-quarter four, we have certainly grown our ASP by 3%, 3.3%. It’s a good indicator that we’ve been sort of getting back on-track with respect to ASP. And of course, volume has grown in double-digits, like you said finally. So it’s a lot of execution more than I would say macro is sort of supporting at this point. Of course, with macros improving, that should add-on to the entire base.
Priyank Chheda
Got it. So — but what I was alluding to was the margins is something which is internal to the company. So we should see that happening in the coming quarters directionally every quarter sequentially, right?
Nikhil Aggarwal
Yeah. I think margin is a bit of a seasonality play also. You’ll need to understand, I think in our line-of-business, a margin should be seen on an annualized basis, honestly and not quarter-on-quarter that — because there is an element of open categories, some, some so it’s a very seasonal business. So as you know already, so we should evaluate margins on that aspect.
Priyank Chheda
Perfect, perfect. Got it.. My second question is on the two aspects of other expenses, which is one is advertisement cost. Now for the full-year, if you see our cost, which is INR135 crores and we top — we spent top dollars among all the peers in the footwear category. And that has grown at 25%, while the revenues have — has not gone in — grown at that commensurated rate.
When it comes to last three years cumulative spends that we do on the media and advertisement spends, which is INR350 crores. Even for last three years, this has — hadn’t added to much of the sales, right? So can you explain the thought process behind spending such a high amount on the advertisements? Would we see this capping out at certain limits, certain levels so that we first test the sales throughput rather than growing the spends at a very faster pace?
And then just let me complete on the other question on the same aspect, which one is on, of course, on the advertisement. The second is on the inventory. We always thought that while we have been hearing your commentary till the year-end, we thought that much of the liquidations would be done and would have been done. So despite that, why do we guide that the cost of the slow-moving inventory would remain same as it was in FY ’25. While the sales will improve, the sales will grow, the impact should actually come down significantly. So that’s my two questions.
Nikhil Aggarwal
Sure, sure. So let me take-up the AMP first. So no, you’re actually quite right. So AMP, you need to see it from two lenses. One is the brand-building and the other is performance marketing, right? So we’ve definitely disproportionately spent on marketing versus the peers over the last three years. And that is in-line with our aspiration to continue to build the brand and that is exactly what we’ve done And that is reflecting actually we do these brand surveys every year post our season end, like post-quarter three. So in January every year we do a very detailed and vast survey of the brand resonance, the top-of-mind scores, NPS scores and so on. And we have seen a significant uptick in the brand awareness levels and the TOM scores. So clearly, the marketing has definitely made the brand much more accessible and stronger across all geographies in the country. And so that has — that is obviously a big boost also to sales. But at the same time, you know, given that this year we’ve spent about, let’s say, INR135 crores, which is about 8.4% of the revenue. So I would say that you know we don’t foresee this going down at this point. Maybe in FY ’26, we’ll continue to maintain this number at 8.4%, 8.5%, a basically a percent increase from what we spent in FY ’24. But this should be funded from the ASP increase also. And so we don’t — we don’t see any margin hit with respect to the increase in the brand-building initiatives. I hope that answers your question on the AMP.
Priyank Chheda
Yes, it does and on the non-BIC basis-points.
Sanjay Chhabra
Yeah, Priyanshu, on the non-BIS thing, like, we have liquidated a substantial part of the non-BIS inventory during the last financial year and we are still left with a very small tail. And if you see FY ’24 results wherein we had to take some provisions both on inventory and receivables. I mean as a matter of practice, we don’t want to get guided by some regulations like non-BIS, but we want to have a — have a firm liquidation plan for any of our slow-moving and non-moving inventory beyond certain period, let’s say, greater than one year or greater than nine months.
And hence, as a guiding principle, we are now sort of allocating 20 to 40 bps for this liquidation budget and that’s how we intend to move and this strategy has played well. I mean, a reflection of that is very much visible in lower inventory levels now we have as a part of working capital hygiene. So irrespective of BIS, non-BIS being there or not, we would continue to focus on liquidating slow-moving inventory as a matter of routine and hence take this cost as a part of doing business.
Priyank Chheda
Got it. And just one last keeping question on you have been asking for to dial the number and then.
Nikhil Aggarwal
Please continue.
Priyank Chheda
Just last question. Just last question on the — can you — can we get a revenue split on D2C online, which is a split of market, how much would have been the sales from marketplace and how much would have been from B2B online? Just a rough ballpark numbers or maybe a growth will also be helpful.
Sanjay Chhabra
I think at an overall level on the investor deck, you can get a revenue split. It is it is still 52% distribution, 38% online and 10% retail. So that’s the kind of split.
Priyank Chheda
Yeah, I was asking within online, how much would have been from B2B online and how much would have been from marketplace?
Sanjay Chhabra
It will be predominantly marketplace. We can take this offline. I mean, I have the number readily available.
Priyank Chheda
No, got it. Thank you.
Operator
Thank you. We take the next question from the line of Umang Mehta from Kotak Securities. Please go-ahead.
Umang Mehta
Hi, thanks for the follow-up. Just on the — I mean, related question to previous one. Given that outright sales would have done better this year, as mentioned by Nikhil, would your performance marketing spends would have gone down because last year if I recall they were — correct me if I’m wrong, but they were as high as INR60 crores. So just wanted to check on that one.
Sanjay Chhabra
No, eventually a consumer has to reach-out to that platform and buy my product. It needs to have certain ratings and hence, I need to continue to spend on the performance marketing irrespective of the — the channel it is, I mean, whether it’s a pure-play marketplace or it is through outright business. I need to generate that demand. There would continue to be a performance marketing spend.
Umang Mehta
Understood. And then the second one was on LFS. So we’ve seen a decent 50% plus Y-o-Y increase in the stores, I mean the banners you are in. Any revenue growth you can share for that particular channel? Is it very-high this year?
Sanjay Chhabra
Since it is a very small base, the numbers would look high. Yeah, we have added lifestyle and we have added Reliance footprint. But then there has been certain one of the Reliance format of fashion factory has degrown. So it’s a combined mixed bag, but net-net, we have grown in that LFS per se.
Umang Mehta
Okay, sure. Thank you so much.
Operator
Thank you. That was the last question for today’s con-call. On behalf of Campus Activeware Limited, that concludes this conference. Thank you for joining us. And in case of any further queries, please reach-out to Campus Activewear’s Investor Relations team at IRD at the rate campusshoes.com..com you may now disconnect your lines