Khadim India Limited (NSE: KHADIM) reported consolidated revenue from operations of 862.4 million rupees for the third quarter ended December 31, 2025, representing a 21.8% decline from 1,102.4 million rupees in the same period the previous year. The company recorded a profit after tax (PAT) loss of 1.7 million rupees for the quarter, compared to a profit of 62.8 million rupees in Q3 FY25.
For the nine-month period ending December 31, 2025, consolidated revenue stood at 2,835.4 million rupees, a 12.5% contraction from 3,242.3 million rupees reported in the previous year. PAT for the nine-month period reached 23.7 million rupees, down from 138.6 million rupees in 9M FY25.
Segment and Operations Highlights
Retail Operations
As of December 31, 2025, the company operates 864 branded retail stores. The network consists of 195 company-owned company-operated (COCO) outlets and 669 franchise locations. Geographical distribution indicates that 66% of stores are located in East India, followed by 18% in South India, 8% in North India, and 8% in West India. The company utilizes an asset-light model, with 76% of its retail presence established through the franchise route.
Distribution and Manufacturing
In 2025, the company executed a demerger of its distribution business and manufacturing segment. These operations were moved into a separate entity, KSR Footwear Limited. Current sourcing data for the retail business indicates that 90% of product requirements were outsourced in FY25, focusing on premium, high-quality products in smaller quantities.
Full-Year Results Context
For the full fiscal year 2025, revenue was 4,180 million rupees, compared to 4,263 million rupees in fiscal year 2024. Annual profit after tax for FY25 stood at 194 million rupees, a contraction from 233 million rupees in FY24. The directional trend for the company indicates a contraction in both annual revenue and profit margins.
Strategic Moves and Developments
The company continues the operational restructuring following the demerger of its distribution and manufacturing arms. Verified developments include the expansion of the retail footprint into markets across South and West India, as well as Uttar Pradesh in North India. Recent capacity additions include the opening of a store at the Kolkata International Airport and a location at Sealdah Station.
Guidance and Outlook
The company-issued strategy focuses on entering new markets through COCO stores to establish a presence before expanding further through franchisees. Market context indicates the company is positioned to address approximately 85% of the total Indian footwear market potential. Regulatory context includes the adjustment of profit figures to account for new labor codes.
Performance Summary
Khadim India reported a 21.8% year-over-year revenue decline to 862.4 million rupees in Q3 FY26. The company recorded a quarterly loss of 1.7 million rupees. The retail segment maintains 864 stores, with a continued focus on an asset-light franchise model. The demerger of the distribution and manufacturing segments into KSR Footwear Limited remains the primary operational restructuring move.