Lehar Footwears Limited Reports Sharp Decline in Consolidated Revenue
Lehar Footwears Limited reported its unaudited financial results for the quarter ended June 30, 2026. The company operates through two reportable segments — Footwear, Accessories & Other Like Products and Toolkit & Others. The quarter witnessed a sharp decline in consolidated revenue and profitability, but the segment-level numbers provide a more nuanced picture. While the core footwear business remained resilient, the company’s Toolkit & Others segment saw a substantial contraction, becoming the primary reason behind the overall decline. Shares of were trading at Rs 221.2, down 3.53 percent from the previous close of Rs 229.3. The stock opened at Rs 220.2 and reached an intraday high of Rs 222.9 with a day’s low of Rs 219. 5. The company currently has a market capitalisation of Rs 391.06 crore. Revenue from operations stood at Rs. 74.95 crore in Q1 FY27, compared with Rs. 142.20 crore in Q1 FY26, marking a 47.3% YoY decline. On a sequential basis, revenue also declined from Rs. 91.26 crore in Q4 FY26, translating into an 18% QoQ fall. The decline in topline translated into a sharper reduction in profitability. Profit before tax fell to Rs. 4.03 crore from Rs. 9.73 crore in Q1 FY26, down approximately 58.6% YoY. Compared with Rs. 5.33 crore in Q4 FY26, PBT declined around 24% QoQ. Net profit fell to Rs. 3.01 crore from Rs. 7.27 crore a year earlier and Rs. 4.14 crore in Q4 FY26, representing a 58.6% YoY and 27.3% QoQ decline, respectively. EPS also weakened materially, declining to Rs. 1.71 in Q1 FY27 from Rs. 4.11 in Q1 FY26, while sequentially falling from Rs. 2.34 in Q4 FY26. The earnings contraction therefore remained visible on a per-share basis as well. The cost structure changed considerably during the quarter. Cost of materials consumed increased to Rs. 38.20 crore from Rs. 27.60 crore, despite the 47% decline in revenue. Employee benefit expenses rose sharply to Rs. 7.33 crore from Rs. 3.06 crore, an increase of nearly 139% YoY. Depreciation and amortisation also increased to Rs. 1.65 crore from Rs. 1.38 crore. Finance costs, however, provided some relief, declining to Rs. 1.39 crore from Rs. 1.63 crore in Q1 FY26, although they were higher than Rs. 1.17 crore in Q4 FY26. Other expenses declined to Rs. 12.73 crore from Rs. 14.82 crore, partly offsetting the pressure from higher employee and material costs. Another notable change came from inventory movement. The company reported a Rs. 0.86 crore charge from changes in inventories during Q1 FY27, compared with a Rs. 11.80 crore negative adjustment in Q1 FY26. This represents an adverse movement of roughly Rs. 12.65 crore between the two periods and also contributed to the difference in reported profitability. The segment breakup shows that Toolkit & Others experienced the most weakness, while the core footwear business remained relatively stable. The Footwear, Accessories & Other Like Products segment generated Rs. 59.69 crore in revenue in Q1 FY27, compared with Rs. 59.04 crore in Q1 FY26, representing around 1.1% YoY growth. On a sequential basis, revenue increased from Rs. 56.44 crore in Q4 FY26, registering approximately 5.8% QoQ growth. Segment profit before interest and tax stood at Rs. 4.43 crore, almost unchanged from Rs. 4.45 crore in Q1 FY26. However, compared with Rs. 3.14 crore in Q4 FY26, segment profitability improved by nearly 41% QoQ. This indicates that the core footwear business remained comparatively healthy despite the weakness at the consolidated level. The sharper pressure came from Toolkit & Others. Revenue from this segment fell to Rs. 16.80 crore from Rs. 89.01 crore, representing an approximately 81% YoY decline. Segment profit before interest and tax also dropped to Rs. 0.94 crore from Rs. 6.85 crore, an approximately 86% YoY contraction. The segment’s weakness explains much of the consolidated revenue decline. While footwear revenue was broadly unchanged, Toolkit & Others lost more than Rs. 72 crore of quarterly revenue compared with Q1 FY26. The asset base also shifted between the segments. Footwear, Accessories & Other Products had segment assets of Rs. 262.62 crore as of June 30, 2026, compared with Rs. 235.42 crore at March 31, 2026, while Toolkit & Others had segment assets of Rs. 14.39 crore, down from Rs. 37.60 crore. India remains the second-largest producer and consumer of leather footwear globally, while footwear accounts for 48.5% of India’s leather and leather-product exports. In FY26 (April-June), footwear exports were valued at US$823 million, according to IBEF. The government is targeting at least US$15 billion of leather and footwear exports over the next five to six years, with FTAs, new markets and higher production scale expected to support the sector’s competitiveness. For Lehar Footwear, the industry backdrop remains supportive over the longer term, but near-term performance will depend more on the recovery of its Toolkit & Others segment and continued resilience in its core footwear business. The company has fixed September 3, 2026 as the record date for its upcoming AGM and dividend, if declared at the AGM. The filing does not represent a dividend declaration; it only specifies the record date in the event a dividend is approved. The 32nd AGM is scheduled for September 10, 2026 in Jaipur. Lehar Footwears Limited, headquartered in Jaipur, Rajasthan, has been operating since 1994 and is engaged in the manufacturing and sale of footwear, accessories and related products. The company reports its operations under two segments — Footwear, Accessories & Other Like Products and Toolkit & Others. . Rahul is a Financial Analyst with a strong foundation in equity research, financial modelling, and valuation. An SSCBS (University of Delhi) graduate with CFA Level I cleared and CISI Level I, currently pursuing an MBA in finance, with a disciplined approach to financial markets. Engages in deep company analysis, financial statement evaluation, and trend- and news-driven research to develop structured, data-driven investment insights.