Khadim India Q4 FY26 Earnings Analysis

- FY '27 target: Top-line around INR 350 crores with no volume decline; aiming to stabilize and improve sales after past declines. - Expectation of modest growth in sales volume: like-to-like store volume degrowth reduced to 2%, aiming to halt further decline. - Focus on increasing ASP (Average Selling Price) through premium brands (British Walkers, Sharon) which currently contribute 40-60% of sales; premium mix expected to grow to 20-25% in 3-4 years. - E-commerce is a key growth driver expected to recoup some offline sales loss; aggressive expansion in the digital channel ongoing. - Expansion planned in strategic retail locations via new franchisee and COCO stores to drive growth. - Athleisure category rollout will be incremental, focusing on stores where space allows; currently present in ~70 stores with INR 50 lakh inventory, no aggressive rollout target set yet. - Institutional sales growth targeted in private sector safety shoes segment. - Overall cautious optimism with focus on profitable growth through product refresh, cost control, and brand investments.

- **Revenue Growth:** FY '27 top line expected around INR 350 crores with efforts to stabilize sales volume and improve ASP. - **EBITDA Margin:** Targeting improvement to 14%-14.5% in FY '27 from current levels (~13%). - **PAT Margin:** Expected around 2%-2.5% in FY '27. - **Margin Drivers:** Focus on premium brands like British Walkers and Sharon to lift blended margins meaningfully. - **Cost Reduction:** Continued efforts in cost control and working capital optimization, especially debtor management. - **Store Strategy:** Closure of unprofitable stores (~60-65 closed), focus on profitable COCO stores, and expansion primarily via franchisee model. - **E-Commerce:** Aggressive push on own website with exclusive lines to improve profitable sales. - **Athleisure & Institutional Sales:** Moderate growth expected, with institutional sales from private companies and selective athleisure rollout. - **Long-Term Outlook:** Stabilizing current store base, improved margins, and gradual volume recovery expected over next 3-5 years.

- No specific mention of any major current or future capital expenditure (capex) or strategic investments in the call. - The company has optimized inventory and is focusing on reducing debtor days to improve working capital rather than large capex. - Store closures (around 60-65 stores closed) indicate a focus on optimizing existing footprint rather than expansion through capex. - Plans include gradual rollout and expansion in product categories like athleisure and premium sub-brands but with caution due to store size constraints and franchisee preferences. - E-commerce focus involves servicing orders from existing stores, indicating an asset-light approach rather than new capital investment. - No explicit guidance on capex budgets; working capital optimization and better margin management are current priorities.

- There is no indication of any new fundraising planned through debt or equity in the provided transcript. - The company expects its debt level to remain around INR 110 crores in FY '26, slightly reduced from INR 114 crores as of December. - No aggressive increase or decrease in debt is planned; debt levels are expected to be more or less flat with slight optimization. - The focus is on reducing working capital through inventory and debtor management rather than raising fresh funds. - The company aims to improve cash flows via operational efficiencies and collection from institutional debtors. - No mention was made of any equity fundraising or capital raising activities in the near term.

The transcript in the provided document does not explicitly mention the current or expected order book or pending orders for Khadim India Limited as of February 16, 2026. There is no direct reference to order backlogs or pending orders during the earnings call or investor meet. However, the following related operational details are mentioned: - Focus on increasing e-commerce sales and expanding omni-channel presence. - Strategy to maintain sales volume with new product rollouts (SS26 and AW26). - Reduction in inventory days aiming for better stock alignment and working capital. - Some store closures impacting sales volume. - Plans to increase online sales contribution to 10% in FY '27. No quantifiable order book or backlog data is provided in the transcript.