Khadim India Q1FY27: consol. PAT down 39% YoY, margins compress as revenue falls 19%

Khadim India's consolidated revenue came in at ₹77.84 Cr for Q1 FY27, down 18.7% year-on-year from ₹95.70 Cr and down 6.8% sequentially from ₹83.56 Cr. Consolidated PAT fell more sharply — ₹0.52 Cr, down 38.7% YoY from ₹0.85 Cr and down 30.7% QoQ from ₹0.75 Cr. Standalone figures track almost identically (PAT ₹0.52 Cr, EPS ₹0.29) since the Bangladesh subsidiary is financially immaterial. Neither the current quarter nor either comparison quarter carries an exceptional item, so this is a clean like-for-like decline, not a base-effect artefact. The profit decline outpaced the revenue decline because margins compressed on both counts: OPM fell to roughly 10.1% from 14.2% in the preceding quarter and 12.9% a year ago, while NPM slipped to 0.62% from 0.87% in both comparison quarters. Combined material and stock-in-trade costs (₹530.3 mn) and broadly flat employee costs (₹113.6 mn) did not scale down with the softer topline, squeezing operating leverage — typical for footwear retail in the seasonally quiet June quarter ahead of the festive H2 ramp. Management's FY27 guidance from the Q4FY26 call called for full-year revenue to stabilize near ₹400 Cr with a 14% EBITDA margin and 2-2.5% PAT margins. Annualising Q1's ₹77.84 Cr run-rate implies roughly ₹311 Cr for the year, and the 0.62% PAT margin is well short of the guided band — the quarter is tracking behind that outlook, though Q1 is seasonally the softest for footwear and one quarter doesn't settle the full-year path. No analyst estimates for this small-cap turned up in search, so the print cannot be benchmarked against street consensus. Alongside the results, the company's August 1 EGM approved issuing 10,22,727 fully convertible equity warrants at ₹110/share (₹100 premium to the ₹10 face value) to promoter and non-promoter allottees, aggregating up to ₹11.25 Cr, with in-principle stock-exchange approval still pending as of the results date. That capital raise sits alongside the margin story as the two threads to track into the festive quarters.