Pricing holds, but margins compressed; festive execution critical

₹385.2 Cr revenue, 12.2% YoY growth confirmed; volume growth 11.7% claimed

PAT ₹26.1 Cr, 17.7% YoY confirmed; but OPM 14.2%, NPM 6.7% (not stable, compressed vs expectation)

MRP hike real but ASP suppressed by 4–5% temp factors; only Q2+ will show pricing benefit realized

No specific FY27 revenue number; EBITDA target is aspirational not committed; dependent on temporary factors normalizing

40% of Q1 volume from school shoes (temporary, Q1-specific); base quarter disrupted; secondary demand 'tapered'

Prior: Latter-half margin benefit from RM stabilization. Now: 17–19% EBITDA target for full year (not committed); ₹2.5 Cr depreciation structural drag persists

11.7% volume claimed but 40% from school shoes (Q1-peak, temporary). Underlying demand softer; secondary data 'tapered' in last quarter

8% MRP hike holding; volume grew despite it (positive). But entire industry forced to raise—not discretionary pricing power; consumers 'have no choice'

18 stores in Q1 (highest in 6–8 qtrs). FY27 target 80–120 (vs prior correction). SOR model driving franchisee confidence

Paonta Sahib, Pantnagar commissioning; ₹2.5 Cr depreciation Q1 is ongoing headwind. No update on CapEx spend or timeline to 'double output by end FY27'

Price hike effective 1 April accepted by market; volume grew 11.7% despite hike. No further revisions planned. RM inflation fully absorbed.

Growth tapered by 4.5–5%: Walmart accounting change (-2.5%) and franchise model transition SOR (-2–2.5%). Normalized growth ~4%. Franchise (18 EBU stores Q1) giving confidence.

No exit; 8% price hike shifted products from ₹1,499 to ₹1,649 bracket (reporting shift). Share shift to closed shoes from open footwear. Core ₹999–₹1,500 remains strong.

Sneaker 30% growth target for FY27 (vs prior 100%+). Base now much higher. New facilities support this growth trajectory.

Shut down 4–5M pairs DIP capacity (old, archaic, not viable). Moved school shoes from DIP to Stuck-On (higher ASP, margin-accretive). Stuck-On main portfolio going strong.

~40% share of Q1 volume growth from school shoes. Will normalize Q2 onwards (Q1 is peak school shoes quarter). No volume decline expected; contribution will just reduce.

Absolutely 100% confident. No reason not to deliver the margin. (No quantified phasing or contingencies given.)

Will be close to double-digit. Cannot promise double-digit volume but high single digits for sure. Mid-double-digit overall growth (volume + ASP). Women, kids, school shoes, sneakers key drivers.

2-month-old launch doing extremely well. Selling in ~100–110 own stores + Amazon, Myntra, brand.com. ₹1,899–₹2,599 price band (high-end portfolio). Rub-off effect on brand perception. Early signs extremely positive; planning further launches festive.

Normally build pre-festive due to capacity constraints during chhath/Diwali shutdowns. Inventory under control. Secondary demand positive but 'tapering in last quarter' due to geopolitical factors and floods (Maharashtra, Gujarat). Distributor meet showed strong visibility.

Targeting 80–120 stores FY27 (~90–100 likely). Tier-1, 2, 3 expansion pan-India. Focus pockets: Rajasthan, Maharashtra, MP, CG (seen strong growth). SOR model adds confidence to franchisees. Logo launched May; extremely positive reception; connects to younger audience.

Company only pays rent for own-operated stores. Franchise partners pay rent, own store operations. Company now controls inventory and discounting (SOR model). ROI range 18–30% depending on store economics.

Other players also took price hikes in similar or slightly lower range. Delivered reasonable volume growth despite hike. Dealer meet (May) collected record orders post-hike. Entire industry forced to hike (not optional). Secondary data strong; consumers have no choice but accept.

Yes, observed production constraints at smaller/unorganized players due to working capital stress. Impact on their festive supply TBD. Organized players also facing constraints.

Not quantified; dependent on school-shoes normalization, Walmart accounting reversion, and pricing realization. Vulnerable to festive demand volatility

Called 'no reason not to deliver' but marked as aspiration. Headwinds: ₹2.5 Cr depreciation structural for 2+ years, minimum wage hikes baked in, A&P spend elevated. Benefit assumes RM inflation stabilization Q2+

Paonta Sahib, Pantnagar ramping; ₹2.5 Cr depreciation Q1 only start of this headwind. No CapEx spend or timeline detail provided this call

Management notes 'tapering demand in last quarter' across board due to geopolitical factors and regional floods. Heavy inventory pre-build for festive is contrarian bet; execution risk if trend continues

NPM compressed to 6.7% Q1 (QoQ -40.8% PAT) from depreciation (₹2.5 Cr new plants), minimum wage hikes (₹5 Cr this quarter, annualized ongoing), A&P spend (₹2.5 Cr). 17–19% EBITDA target is aspirational not committed. Structural headwind for 2+ years from depreciation.

11.7% volume growth headline but 40% from school shoes (Q1 peak, Q1-specific). School shoes have lower ASP (moved from DIP to Stuck-On). Underlying normalized demand appears significantly softer. Will reverse Q2+.

Walmart/Flipkart-Myntra GT (goods & services tax) netting effective July 2025 suppressed reported revenue/ASP by ~2.5% Q1 (one-time, will revert Q2+). Franchise business transition from outright to SOR model accounting also created ~2.5% reported headwind Q1 only.

8% MRP hike held and volume grew; appears strong. But management explicitly stated entire industry was 'forced' to hike due to RM inflation. Not a sign of differentiated brand power; consumer has 'no choice'. If inflation stabilizes, no basis for further pricing; margin upside capped.

Paonta Sahib, Pantnagar new facilities operationalizing but ₹2.5 Cr depreciation impact Q1 is start of multi-year headwind. Capacity doubling by end FY27 remains unquantified guidance. Utilization risk if demand softens further.