According to reports from Business Standard, Khadim India reported a consolidated net profit of ₹0.75 crore for the quarter ended March 2026, representing an 86% decline from ₹5.45 crore recorded in the corresponding quarter of the previous year. The company's sales revenue declined 10.92% to ₹83.56 crore in Q4 FY26, compared to ₹93.80 crore in Q4 FY25. The operating profit margin (OPM) compressed to 14.23% from 16.96% in the previous year quarter. This marked the weakest quarterly performance in recent history, with the company experiencing three consecutive quarters of year-on-year revenue contraction - a severe 36.73% drop in Q2 FY26, followed by a 21.77% decline in Q3 FY26.
As reported by Business Standard, for the full financial year ended March 2026, Khadim India's net profit declined 38.74% to ₹3.10 crore compared to ₹5.06 crore in the previous year. The company's annual sales revenue fell 12.18% to ₹367.10 crore from ₹418.03 crore in FY25. The profit before tax (PBT) dropped significantly by 69% to ₹1.45 crore from ₹6.80 crore in the previous financial year, while PBDT declined 34% to ₹8.02 crore from ₹12.88 crore. The five-year sales compound annual growth rate (CAGR) stands at negative 6.01%, reflecting sustained market share erosion with revenues contracting from a peak of ₹771 crore in FY20 to ₹418 crore in FY25.
According to the financial data reported by Business Standard, the company's profit before depreciation and tax (PBDT) for FY26 stood at ₹33.60 crore compared to ₹50.65 crore in the previous year, representing a 34% decline. The operating profit margin for FY26 was 15.58% compared to 16.96% in FY25, indicating continued pressure on operational efficiency. The full-year OPM compression of 13.37 percentage points reflects the challenging operating environment faced by the company during the financial year. Employee costs remained elevated at ₹11.81 crore, declining only marginally from ₹14.51 crore in the prior-year quarter, while interest costs remained burdensome at ₹6.48 crore, consuming a substantial portion of operating profit and highlighting the company's leverage constraints.
As per Business Standard, Khadim India's stock plummeted 4.07% following the results announcement, closing at ₹107.30 on May 20, 2026. The company's stock performance has been catastrophic across virtually all timeframes, with the stock delivering severe negative alpha relative to both the Sensex and its footwear sector peers. Over the past year, the stock has plummeted 63.99%, underperforming the Sensex by 56.76 percentage points and the footwear sector by 36.18 percentage points. The shareholding pattern reveals a troubling exodus of institutional investors, with mutual fund holdings collapsing from 2.97% in March 2025 to zero by September 2025 and other domestic institutional investors reducing their stake from 3.97% in June 2025 to just 1.31% in March 2026. Promoter holdings have remained largely stable at 59.87%, with no promoter pledging eliminating concerns about forced selling, though the absence of meaningful promoter buying despite the stock's 63.99% one-year decline suggests limited confidence among insiders.
