Lehar Footwears Shares Rally on Exceptional Quarterly Performance
Investors showed strong confidence in Lehar Footwears as the company's stock price climbed 3% during Thursday's trading session, reaching ₹253.30 per share. This positive market movement came directly following the announcement of the company's impressive September quarter financial results, which demonstrated remarkable growth across key metrics.
Spectacular Financial Growth Metrics
The footwear manufacturer delivered extraordinary numbers for the second quarter of fiscal year 2026. Revenue skyrocketed to ₹140.5 crore, representing a massive 273% increase compared to the ₹37.6 crore recorded during the same period in the previous fiscal year.
Operating profit showed substantial improvement, rising sharply to ₹12.6 crore from ₹4.5 crore in Q2FY25. However, the operating margin experienced some compression, settling at 9% compared to the previous year's 11.9%.
The company managed to reduce its finance costs to ₹1.2 crore from ₹1.6 crore, while depreciation expenses saw a minor increase to ₹1.4 crore. Most impressively, profit before tax (PBT) jumped to ₹10.1 crore from a modest ₹1.7 crore in the year-ago quarter.
This robust performance translated into a profit after tax (PAT) of ₹7.3 crore, marking an astonishing 461% surge from the ₹1.3 crore reported in Q2FY25.
Sustained Half-Year Performance and Market Recovery
Looking at the broader six-month picture, Lehar Footwears maintained its strong momentum throughout the first half of FY26. Revenue reached ₹282.7 crore, significantly higher than the ₹100.8 crore achieved in H1FY25.
The company generated an operating profit of ₹25.3 crore and recorded PBT of ₹19.8 crore during this period. This resulted in a PAT of ₹14.6 crore for the half-year, confirming the sustained upward trajectory in the company's financial health.
Management acknowledged that demand experienced temporary moderation due to consumers postponing purchases ahead of the anticipated GST revision. However, the festive season brought a healthy recovery in demand following the actual implementation of the GST rate reduction.
This revival comes as particularly welcome news after two years of subdued consumer spending in the footwear sector, signaling the beginning of renewed consumption momentum that is expected to continue in the coming quarters.
Strategic Positioning and New Product Success
With its established presence in both mass and mid-market segments and a diverse product portfolio, Lehar Footwears believes it is optimally positioned to capitalize on the anticipated demand revival across the footwear industry.
The company has recently ventured into the sports footwear category with the launch of its new 'Rannr' brand, which has already generated encouraging order volumes and dealer inquiries. The brand launch event attracted over 200 dealers from across India and received overwhelmingly positive market feedback.
This successful new product introduction has further strengthened Lehar's distribution network and expanded its market reach, providing additional growth drivers for future quarters.
Historical Share Performance and Investor Returns
Lehar Footwears shares have demonstrated significant volatility in recent months, following an extended rally that delivered substantial returns to shareholders. Between October 2020 and January 2025, the stock witnessed an impressive rally that resulted in a phenomenal gain of 1,428%.
Despite recent profit-taking activity, the stock still offers investors a five-year return of 1,350%. The sustained upward movement pushed the stock past the psychological ₹300 barrier in May, eventually reaching a fresh all-time high of ₹322.20 per share.
In terms of calendar year performance, the stock concluded CY24 with an impressive 80% surge, building on previous gains of 57% in CY23, 82% in CY22, and a massive 144% in CY21.
