Analysis: Khadim India Limited

Growth thesis

Khadim India is a footwear retailer operating in India through company-owned (COCO) and franchise stores, with premium sub-brands (British Walkers, Sharon) and a Skechers partnership driving growth. Key segments include premium footwear (targeting 20-25% revenue mix by 2030) and e-commerce (aiming for >5% contribution in FY27). Growth hinges on premiumization, inventory rationalization (targeting 105-107 days), and franchisee model optimization. Over 2-3 years, revenue is expected to stabilize at INR400 crores with EBITDA margins expanding to 14% and gross margins reaching 49-50%, supported by higher ASP products and cost discipline. Execution risks include demand recovery in mass segments and raw material cost volatility.

Why is Khadim India Limited stock rising?

• targeting revenue of around INR400 crores for FY27
• aiming for EBITDA margin of 14% in FY27, with potential expansion of 100-200 bps if sales grow 5-10%
• targeting gross margin improvement of 50 bps to approximately 49-50% in FY27
• focusing on premium sub-brands British Walkers and Sharon to increase contribution to 20-25% of mix over 3-4 years
• planning to scale Skechers partnership from pilot to more stores and higher volumes

Research report

companyname: Khadim India Limited ticker: KHADIM sector: Footwear / Retail Khadim India Limited is a branded footwear retailer focused on affordable fashion for the Indian middle class. Founded in 1981 and headquartered in Kolkata, it is the second-largest footwear retailer in India by number of exclusive stores, according to its own FY25 Annual Report. The company operates 851 retail stores across 23 states and 4 union territories as of March 2026, comprising 189 company-owned outlets and 662 ...

Catalysts

margin expansion, new product segment, geographic expansion

Growth guidance

FY '27 revenue guided at INR400 crores with 14% EBITDA margin and 48-50% gross margin driven by premiumization, inventory rationalization, and cost discipline