Campus Activewear reported strong Q2 FY26 results, driven by robust distribution growth. Revenue increased by 16%, reaching INR 387 crores, while profit after tax surged by 40%. The company experienced strong momentum in its distribution business, delivering a 20% year-over-year growth. Focus on premium segments and strategic brand-building initiatives contributed to the positive performance.
Financial Performance Highlights
Campus Activewear announced a 16% year-over-year increase in operating revenue for Q2 FY26, reaching INR 387 crores. This growth was primarily fueled by the distribution channel, which saw a 20% increase. Online channels also grew by 6% during the quarter.
The company sold approximately 5.75 million pairs of shoes in Q2 FY26, compared to 5.36 million pairs in the same period last year. The average selling price (ASP) increased by 8% year-over-year to INR 672 versus INR 622 per pair.
Gross margins for Q2 FY26 stood at 53.9%, compared to 52.8% in the previous year, driven by an improved product mix. EBITDA for the quarter was INR 55 crores, with an EBITDA margin of 14%, representing a 140 basis points improvement year-over-year. PAT for the quarter was INR 20 crores, with a PAT margin of 5.1%.
Strategic Initiatives and Category Performance
The premium segment (INR 1,500+ price point) saw significant improvement, with its saliency increasing from 45.2% to 57.2% year-over-year, leading to an ASP improvement of INR 50 during Q2 FY26.
The company announced that actress Kriti Sanon is the new brand ambassador for the women’s category, enhancing the design language and reinforcing Campus’ leadership in this growing segment. Women’s share in the revenue mix improved from 14.2% to 16.2% during Q2 FY26.
Operational Updates and Future Outlook
Campus Activewear is committed to investing in future growth, with plans for a new factory at Pant Nagar to augment premium upper capacity. The company continues to invest in marketing initiatives to fuel brand building, translating into growth across all channels.
Recent reductions in GST rates are expected to spur demand, and the company anticipates sustained momentum in its premium segment, bolstered by its distribution strength and capacity expansion plans.
Expansion Plans
The company aims to reach nearly 500 EBO stores in the next 3 years, adding at least 70 to 75 stores per year.
Source: BSE