Campus Activewear Limited announced robust financial results for the second quarter and first half of FY’27. The company reported a 16.9% year-on-year revenue growth to ₹452 crores in Q2 FY’27, driven by a 10.2% volume increase and a 6% improvement in Average Selling Price (ASP). Profit after tax (PAT) also saw a substantial 21.3% growth, underscoring the company’s expanding market presence and strategic focus on premiumization and category expansion.
Campus Activewear Announces Strong Q2 and H1 FY’27 Earnings
Campus Activewear Limited has released its financial results for the second quarter (Q2) and the first half (H1) of the Financial Year 2027, showcasing significant growth and operational resilience. The company reported a commendable 16.9% year-on-year revenue growth for Q2 FY’27, reaching ₹452 crores. This was primarily fueled by a healthy 10.2% volume growth, translating to 6.3 million pairs sold, coupled with a 6% improvement in Average Selling Price (ASP).
Key Growth Drivers and Strategic Focus
The growth in Q2 FY’27 was achieved in a relatively subdued consumption environment. The company attributes its performance to stronger fundamentals, an expanding consumer base, a richer product portfolio, and deeper market penetration. Key initiatives include aggressive expansion in Women and Kids categories, which grew by 27% and 34% respectively in H1 FY’27, and a strong push towards premiumization. Products priced at ₹2,000 and above saw volume growth exceeding 50% Y-o-Y, increasing their contribution to overall volume from 9% to 13%.
Profitability and Outlook
Despite facing material margin pressures due to inflation in input costs, Campus Activewear delivered an EBITDA growth of 12.5% and PAT growth of over 21% Y-o-Y in Q2 FY’27. The company expects a meaningful recovery in profitability in the second half of the year, supported by pricing actions, an improved product mix, and operating leverage. The outlook for the full year FY’27 projects an EBITDA margin of 17%. The company is confident in building a larger, more diversified, and profitable business, aiming for mid-teen growth consistently.
Expansion into New Categories
Campus Activewear is actively expanding into new categories, including Apparel, ELAN, and Performance footwear. These segments are seen as significant growth verticals. The company has launched Badminton and is preparing to launch cricket and running shoes. Early results from these new ventures are positive, with Apparel and ELAN showing strong sell-through. These initiatives are strategically designed to create new sub-businesses and contribute substantially to future revenue.
Channel Performance and D2C Growth
The company continues to strengthen its omnichannel presence. The D2C online channel revenue doubled year-on-year, driven by increasing traction across emerging digital platforms and the company’s own website. The Trade Distribution channel registered 14% growth, while the D2C online channel grew by 22% and D2C offline by 13%. The ASP has seen an increase of approximately ₹40, attributed to premium segments and MRP adjustments, which has helped offset raw material inflation.
Balance Sheet Strength
The balance sheet remains strong, with ROCE improving to approximately 22.3% and ROE at 18.5% as of September 26. Net working capital days have slightly increased due to planned inventory build-up for the festive season. The company also addressed a significant balance of ₹125 crores in other current assets related to GST input credit, which is expected to be realized over 12-18 months as inventory levels decrease.
Source: BSE
