Campus Activewear (CAMPUS) Q1 25/26 earnings summary

Executive summary

• Revenue for Q1 FY26 reached INR 343.3 crore, up 1.2% year-over-year, despite challenging macro conditions and internal transitions such as warehouse consolidation and SAP implementation.

• Sales volume declined 11.6% year-over-year to 5.1 million pairs, but higher ASP and premium product mix offset much of the impact.

• Direct-to-consumer channel contributed 44.4% of revenue, down from 48% last year, while distribution and large format stores grew.

• Sneaker category saw 150% growth, with 550,000 pairs sold versus 220,000 last year.

• The company maintains a pan-India presence with over 27,300 retailers and a strong omni-channel strategy.

Financial highlights

• Gross margin improved by 210 bps year-over-year to 55.4%, driven by premiumization and cost efficiencies.

• EBITDA stood at INR 55.4 crore, with EBITDA margin at 15.9%, nearly flat year-over-year.

• PAT was INR 22.2 crore, with PAT margin at 6.4%, down from 7.4% last year due to higher depreciation from capacity investments.

• Sequentially, revenue declined 15.4% and PAT dropped 36.6% from Q4 FY25, reflecting seasonality.

• Net debt remained negative, indicating a net cash position.

Outlook and guidance

• Management maintains double-digit revenue growth guidance for FY26 and aspires to return to 17%-19% EBITDA margin over the medium term.

• Q2 is tracking in line with internal budgets, with recovery in sales post-disruption and strong order visibility through December.

• Premiumization, expansion in sneakers and women's categories, and geographic growth in southern India are expected to drive future growth.

• Continued investment in omni-channel experience and technology to drive efficiency and customer engagement.

• Final dividend of ₹0.30 per equity share recommended for FY25, subject to shareholder approval at the AGM.