Campus Activewear (CAMPUS) Q2 24/25 earnings summary

Executive summary

• Achieved 28.9% year-over-year revenue growth in Q2 FY25, reaching INR 333.3 Cr, with sales volume up 36.3% to 5.4 million pairs compared to Q2 FY24, driven by strong distribution and online channel performance.

• Direct-to-consumer channels contributed 48.1% of revenue in Q2 FY25, maintaining a strong omni-channel presence.

• Expanded product portfolio with 87 new styles, increased presence in large-format stores, and added nine new exclusive brand outlets, bringing the total to 288.

• Onboarded new brand ambassadors, launched major marketing campaigns, and underwent management restructuring with new CMO and Chief Innovation Officer.

• Board approved unaudited financial results and INR 35 crore investment for capacity expansion at Ganaur and Haridwar.

Financial highlights

• Q2 FY25 operational revenue reached INR 333.3 Cr, up 28.9% year-over-year, but down 1.7% sequentially from Q1 FY25.

• EBITDA for Q2 stood at INR 41.6 Cr, margin at 12.5%, with PAT at INR 14.3 Cr and PAT margin at 4.3%.

• Gross margin for Q2 was 52.8%, slightly down from 54.4% in Q2 FY24 and 53.3% in Q1 FY25.

• Average selling price per pair was INR 622, down 5.4% YoY but up 6.3% sequentially, mainly due to higher trade schemes and non-BIS inventory liquidation.

• Inventory days reduced from 126 in Q2 FY24 to 110 in Q2 FY25; DSO days reduced from 35 to 30.

Outlook and guidance

• Expect margin improvement in H2 as promotional events and non-BIS inventory liquidation phase out.

• Focus on product diversification, premiumization, and expanding omni-channel experience, with plans to deepen presence in Western and Southern India and enhance offerings for women and children.

• Capacity expansion at Ganaur and Haridwar to be commercialized by end of Q4, supporting future growth.

• Application for extension at Poanta Sahib location to support operational continuity.