Khadim India Limited stands as a prominent Indian branded footwear company, incorporated in 1981. It is recognized as the second-largest footwear retailer in India, with an extensive retail footprint spanning across 25 states and 5 union territories. The company was formerly known as Khadim Chain Stores Limited and was renamed Khadim India Limited in August 2005. Headquartered in Kolkata, West Bengal, its registered office is located at Kankaria Estate, 5th Floor, 6 Little Russell Street, Kolkata, 700071.
Khadim India Limited operates primarily within the footwear and accessories segment. The company offers a diverse range of products, including sandals, slippers, boots, and casual shoes for men, women, and children. Its portfolio also extends to leather accessories such as bags and wallets.
The company markets its products under several well-established brands, including Khadim's, British Walkers, Lazard, Turk, Pro, Sharon, Cleo, Waves, Softouch, Adrianna, Bonito, and Schooldays. Khadim India also leverages online sales channels and engages in product exports.
Khadim India Limited employs a dual business model encompassing Retail and Distribution.
- Retail Business: This segment targets middle and upper-middle-income consumers through exclusive retail stores, which include both Company-Owned Outlets and Franchisees. These outlets are strategically located in metros and Tier I to Tier III cities.
- Distribution Business: This channel facilitates sales through a wide network of distributors who supply to multi-brand outlets.
As of September 2018, the company operated 785 exclusive stores and maintained a network of 509 distributors. Khadim India Limited's reach extends across more than 23 states and 1 union territory, serving consumers with varying income levels and engaging in institutional sales alongside exports.
The company, founded in 1981, is led by its promoter, Siddhartha Roy Burman, who has been an integral part of the business for over 34 years. The promoter group, consisting of Khadim Development Company Private Limited and Siddhartha Roy Burman, collectively holds 59.33% of the total equity. Promoter holding has seen minor fluctuations, decreasing from 60.09% in June 2024 to 59.83% in March 2025.
Khadim India Ltd debuted on the stock market in November 2017 with an Initial Public Offering (IPO) priced at ₹750 per share. The stock commenced trading on the Bombay Stock Exchange at ₹727. As of June 9, 2025, the company has a market capitalization of approximately ₹509 Crore, classifying it as a Small Cap company according to Value Research. Reports from other sources indicate a market capitalization closer to ₹470 Crore.
- Revenue: ₹618 Crore for FY25
- Net Profit: ₹5.17 Crore for FY25
- Q4 FY25 Revenue: ₹93.80 Crore (as of March 2025)
- Q4 FY25 Net Profit: ₹0.92 Crore (as of March 2025), marking a decrease of -10.68% compared to the same period last year.
On a consolidated basis for the quarter ended March 2025, Khadim India Ltd reported a net profit of ₹0.92 crore on a total income of ₹96.79 crore. The gross margin expanded to 46.9%, attributed to a favorable product mix. However, the EBITDA margin narrowed due to increased marketing and operating costs.
Khadim India Ltd recently announced its audited standalone and consolidated financial results for the fiscal year ended March 31, 2025. A significant strategic development is the company's plan to demerge its distribution business, with a record date set for June 7, 2025. This move is aimed at restructuring business operations to optimize performance across different segments.
The company faces certain operational challenges, as indicated by recent financial data. Khadim India Ltd has reported a poor sales growth of -11.5% over the past five years and a low return on equity of 5.96% over the last 3 years. Additionally, the company carries high debtors, averaging 193 days.
Despite these challenges, Khadim India maintains its position as a significant player in India's footwear retail market, supported by an established brand portfolio and an extensive distribution network. The upcoming demerger of the distribution business is anticipated to potentially unlock value and enhance operational efficiency for both business segments.
In terms of valuation metrics as of June 9, 2025:
- The P/B ratio stands at 2.03 times, which represents a 62% discount to its peers' median range of 5.33 times.
- The P/E ratio is 100.65 times, indicating a 53% premium compared to its peers' median range of 65.60 times.
