Footwear Stock’s Stunning Q2FY26 Rally — 5x Jump In Profit Amid GST Cut Boost

The results for the quarter that ended on September 30, 2025, were released by Lehar Footwear Limited. The company's outstanding performance in H1FY26 and Q2FY26 was prompted by robust cash flows that resulted in the repayment of long-term debts and an overall decrease in debt.

With sales rising to Rs 140.5 crore in Q2FY26 from Rs 37.6 crore in Q2FY25, the firm recorded a remarkable performance. Although the operating margin decreased marginally to 9.0% from 11.9%, the operating profit increased significantly to Rs 12.6 crore from Rs 4.5 crore a year earlier. Depreciation, on the other hand, slightly rose from Rs 1.2 crore to Rs 1.4 crore. Profit Before Tax (PBT) increased to Rs 10.1 crore from Rs 1.7 crore in Q2FY25, demonstrating strong growth.

Profit After Tax (PAT) increased more than fivefold to Rs 7.3 crore in Q2FY26 from Rs 1.3 crore in Q2FY25 after removing an income tax expense of Rs 2.8 crore up from Rs 0.5 crore. The firm recorded sales of Rs 282.7 crore for H1FY26 compared to Rs 100.8 crore for H1FY25, and PAT increased significantly to Rs 14.6 crore from Rs 3.6 crore in the first half of the previous year.

With a PAT of Rs 10.9 crore and overall sales of Rs 277.2 crore for FY25, the firm has already outperformed its prior full-year performance in just the first half of FY26, demonstrating strong operational momentum and improved profitability.

GST rates on footwear up to Rs 2,500 have been lowered from 12% to 5%. It is anticipated that this progressive reform would greatly improve consumer affordability, expand the market that can be addressed, and spur the formalization and expansion of India's footwear sector.

"Despite temporary moderation in demand due to deferment of purchase in anticipation of the GST revision, the Company delivered stable performance, reflecting its operational resilience," said Lehar Footwear in a stock exchange filing.

Additionally, the company began marketing its recently introduced sports footwear line under the name "Rannr," which has drawn positive orders and inquiries. across 200 dealers from all across India attended the "Rannr" launch, which was well accepted by the market and expanded Lehar's distribution network.

Since 1995, Lehar Footwears Ltd. has been one of the top regional producers of fashionable, high-quality non-leather footwear. The company uses trade distribution channels, retail multi-brand stores, export markets, government programs, and e-commerce platforms to offer its products under the "Lehar" brand. The company's five manufacturing facilities are located in Kundli (Haryana), Kaladera (Chomu), and Jaipur.