Lehar Footwears reports negative toolkit revenue on returns

Lehar Footwears Limited reported negative Toolkit & Others revenue of Rs 17.43 lakh for the quarter ended September 30, 2026, after Rs 32.48 lakh of sales returns relating to earlier periods exceeded fresh toolkit sales. Its Footwear, Accessories and other like Products segment generated Rs 100.23 crore of revenue and Rs 7.34 crore of profit before interest and tax.

Why was Lehar Footwears’ toolkit revenue negative?

Lehar Footwears reported negative Toolkit & Others revenue because returns on sales made in earlier periods exceeded the division’s fresh sales during the quarter ended September 30, 2026. The company disclosed Rs 32.48 lakh of such returns, which were Rs 17.43 lakh higher than fresh sales, resulting in net segment revenue of negative Rs 17.43 lakh.

The disclosure identifies Toolkit & Others as one of Lehar Footwears’ two reportable segments, alongside Footwear, Accessories and other like Products. The Managing Director is the Chief Operating Decision Maker, or CODM, whose internal management reports are used for performance evaluation and resource allocation; segment performance is measured as profit before interest and tax.

The company said inter-segment pricing is set on an arm’s-length basis. There was no inter-segment transfer in the September 2026 quarter, compared with a negative Rs 1.54 crore transfer in the June 2026 quarter and a negative Rs 12.64 crore transfer in the September 2025 quarter.

How did Lehar Footwears’ revenue mix change in September 2026?

Lehar Footwears’ September-quarter revenue was concentrated in footwear, as the Footwear, Accessories and other like Products segment recorded Rs 100.23 crore while Toolkit & Others recorded negative Rs 17.43 lakh. Total revenue from operations was Rs 100.06 crore, up from Rs 74.95 crore in the June 2026 quarter but below Rs 140.52 crore in the September 2025 quarter.

Footwear segment revenue rose by Rs 40.54 crore from Rs 59.69 crore in the June 2026 quarter. Against the September 2025 quarter, footwear revenue increased from Rs 48.78 crore, while Toolkit & Others revenue changed from Rs 104.39 crore to negative Rs 17.43 lakh as the disclosed earlier-period returns outweighed fresh sales.

For the half year ended September 30, 2026, footwear revenue was Rs 159.92 crore, compared with Rs 107.81 crore in the corresponding 2025 half year. Toolkit & Others revenue was Rs 16.63 crore, down from Rs 193.40 crore a year earlier, while total revenue from operations declined to Rs 175.01 crore from Rs 282.72 crore.

Which Lehar Footwears segment generated September-quarter profit?

Lehar Footwears’ footwear segment generated Rs 7.34 crore of profit before interest and tax in the September 2026 quarter, while Toolkit & Others made a loss of Rs 4.64 lakh. Combined segment profit before interest and tax was Rs 7.29 crore, compared with Rs 5.37 crore in June 2026 and Rs 11.22 crore in September 2025.

After other income of Rs 26.93 lakh and finance cost of Rs 1.46 crore, Lehar Footwears reported profit before tax of Rs 6.10 crore for the quarter ended September 30, 2026. Tax expense was Rs 1.52 crore and profit after tax was Rs 4.58 crore, compared with Rs 3.01 crore in June 2026 and Rs 7.29 crore in September 2025.

Basic and diluted earnings per share were both Rs 2.58 in the September 2026 quarter, compared with Rs 1.71 in the preceding quarter and Rs 4.13 a year earlier. For the half year, footwear segment profit before interest and tax increased to Rs 11.77 crore from Rs 8.54 crore, while Toolkit & Others profit fell to Rs 88.90 lakh from Rs 13.98 crore.

How did Lehar Footwears’ assets, liabilities and cash change?

Lehar Footwears reported footwear segment assets of Rs 293.23 crore at September 30, 2026, up from Rs 235.42 crore at March 31, 2026. Toolkit & Others assets declined to Rs 10.04 crore from Rs 37.60 crore, and total segment assets increased to Rs 303.27 crore from Rs 273.02 crore.

Footwear segment liabilities rose to Rs 163.16 crore at September 30, 2026 from Rs 120.08 crore at the March 2026 year-end. Toolkit & Others liabilities fell to Rs 1.12 crore from Rs 20.50 crore, while total segment liabilities increased to Rs 164.28 crore from Rs 140.58 crore.

The half-year cash-flow statement recorded net cash used in operating activities of Rs 28.93 lakh, compared with net cash generated from operating activities of Rs 18.09 crore in the corresponding 2025 period. Trade receivables increased by Rs 17.02 crore, capital expenditure on property, plant and equipment was Rs 14.09 crore, and cash and cash equivalents ended September 30, 2026 at Rs 19.38 lakh.

What do the half-year results show for Lehar Footwears?

Lehar Footwears reported half-year profit after tax of Rs 7.59 crore for the six months ended September 30, 2026, compared with Rs 14.56 crore in the corresponding 2025 period. Revenue from operations decreased by Rs 107.71 crore year on year, while profit before tax fell to Rs 10.13 crore from Rs 19.80 crore.

The cost mix also changed between the two half-year periods. Cost of materials consumed rose to Rs 86.50 crore from Rs 52.55 crore, while purchases of stock-in-trade declined to Rs 26.18 crore from Rs 161.68 crore; employee benefits expense increased to Rs 15.47 crore from Rs 7.39 crore.

Finance cost was Rs 2.85 crore in the half year ended September 30, 2026, broadly in line with Rs 2.85 crore a year earlier. Total borrowings at September 30, 2026 were Rs 69.03 crore, comprising Rs 11.34 crore of non-current borrowings and Rs 57.69 crore of current borrowings.

Conclusion

Lehar Footwears’ negative Toolkit & Others revenue in the September 2026 quarter resulted from Rs 32.48 lakh of earlier-period sales returns exceeding fresh sales by Rs 17.43 lakh. Footwear accounted for Rs 100.23 crore of the quarter’s Rs 100.06 crore revenue from operations and supplied Rs 7.34 crore of the combined Rs 7.29 crore segment profit before interest and tax.

The next quarterly disclosure should show whether toolkit sales returns persist after the September-quarter adjustment and how the segment’s revenue and profit develop from the Rs 17.43 lakh net revenue deficit and Rs 4.64 lakh loss before interest and tax. Readers can also monitor trade receivables, which increased by Rs 17.02 crore during the half year, and cash and cash equivalents, which stood at Rs 19.38 lakh on September 30, 2026.