1. At a Glance
Lehar Footwears Ltd just proved that chappals can kick inflation harder than policy rates. In Q2FY26, this Jaipur-based footwear warrior clocked₹140.5 crore in revenueand₹7.3 crore PAT, a jaw-dropping474% YoY profit surge. The stock may be chilling at ₹241 (off from its ₹322 high), but make no mistake — it’s quietly strutting the runway of midcap confidence.
With amarket cap of ₹426 crore,P/E of 19.5, andROE at 10.2%, Lehar is still a mass-market brand that behaves like it owns the premium stage. Itssales growth of 163%andprofit growth of 269%over TTM make even luxury shoemakers blush. Meanwhile,zero promoter pledges,BBB credit rating from CRISIL, and a shiny new“Rannr” brand launchshow this family-owned company isn’t afraid to sprint.
So, while Relaxo and Bata complain about “weak consumer sentiment,” Lehar is handing out PM Vishwakarma toolkits worth ₹298 crore like Diwali hampers.
2. Introduction
Once upon a time in Jaipur, someone thought — “Why should the common man’s footwear look so boring?” And thus began Lehar Footwears — the company that manufactureseverything from ₹99 slippers to ₹699 sneakers— basically, India’s entire middle-class wardrobe under one roof.
Founded in 1994, Lehar started as a humble producer of rubber slippers and now exports to20+ countriesincludingFrance, Dubai, Kenya, and Malaysia. From its 4 massive plants in Rajasthan, the company makes6.9 crore pairs annually, ensuring that every third pair of Hawai chappals in small-town India has its DNA.
The best part? It’s not just about cheap slippers anymore. Lehar is turning government contracts into goldmines — especially under thePM Vishwakarma scheme, where they’re supplying ₹298 crore worth of toolkits. Add to that the FY24 brand ambassador deal withGovinda(yes, the “Hero No.1” himself), and you’ve got a company that’s as filmy as it is financially flexible.
The result? A footwear company that’s outpacing inflation, diversifying channels (from D-Mart to D2C), and balancing both trade distributors and government tenders like a pro juggler.
3. Business Model – WTF Do They Even Do?
Lehar Footwears is theRajasthan-based giantthat quietly owns the lower-to-mid footwear market. It doesn’t sell “luxury” shoes — it sells reliability, comfort, and margin-friendly scale.
The company manufacturesnon-leather footwearacross categories — slippers, sandals, school shoes, sports shoes, and casual wear. Think of it as the“Maggi of Footwear”— affordable, available, and omnipresent.
Its materials includePU, PVC, EVA, and TPR soles, meaning they can produce everything from a ₹99 flip-flop to a ₹699 sneaker. The product range now exceeds1,300 SKUs, ensuring that even if your shoe breaks, Lehar already has your size ready in another polymer.
Business channels are split smartly:
- 49% Trade distribution(the classic wholesalers and dealers)
- 32% Government tenders(especially welfare schemes and school shoes)
- 19% Exports(which were just 8% last year!)
They even operatetwo retail outletsin Jaipur and are listed on major online platforms likeD-Mart, FirstCry, and Reliance Retail. This isn’t just a factory — it’s a footwear ecosystem.
And when the government cuts GST on footwear, Lehar doesn’t just benefit — it throws a party.
4. Financials Overview
| Metric | Q2FY26 (Sep’25) | Q2FY25 (Sep’24) | Q1FY26 (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 140.52 | 37.65 | 142.20 | 273% | -1.2% |
| EBITDA (₹ Cr) | 12.61 | 4.49 | 12.68 | 181% | -0.6% |
| PAT (₹ Cr) | 7.29 | 1.27 | 7.27 | 474% | +0.3% |
| EPS (₹) | 4.12 | 0.72 | 4.11 | 472% | +0.2% |
The quarterly chart screams one thing:this isn’t growth — this is domination. A 273% jump in sales and a 474% surge in profit YoY
is what happens when brand, distribution, and government schemes align like planets.
QoQ, the business is stable — holding revenue around ₹140 crore and margins at ~9%. For a mass footwear maker, that’s like maintaining six-pack abs through wedding season.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s put some math in our chappals.
EPS (Annualised):₹4.12 × 4 = ₹16.48Current P/E:241 / 12.31 = ~19.5Industry P/E:40.1
If Lehar re-rates to even 25x earnings (reasonable given the 269% profit growth), theeducational fair value rangecomes around:
₹16.48 × 19.5 = ₹322 (current upper band)₹16.48 × 25 = ₹412 (educational range upper bound)
Now, let’s checkEV/EBITDA:EV = ₹479 CrEBITDA (TTM) = ₹41 CrEV/EBITDA = 11.6x
If market rerates this toward the footwear median (Relaxo trades ~35x), the room is visible. But as per rule — this isfor education, not investment advice.
Disclaimer:This fair value range is purely educational and not a buy/sell suggestion.
6. What’s Cooking – News, Triggers, Drama
- CRISIL Upgrade:Long-term toBBB, short-term toA3+for ₹78 crore borrowings (Nov 2025). Basically, bankers can now breathe easier.
- Rannr Launch:Lehar launched its own sportswear line to tap into activewear demand — because even slippers want to run now.
- PM Vishwakarma Deal:₹298 crore toolkit order + ₹74.9 crore extension in Aug 2025 = ₹373 crore confirmed business pipeline. That’salmost a full year of revenue locked.
- Govinda Brand Campaign:The company doubled down on nostalgia marketing. Because who better to sell mass shoes than the man who danced in them for 30 years?
- GST Cut Boost:Lower footwear GST rates revived demand in H1FY26, making chappals cheaper and margins fatter.
So yes — between orders,
