1. At a Glance – The Campus That Everyone Knows, But the Stock Forgot
Campus Activewear Ltd is that brand you’ve worn, your cousin has worn, and your gym trainer definitely owns three pairs of — yet the stock has behaved like it missed the morning PT class.
Market cap sits at ₹8,250 crore, current price ₹270, with a P/E of ~58.5x — spicy enough to burn your tongue. Q3 FY26 delivered ₹589 crore revenue (+14.3% YoY) and ₹63.7 crore PAT (+37% YoY), which on paper screams “performance athlete.”
But zoom out and the irony hits hard:
- 3-year stock return: -10.4%
- ROCE: 20.1%
- ROE: 17.2%
- Operating margin: 16.3%
This is a business doing everything right operationally… while the stock market keeps asking, “Beta, valuation ka kya?”
Sneakers are sprinting. The share price is power-walking.
2. Introduction – How Campus Became India’s Footwear Default Setting
Founded in 2008, Campus Activewear Limited quietly pulled off what most D2C brands only dream about: becoming India’s No.1 sports & athleisure footwear brand by both value and volume, with 17% market share in the scaled S&A segment.
While global brands were busy selling ₹8,000 shoes to 3% of India, Campus said, “Let’s sell ₹600 shoes to everyone.” Result?
- 24.9 million pairs sold in FY25
- 7.4 million pairs online
- Presence across 23,000+ retail touchpoints in 650+ cities
Campus didn’t chase luxury. It chased distribution. And won.
But markets are cruel. Once growth normalises from 20% to low double digits, the same stock that was a darling suddenly becomes “meh.” Campus today lives in that awkward phase — no longer a hyper-growth teenager, not yet
a boring cash cow uncle.
3. Business Model – WTF Do They Even Do? (In Simple Words)
Campus designs, manufactures, and sells sports + casual footwear for men, women, and kids.
That’s it. No metaverse shoes. No NFT slippers.
But execution is where they flex:
- 2,400+ active styles
- 270+ new designs launched in FY25
- 60–90 day design-to-market cycle
- 40-member in-house design team + global consultants
They manufacture through 6 plants in India, with 30.7 million pairs assembly capacity, and increasing in-house production of uppers (19%) and soles (40%).
Translation: less dependence on vendors, better margins, more control — aka the CFO’s comfort blanket.
4. Financials Overview – Numbers That Actually Matter
Q3 FY26 Performance (Standalone, ₹ crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 588.6 | 515.0 | 387.0 | 14.3% | 52.1% |
| EBITDA | 110.0 | 82.0 | 50.0 | 34.1% | 120.0% |
| PAT | 63.7 | 46.0 | 20.0 | 37.0% | 218.5% |
| EPS (₹) | 2.08 | 1.52 | 0.66 | 36.8% | 215.1% |
Annualised EPS (Q3 rule):
Average of Q1, Q2, Q3 EPS × 4
= (0.73 + 0.66 + 2.08) / 3 × 4 ≈ ₹4.6
Which matches reported TTM EPS of ₹4.62. Clean maths.
Commentary:
Margins bounced back sharply after a weak Q2. Advertising spend, inventory correction, and festive demand all aligned. Question
