Thank you. Good evening, everyone.

Thank you all for joining us today for our Q3 and nine-month FY26 earnings call. We continue to demonstrate strong performance in Q3 and nine-month FY26, driven by our focus on widening distribution and strengthening our product mix, which has resulted in a higher ASP.

The robust demand during the festive season, coupled with the positive impact of GST rationalization, has further accelerated our performance. During the quarter, we are elated to report that our revenue surged by 14.3% YoY and our profit after tax grew by 37% YoY, owing to sustained growth across the channels.

We take a highly focused approach to product segmentation, with our portfolio encompassing various occasions, channels, and consumer mindsets. Building on this strong foundation, we are expanding our design expertise into full-scale apparel, maintaining the same agility and consumer-centric innovation that has characterized our Activewear journey.

As pioneers in offering premium sneakers at affordable prices, we remain committed to making high-quality, design-forward footwear accessible to a wider audience. Our sneaker portfolio has doubled in volume, validating strong consumer adoption.

The trend of premiumization continues to play out positively for us, with ASP rising by 5.2% YoY to INR 711 in Q3 FY26. This growth has been aided by a higher saliency of premium SKUs and strong acceptance of our refreshed collections.

At the beginning of Q3, we launched our brand campaign, "You Go Girl", featuring the actor Kriti Sanon. This campaign has meaningfully strengthened our connection with women consumers who navigate life on their own terms, unbothered by labels and guided by choice.

We are thrilled to see that the campaign resonated strongly with our female consumers, resulting in an improvement in the women's category mix. On the manufacturing front, we are pleased to share that our Ponta Sahib facility, which focuses on upper manufacturing, has now fully stabilized.

Additionally, we commenced commercial production of premium uppers at our Pantnagar facility in January 2026. This enhancement of our integrated manufacturing capabilities will equip us to meet the rising demand for premium products in the coming quarters.

With more than 90% of our raw materials sourced locally and all assembly conducted in-house, our manufacturing ecosystem is not only compliant, but also strategically independent within a BIS-regulated environment. As a natural progression of our brand, we have strategically ventured into athleisure apparel in January 2026.

This expansion not only broadens our addressable market, but also unlocks incremental revenue opportunities from our existing customers while enhancing store productivity. This move aligns perfectly with Campus's long-term vision of becoming one of India's prominent lifestyle brands.

Looking ahead, we remain focused on disciplined execution, customer-centric innovation, and strengthening our operational efficiencies. These efforts are aimed at ensuring long-term value creation for all our stakeholders.

Thank you, and now I'll hand over the call to our CFO, Mr. Sanjay Chhabra, to take you through more details on the Q3 and nine-month performance.

Thank you, Nikhil. Good evening, everyone, and thank you for joining us in Q3 and nine-month FY26 earnings call for Campus Activewear.

Highlighting on Q3 FY26 performance: Our operational revenue grew by 14.3% YoY to INR 589 crores in Q3, largely benefited by higher distribution, which has registered a growth of 19%, and online channel, which has grown by around 18%. The company sold approximately 8.3 million pairs in Q3.

The average selling price grew by around 5% year-on-year to ₹711 in Q3. Women's and kids' share in the revenue mix has improved from 18.7% last year to around 22% during this quarter.

Our gross margins were 53.1% in Q3 versus 51.2% in Q3 last year, due to higher sneaker mix and higher other income or operating revenues, which is partly offset by lower mix of open footwear, and also because of change in accounting policy by our e-com portals, FK and Myntra, resulting in a lower revenue and lower freight or commission cost. Our EBITDA for Q3 was INR 115.8 crores.

The EBITDA margin stood at 19.5% during the quarter, an improvement of 290 basis points versus last year, driven by seasonality and execution-led higher sales in key channels, helping us to leverage our fixed cost more efficiently. Our PAT for Q3 was INR 63.7 crores.

The PAT margins stood at healthy 10.7% during the quarter, an improvement of 175 basis points versus last year. Our balance sheet remains strong, with return ratios, that is return on capital employed at 20% and return on equity of 17.6% as of December '25.

With this summary, I'll now conclude my remarks and open the floor to the moderator for Q&A session. Thank you.

Yes, hi. I hope I'm audible.

Thank you for the opportunity. Growth in the second and third quarter combined has been as high as 15%.

A, if you can break down the underlying levers of this double-digit growth. I understand you talked about widening distribution and product mix, etc., but probably in terms of the strategic alignment if you could highlight the granularity.

B, since we're a month into the quarter now, have similar growth trends sustained? That was my first question.

Hi. Upalaksh this side.

In terms of Q2 and Q3 growth, like you mentioned, around the 15% numbers that have been delivered. The core reason for this, of course, is the strength of our distribution and the execution prowess, backed with a very strong product story on the line of sneakers as well as the women story that both Nikhil and Sanjay mentioned before.

Very strong execution, partner focus, along with a very strong product point of view, backed with a very strong marketing campaign, which was the "You Go Girl" campaign that we executed last quarter. I think all of these things being together is the reason why we are delivering this.

I think as on the forward-looking, I don't think we will be able to give any specifics on the forward-looking

guidance,

yeah. Any guidance on that.

Got it. My second question was that if I were to break down the region-wise revenue mix, there's been a good spike in the northern region where the mix has gone up from 40% to 47-odd percent.

Are there any focused efforts being undertaken for this specific region, or would it be pertaining to weakening competition if you can throw some light on the same, please?

No, Vidisha, hi. No, it's basically complete focus on, of course, we have very different strategies now for every region.

The way we're playing out the distribution channel is it's a state-specific, almost like a state-specific strategy that has been formulated. We've been addressing that for the past two or two quarters now almost.

That is what is giving us the leverage also, apart from obviously having a very, very strong product line, which is again channel-focused and region-specific also at the same time. Multiple initiatives of these kinds have come together to give us this growth.

Got it. Lastly, just on the sneaker portfolio, you mentioned that the volume has nearly doubled.

What would the current sneaker portfolio mix be in terms of volume and overall revenue?

We don't share that number in terms of volume. We just wanted to let of course, it's a new category which we just entered in the last 1, 1 and a 1/2 years.

It's basically doubling that volume for the past every quarter almost, right, for the last 1 year. It's a premium category.

It's about ₹900 to ₹910 ASP contribution just from sneakers. It does materially add to the premiumization.

Got it. I had a few more questions.

I'll get back in the queue. Thank you.

All the best.

Sure, thanks.

Congratulations on the strong set of numbers, and thank you for taking my question. My first question is with regards to the growth in the online format this quarter.

It seems quite great. How much is this due to the shift of the festivity-led, and how much you would see in terms of the core growth on the online space?

Also, in addition, while the number of touchpoints for you have increased from 28,000 to 29,000-odd, however, if you look at the number of distributors this quarter, it seems that they have come down. If you can help us on these two aspects.

Hi, Gaurav. Upalaksh this side.

On the two questions that you asked, specifically on the online front, about 2 years back, we started pivoting our business from an outright-based model to a marketplace model, right? I think we're pretty much complete on the journey.

Only one big platform we do outright business models with them. Every other platform today sits on a pure marketplace business.

Gives us much stronger control, gives us much stronger levers of running this business, right? Within the larger marketplace ecosystem, I think we have been able to deliver extremely good performance in certain accounts like Amazon.

I think the pivot from a outright to a marketplace business has been the strongest in this channel, and which is also leading to the overall growth of this vertical. On the general trade side, we have launched a newer format of a super stockist, right?

Smaller wholesalers or smaller distributors have been mapped under the super model, and hence you might see a small reduction in the overall distributor count because those are not directly mapped to us. They will be mapped to a intermediary of a super stockist.

That's helpful, Upalaksh. Thanks.

Just one more thing. In the past, what we have noticed is there has been quite a volatility in terms of the quarterly performances that we have seen.

Going now, how confident are you of at least sustaining these kind of trends or performances going ahead?

Gaurav, we understand your apprehensions, and that's what we've trying to fix. We've done a lot of interventions over the past 3 years to bring a sustainable growth and predictable growth to the organization.

You will appreciate that for the past at least two to three quarters, we've been consistent in doing that. Therefore, we have a high degree of confidence on the way forward as a lot of those initiatives which have been planned for the past 3 years are now materializing and coming together.

We have high degree of confidence on the way forward.

Sure. Just one last question from my end is in terms of the gross margin expansion that we are seeing, and it is also collaborating with the premium contribution of the sneakers portfolio also increasing.

Can we take the current margins, the gross margin levels at least as a sustainable one going ahead if not expanding? If you can also help us in terms of the certain cost initiatives that are helping you to bring the overall cost down.

That would be the last set of questions from me.

Hi, Gaurav. Yes, we targeted an improvement in gross margin versus our last year numbers in our annual business plan, and we are sort of consistently heading towards that.

However, our business is dependent on seasonality or sort of skewed by seasonality, festivals, and marriage seasons, and also the product mix. We are trying to be consistent, and the next quarter would be more towards open footwear, it would be unfair to compare quarter-on-quarter gross margins.

On a full-year basis, that would be a right reflection, and the aspiration is to improve versus last year, right? On the cost side, of course, we are trying to be more consistent in terms of phasing of our production.

That helps us to plan our facilities or lines and optimize on the cost side, which is able to help us in mitigating the inflation on account of minimum wages, etc., and that's what is translating into leverage benefit, which is getting reflected in the numbers.

Sure. Just one small clarification actually.

The reason why I asked this question was this time around if you look at the ad spends, the ad spends saw a decent jump of around ₹65 crores in absolute that we saw. Wanted your comments in this context that is the ad spend this quarter a bit more higher because of the seasonality, and probably this would normal out for the yearly average that we normally have seen in the past?

Yes, of course. This quarter, the ad spends are higher because of our TV campaign and also the digital campaign.

Thanks.

Just to give more clarity on that, we are, as focused on long-term brand building, and we did about 10.2%, if I'm correct, in Q3 last year on the ad spend versus 10.9%. This is, of course, a quarterly seasonality thing as well.

At the same time, we'll be in line with the overall ad spend that we've planned within the budget. We don't want to reduce on the ad spend at this point.

Sure. Just lastly, sorry if I may slip in one more question, on the new athleisure apparel venture, if you can give us more insight into is it right now only introduced in the EBOs, or is it also piloted in some MBOs as well?

How are you going about it? How are you thinking about it?

If some more color you can give on it.

Sure. Currently, firstly, we're very excited to launch this entire new category.

This has been on our bucket list for quite some time, and we're glad that we came around to getting it launched. Basically, it's going to increase our addressable market significantly, and we expect because this is a similar module to how the bigger companies, the MNCs have grown across the world, and this is a natural pivot for us as a sports company and organization.

This should incrementally add to the per-store economics meaningfully. At this point, it's basically a pilot that we've done in about 60-odd EBOs, and we will continue to add more EBOs because there's a small change we have to make into the EBO as well to add a trial room and a certain area dedicated for apparel space.

As we're doing that, we'll continue adding more and more stores to the mix. At the same time, we've also launched it on our brand.com, and Myntra, and Amazon.

It's been launched on these three platforms at the same time. Far, the result is very encouraging.

Sure. Thank you, Nikhil.

That's all.

Thanks, Gaurav.

Hi. Thanks for the opportunity, and congrats on a great quarter.

My first question was on online. Continuing on what Gaurav was mentioning, you've seen acceleration in online growth despite a slightly early festive this time around.

Are you tracking share gains on the platforms, anything on that front if you can highlight based on whatever data you get from the platforms?

Yeah. Like I mentioned earlier, that there is a very strong pivot towards the marketplace business, and we are aggressively expanding this channel as well.

The sneaker pivot has been very strong, as well as the women pivot. One of the strongest channel to have delivered both of these key organizational directives has been the online channel.

I mentioned earlier, there has been a very strong shift or incremental uptick in our Amazon business as well. We have pivoted completely from an outright plus marketplace to a complete marketplace over the last 18 months, and we have been able to work a lot on the input metrics or the metrics that are required to succeed.

We are trying to get better at the marketplace operations as much as we can. Since there is no published data that these channels offer us, I would not be able to comment on that, but of course there would be some improvements, for sure, looking at our performance.

Understood. What was the mix of marketplace versus outright in 3Q?

Apart from there is only one platform that we do outright business today, that's Flipkart.

Okay. Possible to share a percentage of online sales which came from marketplace versus outright?

Would be approximately 80/20. Or 75/25, roughly.

Got it. Second question was for Sanjay sir.

On this inverted duty structure, what would be the approximate impact if there's no resolution by year-end for the full year?

We are still evaluating. As far as raw materials is concerned, we have started filing the refunds with the state governments for the inverted duty structure.

Got it. Just one bookkeeping.

Could you call out the optical or basically the adjustment in business model of the online platforms? What was the impact on top line and other expenses this quarter?

For this quarter, for this quarter, it was approximately 10 cr.

Got it. Thank you so much, guys, and all the best.

Hi. Good evening, sir, and thanks for taking my question.

Congratulations on a good set of numbers. Sir, I believe that there is a GST rate cut for a large part of the products that you sell, and this quarter would also have seen some impact of channel upstocking, which is what the feedback is wherever there are GST cuts.

If you or let's say just look at channel upstocking first, would you be able to give us a adjusted number of our growth this quarter if you adjust for that?

We don't see any channel upstocking. Our inventory with the channel partners continue to be at 84 days at the end of this quarter from our DMS data, which hovers in the range of 80 to 90 days.

It is very much within the norms, and so far as we believe that we are working on replenishment model. Whatever secondaries are happening, we are able to match it with commensurate primary sales and keeping an eye on the inventory levels with the distributor partners.

Got it, sir. If I may ask, at a consumer level, what would be the price reduction on a blended basis for Campus as a company?

At a consumer level? Yeah.

At different price points, we had to change the MRP. Let's say the MRP reduction would be in the range of 5%

to 6%. For you, a large part would be in the range of 1,000 to 2,500 MRP, right?

All of it, actually. Yeah.

There the GST cut is from 18% to 5%. Technically a 10%, 11% kind of a price cut should have been passed on, right?

No, but our selling price normally is below 1,000, no? For us the ex-factory pricing is normally at 12%.

You're looking at the MRPs, Sameer, right? You're looking at the MRPs, but our transaction value, our billing value is 50% of the MRPs, approximately, as a thumb rule.

Sir, the GST rate would be dependent on the MRP only, right?

Sameer, sorry. If your correction is at the consumer level, the benefit would be higher.

Got it, sir. Got it.

Thank you, sir. Thanks for this.

Lastly, sir, with free trade agreements being signed, I know it's out of context, but footwear as a sector has become more competitive as an export, and given your manufacturing prowess, would you be exploring this opportunity going forward?

Absolutely. It's an exciting opportunity, given that we are one of the lowest cost producers as a country, right?

We'll definitely be exploring that market.

Any plans as to CapEx or supply augmentation in near future?

No, we've already invested, as into Pantnagar and Ponta just came online and stabilized. Pantnagar, the new investment that we recently announced 2 months 6 4 months back, is already live with production.

Now we expect to stabilize that plant soon, and that will definitely add to the existing capacity. We're good for the time being.

We don't need to invest more.

Sir, that would be for the domestic market, right? If you're exploring newer markets and exports, you would still need more capacity plus some level of business exploration, etc.

Matlab, some team there or something on those lines also, right?

Adding capacity is not a constraint as we've invested into the land and building of Pantnagar, which is anyways very, very large. We're just activating a small portion of that.

We have enough space to add capacity as and when required. It's very quick for us, we don't take time to do that.

Great, sir. Thanks for this.

I'll be back in the queue for any follow-ups. Thanks a lot, yeah.

Sure. Sure, thanks.

Hi. Hi, Nikhil ji.

I have two questions. First one is with respect to the apparel business.

You mentioned that you're doing athleisure apparel primarily through EBOs right now. Is that correct?

Hi, Resham. No, EBOs of course is a big focus, but we've also launched on brand.com, campusshoes.com, and Myntra and Amazon.

Okay. Possibly compared to the existing footwear business, this will have a much larger online play, given that this category itself is very large and you are the largest player on the footwear side.

That will give some kind of help to you on the online side.

Absolutely. Online is a big market for this category.

On the offline side, we've just started with EBOs. First, we'd like to cover the base of EBOs, and possibly we can look at the GT model later, but that's a little too early to call that out.

Online would be definitely a key market for us to focus on.

Understood. The second one is on the EBOs.

It's a very small piece right now, but given that our price points, which is comparatively much lower than most of the other footwear retail players, how are we thinking about the EBO strategy? Also in context to most of the foreign brands now, they are more focusing on the experience store rather than a typical retail store.

Any thoughts on the EBO strategy?

Absolutely. We've not actually increased the overall count in this last 1 year versus last year FY25.

In these 9 months FY26, our count is more or less static because we've shut down a few non-profitable stores and we've opened a few, right? Currently, the focus for us is on profitability first.

We're focusing a lot on profitability and opening stores very judiciously, accordingly. Rather than just going all out on opening stores and adding to the cost.

Apparel is a big part of that as it will add to incremental revenues on a per-square-feet basis. We want to absolutely bring profitability first, and then continue adding more stores.

Possibly going a little bit slower than what we initially anticipated to. Upalaksh, you may want to add anything?

Yeah. On the EBO front, right, we are trying to get our unit economics at the store level perfectly right.

The apparel and some ancillary category addition to the store is an effort in that direction as well. Right, and we as a strategy wanted to open commercially viable stores, because a large part of our EBO network is operated through our franchise partners.

Right, profitability of those partners is very imperative, and we want to get that unit economics perfectly right. In terms of the experiential store, there will be certain important stores that we will open.

We have had some stores on those lines like Bandra in Bombay and some other stores on those lines. We have had some stores which were made to exhibit the brand in its entirety.

At an overall level, profitability will be a very strong pivot because these stores are being opened across the country through multiple franchise partner networks, and to ensure that they are making strong returns on their investment, we need to ensure profitability stays at the core. This year, since we opened about 300 stores in less than 4 years, right, this year, we are looking at as a way to correct our footprint and do a short correction of unit economics, and then after maybe a few months or quarters, we will again get back to expansion on this channel.

Okay. Thank you so much.

Congratulations and compliment especially on the working capital way you guys are managing, quite incredible. Thanks.

Thank you.

Yeah. Good evening, sir, to you, and thank you for giving me the opportunity.

My most of the questions have been answered, I just want an understanding regarding your replenishment model. Sir, in-season replenishment and never-out-of-stock models are key pillars.

Approximately what proportion of Q3 sales came from replenishment versus fresh launches, and how does this mix influence gross margin and inventory risk going forward?

We couldn't get that completely. I think there was some voice jittery there, but what I understand is you're asking about replenishment versus the core?

Replenishment is a core model, definitely, that we follow. It's a DMS and the digital apps that we have on the feet-on-street that the sales officers use.

Through that model, we basically replenish the inventory which we see at the distributor stock levels, which is diminishing, but which has high sales through. That's how we replenish, and it's an automatic replenishment model.

We're moving towards that direction. Currently, we're developing technology to auto-replenish the depleted stock levels.

Okay. Just clarification, you have mentioned that for this Q3 sales, majority of our revenue come from replenishment, right?

Hello, am I audible?

Hi. Rehan, right?

Rehan, I'll just try to explain how the model works. Right, there is a make-to-stock and make-to-order model, right?

We are trying to move as close to the make-to-order model, right? We have distributor meets and retailer meets that we have to have through the year.

Right, we have a grand distributor meet that happened in May this year, and followed by a host of this retailer meets where the distributor calls the retailer partners. This was done primarily in Q2 this year, and extended into Q3 as well, right?

Through this mechanism, we collect orders through a host of networks in the general trade side, right? Plus we have started using digital tools to make this even more efficient.

We are trying to leverage the inventory visibility in DMS to plan our inventory management. We are using a tool to do order gathering at the DMS stage at the distributor meet as well as the retail meet.

We have a Genesis in our retail POS through which we use our retail replenishment cycles for our EBOs as well. Online also, we use Unicommerce as our partner through which we run our daily and weekly replenishment cycles, right?

There is no way to distinguish what is replenishment. I thought I would explain the definition of replenishment.

We use basically a secondary tracking mechanism to be able to drive our business objectives, right? It is not make-to-stock and then try to push the secondary into the system.

We take extra efforts to get input from the market through the EBOs, be it online or be it the general trade or retailer network, and create orders or products according to that. Right, so that is what our replenishment model is.

Oh, okay. Okay.

Thank you for clarification. I'll get back in the queue.

Three questions. First is for the quarter, we saw 5% plus ASP increase.

At the same time, you mentioned because of the GST, you took a 6% odd price cut. That makes it nearly 11% on product-wise increase.

Where are we getting this increase from in the market?

Hi, Ankit. Can you come back again with your question?

Sure. I saw there was an ASP increase of 5%...

Sorry.

Can you hear me now?

Yes, please go ahead. We had a 5% ASP increase in the quarter, while at the same time, you mentioned that there was a 6% price cut due to GST.

If the GST cut would not have happened, probably the ASP increase would have been 11%, 12%-odd. Where are we getting this ASP increase from at the full portfolio?

Ankit. I think your understanding is incorrect.

GST never gets added to my sales revenue, no, and hence will not impact my ASP. 5% increase in my ASP during the quarter is primarily driven by improvement in mix, and it is two types of mix: one is your channel mix and one is the product category mix.

In the product category side, our sneaker has shown almost doubled versus last year, so that is one key contributor. On the other side, on the channel side, the more we sell in the marketplace and our own brand.com, we are able to get a better realization, and that results in an improvement in ASP.

The GST has nothing to do with my ASP, because that's never part of my sales revenue.

Understood. My second question is on the revenue contribution bands.

We saw uppers of ₹1,500 contribution increased from 52-odd percent to 58%. While I understand on sneaker portfolio, which would be sub-1,000, that contribution increasing from 16% to 21%, what has led to the above-1,500 contribution?

It's again, as I mentioned, the second lever, the channel lever. On the online side, the realizations are higher, and hence the what you call saliency has shifted from 1,200 to 1,500 more towards 1,500 and above, and that's what is getting reflected.

Is it a conscious effort to reduce inventory in 1,000 to 1,500 price point?

There's always an effort to move towards premiumization, my realization is higher, the MRP is also higher. That ways, the brackets would change towards premium mix.

It's also a seasonality Ankit, it's also a seasonality mix because Q3, of course, we sell higher premium mix, slightly higher premium than, let's say, Q1, which would be more focused, or Q yeah, Q1, which would be more focused towards open category, right? There would be some changes in terms of that mix on quarter-on-quarter basis also, in terms of the premiumization and semi-premium saliency.

Looking more on YoY basis, because Q3 FY25 numbers we have, and on that basis, even in sub-1,000 price point, we have seen a good 400, 450 bps movement, sub-1,000. That I can understand it could be due to the sneakers where you said is average is ₹900, ₹950 price point.

The gap between 1,000 and 1,500 from 31% to 20%-odd is a very big change in positioning also in the semi-premium category.

Sure. That is also in part to some of the sneakers that have done very well for us in the ₹1,500 plus category, right?

Their saliency has also added to this mix change. A couple of...

Just I think there is a bit of a confusion. When you're mentioning 900, right, when you're talking about 900 as the ASP for sneakers, right, that is my ASP in my revenue, right?

The table actually you're referring to is the MRP table. The share of 1,500, 3,000 that you're referring to in the table, that's the MRP table.

That 900 would correlate to an about an ₹1,800 MRP. Right, just to clarify these things, right?

The 900 is my realization. MRP of that product would be tentatively about ₹1,700, ₹1,800.

Sure. Got it.

My last question is on your new brand ambassador. Now, Kriti Sanon was a brand ambassador for a competitor retailer for 3 to 4 years, and in that time, if we look at that retailer's revenue, it didn't move significantly.

In fact, they lost significant market share. What made you sign her as a brand ambassador for the new youth women's wear product?

We think she resonates very well with the long-term brand building aspirations that we have, and she has significantly contributed. The campaign has done incredibly well.

I'm not sure of her past or whatever happened in the previous company. She's done extremely well in terms of consumer pull has been significant as the women category, as has grown by almost 40%.

Some share of that credibility we'll have to credit her also to that.

Understood. Thank you, Nikhil, and all the best.

Yes, hi, Nikhil. Congratulations for a growth pickup.

Nikhil, first question is on athleisure category. The growth is struggling for quite some time now, right?

This is the data that is available for some of the publicly listed players. We will be competing against various MNC brands over the preferred online channel where all these players are also present.

I just wanted to check how have we positioned our products to sort of gain share within this category?

Yeah. No, great question.

Firstly, of course, this is part of our strategy in terms of leveraging the brand equity that we've created over the years, right? As we are very, very strong in the tier 2 and 3 markets, and now tier 1 as well as if the share is very significant.

This is a very good add-on, supplementary category to invest for us as a brand. It may not be a very good decision for a newcomer, but for a mature brand like us, it makes a lot of sense.

At the same time, the quality and the price points that we have launched it is very, very attractive. Very high quality at very reasonable pricing, right?

As we understand, it is a competitive space, it will take some time to build this category up, for sure. The pilot so far has been very encouraging, and also currently, the mix that we've launched in this is more towards summer apparels.

The winter collection is still quite fairly new, and less in terms of SKUs. As we progress into the summer season, we're sure that we're going to get an even better response on top of this.

Great, sir. Second, as in there is this big GST reduction that has happened for the new season launches that will take place now.

I wanted to check: Will we be working with lower MRP price points, or we are focusing on providing better products at similar pre-GST MRP price points?

The value proposition definitely will increase significantly, right? For example, the same shoe for 1,500 bucks, ₹1,499 will have significantly more value than what it previously had in terms of the new product launches.

The magic price points that we operate at, right, they will broadly remain stable, and we will be providing better products, is the right understanding, right?

Absolutely. Yeah.

There'll be more value addition. If I can put it crudely, there'll be definitely more value addition in the same price point.

Understood. Understood.

Last question from my end, Nikhil. When we see from a demand environment post this big GST cut, if you can share your reading from the channel perspective, because our growth has definitely picked up, but there are certain new businesses like women, sneakers, etc., which have added to the overall growth.

The like-to-like growth in, say, men's footwear would still be relatively lower versus the company average, if my assumptions are right. What's your reading on the demand environment as of now?

Has it improved, or it is still a bit of a challenge?

Demand has improved to the extent that it normally does a little bit better, of course, in terms of the season as well, in terms of Q3. After GST cut, it has improved a little, but I would say it may improve further going forward, because it's still not as per what the industry has expected.

This is for the entire industry. The demand hasn't picked up the way the industry anticipated it to.

In terms of the growth, what we have done is we've added and diversified into newer categories, like increasing the share of sneakers and women and so these are the ancillary categories that have helped us overcome this demand, let's say, stagnation or whatever you want to call it, in the market. As the GST benefit over time starts flowing into the overall industry demand, it should definitely help us as a tailwind as well.

Sir, just one small final bookkeeping question. From a channel margin perspective, I'm talking about, say, a retailer or a distributor, how are their margins?

Are they on MRPs, or there's a fixed component that they get on selling a pair of shoes? Suppose if the MRP is ₹1,500, the retailer gets, say, whatever amount, 20%, 30% of that MRP, or is it a fixed amount that he gets for selling that pair?

We have different margin structures, both for retailers and distributors, to take care of by and large their fixed cost, and we do run periodic or seasonal schemes or incentive programs, which are targeted both for primary and secondary, to drive certain behaviors. Let's say if I want to propel a women category or I want to propel some sales in a higher price point, those all are through tactical seasonal schemes.

However, there are defined margin structures for both distribution and retail channel to take care of their fixed costs.

No, these margins are percentage of MRP, or what do we say the anchor point here?

No, they are on a percentage to MRP, and not per pair basis.

Even for distributors, or for distributors, it is on percentage of what you build?

No, no. Everywhere it is percentage to MRP.

Okay. Great, sir.

Thank you so much.

Hi, Nikhil and Sanjay. How are you?

Thanks for the opportunity. Just wanted to understand on the demand side.

Pretty commendable numbers. We have not seen similar kind of growth by other footwear companies which have posted or are likely to post now.

If you can just share some color in terms of what has driven numbers for us vis-a-vis others? I understand that online has been a big driving force for you.

If you can just share some more insight over here, because online historically we were having multiple models and the outright model that you were selling didn't really work. How have things changed, and what is the sustainability of this growth?

Hi, Ali. No, we've already called out in the call, multiple initiatives we've taken.

Demand certainly isn't as expected by the industry. It's not picked up as much as is evident from the other companies' results also.

What has worked differently is that a culmination of things like sneakers portfolio addition, and we've added to the women's category significantly in terms of the SKU count. The NPD launches have been very well received along with the brand ambassador.

That's worked really well. Apart from that, online, of course, it's a big focus area.

It's always been, but we've also been very aggressive online along with the profitability, it's not just a burn model for us. It's profitable, more than I think the other companies that operate on.

Of course, in terms of GT, general trade, we've added a number of retailers as well, 29,000 count is the first time we've reached that kind of count. That has given much more predictability to the cash cow channel for us, which is the distribution channel, right?

Number of these things, nothing has changed for us in one quarter, is what I'm trying to say. This is a culmination of the effort for the past 2 years.

Any product range that we need to launch today, the journey for that starts at least a year before. We have to conceptualize and think about the future products that have to be launched.

For example, currently, we're working on 2027 range. '26 is already done and dusted, right, for us, it's already in the bag.

That's the cycle in terms of innovation and product development that you work on. Whatever has happened in this quarter is, of course, incredible performance by the sales team, and at the same time, we were able to execute very well in terms of all the demand that was generated for the articles.

Right? It's just number of things coming together, I would put it like that.

Got it. This is very useful.

Incremental growth, if you can share how much is come from the women category as well as the new sneaker category that you have launched. I understand this would have come mainly on the online channel, given that is the segment which has grown significantly?

Sneaker has done well across both the platforms, across distribution and online, right? Distribution, of course, the MRPs would be slightly lower than online.

Overall, sneaker has been very well accepted across platforms. We see a healthy growth going forward.

That's where we've invested in terms of capacities as well to make very high-end sneakers. I don't think many setups exist in India today, at least to manufacture these quality of sneakers, the one that we've invested in.

Okay. Could you share out of this 14% growth, how much would have been your new products, specifically the women and sneaker category, would have contributed to your growth?

We don't share that data, Ali, unfortunately, because it's strategic confidential data, right? Yeah.

Sure.

That is what has also driven your margins, the improved realization is, and margin is mainly because of the new products coming at slightly higher price point?

Ali. I would attribute that margin expansion primarily to the mix part.

As I mentioned earlier, it is both the levers: product mix, which is sneakers, and the channel mix, which is online. Both played its role as far as material or gross margin is concerned.

We are highly skewed towards Q3. This is our biggest quarter, so that has resulted in some leverage also, fixed cost leverage, which has helped us to expand our EBITDA margins.

Got it. Going now into the new season, you think this kind of growth is sustainable with the new products that you have launched and the amount of funnel that you are creating towards creating new products?

Again, I think it's a forward-looking statement. I would refrain from commenting on that.

However, our sales are like each quarter is a different quarter by virtue of seasonality, festival occasion, or marriage season. As I mentioned initially that Q4 would be the later part would be more towards open footwear, we need to take that into perspective both in terms of in terms of revenue and and also in terms of product mix.

I understand that part, Sanjay. But...

Hi. Thanks for the opportunity.

You've highlighted sneakers and women category as a key growth lever for this quarter. What percentage of our network is currently dealing in this products?

Hi, Tejas. Upalaksh this side.

Every part of our network today primarily would be dealing in these two categories. The extent of penetration of this category will be different depending on the evolution of the channel.

A more modern channel will have a slightly higher share of women and sneakers. A slightly traditional channel will have a lower share.

There would be no channel currently in our ecosystem that you would not be focusing on these categories. Does that answer your question?

It does. Basically as of today, whichever channel fit that we understand, the products are placed there.

Placement-led lever is not there from here on. Is that the right understanding?

Placement can be wider, placement can be deeper, right? Those levers will always keep on getting activated.

Even if you're there in single store, you can always be in four more stores. That will never stop, I think.

Since these are newer categories from our evolution, I think there will always be scope for further enhancement of these categories. The scale and the quantum of growth will of course over time taper once we reach a critical mass, but I think they will continue to be growth drivers for us, at least in the near future.

Perfect, very clear. Second, what's the primary kind of value proposition that is working for us in sneakers?

Is it largely fashion or functionality, or is it performance and price? Obviously, the answer could be all of this, but just as a key proposition, what is working?

By the construct of this category, it works on fashion and look and feel more than functionality. That is the reason why consumers buy this category, to look good and not to go for a run, right?

That is the intrinsic nature of this category. This category first pivots on fashion and look and feel.

Also, since we as a brand have been known for our value proposition of comfort and durability, we would build these added advantages to every product that we do. Right, so that underlying value proposition of Campus will never go away.

Of course, this category being a fashion-driven category or something you get to look good, right, so that fashion element will always be there, and hence we try to take aspiration and inspiration from the best in the industry or from the leading trends of the market.

Sure. Last one, a follow-up here.

In this days of product NPD evaluation and acceptance also, how do we get confidence that there is a demand pull or repeat purchase which is getting created, and hence there is a very wider acceptance of the product and not just the initial kind of push growth which is happening?

The first phase of course is to get the products placed, right? There is a demand generation which we do through our partner network, be it our partners can be a distributors, can be our EBO partners, can be LFR partners, can be our online partners, right?

We take inputs from them in terms of what is their requirements. We create products accordingly.

We do our consumer immersions. We understand what is happening in the market, what is happening in other countries, what's happening in competition, what's happening as from a trend perspective, right?

Then our first objective is to get these products placed in the market to the extent possible, right? There has to be minimum throughput placement to drive understanding of the success of the product, right?

Post that, we do understanding of feedback from a retailer or consumer point of view to understand what works well and what doesn't work. We have a very big network of our own stores as well.

Right, 300 stores is a very big base for us to do any form of AB testing that we want to do. Right, we get that feedback, and depending on the feedback and the response, we know whether this will be one of our top iconic products, or will it be a great product, or it may not be as high a volume as we might have anticipated.

Right, so that is after the first step primarily goes into reach, and then depending on the consumer or retailer's point of view, we take a call on how do we replenish. Our first fill is wide enough to ensure that we get a very strong data input from the market.

Quite clear. Thanks, and all the best for coming quarters.

Thank you.