Detailed Narrative
Strong Q4 and FY26 Performance
Campus Activewear reported a robust Q4 FY26, with revenue from operations growing 12.3% YoY to INR 456 crores, driven by 18.9% growth in the online channel and 5.5% in distribution. For the full year FY26, operational revenue increased 11.4% to INR 1,774 crores. Profitability also saw significant improvement, with Q4 EBITDA margin at 19.2% (up 50 bps YoY) and FY26 EBITDA margin at 17.5% (up 145 bps YoY), leading to a PAT margin of 8.4% for FY26.
Product Strategy and Premiumization
The company's ASP grew 7% YoY to INR 683 in FY26, primarily driven by strong demand for its sneaker range and a healthy product mix in women's and kids' categories. The sneakers portfolio demonstrated exceptional growth, up 100% YoY in FY26 and over 50% in Q4 FY26, reinforcing Campus's focus on democratizing design-led high-quality footwear and aligning with premiumization trends.
Channel Expansion and Mix
Campus continued to expand its reach, with distribution channel growth of 10.5% and online channel growth of 9.8% for FY26. The online channel, including platforms like Flipkart, Amazon, and Snapdeal, showed strong momentum. The company plans to open 60-80 new Exclusive Brand Outlets (EBOs) in FY27, after maintaining a steady count of 300 stores in FY26 to prioritize profitability.
Brand Identity Refresh and Marketing
During the year, Campus sharpened its brand identity with a new logo, unveiled through a successful brand meet. This refresh, reflecting a 'move your way' philosophy, aims to celebrate freedom of movement and align with the spirit of Indian youth. The new logo, soft-launched in October-November last year, has been well-received by consumers and trade partners, with the company planning an aggressive marketing budget for FY27 to continue investing in brand building.
Manufacturing and Capacity Expansion
Campus's integrated manufacturing ecosystem, with an accelerated time-to-market of 80-100 days, supports rapid new product introductions. The upper manufacturing facilities at Paonta Sahib and Pant Nagar are currently delivering approximately 2 lakh pairs of monthly output, which is targeted to double by the end of FY27. The company aims for a total monthly sneaker production of 8-9 lakh pairs, indicating no current capacity constraints.
Margins and Cost Management
Gross margins improved by 120 bps to 53.5% in FY26, driven by product and channel mix. Despite raw material inflation and minimum wage impacts, the company took timely calibrated price actions across its range to safeguard margins. Management believes the peak of raw material inflation is past and expects prices to stabilize or decline in the coming quarter, which should further benefit margins.
Market Dynamics and Competition
In a dynamic market with evolving geopolitical developments and inflationary pressures, Campus believes it has gained market share, growing at 11.4% (FY26) compared to an estimated industry growth of 7-8%. The company attributes its competitive advantage to a multi-fold moat including a vertical and horizontally integrated supply chain, strong distribution network, R&D, and established brand identity, which are difficult for competitors to replicate.