Lehar Footwears Limited (‘Lehar’), a Jaipur-based company, has announced a remarkable financial performance for the quarter and fiscal year ending 31 March 2025. Marking the highest ever sales and profit in its history, Lehar has showcased solid growth driven by product innovation, expanding export footprint, and strong order book in its toolkit business. The company also demonstrated financial discipline with working capital optimisation and a significant increase in cash flows, pointing towards a sustainable growth trajectory.

Footwear Business: New Growth Engines Powering Sales

The footwear segment registered a 17% year-on-year sales increase in Q4 FY25, powered mainly by the launch of new products in the premium yet affordable segment. The commissioning of new machinery specifically to manufacture EVA footwear has been a game changer, enabling entry into a fast-growing category known for its lightweight and comfortable properties. This strategic move aligns Lehar with evolving consumer preferences and opens up higher-margin opportunities.

Exports grew by mid-teen percentages over the year, benefiting from favourable geopolitical developments that opened new opportunities in international markets. Lehar’s approach focuses on deepening penetration in existing countries while exploring fresh geographies, thereby building a solid export growth platform.

Domestically, after a prolonged period of subdued demand, early signs of recovery were visible, especially in the rural segments for low and medium range footwear. This signals a revival in consumer spending and growing acceptance of Lehar’s diversified product portfolio.

While government tender sales faced temporary stagnation due to elections in key states and at the center, this segment is expected to regain momentum in FY26. Importantly, Lehar plans to launch sports shoes in the closed footwear category this year, aiming to tap into a popular and expanding market segment.

Toolkit Business: Leadership and Order Book Strength

Lehar’s toolkit segment continues to solidify its leadership status as a preferred partner for implementation projects, especially under government schemes like the PM Vishwakarma Scheme. The company delivered uninterrupted supply and timely execution in the last quarter, which has contributed to a robust order book of approximately Rs. 195 crores, with execution planned over the next 6 to 9 months.

Additionally, the company expects to add an order worth Rs. 75 crores for 50,000 toolkits under the current order book, further boosting sales visibility. The bid pipeline remains healthy with plans to diversify product categories under the PM Vishwakarma Scheme, positioning Lehar for expanded market share across new and existing verticals.

Financial Highlights: Strong Profitability and Cash Flow

Lehar Footwear’s revenue surged to Rs. 109.4 crores in Q4 FY25 from Rs. 38.1 crores in Q4 FY24, while full-year revenue stood at Rs. 277.2 crores, a significant rise from Rs. 194.3 crores the previous year. Operating profit nearly tripled quarter-on-quarter to Rs. 9.7 crores, with operating margins steady at around 9.4% despite a higher share of toolkit business, which typically runs leaner margins.

Profit After Tax (PAT) for the quarter jumped fourfold to Rs. 5.0 crores and grew 65% for the full year to Rs. 10.9 crores, underscoring enhanced profitability. Notably, the company generated Rs. 20 crores cash flow from operations (CFO) in FY25, a remarkable improvement from just Rs. 2 crores in FY24, reflecting effective working capital management and stronger collections.

Debtor days improved substantially from 125 days to 75 days, indicating better cash conversion cycles. Capital employed in the toolkit business remains modest at Rs. 7.3 crores as of March 2025, showcasing efficient capital utilisation.

Outlook and Strategic Focus

With a clear growth visibility in key business verticals, Lehar Footwear is well poised for future expansion. The company's entry into the EVA footwear category and sports shoes segment reflects a strategic intent to capture emerging market trends and increase product depth.

The export business is set for further acceleration, backed by a robust platform and favorable global conditions. Meanwhile, the toolkit business with its strong order book and expanding product range under government schemes provides a stable revenue base.

Financially, the company’s focus on working capital optimisation, strong cash flow generation, and margin maintenance establishes a solid foundation for sustained growth and shareholder value creation.

Conclusion
Lehar Footwears Limited has not only reported its highest ever quarterly and annual sales and profit but also demonstrated strong fundamentals across its diversified business segments. With strategic initiatives like the EVA footwear launch, robust export growth, and a dominant toolkit order book, the company is set to maintain its growth momentum. Improved financial metrics and cash flow further underscore the strength of its business model. Investors and stakeholders can look forward to a promising outlook for FY26 and beyond.

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