Khadim India Ltd. (KHADIM) — Tipsheet

Khadim India raises ₹11.75 cr via warrants to promoter, 11 others

Tipsheet Editorial — Thu, 02 Jul 2026 13:25:36 GMT

A 5% dilution event for a nano-cap already struggling with declining sales and profits. Proceeds come with an 18-month conversion clock.

What’s new

Board approved up to 10.68 lakh warrants at ₹110 each, raising ₹11.75 cr.
Promoter Siddhartha Roy Burman and 11 non-promoters to subscribe.
Warrants carry 18-month conversion window; 25% upfront payment required.

Why it matters

For a ₹200 cr market cap company with declining revenue and an ROE of just 2%, this ₹11.75 cr raise is sizeable: full conversion would dilute equity by over 5%. The funds come as the company pursues a ₹400 cr FY27 revenue target, but after an 84% profit plunge, the cost of capital is high.

What we’re watching

EGM on August 1, 2026 for shareholder nod
Whether conversion happens within 18 months given stock at ₹110 exercise price
Any use-of-proceeds disclosure at the AGM

The full read

Khadim India is raising ₹11.75 crore by issuing 10.68 lakh convertible warrants at ₹110 apiece. A sizeable equity-linked fundraising for a ₹200 crore nano-cap. The board approved the preferential issue to promoter Siddhartha Roy Burman and 11 non-promoter investors. Warrants convert within 18 months; 25% is payable upfront. Full conversion would dilute equity by over 5%. The move comes after a tough year: revenue fell 10.9%, net profit dropped 84% to just ₹1 crore in the March quarter, and ROE languishes at 2%. The company has guided for ₹400 crore in FY27 revenue, but raising equity at this stage adds risk for existing holders. Separately, the board reappointed independent director Prof. Surabhi Banerjee beyond age 75 and appointed Sekhar Bhattacharjee as additional independent director. An EGM on August 1, 2026 will seek shareholder approval.

Primary source: BSE · NSE

Khadim India board to mull preferential issue on July 2

Tipsheet Editorial — Tue, 23 Jun 2026 19:09:07 GMT

The footwear retailer, with a market cap of just ₹197 cr and declining revenue, will consider raising funds via equity or warrants, a potentially dilutive move.

What’s new

Board meeting July 2 to consider preferential issue of equity or convertible warrants.
Company also plans EGM for shareholder approval.
Trading window closes from June 24 until 48 hours post-Q1 results.

Why it matters

For a nano-cap with falling revenue and profit, a preferential issue could be highly dilutive. The company had guided ₹400 cr FY27 revenue but profit is under pressure. The lack of size disclosure leaves uncertainty.

What we’re watching

Size of the issue, which determines dilution magnitude.
Whether existing promoters participate.
Impact on EPS given high P/E of 63.6.

The full read

Khadim India's board will meet on July 2 to consider raising funds via a preferential issue of equity shares or convertible warrants. The company, with a market capitalisation of just ₹197 crore, has seen its revenue decline 10.9% and profit fall 18.3% on a trailing basis. In the latest quarter, it reported a net profit of only ₹1 crore on sales of ₹84 crore. The proposed fundraising is significant because any equity infusion for a company of this scale, trading at a P/E of 63.6, would likely be highly dilutive to existing shareholders. The board will also seek shareholder approval via an EGM. Trading window closes from June 24. The size of the issue remains undisclosed, making the dilution impossible to quantify, but the direction is clear.

Primary source: BSE · NSE

Khadim drops athleisure, guides ₹400 cr after a year of store closures

Tipsheet Editorial — Tue, 26 May 2026 17:02:02 GMT

The footwear retailer is shrinking to stabilize, guiding for a 9% revenue rebound while abandoning a key growth bet.

What’s new

Khadim reversed its earlier plan to expand the athleisure category, citing small stores and a lack of changing rooms.
FY27 revenue guided at ₹400 cr with 14% EBITDA margin after a 12% sales drop in FY26.
Raw-material costs are up 20-25% since February; management plans price hikes to offset.

Why it matters

The athleisure pullback is a strategic admission: the physical footprint can't support the category. Guiding flat margins on a revenue trough means the recovery depends on cost discipline, not consumer demand.

What we’re watching

Whether price hikes stick without further volume loss.
If the 14% EBITDA margin holds with lower revenue and higher input costs.
The pace of store closures versus same-store sales growth.

The full read

Khadim is ₹400 crore revenue, 14% EBITDA margins, and no athleisure. The managing director admitted the chain's stores are too small and lack changing rooms to support the category, a full reversal of earlier plans. This comes after a 12% FY26 revenue drop to ₹367.1 crore as the company cleared discounted stock and shut 60 stores over two years. Profit fell sharply. Raw-material costs are up 20-25% since February, and management says price increases will cover it, keeping margins flat at 14%. The guidance implies a 9% sales rebound from the trough. The strategy is clear: shrink the footprint, fix the balance sheet, and stop chasing categories that don't fit the physical infrastructure. The test is whether price hikes can offset inflation without killing demand.

Primary source: BSE · NSE

Khadim India net profit plunges 84% to ₹31.4M

Tipsheet Editorial — Wed, 20 May 2026 19:26:13 GMT

Revenue falls 12% to ₹3.67B; exceptional charge of ₹18.2M hits earnings.

What’s new

Net profit from continuing operations plunged 84% to ₹31.4 million.
Revenue fell 12% to ₹3.67 billion.
Exceptional charge of ₹18.2 million from new labour codes hit earnings.

Why it matters

For a nano-cap like Khadim, an 84% profit collapse signals deep operational stress. The demerger of distribution business does not mask weakness in core footwear operations. Analyst revisions and scrutiny of working capital are likely.

What we’re watching

Whether the demerger improves focus or dilutes margins further.
Impact of labour code provisions on future quarters.
Cash flow and debt levels post-demerger.

The full read

Khadim India's FY26 results reveal a business under pressure. Net profit from continuing operations sank 84% to ₹31.4 million, while revenue contracted 12% to ₹3.67 billion. An exceptional charge of ₹18.2 million related to new labour codes added to the pain. The demerger of the distribution business to KSR Footwear complicates year-over-year comparisons but does not explain away the core decline. For a ₹206 crore market-cap company, this magnitude of profit erosion often precedes working capital stress or debt covenant tests. The open question is whether the demerger simplifies costs or merely shifts losses between entities.

Primary source: BSE · NSE