Campus Activewear reported a 21.3% increase in net profit in Q2 FY27, supported by healthy footwear demand and higher sales volumes. However, operating margins remained under pressure, creating a contrast between revenue growth and profitability.

Revenue from operations increased 16.9% year on year to ₹452.10 crore, compared with ₹386.61 crore in the corresponding quarter of the previous financial year. The improvement reflected higher footwear volumes and a stronger contribution from premium products.

On a sequential basis, revenue increased 17.4% from ₹385.20 crore in Q1 FY27. This indicated stronger quarterly sales despite the timing of festive demand shifting toward the following quarter.

Net profit rose to ₹24.34 crore from ₹20.07 crore a year earlier, representing growth of 21.3%. The increase was faster than revenue growth, although the company’s operating margin performance presented a more cautious picture.

Compared with the preceding quarter, net profit declined approximately 6.9% from ₹26.14 crore. This sequential decline highlighted the difference between improving annual earnings and short term profitability pressures.

Reported EBITDA was approximately ₹56.8 crore, representing year on year growth of 13.9% under one commonly reported calculation. The associated EBITDA margin stood at approximately 12.6%, compared with 12.9% a year earlier.

The margin contraction indicated that operating costs increased faster than operating earnings. Although higher sales supported absolute profitability, the company was unable to maintain the previous year’s operating margin under this calculation.

Campus Activewear’s investor presentation also reported an adjusted EBITDA measure of approximately ₹62 crore, with a margin of 13.5%. The difference highlights the importance of using consistent definitions when comparing reported profitability.

Footwear sales volumes increased approximately 10.2% year on year during the quarter. This growth demonstrated that higher revenue was supported by increased product sales rather than pricing changes alone.

Average selling prices also benefited from a greater contribution from premium products. The combination of volume expansion and a richer product mix helped the company deliver double digit revenue growth.

Women’s and children’s footwear emerged as particularly important growth categories. These businesses recorded approximately 29% year on year growth, reflecting the company’s efforts to expand beyond its traditional core customer base.

Women’s and children’s products accounted for around 23% of total footwear volumes during the first half of FY27. Their growing contribution suggests that portfolio diversification is becoming an increasingly important part of the company’s strategy.

Campus Activewear also entered the performance footwear category with the introduction of court shoes. This development expanded its product offering into additional sporting and recreational footwear segments.

Product innovation remained a main priority, with more than 160 new stock keeping units introduced during the first half. A broader assortment can help address changing customer preferences, although successful sales conversion remains essential.

The company continued investing in brand development, refreshed retail formats and distribution expansion. These initiatives are intended to strengthen customer engagement and improve the visibility of Campus products across different markets.

Management also identified opportunities in exclusive brand outlets, institutional distribution and quick commerce. Expanding these channels could improve accessibility while reducing dependence on any single route to market.

Geographic expansion remains another growth opportunity, particularly in southern India. Campus is also exploring international markets, although overseas expansion will require careful execution and sustained demand.

For the first half of FY27, revenue increased 14.7% to approximately ₹837.30 crore. The performance was supported by 10.9% volume growth, reinforcing the broader improvement in footwear demand.

First half net profit increased approximately 19.4% to ₹50.48 crore. However, the company’s inventory position expanded as it prepared for anticipated festive demand, increasing the importance of working capital management.

Inventories reached approximately ₹628 crore, while first half operating cash flow remained negative. This creates an important distinction between accounting profit growth and the actual cash generated by business operations.

Chief Executive Officer Nikhil Aggarwal highlighted product innovation, premiumisation, pricing discipline and sourcing efficiencies as key priorities. These measures are intended to support profitable growth while managing input costs and broader economic uncertainty.

For investors tracking Campus Activewear, the main questions concern whether higher footwear volumes can translate into stronger margins, whether premiumisation continues supporting average selling prices and how efficiently festive inventory converts into sales and cash. The results demonstrate encouraging demand growth, but operating profitability and working capital remain important areas to monitor.