Campus Activewear Q2 EBITDA Rises to ₹56.8 Cr as Margin Contracts to 12.6%

Market snapshot: Campus Activewear Limited reported its second-quarter earnings, highlighting EBITDA growth alongside slight operating margin compression. Absolute EBITDA grew to ₹56.8 crore from ₹49.9 crore year-on-year, while EBITDA margin narrowed by 30 basis points to 12.6%.

Data Snapshot

• Q2 EBITDA expanded to ₹56.8 crore compared to ₹49.9 crore in the prior-year quarter.
• Q2 EBITDA margin registered at 12.6%, contracting from 12.9% in the year-ago period.
• Year-on-year EBITDA growth stood at ≈13.8% YoY (derived: ₹56.8 cr vs ₹49.9 cr).

What's Changed

• Q2 EBITDA increased by ₹6.9 crore year-on-year to ₹56.8 crore.
• Operating EBITDA margin experienced a 30 bps YoY dip from 12.9% to 12.6%.

Key Takeaways

• Absolute EBITDA expanded by ≈13.8% YoY (derived: ₹56.8 cr vs ₹49.9 cr), demonstrating operational scale growth.
• Margin compression of 30 basis points reflects minor cost pressures or shift in channel mix during the quarter.
• The footprint expansion and core footwear demand continue to support volume performance.

SAHI Perspective

Campus Activewear demonstrates operational strength with double-digit growth in absolute earnings. While margin compression of 30 basis points highlights minor cost absorption or promotional intensity, overall earnings growth remains structurally intact.

Market Implications

Investors will focus on revenue execution and average selling price trajectories to assess whether margin compression is transitory or structural across upcoming quarters.

Trading Signals

Market Bias: Neutral

Operating performance shows solid absolute EBITDA expansion to ₹56.8 crore, but slight margin contraction to 12.6% limits aggressive immediate upside.

Overweight: Consumer Footwear, Athleisure Retail

Trigger Factors:

• Sustained volume growth across distribution channels
• Raw material input cost movements
• Monsoon and festive retail sell-through rates

Time Horizon: Near-term (0-3 months)

Industry Context

The Indian footwear and athleisure market continues to see steady premiumization, with major players balancing distribution expansion against promotional expenditure and input inflation.

Key Risks to Watch

• Potential input raw material price escalation
• Higher marketing expenditure squeezing operating margins
• Competitive intensity in retail and e-commerce channels

Recent Developments

Campus Activewear appointed Mr. Rakesh Thakur as Chief Financial Officer effective August 17, 2026. Prior to this, the company reported Q1 FY27 performance on August 6, 2026, delivering revenue from operations of ₹385.2 crore (up 12.2% YoY) and PAT of ₹26.1 crore (up 17.7% YoY).

Closing Insight

Campus Activewear's Q2 results underscore healthy absolute earnings scale, though operational margin monitoring remains key for medium-term sustainability.

High Performance Trading with SAHI.