Campus Activewear Limited reported a strong performance for the third quarter and the first nine months of FY'26. The company's revenue surged by 14.3% year-on-year to ₹589 crore in Q3 FY'26, driven by a 9% growth in distribution channels and an 18% growth in the online channel. The average selling price (ASP) increased by 5.2% year-on-year to ₹711 in Q3 FY'26, attributed to a higher mix of premium SKUs and refreshed collections. Profit after tax (PAT) grew by 37% year-on-year. Gross margins improved to 53.1% due to a higher sneaker mix, while EBITDA margins stood at 19.5% and PAT margins at 10.7%, both showing significant year-on-year improvements. The company has also commenced commercial production of premium uppers at its Pantnagar facility and strategically ventured into Athleisure apparel in January 2026, launching it across 60 EBOs, brand.com, Myntra, and Amazon. The brand campaign "You Go, Girl" featuring Kriti Sanon has reportedly strengthened the connection with women consumers, leading to an improvement in the women's category mix. During the earnings call, management highlighted the robust demand during the festive season and the positive impact of GST rationalization. They emphasized a focused approach to product segmentation and expansion into apparel. The company's integrated manufacturing capabilities have been enhanced with the stabilization of the Pant Sahib facility and the commencement of production at Pantnagar. The company is also exploring export opportunities in the footwear sector. Discussions also covered the strategic pivot towards a marketplace business model for online sales, leading to stronger control and better performance on platforms like Amazon. The company is also optimizing its distribution network by introducing a 'super stockist' model. While the company has seen a significant increase in ad spend due to its brand campaigns, it remains in line with the planned budget and is focused on long-term brand building. The company stated that it has sufficient capacity for future growth and does not require immediate additional capital expenditure.
