Campus Activewear reduced its advertising and promotional expenditure by 11% year-on-year to approximately ₹36 crore in the second quarter of FY27, even as the footwear manufacturer reported a 21.3% increase in net profit. The company’s standalone net profit reached ₹24.34 crore for the quarter ended September 30, 2026, compared with ₹20.07 crore in the corresponding period last year.
The reduction in advertising expenses came alongside healthy revenue growth, higher sales volumes and an expanding product portfolio. Revenue from operations increased 16.9% to ₹452.10 crore, while EBITDA rose 13.9% to ₹56.8 crore. The results suggest that Campus Activewear maintained its growth momentum while moderating one component of its marketing expenditure. However, its operating margin remained under pressure during the quarter.
Campus Activewear Advertising Expenses Fall to ₹36 Crore
Campus Activewear’s advertising expenses declined approximately 11% to ₹36 crore in Q2 FY27, compared with the year-ago period, according to the company’s reported quarterly marketing expenditure.
The reduction is notable because the company continued to report double-digit revenue and volume growth. It indicates that the business did not increase advertising expenditure at the same pace as its sales during the quarter.
For footwear brands, advertising plays an important role in building consumer awareness, promoting new collections and competing for shelf space across online marketplaces and offline retail outlets. Campus Activewear operates in a competitive market that includes established footwear companies, international sportswear brands and emerging digital-first labels.
Lower advertising expenditure does not necessarily mean that the company has reduced its overall marketing efforts. Changes in campaign timing, media selection, promotional intensity and the mix of advertising channels can affect quarterly spending.
The company has also been investing in product innovation and portfolio expansion, which can support sales growth alongside conventional advertising campaigns.
Revenue Increases 17% to ₹452 Crore
Campus Activewear reported revenue from operations of ₹452.10 crore in Q2 FY27, up 16.9% from ₹386.61 crore in Q2 FY26.
Total income, including other income, reached ₹457.21 crore, compared with ₹391.76 crore a year earlier.
Net profit increased 21.3% to ₹24.34 crore from ₹20.07 crore. Profit before tax rose 22.4% to ₹33 crore.
| Financial indicator | Q2 FY26 | Q2 FY27 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹386.61 crore | ₹452.10 crore | +16.9% |
| Total income | ₹391.76 crore | ₹457.21 crore | +16.7% |
| EBITDA | ₹49.9 crore | ₹56.8 crore | +13.9% |
| Profit before tax | ₹26.95 crore | ₹33 crore | +22.4% |
| Net profit | ₹20.07 crore | ₹24.34 crore | +21.3% |
| Advertising expenses | — | Approximately ₹36 crore | -11% |
The figures show that profit grew faster than revenue during the quarter. However, EBITDA growth was slower than revenue growth, indicating some pressure on operating profitability.
The results are standalone figures. They should not be interpreted as consolidated group performance.
Women’s and Kids’ Footwear Drive Growth
Women’s and kids’ footwear remained important growth contributors for Campus Activewear.
The company reported approximately 29% year-on-year growth in these categories during the first half of FY27. Together, women’s and kids’ products accounted for around 23% of overall volumes during the half-year period.
The performance reflects the company’s efforts to expand beyond its traditional strength in men’s sports and casual footwear.
These categories also provide opportunities to attract new customer groups and increase the range of products available through its retail and online distribution channels.
Campus Activewear is increasingly using product launches and category expansion to address changing consumer preferences. Its strategy includes developing footwear across different price points, age groups and use cases.
Company Launches More Than 160 New Products
Campus Activewear introduced more than 160 new stock-keeping units (SKUs) during the first half of FY27.
The launches included products across its existing categories as well as an entry into performance footwear. During Q2, the company introduced court shoes, expanding its offering into a segment associated with sports and performance-oriented consumers.
The move gives Campus an opportunity to reach customers looking for specialised footwear rather than only everyday casual and sports-inspired shoes.
The company has also benefited from premiumisation, with a higher contribution from premium products supporting average selling price growth.
Chief Executive Officer Nikhil Aggarwal said product innovation and portfolio expansion remained central to the company’s strategy. He also highlighted calibrated pricing, sourcing efficiencies, productivity improvements and product mix as important areas of focus.
H1 FY27 Revenue Grows 14.7%
Campus Activewear maintained double-digit growth during the first six months of FY27.
Revenue from operations reached approximately ₹837.30 crore in H1 FY27, increasing 14.7% year-on-year. The company reported volume growth of 10.9% during the same period.
Its performance is notable because the festive season shifted towards the December quarter this year. The company continued to report volume growth despite this change in seasonal demand.
| H1 FY27 indicator | Performance |
|---|---|
| Revenue from operations | ₹837.30 crore |
| Revenue growth | 14.7% |
| Volume growth | 10.9% |
| Women’s and kids’ category growth | Approximately 29% |
| New SKUs launched | More than 160 |
The first-half performance indicates that growth has been supported by both higher sales volumes and improvements in product realisation.
EBITDA Margin Remains Under Pressure
Although Campus Activewear reported higher revenue and net profit, its EBITDA margin declined to approximately 12.6% in Q2 FY27 from 12.9% in the year-ago quarter.
EBITDA increased 13.9% to ₹56.8 crore, below the 16.9% growth in revenue.
One factor highlighted in the financial analysis was the increase in the cost of materials consumed as a proportion of revenue. This rose to approximately 64.6% from 62.1% a year earlier.
The company is therefore balancing growth with input costs, product mix and operating expenses. Its focus on sourcing efficiencies, pricing actions and productivity improvements is intended to support profitability as the business expands.
Inventory also increased ahead of the festive and winter selling season. This may help the company prepare for higher demand, but the ability to convert that inventory into sales will be an important factor to monitor in the coming quarters.
The Bigger Picture
Campus Activewear’s Q2 performance illustrates a different approach to marketing investment from companies increasing advertising expenditure to accelerate growth. The company reported an 11% reduction in advertising expenses while delivering double-digit revenue growth and a 21% increase in net profit.
However, one quarter’s advertising expenditure cannot establish whether the reduction improved marketing efficiency or whether the company will sustain lower spending. Product launches, distribution, premiumisation and seasonal demand also contribute to business performance.
For the footwear industry, Campus’s expansion into women’s, kids’ and performance footwear reflects the importance of broadening product portfolios to reach new consumer segments.
Looking Ahead
The December quarter will be important for Campus Activewear because of festive and winter-season demand. The company’s inventory build-up, new product launches and expansion into performance footwear could support sales, provided consumer demand and product sell-through remain healthy.
Investors will also watch whether the company can maintain revenue growth while improving EBITDA margins. The combination of disciplined advertising expenditure, stronger product mix and sourcing efficiencies could support profitability, but sustained performance will depend on how effectively Campus converts its expanded product portfolio into sales.
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