Campus Activewear (CAMPUS) | News Based Sentiment Analysis

• On September 4, 2025, Campus Activewear announced a significant ₹230 crore investment to expand its manufacturing capacity in Pantnagar, Uttarakhand, acquiring land and a building for ₹74.75 crore. This expansion, targeting an additional 7.2 million pairs of shoes annually by FY28, aims to improve backward integration, supply chain efficiency, and potentially open up export opportunities – signaling a commitment to long-term growth.
• The company reported a remarkably strong Q1 FY26, with net profit surging to ₹28.66 crore, a substantial increase from ₹1.98 crore in Q1 FY25. Revenue from operations also saw a massive 149.6% year-on-year jump to ₹337.71 crore, demonstrating a strong turnaround from recent quarterly declines.
• Campus Activewear will be distributing a dividend of ₹0.30 per share, with an ex-dividend date of September 10, 2025, and payment scheduled for October 23, 2025. The current trailing dividend yield is 0.4% based on the share price of ₹272.10, and earnings per share have been growing at a healthy 14% annually over the past five years, rewarding shareholders.
• JM Financial reaffirmed its 'buy' rating on Campus Activewear on September 5, 2025, maintaining a target price of ₹340. This positive outlook is based on anticipated growth drivers like channel expansion, supply chain improvements, and brand-building initiatives, following the company’s strong Q4 FY25 performance with a total income of ₹411 crore and a net profit of ₹35.03 crore.
• Following the GST Council’s decision on September 4, 2025, to reduce the GST rate on shoes priced up to ₹2,500 from 12% to 5%, Campus Activewear’s stock surged, reflecting anticipated increased demand, particularly in semi-urban and rural markets. This tax cut is expected to benefit the entire footwear industry.
• As of September 5, 2025, Campus Activewear’s share price increased to ₹271.45, a 1.74% rise from its previous closing price of ₹266.80, with a market capitalization of ₹8334.22 crore, indicating renewed investor confidence.

The Investment Story: Campus Activewear demonstrated a strong recovery in Q1 FY26, reversing recent quarterly declines, and is proactively investing in future capacity. These developments, coupled with a favorable GST rate cut, have boosted investor sentiment and analyst confidence.

What It Means for Investors: The significant revenue and profit growth in Q1 FY26, along with the capacity expansion and positive analyst rating, suggest a strengthening investment case. The dividend payment provides a modest return, while the long-term growth prospects appear more secure.

Looking Ahead: Investors should monitor the impact of the GST rate cut on sales volume, track the progress of the capacity expansion project, and watch for further updates on the company’s strategic initiatives during the upcoming Annual General Meeting on September 23, 2025.

The Bottom Line: Campus Activewear appears to be regaining momentum after a challenging quarter, with strong financial results, strategic investments, and positive market catalysts. The company presents a compelling investment opportunity for those seeking exposure to the growing Indian footwear market.