Shares of Campus Activewear rallied 6.69% to Rs 251.85 in Tuesday’s trading session after the company reported strong Q4 FY26 earnings, led by healthy revenue growth, expanding margins, and improved profitability.The footwear maker posted a 25.8% year-on-year jump in Profit After Tax (PAT) to Rs 44.1 crore in Q4 FY26, compared to Rs 35.1 crore in the same quarter last year. The sharp rise in earnings was supported by robust operational performance and margin expansion.In Q4 FY26, Campus Activewear delivered a strong operational performance, with revenue from operations rising 12.3% year-on-year to Rs 455.6 crore, compared to Rs 405.7 crore in Q4 FY25.The company’s EBITDA grew 15.4% year-on-year to Rs 88.5 crore, supported by improved operating efficiency and better cost management. EBITDA margin also expanded to 19.2% from 18.7% in the year-ago quarter, highlighting healthy margin improvement.Meanwhile, PAT margin increased to 9.6%, compared to 8.5% in the corresponding quarter last year, reflecting stronger profitability.For the full year FY26, Campus Activewear crossed the Rs 1,770 crore revenue milestone, showcasing steady business momentum across segments. Revenue from operations grew 11.4% year-on-year to Rs 1,774.1 crore, while sales volumes increased 4.2% to 26 million pairs. The company also witnessed a healthy rise in average selling price (ASP), which climbed 6.9% year-on-year to Rs 683 from Rs 639 in FY25, aided by an improved product mix and stronger demand for premium categories.EBITDA for FY26 stood at Rs 314.7 crore, with EBITDA margin expanding by 145 basis points to 17.5%. Profit After Tax (PAT) came in at Rs 150.1 crore, while PAT margin improved to 8.4%, underlining sustained earnings growth and operational strength.Commenting on the performance, CEO Nikhil Agarwal said the company’s growth was driven by deeper distribution reach, higher online sales, and a stronger product mix.He highlighted that demand for the sneaker portfolio, along with improving traction in women’s and kids’ categories, helped strengthen the company’s positioning as a trusted family footwear brand.The management also noted inflationary pressure in certain raw materials amid global geopolitical developments, but stated that the impact is being managed through calibrated price hikes across selected product SKUs.Valuation & technical snapshotOn the valuation front, Campus Activewear is currently trading at a Price-to-Earnings (P/E) ratio of 51.17, while its Price-to-Book (P/B) ratio stands at 9.53, indicating premium market valuations.From a technical standpoint, the stock’s RSI (14) is placed at 43.3, suggesting a neutral trend as it remains well below the overbought zone of 70 and above the oversold level of 30. Additionally, the stock is trading above 6 out of 8 key simple moving averages, pointing towards improving bullish momentum in the near term.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)