Footwear stocks cheer GST rejig; Bata, Campus, Metro Brands rally up 10%

The GST council in its meeting approved the proposal that footwear items up to ₹2,500 will be taxed at 5% while above ₹2,500 shall be taxed at 18%.

Share price of footwear companies today

 

Shares of footwear companies rallied up to 10 per cent on the BSE in Thursday’s intra-day trade backed by heavy volumes as GST rationalisation is likely to boost demand.

 

Among individual stocks, Campus Activewear surged 10 per cent to ₹296.70 in intra-day trade. Bata India (₹1,240), Metro Brands (₹1,240.10), Relaxo Footwears (₹531.45) rallied 6 per cent each, while Liberty Shoes (₹353.80) and Khadim (₹249.80) were up 5 per cent each on the BSE in intra-day trade.

 

At 10:33 AM; these stocks were quoting higher up to 6 per cent, as compared to 0.56 per cent rise in the BSE Sensex.  CATCH STOCK MARKET LATEST UPDATES TODAY LIVE

 

Time to buy footwear stocks post GST rejig?

 

The Goods and Services Tax (GST) council in its meeting approved the proposal that footwear items up to ₹2,500 will be taxed at 5 per cent while above ₹2,500 shall be taxed at 18 per cent. 

 

All the revised GST rates are applicable from 22nd September 2025 onwards, the day marked with the first day of the Navratri festival. This reform aims to simplify the GST rates, ease compliance, create higher disposable income and stimulate long-term economic revival. Overall, this change should help drive growth in domestic consumption. 

 

The shift in price threshold will drive incremental demand for branded footwear with accessibility at lower prices. This is positive for Bata and Metro Brands, ICICI Securities said in a note.

 

The implementation of GST is set to unlock a strong wave of domestic demand, with the potential to add 100–120 basis points to GDP growth over the next 4 - 6 quarters, Vikram Kasat, Head - Advisory, PL Capital said. They believe that it will boost demand for consumption-oriented companies from the footwear sector like Metro Brands and Bata India.

 

Meanwhile, rising household incomes, a young and digitally connected population, and growing brand consciousness are all driving structural growth in discretionary categories. As per capita incomes increase, Metro Brands in its FY25 annual report said that the company expects India to follow global consumption patterns where discretionary spending begins to outpace essentials - a trend observed in markets such as the US and China. Recent tax cuts and broader economic tailwinds are also expected to boost demand further.  ALSO READ | Nifty, Sensex trim gains after 1% surge; key factors fueling the rally 

India’s footwear Industry currently valued between $17 – 18 billion in 2024 is projected to grow at a compounded annual growth rate (CAGR) of 10.1 per cent between 2025 and 2033. Growth in the organized sector is expected to outpace this rate, as the market experiences a rapid shift toward formal retail. 

 

This transformation is being driven by increasing demand for branded products, expansion of modern retail formats, and the rise of e-commerce. While the unorganized sector still holds a significant share, the organised segment is growing faster and is expected to overtake it in the coming years, the company said.

 

India’s footwear market is expanding rapidly, fuelled by a combination of demographic shifts, economic progress, evolving lifestyle preferences, and supportive policy frameworks. Casual footwear remains the dominant category, but the Sports and Athleisure (S&A) segments are emerging as the fastest-growing areas, now accounting for more than two-thirds of the entire market. This surge is driven by a growing inclination towards sports and physical activities, the ability of home-grown brands to cater to previously underserved demand, and an increasing preference for branded products, Campus Footwear said.