Relaxo Footwears Ltd Q1 FY26 Earnings Results – 11% rise in Profits

Relaxo Footwears Limited is the largest footwear manufacturing company in India, which deals in non leather products i.e. rubber/EVA slippers, canvas shoes, sport shoes, sandals, school shoes and other types of footwear. It is also the leader in ‘value’ segment footwear. It has a portfolio of renowned brands like Relaxo, Sparx, Flite and Bahamas. The company sells its products through retailers served through distributors, retail outlets, exports and e-commerce / modern trade. Presenting below are its Q1 FY26 earnings.

 

Q1 FY26 Earnings Summary:

• Revenue: ₹654.5 crore, down 12.6% year-over-year (YoY) from ₹748 crore in Q1 FY25 and sequentially down from ₹695 crore in Q4 FY25.

• Net Profit (PAT): ₹48.9 crore, up 11% YoY (₹44.3 crore in Q1 FY25), but down 13% sequentially from ₹56.2 crore in Q4 FY25.

• EBITDA: ₹99 crore, flat YoY; EBITDA margin improved to 15.2% from 13.2% in Q1 FY25, driven by cost management and operational efficiencies.

• PBT: ₹65.9 crore, up 9.2% YoY but down 12.5% QoQ.

• Key Drivers: Margin expansion due to productivity improvements and disciplined cost control, but revenue was impacted by continued muted demand in the mass and mid-market categories and intensified competition, particularly from regional players post-GST increase from 5% to 12%.

• Management Commentary: Chairman & MD Ramesh Kumar Dua noted that demand pressures persisted but the company avoided “deep discounting,” focusing instead on sales process transformation and distribution network expansion. Cost discipline and productivity gains helped protect margins. Management remains optimistic about recovery with foundations being laid for future growth.

   

Key Management Commentary & Strategic Highlights

• The quarter reflected persistent demand headwinds in mid and mass-market segments, and the impact of competitive pressures from regional small-scale players.

• Relaxo prioritized operational efficiency, cost control, and expanding digital/tech initiatives (including streamlining distribution and backend processes) to buttress profitability in a challenging sales climate.

• Leadership focused on sustainable, profitable growth rather than short-term revenue tactics; expects the restructuring and sales initiatives to show positive results in upcoming quarters, especially in FY26’s second half.

• Ongoing tech adoption and “Brand as Seller” model continue for stronger digital presence.

• Recent management adjustments: Prince Jain was appointed as CFO in May 2025; key sales and marketing leadership resignations (June–July).

• Dividend: Proposed final dividend of ₹3 per equity share for FY25, subject to AGM approval

 

 

Q4 FY25 Earnings Summary:

• Revenue: ₹695 crore, down 7% YoY from ₹747 crore in Q4 FY24, but up 4% sequentially over Q3 FY25.

• Net Profit (PAT): ₹56.2 crore, down 8% YoY, with an 8.1% PAT margin.

• EBITDA: ₹112 crore, down 7% YoY. EBITDA margin stable at 16.1%.

• Expenses: Total expenses declined 6.3% YoY to ₹627.9 crore, mainly due to reduced raw material and employee costs.

• Strategic Moves: The company advanced several initiatives—optimizing distributor/retailer networks, expanding e-commerce SKUs, launching a tech-enabled warehouse, and reinforcing supply chain infrastructure. These are designed to make Relaxo more agile and efficient following a year of consolidation.

• Management Outlook: FY25 viewed as a bottom with expectations of improved business trajectory from H2 FY26

To view its previous earnings, please visit: Click Here