Relaxo Footwears Limited (RELAXO)

Consumer Durables · Consumer Durables · NSE · Updated 15 July 2026

₹377.65 ↓ 23.65% (1Y)

🎯 Key Takeaways

Relaxo Footwears Limited is in a phase of controlled expansion and margin recovery, leveraging pricing power and operational efficiency to grow profitability despite macro cost pressures. Management is focused on scaling its retail footprint and premiumization strategy to drive sustainable volume and margin growth, signaling a transition from stabilization to proactive expansion.
⚠️ Input cost inflation in COGS and labor remains a concern, with management noting 12-15% COGS inflation and 25-30% labor cost increases in one state, w

Market Cap

₹7,179

P/E Ratio

42.8

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Relaxo Footwears Limited is in a phase of controlled expansion and margin recovery, leveraging pricing power and operational efficiency to grow profitability despite macro cost pressures. Management is focused on scaling its retail footprint and premiumization strategy to drive sustainable volume and margin growth, signaling a transition from stabilization to proactive expansion.

📰 What's Happening

In Q4 FY26, Relaxo Footwears reported an 8.1% YoY revenue increase to INR751 crores and a 20.4% YoY PAT rise to INR68 crores, with EBITDA margin expanding to 16.5% from 16.1%. Full-year revenue reached INR2,702 crores, and EBITDA grew 10.6% YoY to INR374 crores. Management attributed margin resilience to 15-18% price hikes, GST rate benefits, and distributor normalization, despite 12-15% COGS inflation and 25-30% labor cost increases in one state. Capex guidance of INR180-200 crores includes investments in 100 new exclusive brand outlets (EBOS) by December, targeting 4-5% volume growth and premiumization. Operating margin improved to 13.8% with a target of over 1% further expansion.

Source: Stock Announcements

🔮 Management Outlook & What's Next

Management expressed confidence in sustaining earnings expansion, targeting over 1% operating margin improvement despite retail expansion-related margin dilution. They highlighted GST rate reductions and distributor network normalization as tailwinds, while planning 100 new EBO openings by December to drive 4-5% volume growth and premiumization. Capex of INR180-200 crores is positioned to support this scale, with a focus on capacity and store-level economics. No specific revenue or margin targets beyond the 1% operating margin expansion were provided, but the guidance underscores a structured, phased expansion strategy.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Consumer Durables

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Titan Company Limited	3.70 L Cr	77.6	34.3%	41.0%	0.88
Asian Paints Limited	2.50 L Cr	65.0	26.0%	19.8%	0.04
LG Electronics India Limited	1.07 L Cr	—	—	—	—
Havells India Limited	75,873	54.2	—	—	—
Dixon Technologies (India) Limited	66,754	75.9	—	—	—
Berger Paints (I) Limited	62,200	54.5	—	—	—
Voltas Limited	40,722	56.8	—	—	—
Kalyan Jewellers India Limited	36,461	54.6	—	—	—
Blue Star Limited	34,091	61.2	—	—	—
Amber Enterprises India Limited	29,854	164.3	8.4%	4.1%	0.62

🔗 Peer Stock Analyses

TITAN ASIANPAINT LGEINDIA HAVELLS DIXON

⚠️ Risk Factors

1. Input cost inflation in COGS and labor remains a concern, with management noting 12-15% COGS inflation and 25-30% labor cost increases in one state, which could pressure margins if pricing power erodes. 2. Expansion into new markets and store openings may strain operational execution and working capital, especially if same-store sales or customer acquisition rates underperform. 3. Despite margin guidance, the target of over 1% operating margin expansion assumes disciplined cost management and successful premiumization, which may be challenged by competitive pricing pressures in the consumer durables segment.

📋 Recent Filings

🧠 Analyst's Read

Relaxo Footwears is executing a disciplined growth strategy supported by margin resilience and strategic capex, but its near-term outlook hinges on successful rollout of new stores and sustained pricing power amid inflationary pressures. Investors should monitor execution against capex plans, same-store sales trends, and input cost dynamics in the coming quarters.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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