Relaxo Footwears Ltd (RELAXO)
🎯 Key Takeaways
- Relaxo Footwears Ltd is in a phase of measured expansion, leveraging strong brand equity and distribution reach to grow in organised footwear and athleisure segments. Despite a challenging macro backdrop reflected in a -25.
- Revenue declined 6.1% QoQ to ₹705 in Q1FY27.
- ⚠️ Over-reliance on domestic market despite export presence in 37 countries, with organised footwear and athleisure growth dependent on consumer sentimen
📖 The Story
Relaxo Footwears Ltd is in a phase of measured expansion, leveraging strong brand equity and distribution reach to grow in organised footwear and athleisure segments. Despite a challenging macro backdrop reflected in a -25.43% one-year return, the company has demonstrated sequential improvement in profitability and margin discipline. Management is focused on scaling retail presence and capitalising on export demand, signalling a strategic shift toward higher-margin segments rather than broad market penetration.
📰 What's Happening
In Q1 FY27 (filed August 13, 2026), Relaxo reported revenue of ₹705 crores, up 7.7% YoY, with PAT at ₹54.94 crores (+12.4% YoY). EBITDA margin expanded to 15.4% from 15.2%, and PAT margin improved to 7.8% from 7.5%. Chairman Ramesh Dua highlighted cost optimisation and plans to expand the retail EBO network toward 500 stores by year-end. Earlier board approvals included re-appointing six directors for terms until March 31, 2029, and adding Mr. Ashish Nigam as Head - Central Purchase, reinforcing internal continuity and operational oversight.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 654 | 629 | 668 | 751 | 705 |
| Operating Profit | 60 | 42 | 30 | 85 | 68 |
| OPM % | 9.1% | 6.7% | 4.5% | 11.3% | 9.7% |
| Net Profit | 49 | 36 | 27 | 68 | 55 |
| EPS | ₹1.96 | ₹1.46 | ₹1.06 | ₹2.72 | ₹2.21 |
The company's financial trajectory shows a clear inflection from volatility in late 2025 to sustained improvement in Q1 FY27. After a weak December 2025 quarter with low margins (4.5% OPM, ₹27 crores NP), performance recovered sharply by March 2026 (₹68 crores NP, 11.3% OPM) and held steady in June 2026. This rebound aligns with management's stated focus on cost discipline and higher realisation (₹166 per pair), indicating operational execution is supporting profitability despite flat asset base.
🔮 Management Outlook & What's Next
Management has expressed confidence in future growth driven by rising demand in organised footwear and athleisure segments. Key forward-looking statements include expanding the retail EBO network to 500 stores by year-end and sustaining momentum in export markets across 37 countries. The emphasis on cost optimisation and higher realisation per pair suggests a focus on margin expansion rather than volume-led growth, positioning the company for scalable profitability in premium segments.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 25 | 25 | 25 | 25 |
| Reserves | 1,986 | 2,073 | 2,085 | 2,181 |
| Borrowings | 212 | 0 | 215 | 233 |
| Total Liabilities | 2,722 | 2,762 | 2,870 | 2,949 |
| Fixed Assets | 1,346 | 1,345 | 1,326 | 1,356 |
| Investments | 134 | 343 | 422 | 436 |
| Total Assets | 2,722 | 2,762 | 2,870 | 2,949 |
The balance sheet reflects a conservative capital structure with zero long-term borrowings as of March 2025 and only ₹233 crores of borrowings as of March 2026, indicating minimal leverage. Equity remains stable at ₹25 crores, while reserves have grown from ₹2,073 to ₹2,181 crores, suggesting retained earnings are being reinvested internally. With total assets at ₹2,949 crores and no significant debt, the company appears to be funding growth through internal cash flows and equity retention rather than external financing.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +406 |
| Investing | -262 |
| Financing | -162 |
| Net Cash Flow | -18 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 71.3% | 71.3% | 71.3% | 71.3% |
| FII | 3.0% | 3.0% | 3.0% | 3.1% |
| DII | 9.9% | 9.9% | 9.7% | 9.7% |
| Public | 6.3% | 6.3% | 6.4% | 6.4% |
| # Shareholders | 2,39,270 | 2,32,872 | 2,25,931 | 2,23,844 |
Promoter holding remains stable at 71.27% across all recent quarters, indicating confidence from the founding family. However, FII and DII participation remains low (3.11% and 9.67% in Q1FY27), with a slight decline in institutional interest over time. The growing number of shareholders (2,23,844 in Q1FY27) suggests retail participation is increasing, but the lack of significant institutional accumulation may reflect limited visibility or sector caution despite improving fundamentals.
⚖️ Peer Comparison — Leather
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| METROBRAND | 25,543 | 62.8 | 38.9% | 24.1% | 0.00 |
| RELAXO | 8,886 | 47.9 | 13.0% | 8.8% | 0.00 |
| BATAINDIA | 8,760 | 60.0 | 20.7% | 9.2% | 0.00 |
| CAMPUS | 6,925 | 54.9 | 32.5% | 29.2% | 0.41 |
| MAYURUNIQ | 3,328 | 16.1 | 29.0% | 21.7% | 0.01 |
| BIL | 1,155 | 44.6 | 10.2% | 5.8% | 1.07 |
| SREEL | 580 | 17.7 | 9.5% | 7.1% | 0.00 |
| MIRZAINT | 440 | — | -3.4% | -4.0% | 0.03 |
| LIBERTSHOE | 418 | 51.4 | 8.9% | 9.2% | 0.84 |
| KHADIM | 218 | 78.7 | 8.3% | 1.1% | 0.45 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Over-reliance on domestic market despite export presence in 37 countries, with organised footwear and athleisure growth dependent on consumer sentiment and competition from global brands. 2. Margin gains are partly driven by realisation per pair and cost optimisation — sustainability of these trends amid input cost pressures or pricing competition is not guaranteed. 3. Low institutional ownership and thin float could lead to higher volatility, especially if promoter pledging or regulatory scrutiny increases. 4. Capital intensity of retail expansion may strain cash flows if store openings outpace profitability or demand.
📋 Recent Filings
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🟡 Board Meeting 13 August 2026Relaxo Footwears announced the outcome of its August 13, 2026 board meeting, approving the convening of its 42nd AGM on September 24, 2026, and recomm...
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🔴 Financial Results 13 August 2026Relaxo Footwears reported Q1 FY27 revenue of **₹705 crores**, up 7.73% YoY, with PAT at **₹54.94 crores** reflecting 12.35% YoY growth. EBITDA margin ...
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Announcement 13 August 2026Relaxo Footwears announced that its Nomination and Remuneration Committee approved 5,03,500 employee stock options convertible into equity shares unde...
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🔴 Financial Results 13 August 2026Relaxo Footwears reported Q1 FY27 revenue of **₹705 crores**, up 7.7% YoY, with EBITDA at **₹108 crores** (+8.8% YoY) and PAT at **₹55 crores** (+12.4...
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share transfer 12 August 2026Relaxo Footwears disclosed that no transfer or dematerialisation requests were received, processed, approved, or rejected between June 1 and July 31, ...
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share transfer 10 July 2026Relaxo Footwears Limited received a SEBI-mandated certificate from KFin Technologies confirming compliance with Regulation 74(5) for the quarter ended...
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Financial Results 29 June 2026Relaxo Footwears Limited announced that its trading window will close on July 1, 2026, for 48 hours following the unaudited Q1 results declaration, wi...
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Announcement 16 June 2026Relaxo Footwears announced incorporation of Clean Max MUOI Private Limited, a renewable energy SPV, to develop captive solar projects for its manufact...
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share transfer 11 June 2026Relaxo Footwears disclosed that its share transfer agent processed zero transfer and dematerialisation requests during April-May 2026, with no rejecti...
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🔴 Announcement 8 June 2026No summary available
🧠 Analyst's Read
Relaxo Footwears is executing a disciplined turnaround in profitability with improving margins and stable promoter backing, but lacks strong institutional conviction. The next catalyst will be the execution of its retail expansion and ability to maintain margin discipline amid rising competition. Watch for management’s commentary on demand trends in organised footwear and any early signs of market share gain in athleisure.
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 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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