Relaxo Footwears (RELAXO) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue grew 8.1% year-over-year to INR 751 crores, while FY26 revenue declined to between INR 2,702 crores and INR 2,748.36 crores from the previous year.

• FY26 PAT rose 5.3% to INR 179 crores, with Q4 FY26 PAT up 20.4% year-over-year to INR 68 crores.

• EBITDA margin for FY26 was 13.8%, with Q4 FY26 EBITDA margin improving to 16.5%.

• Volume sold in FY26 was 17.5 crore pairs, marginally down from 17.8 crore in FY25, but average realization per pair increased to INR 153.

• The Board recommended a final dividend of INR 3.50 per share, totaling INR 87.13 crore for FY26.

Financial highlights

• FY26 revenue: INR 2,702–2,748.36 crores (down year-over-year); Q4 FY26 revenue: INR 751 crores (up 8.1% year-over-year).

• FY26 PAT: INR 179 crores (up 5.3% year-over-year); Q4 FY26 PAT: INR 68 crores (up 20.4% year-over-year).

• FY26 EBITDA: INR 374 crores (down 2.1% year-over-year); Q4 FY26 EBITDA: INR 124 crores (up 10.7% year-over-year).

• FY26 EBIT margin: 9.7%; PAT margin: 6.6%; ROE: 8.3%; ROCE: 12.1%.

• Basic and diluted EPS for FY26 were INR 7.20, up from INR 6.84 in FY25.

Outlook and guidance

• Management remains cautiously optimistic for FY27, targeting at least 1% operating margin improvement over FY26’s 13.8%.

• Volume growth of 4%-5% is targeted over the next two years, with focus on premiumization and product mix improvement.

• The Board’s dividend recommendation signals confidence in future cash flows and profitability.

• Indian footwear market expected to grow at 9.7% CAGR to INR 4,433 billion by 2034, with organized sector expanding at 13% CAGR.

• Focus on product innovation, digital transformation, and expanding distribution to capture growth opportunities.