While the momentum exiting FY26 is encouraging, the company says that it must tread with caution due to the uncertain external environment
Signalling a positive momentum with a broad-based growth in key metrics, Relaxo Footwears’ net profit rose 20.4 per cent to Rs 68 crore in the fourth quarter of the financial year 2026 on a year-on-year basis. Volume growth remained strong during the quarter, with a recovery observed in the General Trade (GT) channel.
The net profit for FY26 was up 5.3 per cent to reach Rs 179 crore. The financial results of the company revealed that revenue from operations rose 8.1 per cent to Rs 751 crore in Q4 from Rs 695 crore in Q4FY25. However, for the full year, revenue came down 3.1 per cent to stand at Rs 2,702 crore, the company said in an earnings release.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) surged 10.6 per cent on-year to reach Rs 124 crore in the last quarter of FY26 from Rs 112 crore in the corresponding quarter of the previous financial year. Ebitda margin also improved by 39 basis points to 16.5 per cent.
“The sequential quarterly improvement highlights the effectiveness of our sales transformation initiatives as we continue to strengthen our market position through better channel engagement, efficient distribution and consistent execution across the network. Operational efficiencies, driven by in-house manufacturing and cost optimiSation efforts, have also played a key role in sustaining profitable growth of the company,” stated Ramesh Kumar Dua, Chairman and Managing Director, Relaxo Footwears.
Dua added that while the momentum exiting FY26 is encouraging, the company must tread with caution due to the uncertain external environment amidst the ongoing geopolitical situation causing inflationary pressures which could affect consumer sentiments. While the company has recently taken calibrated price increases to offset input cost inflation, the full impact on demand and consumption patterns is still evolving and requires close monitoring, he noted.
