Relaxo Footwears Ltd announces Q2 FY26 Financial Performance

Relaxo Footwears Limited, India's largest footwear manufacturing company, declared its Unaudited Financial Results for the quarter and half year ended 30th September 2025.

Highlights for Q2 FY26

- Revenue at Rs. 629 crores in Q2 FY26 as against Rs. 679 crores in Q2 FY25, owing to softness in demand in mass market segments, along with delayed purchases due to implementation of GST 2.0 norms. We are currently witnessing a revival of demand post the implementation of GST 2.0.

- EBITDA stood at Rs. 81 crores, compared to Rs. 88 crores in Q2 FY25. EBITDA margin remained stable at 12.9%, supported by the company's consistent focus on operational efficiencies.

- Profit After Tax stood at Rs. 36 crores in Q2 FY26. PAT margin improved by 34 bps YoY to 5.8%.

Highlights for H1 FY26

- Revenue at Rs. 1,283 crores in H1 FY26.

- EBITDA at Rs. 181 crores, with EBITDA margin improving to 14.1% in H1 FY26 from 13.1% in H1 FY25.

- Profit After Tax at Rs. 85 crores, compared to Rs. 81 crores in H1 FY25, up by 4.9% Y-o-Y. PAT margin improved by 95 bps YoY to 6.6%.

Commenting on the results and performance, Mr. Ramesh Kumar Dua, Chairman and Managing Director said: " Q2 FY26 proved to be an encouraging quarter for the company, marked by positive momentum across all channels, particularly in Retail, E-commerce and Large Format Retail (LFR) Stores.

The recent implementation of GST 2.0 norms, which reduced the GST on footwear priced below Rs. 2,500 to 5%, has significantly bolstered our position against rising competition from the unorganised sector, making our products more competitive in the mass and mid-market segments, which previously faced demand challenges. However, our General Trade sales continued to be slow, because of down stocking by our distributors and channel partners who are waiting for the old inventory to move out of the pipeline. We expect this slowness in the General Trade channel to be transitionary and should normalize in the coming quarters of the financial year.

Additionally, the company successfully maintained its EBITDA margins during the quarter, driven by consistent efforts to enhance operational efficiencies, disciplined cost management and streamlined backend processes. For H1 FY26, EBITDA margins expanded by 101 bps, highlighting the effectiveness of the company's cost management.

Going forward, we see good traction coming in the next 2-3 quarters onwards, as we continue our sales transformation journey and expand our distribution network. Our focus on volumedriven growth and regaining market share positions us well for future stabilisation, especially as revised MRP (post GST rationalization) inventory becomes accessible to distributors and consumers. We remain dedicated to executing our path to achieving profitable, sustainable growth through innovation, efficiency, and building consumer trust."

Shares of Relaxo Footwears Limited was last trading in BSE at Rs. 429.90 as compared to the previous close of Rs. 433.75. The total number of shares traded during the day was 2813 in over 239 trades.

The stock hit an intraday high of Rs. 435.00 and intraday low of 425.95. The net turnover during the day was Rs. 1213296.00.

Source : Equity Bulls

Keywords

RelaxoFootwears INE131B01039 Q2FY26 H1FY26 ResultUpdate