Relaxo Footwears tanks as Q1 PAT slides 13% QoQ to Rs 49 crore

Business Standard

2 days ago

Shares of Relaxo Footwears declined 4.15% to Rs 462.90, driven by weak sequential performance.
On a standalone basis, Relaxo Footwears' net profit declined 13.02% to Rs 48.90 crore in Q1 FY26 as against Rs 56.22 crore in Q4 FY25. Revenue from operations shed 5.84% to Rs 654.49 crore in Q1 FY26 over Q4 FY25. PBT tanked 12.53% to Rs 65.91 crore in Q1 FY26 over Q4 FY25.
On a year-on-year basis, the company's consolidated net profit rose 10.20% while total income fell 12.52% in Q1 FY26. PBT rose 9.24% YoY in Q1 FY26.
EBITDA for Q1 FY26 stood at Rs 99 crore, remaining consistent with the same quarter in the previous year. The EBITDA margin improved significantly to 15.2% in Q1 FY26, up 198 basis points from 13.2% in Q1 FY25, driven by a continued focus on operational efficiencies.
Ramesh Kumar Dua, Chairman and Managing Director said: As we reflect on Q1 FY26, it was a quarter that came with its share of challenges. Consumer demand remained muted, particularly in the mass and mid-market segments, while regional competition in general trade intensified from smaller players who have gained ground since the GST increase from 5% to 12% in 2022.
Even as these pressures strained our ecosystem, we consciously avoided short term tactics such as deep discounting while staying steadfast in our commitment to protect overall profitability. At the same time, we remained focused on our sales transformation journey and the expansion of our distribution network, steps that will place the business on a stronger footing in the future. Encouragingly, we were able to improve operating margins during the quarter through enhanced operational efficiencies, disciplined cost management and streamlined backend processes.
These productivity measures will help build a strong foundation for improved financial performance ahead. While it will take some time for the topline to stabilize and improve, our long-term priority remains sustainable, profitable growth. The groundwork we are laying today gives us confidence in delivering stronger results in the quarters to come.
Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.