RELAXO - Relaxo Footwear
📢 Recent Corporate Announcements
Relaxo Footwears Limited has announced the resignation of Mr. Prince Jain from the position of Chief Financial Officer (CFO) and Key Managerial Personnel (KMP). The resignation is effective from the close of business hours on March 11, 2026. Mr. Jain has cited the pursuit of opportunities outside the organization as the reason for his departure. The company has not yet announced a successor for this critical leadership role.
- Mr. Prince Jain resigned as CFO and Key Managerial Personnel effective March 11, 2026.
- The resignation was tendered with immediate effect as per the official disclosure.
- Reason for departure is stated as pursuing professional opportunities outside the company.
- The company must now appoint a new CFO to comply with SEBI and Companies Act requirements.
Relaxo Footwears Limited has submitted a compliance report regarding the re-lodgement of physical share transfer requests for the period of January 1 to January 6, 2026. The report, issued by KFin Technologies, indicates that no requests were received, processed, or approved during this specific window. This filing follows the special guidelines set by SEBI in July 2025 for physical share transfers. As there were no transactions, this update has no material impact on the company's operations or financials.
- Zero requests received for re-lodgement of physical share transfers between Jan 1 and Jan 6, 2026
- Zero requests were processed, approved, or rejected during the reporting period
- Compliance maintained with SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97
- Report confirmed by Registrar and Share Transfer Agent, KFin Technologies Limited
Relaxo Footwears reported a stagnant Q3 FY26 with revenue at ₹668 crore, showing a marginal 0.17% YoY growth. Profitability faced significant pressure as PAT dropped 19.6% YoY to ₹26.5 crore, and EBITDA margins contracted by 211 basis points to 10.39%. For the nine-month period (9M FY26), revenue declined by 6.85% to ₹1,951 crore, reflecting a challenging consumer demand environment. While sales volume remained flat at 4 crore pairs, the average realization per pair dipped slightly to ₹164.
- Q3 FY26 PAT decreased by 19.6% YoY to ₹26.54 crore from ₹33.01 crore.
- EBITDA margins fell to 10.39% in Q3 FY26 compared to 12.50% in the same quarter last year.
- 9M FY26 revenue stands at ₹1,951.06 crore, down 6.85% from ₹2,094.46 crore YoY.
- Sales volume for Q3 FY26 was flat at 4.0 crore pairs with average realization at ₹164.
- Company maintains a robust infrastructure with 9 manufacturing facilities and 412 Exclusive Brand Outlets.
Relaxo Footwears Limited has submitted its monthly report regarding the re-lodgement of transfer requests for physical shares as mandated by SEBI. For the month ending December 31, 2025, the company's Registrar and Share Transfer Agent, KFin Technologies, reported that zero requests were received. This filing is a procedural compliance requirement under the special window provided by SEBI's July 2025 circular. There is no impact on the company's operational or financial performance.
- Zero requests received for re-lodgement of physical share transfers in December 2025
- Zero requests were processed, approved, or rejected during the reporting period
- Compliance filing as per SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97
- Report issued by KFin Technologies Limited, the company's Registrar and Share Transfer Agent
Relaxo Footwears Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the period ending December 31, 2025. The certificate, issued by KFin Technologies Limited, confirms that all dematerialization requests were processed within the mandatory 15-day window. It further verifies that physical security certificates were mutilated and cancelled after due verification. This filing is a standard administrative requirement to ensure the integrity of the company's shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar KFin Technologies confirmed processing demat requests within 15 days of receipt.
- Physical share certificates were mutilated and cancelled after verification by the RTA.
- Depository names were updated as registered owners in the company records for dematerialized shares.
Relaxo Footwears Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the Q3 and nine-month financial results for the period ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially declared to the stock exchanges. The specific date for the board meeting to approve these results is yet to be announced.
- Trading window closure effective from Thursday, January 1, 2026.
- Closure relates to the Unaudited Financial Results for the quarter and nine months ending December 31, 2025.
- Restriction applies to all Designated Persons and their immediate relatives.
- Trading window will reopen 48 hours after the results are disclosed to BSE and NSE.
- Board meeting date for result approval to be intimated in due course.
Relaxo Footwears has submitted a report on the re-lodgement of transfer requests for physical shares as per SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97 dated July 02, 2025. The report, received from KFin Technologies Limited, indicates that during the month of November, the number of requests received, processed, approved, and rejected was NIL. The average time taken for processing these requests was also not applicable (NA). This is a routine update regarding the processing of physical share transfer requests.
- No. of requests received during Nov: NIL
- No. of requests processed during Nov: NIL
- No. of requests approved during Nov: NIL
- No. of requests rejected during Nov: NIL
- Average time taken for processing requests (Nov): NA
Financial Performance
Revenue Growth by Segment
Revenue from operations for H1 FY26 stood at INR 1,283.03 Cr, a decline of 10.12% compared to INR 1,427.56 Cr in H1 FY25. Q2 FY26 revenue was INR 628.54 Cr, down 7.48% YoY from INR 679.37 Cr, primarily due to demand softness in the mass market segment.
Geographic Revenue Split
Not disclosed in available documents, though the company mentions operations in North, South, East, and West markets with a focus on clearing old inventory in non-North regions by December 2025.
Profitability Margins
Net Profit Margin for H1 FY26 improved to 6.63% from 5.68% in H1 FY25, an increase of 95 basis points. For FY25, the Net Profit Margin was 6.14% compared to 6.93% in FY24, reflecting a decline of 11.40% due to lower profits.
EBITDA Margin
EBITDA margin for H1 FY26 expanded by 101 basis points to 14.08% from 13.07% in H1 FY25. This improvement was driven by cost rationalization and operational efficiency despite a 3.19% decline in absolute EBITDA to INR 180.61 Cr.
Capital Expenditure
The company incurred capital expenditure of INR 200-250 Cr in FY25. Planned capex focuses on retrofitting DGs for hybrid operation, converting biomass boilers to PNG, and upgrading STPs with ultrafiltration technology.
Credit Rating & Borrowing
The company maintains a strong credit profile with a Total Debt/OPBDITA of 0.5 times in FY24. It has a conservative capital structure with a Debt-Equity ratio of 0.00 as of March 31, 2025, due to nil utilization of working capital limits.
Operational Drivers
Raw Materials
Specific raw materials include PU (Polyurethane) and biomass for boilers. The company is targeting a reduction in PU waste as part of its sustainability goals.
Capacity Expansion
Not disclosed in absolute units, but the company is investing INR 200-250 Cr in FY25 for operational improvements and sustainability upgrades.
Raw Material Costs
Raw material costs are managed through cost control and operational efficiency. The company passed on the full benefit of the GST cut (from 12% to 5%) to customers to maintain competitiveness.
Manufacturing Efficiency
EBITDA margin expansion of 101 bps in H1 FY26 reflects successful cost rationalization and back-end optimization despite a challenging demand environment.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
Growth is expected to return in Q4 FY26 (January-March) following a recovery trend from -12% in Q1 to -8% in Q2 and an expected -3% to 0% in Q3. Strategy includes leveraging the GST reduction to 5% to gain market share from the unorganized sector and focusing on products priced below INR 1,000 (90% of portfolio).
Products & Services
Hawai slippers, high-value slippers, casual shoes, and sports shoes.
Brand Portfolio
Relaxo, Sparx, Flite, and Bahaman.
New Products/Services
Not disclosed as a specific percentage of revenue, but the company continuously focuses on innovation in slippers and sports shoes.
Market Expansion
Focusing on increasing penetration in Eastern, Southern, and Western Indian markets where distributors are currently clearing old inventory.
Market Share & Ranking
Not disclosed in absolute percentage, but the company is a leader in the organized footwear segment.
External Factors
Industry Trends
The reduction of GST to 5% for footwear priced below INR 2,500 (covering 98% of Relaxo's portfolio) is a major trend strengthening organized players against the unorganized sector.
Competitive Landscape
Key competition comes from the unorganized sector, which benefits from tax non-compliance, and other organized players in the mass-to-mid footwear segment.
Competitive Moat
Moat is built on brand recognition (Relaxo, Sparx), cost leadership, and a massive distribution network. The sustainability of this moat is supported by a conservative debt-free balance sheet and strong cash equivalents of ~INR 150 Cr.
Macro Economic Sensitivity
Highly sensitive to consumer demand in the mass and mid-market segments, which was soft in H1 FY26, leading to a 7.48% YoY revenue drop in Q2.
Consumer Behavior
Shift toward higher-value slippers and casual/sports shoes from traditional Hawai slippers is a noted trend.
Geopolitical Risks
Subject to global political or economic developments and legislative changes as noted in the Management Discussion & Analysis.
Regulatory & Governance
Industry Regulations
Compliance with BIS standards and environmental norms for PU waste and water management is mandatory and monitored by the Senior Leadership Team.
Environmental Compliance
ESG initiatives include retrofitting DGs, converting diesel vehicles to CNG, and upgrading STPs. The company holds ISO 14001:2015 certification.
Taxation Policy Impact
The company is navigating the transition to GST 2.0 and the inverted duty structure. The GST rate for 98% of its products is now 5%.
Risk Analysis
Key Uncertainties
Uncertainty regarding the implementation of GST 2.0 and its impact on the inverted duty structure and margin refunds. Potential impact on Q3 FY26 results is expected.
Geographic Concentration Risk
Not disclosed, but the company has a significant presence in Northern India and is expanding in other regions.
Third Party Dependencies
Reliance on specific suppliers for raw materials is noted as a risk in the MDA.
Technology Obsolescence Risk
The company is mitigating technology risks through ISO 27001:2022 (Information Security) and investments in efficient manufacturing technologies like PNG-based boilers.
Credit & Counterparty Risk
Receivables quality is reflected in a Debtors Turnover of 7.44 times in FY25.