Relaxo Footwears Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Relaxo Footwears Ltd-$ filed with BSE on 03 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Relaxo Footwears reported Q4 FY26 revenue of INR751 crores, up 8.1% year-on-year, with EBITDA margin at 16.5% and PAT growing 20.4% to INR68 crores. For FY26, revenue was INR2,702 crores versus INR2,790 crores in FY25, while EBITDA margin stood at 13.8% and PAT rose 5.3% to INR179 crores. Management attributed the quarterly growth to a GST rate reduction, distributor restocking, recovery in general trade, and continued growth in retail, e-commerce and large-format retail channels, while also discussing recent price increases taken to offset input cost inflation.
Numbers mentioned
Revenue from operations: INR751 crores (Q4 FY26)
p. 3
“Revenue from operations stood at INR751 crores in Q4 FY26 as against INR695 crores in Q4 FY25, an 8.1% year-on-year growth.”
Ankit Jain, page 3 of the filed PDF · View the filing
EBITDA: INR124 crores (Q4 FY26)
p. 3
“EBITDA for the quarter stood at INR124 crores, registering a growth of 10.6% year-on-year.”
Ankit Jain, page 3 of the filed PDF · View the filing
EBITDA margin: 16.5% (Q4 FY26)
p. 3
“EBITDA margin was at 16.5% in Q4 FY26 as compared to 16.1% in Q4 FY25.”
Ankit Jain, page 3 of the filed PDF · View the filing
Profit after tax: INR68 crores (Q4 FY26)
p. 3
“Profit after tax for Q4 FY26 stood at INR68 crores compared to INR56 crores in Q4 FY25, registering a growth of 20.4% year-on- year.”
Ankit Jain, page 3 of the filed PDF · View the filing
PAT margin: 9.0% (Q4 FY26)
p. 3
“PAT margin expanded by 92 basis points year-onyear to 9.0%, reflecting the company's sustained focus on profitable growth.”
Ankit Jain, page 3 of the filed PDF · View the filing
Revenue from operations: INR2,702 crores (FY26)
p. 3
“For FY26, revenue from operations stood at INR2,702 crores as compared to INR2,790 crores in FY25.”
Ankit Jain, page 3 of the filed PDF · View the filing
EBITDA margin: 13.8% (FY26)
p. 3
“EBITDA for FY26 stood at INR374 crores, while EBITDA margin stood at 13.8% in FY26.”
Ankit Jain, page 3 of the filed PDF · View the filing
Profit after tax: INR179 crores (FY26)
p. 3
“Profit after tax for FY26 stood at INR179 crores as compared to INR170 crores in FY25”
Ankit Jain, page 3 of the filed PDF · View the filing
PAT margin: 6.6% (FY26)
p. 4
“PAT margin in FY26 stood at 6.6% as compared to 6.1% in FY25.”
Ankit Jain, page 4 of the filed PDF · View the filing
Capex: INR130 crores (FY26)
p. 6
“Last year, we incurred around INR130 crores.”
Sushil Batra, page 6 of the filed PDF · View the filing
EBO count: 420 outlets (current)
p. 11
“So we have mentioned in our investor report also that we are currently supplying to 70,000 retailers/MBO outlets. And EBOs are 420 outlets.”
Gaurav Kumaar Dua, page 11 of the filed PDF · View the filing
Sparx brand contribution: 40% (FY26)
p. 11
“So we have 3 major brands. So our contribution from Sparx is around 40%; Hawaii is around 25% and Flite is 35%.”
Sushil Batra, page 11 of the filed PDF · View the filing
Advertising expenditure: 4% to 5% of net sales (FY26)
p. 11
“So our expenditure is roughly around 4% to 5%, and it varies between brand to brand, whatever the requirement is.”
Gaurav Kumaar Dua, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex — INR180 crores to INR200 crores · FY27
stated firmly by Sushil Batra
p. 6
“Next year, we have planned around INR180 crores to INR200 crores. So that's for next year.”
Sushil Batra, page 6 of the filed PDF · View the filing
EBO expansion — 100 new outlets · FY27
stated firmly by Gaurav Kumaar Dua
p. 7
“we are going to open 100 new outlets this year.”
Gaurav Kumaar Dua, page 7 of the filed PDF · View the filing
Operating margin — maybe 1% plus over 13.8%
stated as an aspiration by Sushil Batra
p. 9
“But we intend to do better than last year overall operating margin, which is 13.8%. So it should be better, maybe 1% plus.”
Sushil Batra, page 9 of the filed PDF · View the filing
Volume growth — 4% to 5% · next 2 years
stated as an aspiration by Sushil Batra
p. 10
“Next 2 years, I think we have to be cautious. Intent is there, again, around, I think, 4% to 5% definitely, we want to grow our volume.”
Sushil Batra, page 10 of the filed PDF · View the filing
EBO rollout timing — 30-40% of 100 stores in H1, most by December · CY/FY 2026-27
stated firmly by Sushil Batra
p. 10
“In first half, we will be able to open at least 30%, 40% of the 100. So, by December, most of them should be ready. That is the intent.”
Sushil Batra, page 10 of the filed PDF · View the filing
Ad spend ratio — 4% to 5% of net sales · FY27
stated firmly by Gaurav Kumaar Dua
p. 11
“Yes, correct. We try to maintain what we are going to spend on advertisement.”
Gaurav Kumaar Dua, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the underlying like-for-like growth was around 5-6% over two quarters, after distributor stock liquidation.
Answered by Gaurav Kumaar Dua
Asked by Sameer Gupta: How should growth be interpreted given GST-driven destocking/restocking and rising distributor count?
p. 4
“Actually, the full impact we started seeing after December onwards. So you can definitely say that 5% to 6%, we were able to grow in 2 quarters.”
Gaurav Kumaar Dua, page 4 of the filed PDF · View the filing
Management confirmed a blended price increase of 15-18% against a cost increase of around 15-20%.
Answered by Gaurav Kumaar Dua
Asked by Sameer Gupta: What quantum of price hikes has the company taken versus cost inflation?
p. 5
“So roughly around 15% to 18% is the increase. In some categories, it is lesser and some categories, it is more.”
Gaurav Kumaar Dua, page 5 of the filed PDF · View the filing
Management indicated the price increases would remain given expectations that wage costs will not decline.
Answered by Ramesh Kumar Dua
Asked by Avinash Karumanchi: If raw material costs normalize, would the company roll back price hikes?
p. 7
“No. I don't think there is any possibility that raw material will settle down soon. So this price increase will remain.”
Ramesh Kumar Dua, page 7 of the filed PDF · View the filing
Management attributed the margin improvement to back-end cost reduction, volume growth, reduced discounts, and a small price increase.
Answered by Gaurav Kumaar Dua
Asked by Yogesh Bathia: Why were margins higher this quarter—was it an inventory gain or price hikes?
p. 10
“There are 2, 3 reasons for that. One was that a lot of back-end work is done in the plant to reduce the cost.”
Gaurav Kumaar Dua, page 10 of the filed PDF · View the filing
Management said it expects to sustain Q4 performance broadly but flagged uncertainty from the geopolitical environment.
Answered by Sushil Batra
Asked by Shraddha Kapadia: Can management give revenue and margin guidance for modelling purposes?
p. 8
“Outlook, we are confident. Definitely we'll sustain what we performed in Q4, but, geopolitical situations are so uncertain.”
Sushil Batra, page 8 of the filed PDF · View the filing
Management said April and May were better but it was too early to draw conclusions for June.
Answered by Gaurav Kumaar Dua
Asked by Archana Gude: Has demand continued into Q1 FY27's first two months?
p. 6
“It's too early to say, but April and May were better. May is still going on. And let us see how June goes.”
Gaurav Kumaar Dua, page 6 of the filed PDF · View the filing
Risks flagged
Geopolitical situation causing inflationary pressure that could affect consumer sentiment
p. 4
“we must tread with caution due to the uncertain external environment amidst the ongoing geopolitical situation causing inflationary pressure, which could affect consumer sentiment.”
Ankit Jain, page 4 of the filed PDF · View the filing
Uncertain full impact of price increases on demand and consumption patterns
p. 4
“a full impact on demand and consumption pattern is still evolving and requires close monitoring.”
Ankit Jain, page 4 of the filed PDF · View the filing
Labor cost increases in certain states, notably Haryana
p. 4
“in few states, labor cost has also been increased by the government.”
Sushil Batra, page 4 of the filed PDF · View the filing
Raw material cost inflation impacting the cost basket
p. 7
“Now this time, it is there, but it’s not that high. Now things are settling also.”
Sushil Batra, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.