Relaxo Footwears Limited has informed the Exchange about Transcript
RELAXO · price
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Relaxo Footwears posted Q4 FY25 revenue of INR 695 cr (down from INR 747 cr YoY) with EBITDA of INR 112 cr and PAT of INR 56 cr at 8.1% margin. Full-year FY25 revenue stood at INR 2,790 cr with EBITDA margin of 13.7% and PAT margin of 6.1% (vs 6.9% in FY24). The decline was driven by weak demand in the rural and mid-income segments, particularly the Hawai/slippers category, plus short-term pain from distribution restructuring (DMS and Relaxo Parivaar App rollout facing distributor resistance). The company remains net debt-free with INR 357 cr in investments. Management guided for FY26 EBITDA margin improvement of 1%+ through better product mix (premiumization, more sneakers/shoes) and cost efficiencies, with capex of INR 100 cr planned for new moulds, 50 new retail outlets, and energy-saving investments.
Near-term volumes remain soft but management is confident of a recovery in H2 FY26 as distribution transformation settles. Margin expansion guidance and net debt-free balance sheet with INR 357 cr cash provide comfort. Watch for execution of distribution restructuring and premiumization strategy to drive the next leg of growth.