Relaxo Footwears Limited has incorporated a Special Purpose Vehicle (SPV), Clean Max MUOI Private Limited, to develop captive solar power projects for its manufacturing facilities. The company will invest up to ₹2.50 crores to acquire approximately 26% equity share capital in the SPV. This strategic initiative aims to meet green energy requirements, optimize energy costs, and comply with regulatory norms under the Electricity Act, 2003.

The Ministry of Corporate Affairs issued the Certificate of Incorporation for Clean Max MUOI Private Limited on June 13, 2026. The SPV has an authorized share capital of ₹30,00,000 and a paid-up capital of ₹1,00,000. It is a newly incorporated entity with nil turnover, as business operations are yet to commence. The proposed acquisition is expected to be completed within approximately 60 days from the date of incorporation.

Clean Max MUOI Private Limited will operate exclusively in India, focusing on the development, operation, and maintenance of renewable energy projects. Upon completion of the acquisition, the SPV will become an associate of Relaxo Footwears. The transaction does not constitute a related party transaction, and the promoter group does not hold any interest in the SPV.

Key Details of Clean Max MUOI Private Limited

The SPV is established to supply renewable energy to relaxo footwears 's manufacturing facilities across Haryana. This aligns with the company's objective to enhance sustainability and reduce operational costs through captive power consumption.

Relaxo Footwears Limited has reported a net profit of ₹179.27 crore for the financial year ended March 31, 2026, representing a 5.3% increase from the previous year. The company's board recommended a final dividend of ₹3.50 per equity share, equivalent to 350% of the face value of Re. 1 per share, subject to shareholder approval. The record date to determine member eligibility for the dividend payout has been fixed as September 18, 2026.

Revenue from operations for FY26 moderated to ₹2,748.36 crore compared to ₹2,816.57 crore in the previous year. The strong annual performance was supported by a robust fourth quarter, where net profit rose 20.4% year-on-year to ₹67.67 crore. Total income from operations for Q4FY26 stood at ₹762.76 crore.

Financial Performance

The audited financial results were approved by the Board of Directors during its meeting held on May 28, 2026. Ramesh Kumar Dua, Chairman and Managing Director, signed the results on behalf of the board. The company's earnings per share (EPS) for the full year improved to ₹7.20 from ₹6.84 in the previous year.

Management Commentary

Ramesh Kumar Dua, Chairman and Managing Director, attributed the quarterly performance to sales transformation initiatives and in-house manufacturing capabilities. The management expressed cautious optimism for FY27, citing inflationary pressures but affirming a commitment to sustainable performance and calibrated price increases to offset input costs.

During an investors' conference call held on May 29, 2026, management highlighted that revenue growth in Q4 was driven by volume growth amidst a recovery in the general trade channel. EBITDA for the quarter stood at ₹124 crore, with a margin of 16.5%, while PAT margin expanded to 9.0%. For the full year FY26, EBITDA was ₹374 crore with a margin of 13.8%.

Management stated that the company has taken calibrated price increases of 15% to 18% to offset input cost inflation and labor cost hikes, particularly in Haryana. They indicated that these price hikes are likely to remain. Looking ahead, the company plans to open 100 new Exclusive Brand Outlets (EBOs) and has planned a capital expenditure of ₹180 crore to ₹200 crore for the next year. The company intends to improve operating margins beyond the FY26 level of 13.8%.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE131B01039/66834bbd4c1a4cc2.pdf