Relaxo Footwears Q1FY27 net profit up 12% to ₹549 crore
Relaxo Footwears posted Q1FY27 standalone revenue of ₹718.01 crore, up 7.8% YoY, with net profit rising 12.3% to ₹54.94 crore. EBITDA margin widened to 15.35% from 15.2%, reflecting improved operational leverage.
*this image is generated using AI for illustrative purposes only.
Relaxo Footwears reported a solid start to the fiscal year, with standalone revenue rising 7.8% year-on-year to ₹718.01 crore for the first quarter ended June 30, 2026. The footwear manufacturer saw its net profit climb 12.3% to ₹54.94 crore, outpacing top-line growth as operating efficiencies contributed to bottom-line expansion.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to ₹110.23 crore from ₹99.5 crore in the corresponding period last year. This improvement was accompanied by a slight widening of the EBITDA margin to 15.35%, up from 15.2% previously, indicating modest leverage on the revenue growth.
Financial Performance
The quarter’s results reflect consistent execution across key financial metrics, with profit growth exceeding revenue gains. The Board of Directors approved the unaudited financial results on August 13, 2026.
| Metric: | Q1 Current | Q1 Prior Year | Change |
|---|---|---|---|
| Revenue: | ₹718.01 crore | ₹665.81 crore | +7.8% |
| EBITDA: | ₹110.23 crore | ₹99.5 crore | +10.5% |
| EBITDA Margin: | 15.35% | 15.2% | +15 bps |
| Net Profit: | ₹54.94 crore | ₹48.90 crore | +12.3% |
What the Numbers Show
A notable divergence exists between revenue growth and net profit acceleration. While top-line sales expanded by 7.8%, net profit surged by 12.3%. This suggests that cost controls or favorable mix shifts allowed Relaxo Footwears to convert a larger proportion of incremental revenue into pure profit, rather than passing all costs through to the bottom line. The simultaneous expansion in EBITDA margin supports the view that operational efficiency improved during the period.
Historical Stock Returns for Relaxo Footwears
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.53% | -6.89% | -0.65% | +10.13% | -8.49% | -66.40% |
Can Relaxo Footwears sustain the current EBITDA margin expansion in Q2 given potential seasonal demand fluctuations?
How will the company allocate its increased net profit between debt reduction, capex for capacity expansion, or shareholder returns?
What specific operational efficiencies drove the 15 basis point margin improvement, and are these measures scalable across all product lines?
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