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

Relaxo Footwears Limited has approved an investment of up to ₹2.50 crores in a special purpose vehicle (SPV) to be incorporated by CleanMax Enviro Energy Solutions Limited and its affiliates. The investment aims to set up a group captive solar power project under the Electricity Act, 2003, specifically for the company's manufacturing facilities across Haryana. This strategic move is intended to support the company's energy requirements through renewable sources.

The Board of Directors, at its meeting held on May 28, 2026, accorded approval to subscribe to and acquire equity shares carrying voting rights in the proposed SPV. The company will hold approximately 26% of the equity share capital, making the SPV an associate entity. The consideration for the subscription will be made in cash.

As part of the transaction, Relaxo Footwears will enter into several agreements, including a Term Sheet, Energy Supply Agreement, Investment Agreement (Share Purchase and Shareholding Agreement), and Performance Incentive Agreement with the proposed SPV, CleanMax Enviro Energy Solutions Limited, and other relevant parties.

The proposed SPV will be incorporated in India and will operate within the renewable energy sector. Its primary business will involve the development, operation, and maintenance of captive solar power projects and allied activities. The specific name of the SPV is subject to approval by the Ministry of Corporate Affairs, Government of India.