Relaxo Footwears Limited Earnings Summary — Q1 FY2027
Relaxo Footwears Maintains Clean Balance Sheet Amidst Market Transition and Commodity Volatility
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 6.1% sequentially in Q1 FY2027.
- Revenue of ₹705 Cr is 7.7% higher year-on-year.
- Revenue has compounded at -2.5% annualised over the last 10 quarters.
- Net profit of ₹55 Cr is 12.4% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -4.8% annualised across the period.
- Operating margin stands at 15.3% in Q1 FY2027.
- Operating margin expanded by 15 bps year-on-year.
- Over the last two years operating margin has expanded by 213 bps.
- PBT margin is 10.7%.
- Expense growth of 7.5% remained below revenue growth of 7.7%.
- Operating profit of ₹108 Cr is 8.8% higher year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 51/100 (Moderate) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 705 | 751 | 668 | 629 | 654 | 695 | 667 | 679 | 748 | 747 |
| Expenses | Stable | 597 | 627 | 599 | 547 | 555 | 583 | 584 | 592 | 649 | 627 |
| Operating Profit | Accelerating | 108 | 124 | 69 | 81 | 99 | 112 | 83 | 88 | 99 | 120 |
| Operating Margin | Accelerating | 15.3% | 16.5% | 10.4% | 12.9% | 15.2% | 16.1% | 12.5% | 12.9% | 13.2% | 16.1% |
| Other Income | Improving | 13 | 12 | 11 | 12 | 11 | 8 | 7 | 7 | 5 | 5 |
| Interest | Stable | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 |
| Depreciation | Stable | 40 | 39 | 39 | 39 | 40 | 39 | 40 | 40 | 39 | 38 |
| Profit Before Tax | Volatile | 75 | 91 | 36 | 49 | 66 | 75 | 45 | 50 | 60 | 82 |
| Tax | Volatile | 20 | 23 | 9 | 13 | 17 | 19 | 12 | 13 | 16 | 21 |
| Net Profit | Volatile | 55 | 68 | 27 | 36 | 49 | 56 | 33 | 37 | 44 | 61 |
| Net Margin | Volatile | 7.8% | 9.0% | 4.0% | 5.8% | 7.5% | 8.1% | 5.0% | 5.4% | 5.9% | 8.2% |
Key Takeaways
- Promoter holding remains exceptionally stable at 71.27%, signaling strong long-term commitment.
- Institutional interest shows a slight shift as DII holding decreased marginally to 9.74% from a peak of 10.55%.
- Company is facing significant margin pressure due to volatile raw material costs, particularly EVA and Rubber.
- Revenue growth has entered a 'Weak' phase of recovery with a TTM focus on defending market share.
- Strong brand recall for Sparx, Flite, and Bahamas continues to drive the 'affordable fashion' strategy.
- The balance sheet remains a core strength with a high interest coverage ratio and zero net debt.
- Management is actively navigating competition from both unorganized players and new digital-first brands.
- Operating cash flows remain positive despite the headwinds in profitability metrics.
Management Guidance
Management remains focused on maintaining its 'Value-for-Money' leadership while navigating commodity price volatility and volume stagnation in rural segments.
Sentiment Shift
Stable
The company is in a transition period; while growth has slowed, the fundamental balance sheet strength and promoter commitment prevent a negative outlook.
Outlook
The outlook is balanced by Relaxo's dominant market position in the mass segment against the cyclical pressure of raw material costs and lower rural realizations.
From the Annual Report (Key Quotes)
“Management communication is characterized by transparency, often admitting to short-term margin pressures.”
“Current market dynamics suggest a transition period defending market share against unorganized players.”
“Strategy of 'affordable fashion' has successfully navigated India's complex demographics.”
Official Quarterly Documents
This summary is AI-generated from Relaxo Footwears Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.