Relaxo Footwears ends FY26 with a 20% jump in quarterly profit
Volume growth and higher operating margins drove a strong finish to the year, even as full-year revenue slipped 3%.
— 2 earlier stories on Relaxo Footwears Ltd. →What's new
- Q4 revenue rose 8% to ₹751 cr, while profit climbed 20% to ₹68 cr.
- Volume growth hit 5 cr pairs in the quarter, up from 4.5 cr a year ago.
- Full-year revenue fell 3% to ₹2,702 cr, despite a 5% increase in annual profit to ₹179 cr.
Why this matters
The jump to 16.5% operating margin from 10.4% in Q3 shows the company is working through cyclical demand pressures. While the full-year revenue decline is a drag, the volume growth in the final quarter provides a clearer signal of recovery than the annual figures.
What we're watching
- Whether the 16.5% margin level is sustainable in the coming quarters.
- If volume growth can offset potential pricing pressure in the mass-market segment.
- The trajectory of input costs in the new fiscal year.
The full read
Relaxo Footwears closed FY26 with a strong fourth quarter, reporting a 20% year-on-year increase in profit to ₹68 crore. Revenue for the quarter rose 8% to ₹751 crore, supported by a volume increase to 5 crore pairs from 4.5 crore a year earlier.
Operating margins rebounded to 16.5% from the 10.4% seen in the third quarter. This sequential improvement points to a cyclical upturn in demand and better operational efficiency. While the full-year revenue fell 3% to ₹2,702 crore, the annual profit still managed a 5% gain to ₹179 crore.
Recovery is here. The next test is whether the company can maintain these margins as it enters the new fiscal year.
Questions answered
- How did Q4 performance compare to the rest of the year?
- Q4 showed a recovery with revenue up 8% and profit up 20%. This contrasts with the full-year performance, where revenue declined 3%.
- What drove the margin improvement in the final quarter?
- Operating margins reached 16.5% in Q4, a jump from the 10.4% recorded in Q3. The company cites improved volume growth as a primary factor.
- How many pairs of footwear did the company sell in Q4?
- Relaxo sold 5 crore pairs during the quarter, compared to 4.5 crore pairs in the same period last year.
- What was the total profit for the full financial year?
- The company reported a full-year profit of ₹179 crore, a 5% increase over the previous year.
Story so far
All notes on RELAXO →- 29 May 2026 · 5:23 AM IST Relaxo Footwears ends FY26 with a 20% jump in quarterly profit
- 1d ago Relaxo lifts capex to ₹180-200 cr, plans 100 stores, cuts trade discounts
- 2d ago Relaxo Footwears profit jumps 20% on Q4 volume recovery