India · Delayed Price · Currency is INR Relaxo Footwears Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 saw 8.1% revenue growth and 20.4% PAT growth year-over-year, driven by volume recovery and price hikes offsetting cost inflation. FY26 PAT rose 5.3% despite lower annual revenue, with management guiding for margin improvement and continued expansion in FY27.
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Revenue and profit margins declined year-over-year due to demand softness and GST transition, but operational efficiencies supported margins. GST 2.2 is expected to drive recovery, with growth anticipated from Q4 and into next year.
Fiscal Year 2025
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Revenue and volumes declined year-over-year due to weak demand in lower-income segments and distribution restructuring, but margins remained stable and cash generation was strong. Management expects margin improvement and growth from H2 FY26, driven by operational efficiency, premiumization, and digital initiatives.
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Revenue and profit declined year-over-year due to weak demand and increased competition from unorganized players. Margins remained stable, with premiumization and distribution expansion as key strategies. CapEx for FY25 will exceed INR 100 crore, with cautious optimism for demand recovery in H2.