Relaxo Footwears Q2 Results: Net profit rises 3% as brand portfolio, distribution drive sales

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Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 5.2% to ₹85.3 crore from ₹81.1 crore. The EBITDA margin stood at 12.2%, compared with 12.9% in the corresponding quarter last year.

The country's largest footwear maker, Relaxo Footwears Ltd, on Friday (November 13), reported a 2.8% year-on-year increase in net profit to ₹37 crore for the second quarter of FY27, compared with ₹36 crore in the corresponding period last year.

Revenue from operations rose 11.6% to ₹701.6 crore from ₹628.5 crore in the year-ago quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 5.2% to ₹85.3 crore from ₹81.1 crore. The EBITDA margin stood at 12.2%, compared with 12.9% in the corresponding quarter last year.

For the first half of FY27, Relaxo Footwears reported revenue of ₹1,407 crore, up 9.6% from ₹1,283 crore in the first half of FY26. EBITDA grew 7.1% year-on-year to ₹193 crore, with a margin of 13.8%.

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Profit after tax (PAT) for the first half stood at ₹92 crore, while the PAT margin was 6.5%.

Ramesh Kumar Dua, Chairman and Managing Director, said, "We are pleased to report a steady performance in Q2 and H1 FY27, with growth in Revenue while broadly maintaining EBITDA and Profit After Tax levels. This performance was supported by our diversified brand portfolio, extensive distribution network and disciplined execution amid continued inflationary pressures and softness in mass-market demand.

Maintaining profitability was challenging during the period, as raw material price volatility arising from the continuing conflict in West Asia, together with higher labour costs, exerted pressure on margins. We remained focused on cost management while making selective investments in brand building, distribution capabilities and retail expansion to strengthen the business over the long term.

Expanding our EBO store network and providing consumers with a contemporary shopping environment remain key priorities. We added 16 outlets during the quarter, taking the network to 445 stores, and remain on track to reach 500 EBOs by the end of FY27.

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