RELAXO
Micro CapRelaxo Footwears Limited
Consumer
Relaxo Footwears is a leading Indian footwear manufacturer with a diversified portfolio across brands like Hawai, Flite, and Sparx. It operates 9 manufacturing facilities with a capacity of ~10.5 lakh pairs/day and boasts an extensive distribution network including ~70,000+ retailers, ~630 distributors, and 420 Exclusive Brand Outlets.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 80/100Rev +8% YoY · PAT +21% YoY · margin expansion · +12% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹751 Cr | +8.1% | +12.4% |
| EBITDA | ₹124 Cr | +10.7% | +79.7% |
| Operating margin | 17.0% | +100 bps | +700 bps |
| PAT | ₹68 Cr | +21.4% | +151.8% |
| PAT margin | 9.1% | +99 bps | +501 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 saw strong recovery with revenue up 8.05% YoY and PAT up 20.37% YoY, driven by 11.1% volume growth. Full-year FY26 revenue declined 3.13% YoY, and pairs sold decreased 1.7%, though PAT grew 5.25% YoY, supported by improved EBITDA margins.
Q4 FY26 results indicate a positive sequential and YoY recovery in volumes and profitability, suggesting a potential turnaround from the full-year decline in revenue and pairs sold. The sustained improvement in EBITDA margin is encouraging. However, the overall FY26 performance still reflects challenges in top-line growth and average realization.
FY26 Brand-Wise Revenue Mix
Latest issuer-disclosed distribution across 3 reported categories.
Shift to Organized Footwear Market
India's organized footwear market is expected to grow at a 13% CAGR, expanding from ₹674 Bn in 2025 to ₹1,995 Bn by 2034.
Sports & Athleisure Category Growth
Sports & Athleisure is the fastest-growing footwear category, expected to expand at ~10% CAGR, driven by rising health awareness.
Digital Transformation & E-Commerce
Global E-Commerce footwear market is expected to outperform overall market by growing at 4.25% CAGR from 2025 to 2035 to $400 bn.
Overall Indian Footwear Market Growth
Indian Footwear Market is expected to grow at 9.7% CAGR from 2025 to 2034 to ₹4,433 Bn.
Improving Share of Organized Market
Organized market share is projected to increase from 35% in 2025 to 45% in 2034, driven by supportive policy reforms and urbanization.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing annual performance and Q4 recovery against the previous year. QoQ comparison highlights sequential momentum, particularly the strong rebound in Q4 after weaker preceding quarters.
Volume Growth (Pairs Sold)
Q4 FY26 pairs sold increased to 5.0 Cr from 4.5 Cr in Q4 FY25 (+11.1% YoY). FY26 pairs sold decreased to 17.5 Cr from 17.8 Cr in FY25 (-1.7% YoY).
Average Realization per Pair
Q4 FY26 average realization was ₹150, down from ₹153 in Q4 FY25 (-2.0% YoY). FY26 average realization was ₹153, down from ₹156 in FY25 (-1.9% YoY).
EBITDA Margin
Q4 FY26 EBITDA margin improved to 16.51% from 16.12% in Q4 FY25 (+39 bps YoY). FY26 EBITDA margin improved to 13.84% from 13.69% in FY25 (+15 bps YoY).
Distribution Network
Company has ~70,000+ Retailers/Multi-Brand Outlets, ~630 Active Pan-India Distributors, and 420 Exclusive Brand Outlets (EBOs).
Focus on Operational Optimization
Management emphasizes continuous focus on optimizing operations, including dedicated lines for fast-moving SKUs and lean manufacturing.
Cost Optimization in Manufacturing
Focus on cost optimization in manufacturing allows competitive pricing, supported by techniques like Maynard Operation Sequence Technique (MOST).
Strong In-house Manufacturing for Quality
In-house manufacturing helps maintain end-to-end quality by monitoring every stage from designing to final products.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Volume Growth (Pairs Sold) | Q4 FY26: +11.1% YoY; FY26: -1.7% YoY | Sustained positive volume growth across quarters to confirm demand recovery. |
| Average Realization per Pair | Q4 FY26: -2.0% YoY; FY26: -1.9% YoY | Stabilization or improvement in realization per pair, indicating pricing power or premiumization success. |
| EBITDA Margin | Q4 FY26: 16.51%; FY26: 13.84% | Continued margin expansion through cost optimization and operating leverage. |
| Growth in Sparx Brand | Sparx is 41% of FY26 revenue mix. | Performance of the Sparx brand, given its largest contribution to revenue and alignment with the fast-growing sports & athleisure segment. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
43NeutralSMA20 -13.7% / mo
Technical chart
RELAXOdaily · 6M-15.7%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 66.
- SMA20 rising (~1.9% over last month) — short-term momentum positive.
- RSI(14) at 66 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 18% off 52W high · 47% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 12/15 to the score.
- Cash flow contributes 6/10 to the score.
Main drags
- Fair-value margin of safety is negative at -1045.1%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Growth is weaker at 3/25; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 67th percentile of the scored universe and 66th percentile within Consumer. Main check: results consistency is weak at 29/100.
Healthy Trust Lite: Promoter holding is 71.3%. Key concern: 2/8 recent quarters had positive YoY revenue growth.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 66th pctile, median 67 · Micro: 52nd pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 71.3%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2%.
- ▸11 years of positive FCF.
Trust risks
- ▸2/8 recent quarters had positive YoY revenue growth.
- ▸1/8 recent quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 45.80
- P/B
- 3.72
- EV/EBITDA
- 15.91
- Market Cap
- 8216.00Cr
Profitability
- ROE
- 8.33%
- ROCE
- 11.10%
- ROA
- 6.07%
- Dividend Y
- 0.91%
Growth (CAGR)
- Revenue 5Y
- 3.00%
- EPS 5Y
- -9.00%
- Revenue 3Y
- -1.00%
- EPS 3Y
- 5.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- 17.00×
- Altman Z
- 8.64
- Book Value
- 88.60
Cash Flow
- FCF Yield
- 1.75%
- FCF Positive Y
- 10/5
- OCF
- 406.00 Cr
- EPS TTM
- 7.20
Shareholding
- Promoter Hold
- 71.27%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 32%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.