Relaxo Footwears (RELAXO) Q4 24/25 earnings summary

Executive summary

• FY25 revenue was INR 27.9 billion (₹2,789.6 Cr), down 4.3% year-over-year, with Q4 FY25 revenue at INR 6.95 billion (₹695.2 Cr), mainly due to softer volumes in mid-range and lower-income segments.

• Net profit for FY25 was INR 1.7 billion (₹170.3 Cr), a 15% decline year-over-year; Q4 FY25 PAT at INR 560 million (₹56.2 Cr).

• EBITDA margin for FY25 stood at 13.7%, slightly lower than FY24's 13.95%.

• Company remains net debt-free, with investments of INR 3.57 billion as of March 31, 2025, and capex of INR 620 million (₹42 Cr) in FY25.

• Key initiatives include the Relaxo Parivaar App for retailers, e-commerce expansion, and digital transformation.

Financial highlights

• FY25 EBIT at ₹229.9 Cr (8.2% margin), down from ₹269.3 Cr (9.2%) in FY24.

• Cash generated from operations in FY25 was ₹464 Cr, up from ₹302 Cr in FY24.

• Net worth increased to ₹2,098 Cr in FY25; net debt improved to -₹292 Cr.

• Basic EPS for FY25 was ₹6.84, down from ₹8.05 in FY24.

• Capacity utilization stands at 55%; e-commerce contributed 10% of revenue, unchanged year-over-year.

Outlook and guidance

• Management expects improvement in top-line and EBITDA margin, driven by operational efficiency and product mix.

• Margin improvement of at least 100 basis points is targeted for FY26, supported by cost efficiencies and higher-value products.

• Volume growth is expected to pick up from H2 FY26 as distribution transformation stabilizes.

• Indian footwear market expected to grow at a 10.1% CAGR through 2033, with the organised segment expanding faster.

• Board recommended a final dividend of INR 3.00 per share (300% of face value), totaling INR 74.68 crore for FY25, subject to shareholder approval.