Relaxo Footwears reported an 8% drop in profit for the fourth quarter of FY25, bringing it to ₹56 crore, compared to ₹61 crore in the same period last year. The company’s total income also fell by 7%, reaching ₹627 crore for the quarter ending March 31, 2025.
The company’s profit before tax stood at ₹75.36 crore, down 8.42% from ₹82.29 crore in the fourth quarter of FY24.
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Total expenses decreased by 6.28% year-on-year, totaling ₹627.88 crore in Q4 FY25. The cost of materials used, including packaging, dropped significantly by 25.83% to ₹217.56 crore. Employee-related costs also fell by 11.14% to ₹88.78 crore during this period.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) dropped by 7%, coming in at ₹112 crore, compared to ₹120 crore in Q4 FY24. However, the EBITDA margin stayed stable at 16.1%.
The company has recommended a final dividend of ₹3 per share for the financial year 2024-25, which will be presented for approval at the next annual general meeting (AGM).
Ramesh Kumar Dua, the Chairman and Managing Director of Relaxo Footwears, explained the results, saying that FY25 was a year of restructuring. Despite a drop in revenue due to weak demand in the mid-range footwear segment and changes in the company’s distribution model, these steps were taken to strengthen the business for future growth.
He expressed optimism, saying that the company believes the worst is over, and expects improvement starting in the second half of FY26 as the effects of these changes take hold.
Key changes made by Relaxo include optimizing its distributor and retailer network through the “Relaxo Parivaar” app, switching to a “brand as seller” model, launching a new product line for online sales, setting up a tech-enabled warehouse for shoes, and improving its supply chain.
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Looking ahead, Relaxo’s main goal for FY26 is to achieve profitable growth, focusing on improving EBITDA through better operations, digital initiatives, and a stronger product focus.
Shares of Relaxo Footwears rose by 2.93% to ₹414.15 on the Bombay Stock Exchange (BSE).
