Company Overview

Relaxo Footwears Limited (BSE: 530517, NSE: RELAXO) filed its Annual Report for FY 2025-26 along with notice convening the 42nd Annual General Meeting. The regulatory filing pursuant to SEBI Regulation 34(1) provides comprehensive financial and operational performance details.

Financial Performance

Revenue & Profitability:

  • Revenue from Operations: ₹2,702.16 Cr (FY26) vs ₹2,789.61 Cr (FY25) - decline of 3.13%
  • Net Profit: ₹179.27 Cr (FY26) vs ₹170.33 Cr (FY25) - increase of 5.25%
  • EBITDA: ₹373.98 Cr with margin of 13.84%
  • EPS Basic: ₹7.20 (FY26) vs ₹6.84 (FY25)

Balance Sheet & Cash Flow:

  • Total Equity: ₹2,206.36 crore
  • Property, Plant & Equipment: ₹966.37 crore (Net carrying amount)
  • Right-of-Use Assets: ₹390.00 crore
  • Cash & Cash Equivalents: ₹17.69 crore
  • Cash from Operating Activities: ₹348.25 crore
  • Capital Expenditure: ₹136.47 crore on property, plant and equipment

Dividend Declaration & Capital Structure

The Board recommended a final dividend of 350% (₹3.50 per equity share of ₹1 each) aggregating ₹87.13 Crores, subject to shareholder approval at the AGM. Record Date is set for September 18, 2026. The company maintained unchanged authorized share capital of ₹51.00 Crores and paid-up share capital of ₹24.89 Crores.

Operational Highlights

  • Manufacturing: 9 state-of-the-art plants across Bahadurgarh, Bhiwadi, and Haridwar
  • Sales Volume: 17.47 Crore pairs sold (FY26) vs 17.75 Crore pairs (FY25)
  • Retail Presence: 420 Exclusive Brand Outlets and presence in 37 countries
  • Exports Contribution: 4.65% of total turnover (₹128.03 Crores)

Management Changes & Appointments

Significant management changes occurred during FY26:

  • Mr. Sushil Batra relinquished CFO role on May 15, 2025
  • Mr. Prince Jain served as CFO from May 16, 2025 to March 11, 2026
  • Mr. Amit Roy appointed CFO from April 1, 2026
  • Mr. Gaurav Kumaar Dua redesignated as Co-CEO & Whole-time Director
  • Mr. Ritesh Dua redesignated as Co-CEO effective April 1, 2026

The notice includes proposals for reappointment of key managerial personnel including Mr. Nikhil Dua, Mr. Gaurav Kumaar Dua, and Mr. Sushil Batra.

Strategic Initiatives & Investments

  • Solar Power Investment: Board approved investment of up to ₹2.50 Crores in Clean Max MUOI Private Limited for group captive solar power project
  • Digital Transformation: Expanded adoption of DocuSign for paperless operations
  • Warehouse Management System: Successful pilot enabling curated size assortments to distributors
  • Brand Ambassador: Onboarded actress Sanya Malhotra as brand ambassador for Flite brand

Credit Ratings & Financial Position

Maintained strong credit ratings of ICRA AA/Stable (long-term) and ICRA A1+ (short-term) with no outstanding debt instruments. The company demonstrated robust financial health with adequate internal financial controls and no material weaknesses observed.

ESG & Sustainability Initiatives

  • Renewable Energy: 54x increase in renewable energy consumption YoY; installed 6MW solar capacity
  • Water Conservation: Implemented Zero Liquid Discharge at RFL-9 facility; constructed 11 check dams/anicut benefiting 12,000 people and 550 hectares irrigation
  • CSR Expenditure: ₹29.11 Lacs spent on education, skill development, and environment conservation
  • Certifications: Maintained ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO 27001:2022

Corporate Governance & Compliance

  • Board Composition: 10 Directors (1 Chairman & MD, 4 Whole-time Directors, 5 Independent Directors)
  • Board Meetings: 6 meetings held during FY26 with strong attendance
  • Regulatory Compliance: Filed all required returns within stipulated timelines; no material penalties imposed
  • Secretarial Audit: No qualifications or adverse remarks in Secretarial Audit Report

Contingent Liabilities & Commitments

Contingent Liabilities: ₹183.08 crore comprising tax matters (₹58.21 crore), interest on entry tax (₹104.63 crore), and industrial plot demands (₹20.24 crore)

Capital Commitments: ₹34.52 crore (net of advances)

Export Obligations: ₹63.79 crore under EPCG scheme

Related Party Transactions

All transactions entered on arm's length basis totaling ₹53.24 crore in dividends and ₹15.24 crore in salaries and benefits. No materially significant transactions requiring shareholder approval.

AGM Details & Important Dates

  • 42nd AGM Date: September 24, 2026 at 10:30 AM via Video Conferencing
  • Record Date for Dividend: September 18, 2026
  • Dividend Payment: On or before October 23, 2026

Business includes consideration of financial statements, dividend declaration, and appointment/reappointment of directors.

Forward Outlook

The company remains focused on strengthening market position through brand building, distribution expansion, product innovation, and operational efficiency improvements while maintaining strong corporate governance standards and sustainability initiatives.