Relaxo Footwear Q1 FY27 Results (NSE: RELAXO)
Signal: Steady quarter
The read
The key inflection is profit growth ahead of revenue: revenue rose 7.7% YoY to ₹705.05 Cr, EBITDA rose 9.4% to ₹121.19 Cr and EBIT rose 13.9% to ₹80.98 Cr, while PAT increased 12.4% to ₹54.94 Cr; this supports an improving operating trajectory, although the reported XBRL EBITDA and margin differ from the accompanying press-release figures.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹705.05 Cr | 7.7% | N/A |
| EBIT | ₹80.98 Cr | 13.9% | |
| Net profit | ₹54.94 Cr | 12.4% | |
| EPS | ₹2.21 | 12.8% | |
| EBIT margin | 17.2% |
P&L walk
Standalone revenue reached ₹705.05 Cr, up 7.7% YoY on broad-based channel growth; EBITDA was ₹121.19 Cr, up 9.4%, while the 17.2% operating margin and ₹54.94 Cr PAT, up 12.4%, show profit growth ahead of sales despite elevated raw-material prices.
Key positives
- PAT increased 12.4% YoY to ₹54.94 Cr, ahead of revenue growth of 7.7% to ₹705.05 Cr.
- EBIT rose 13.9% YoY to ₹80.98 Cr, indicating stronger profit conversion than the 7.7% sales growth.
- EPS grew 12.8% YoY to ₹2.21 and broadly tracked PAT growth, with no dilution signal from the disclosed figures.
- Management is targeting an EBO network closer to 500 stores by FY27 year end, supporting wider consumer access and the premium product portfolio.
Key concerns
- Management cited elevated raw-material prices and geopolitical uncertainties; maintaining the reported 17.2% operating margin will depend on continued cost optimisation and product-mix improvement.
- The planned expansion toward 500 EBO stores creates execution and investment risk if new outlets do not generate adequate productivity.
Research and educational content only. Not investment advice.