Relaxo Footwears Q2FY26 (Standalone) results

• Relaxo’s revenue declined by 7.5% y-o-y to Rs. 629 crore, missing our expectation of Rs. 675 crore. Revenue decline can be attributed to softness in demand in mass market segments, along with delayed purchases due to the implementation of GST 2.0. During Q2, volume/realisation declined by 4.7%/3.2% y-o-y, respectively.
• Gross and EBITDA margins stood flat y-o-y at 61% and 12.9%, respectively, aided by the company’s consistent efforts to enhance operational efficiencies, disciplined cost management and streamlined backend processes. EBIDTA margin came in lower than our expectation of 13.5%.
• EBITDA fell by 7.4% y-o-y to Rs. 81 crore. Higher other income (up 85% y-o-y) led to 1.6% y-o-y decline in the adjusted PAT to Rs. 36 crore, slightly missing our expectation of Rs. 40 crore.
• View: We shall come out with a detailed note soon. Currently we have a Hold rating on the stock. 

Results (Standalone)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore