# Relaxo Footwears Q2 Results: Net profit rises 3% as brand portfolio, distribution drive sales — retained record

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source: [news](https://highsignal.app/data/news) (news:india-cnbc-tv18)  published 2026-11-13 17:54 ingested 2026-11-14 03:04

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Relaxo Footwears Q2 Results: Net profit rises 3% as brand portfolio, distribution drive sales
- Published OnNov 13, 2026 | 20:55 IST
- Last Updated OnNov 13, 2026 | 23:24 IST
Expanding retail storefronts and a diversified brand portfolio helped offset raw material volatility and softer mass-market demand to drive top-line growth. Management remains focused on aggressive store additions and premium product mix. Discover how upcoming festival demand is expected to impact margins.
The country's largest footwear maker, Relaxo Footwears Ltd, on Friday (November 13), reported a 2.8% year-on-year increase in net profit to ₹37 crore for the second quarter of FY27, compared with ₹36 crore in the corresponding period last year.
Revenue from operations rose 11.6% to ₹701.6 crore from ₹628.5 crore in the year-ago quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 5.2% to ₹85.3 crore from ₹81.1 crore. The EBITDA margin stood at 12.2%, compared with 12.9% in the corresponding quarter last year.
For the first half of FY27, Relaxo Footwears reported revenue of ₹1,407 crore, up 9.6% from ₹1,283 crore in the first half of FY26. EBITDA grew 7.1% year-on-year to ₹193 crore, with a margin of 13.8%.
ALSO READ | Relaxo Footwears Q3 FY26 profit falls 20% to ₹26.5 crore despite stable revenue
Profit after tax (PAT) for the first half stood at ₹92 crore, while the PAT margin was 6.5%.
Ramesh Kumar Dua, Chairman and Managing Director, said, "We are pleased to report a steady performance in Q2 and H1 FY27, with growth in Revenue while broadly maintaining EBITDA and Profit After Tax levels. This performance was supported by our diversified brand portfolio, extensive distribution network and disciplined execution amid continued inflationary pressures and softness in mass-market demand.
Maintaining profitability was challenging during the period, as raw material price volatility arising from the continuing conflict in West Asia, together with higher labour costs, exerted pressure on margins. We remained focused on cost management while making selective investments in brand building, distribution capabilities and retail expansion to strengthen the business over the long term.
Expanding our EBO store network and providing consumers with a contemporary shopping environment remain key priorities. We added 16 outlets during the quarter, taking the network to 445 stores, and remain on track to reach 500 EBOs by the end of FY27.
ALSO READ | Relaxo Footwears Q2 results: Margins hold despite demand softness
We have also refreshed our EBO store format in line with changing consumer expectations. The redesigned stores feature improved merchandising, greater product visibility and dedicated brand zones, facilitating easier navigation and providing an enhanced platform to showcase our premium offerings.
As we enter the second half of FY27, our focus remains on growing revenue, improving product mix, driving operating efficiencies and expanding our consumer reach. Our established brands, expanding retail network and product innovation will support us as we prudently navigate the evolving external environment and continue to strengthen the business for the long term."
Shares of Relaxo Footwears Ltd ended at ₹300.00, down by ₹0.60, or 0.20%, on the BSE.
ALSO READ | Relaxo Footwears Q1 net profit, margins expand; revenue slides
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