New Delhi: Relaxo Footwears is stepping up its premium and mass-premium play with the launch of its Spring Summer 2026 collection, even as near-term demand softness weighed on its second-quarter performance. The company is banking on portfolio expansion, retail refresh and selective offline growth to defend and expand market share in India’s highly fragmented footwear market, a company’s senior official said in a media interaction.
With its new portfolio which has over 250 styles across its Relaxo, Bahamas, Flite and Sparx brands, the company targets all age groups across India. The company’s official said the expanded lineup reflects a shift towards lightweight, comfort-led and versatile footwear, categories where the company sees rising demand across both metro and non-metro markets.
The product push comes against a challenging operating backdrop. Relaxo reported revenue of ₹629 crore in Q2 FY26, down from ₹679 crore a year ago, as demand in the mass segment remained weak and purchases were delayed following GST-related pricing changes. Volumes declined 5 per cent year-on-year to 4.1 crore pairs, while average selling price fell 3 per cent to ₹151 per pair.
Margins, however, remained resilient, as per its Q2 results’ regulatory filing. Its EBITDA stood at ₹81 crore with margins of 12.9 per cent, while profit after tax came in at ₹36 crore. For the first half of FY26, revenue stood at ₹1,283 crore, with EBITDA margins improving to 14.1 per cent and PAT rising 4.9 per cent year-on-year to ₹85 crore, according to the company’s BSE filing.
Growth and Expansion
The company sees premiumisation as a key lever to stabilise growth and capture share from unorganised players. “Comfort, lightness and all-day wearability are increasingly driving purchase decisions, even outside metros,” said Gaurav Kumaar Dua, whole-time director at Relaxo Footwears, pointing to changing consumer preferences across tier 2 and tier 3 cities.
On the retail front, Relaxo currently operates over 400 exclusive brand outlets (EBOs), of which around 50 are franchise-run, with the remainder company-owned. The company is preparing for its next phase of offline expansion while revamping the look and feel of its EBO network. The rollout of the refreshed store format is set to begin next month, followed by a phased expansion across key markets.
Channel-wise, exclusive stores are being positioned to drive premium and new-launch sales, while multi-brand outlets continue to serve value-focused demand. According to Dua, e-commerce and large-format retail are showing relatively stronger momentum, while quick commerce remains limited to a small set of fast-moving SKUs due to inventory constraints at dark stores.
Praising the recent GST reduction, he said footwear priced below ₹2,500 from 12 per cent to 5 per cent is expected to further support organised players like Relaxo by improving price competitiveness in the mass and mid-price segments. Demand has begun to revive as revised pricing flows through the system, he added.
Relaxo is betting that premiumisation, portfolio breadth and offline expansion will help it regain momentum and strengthen its leadership position over the next few quarters, even as near-term demand conditions remain uneven, Dua shared.
